AFRICAN DEVELOPMENT BANK GROUP

SOCIAL INCLUSION AND COHESION ENHANCEMENT SUPPORT

PROGRAMME (PARICS)

COUNTRY: REPUBLIC OF COTE D’IVOIRE

APPRAISAL REPORT

OSHD

May 2014

Translated Document

TABLE OF CONTENTS

I. THE PROPOSAL 1

II. COUNTRY AND PROGRAMME CONTEXT 2

2.1 Programme Linkages with Country Strategy and Objectives 2

2.2 Recent Economic and Social Developments, Prospects, Constraints and Challenges 2

2.3 Social Cohesion and related Programme 6

2.4 Bank Portfolio Status 7

III. RATIONALE, KEY DESIGN ELEMENTS AND SUSTAINABILITY 7

3.1 Linkage with CSP, Country Readiness Assessment and Analytical Underpinnings 7

3.2 Collaboration and Coordination with the other Donors 7

3.3 Outcomes and Lessons Learned from Similar Past or Ongoing Operations 8

3.4 Linkages with Bank Operations 9

3.5 Bank’s Value Added and Comparative Advantages 9

3.6 Application of Good Practices Principles on Conditionality 9

3.7 Application of Bank Policy on Grants 9

IV. PROPOSED PROGRAMME AND EXPECTED OUTCOMES 10

4.1 Programme Goal and Objectives 10

4.2 Programme Components 10

4.3 Financing Requirements and Arrangements 12

4.4 Sustainability 13

4.5 Programme Beneficiaries 13

4.6 Impact on Poverty and Gender 13

4.7 Impact on the Environment and Climate Change 14

V. IMPLEMENTATION, MONITORING AND EVALUATION 14

5.1 Implementation Arrangements 14

5.2 Monitoring and Evaluation Arrangements 15

VI. LEGAL INSTRUMENTS AND AUTHORITY 15

6.1 Legal Instruments 15

6.2 Conditions precedent to Bank Intervention 15

6.3 Compliance with Bank Group Policies 16

VII. RISK MANAGEMENT 17

VIII. RECOMMENDATION 17

___________________________________________________________________________ This report was prepared by a team led by Mr. P. DOUGNA, Chief Socio-Economist, OSHD.1. The team also

comprised Mr. P. YEMBILINE, Chief Economist, ORWA; Mr. N. KACEM, Chief Agro-Economist, OSAN.1;

Mrs. N. CONTE, Regional Procurement Coordinator; Mrs. M. DIOP LY, Principal Health Analyst, OSHD.3; M.

A. EYEGHE, Principal Social Protection Specialist, OSHD1; Mr. Emmanuel NYIRINKWAYA, Procurement

Specialist, ORSF.1; Mr. O. OUATTARA, Principal Financial Management Specialist, ORPF.2; Mr. K.

AMOUZOUVI, Education Economist, OSHD.2/TGFO, and Mr. F. MANAI, Consultant, GECL1. Questions on

this report should be referred to Mr. K. J. LITSE, Acting Regional Director, ORWA; Mrs. A. SOUCAT, Director,

OSHD; or Mr. M. YOUSSOUF, Division Manager, OSHD.1.

i

List of Annexes

Tables

Graphs

List of Technical Annexes

Technical Annex 7: Social Cohesion Reconstruction Arrangements

Currency Equivalents

(April 2014)

Currency Unit = CFA Franc

UA 1 = CFAF 735.328

UA 1 = EUR 1.121

UA 1 = USD 1.545

Fiscal Year

January- December

Annex 1: General Policy Letter

Annex 2: Matrix of Measures

Annex 3: Fulfilment status of conditions precedent to disbursement of the

first tranche

Table 1: Conditions precedent to sector budget support

Table 2: Government financing requirements and sources (2012-2015)

Table 3: Risks and mitigation measures

Graph 1: Human Development Index

Graph 2: Regional Disparities

Technical Annex 1 : Macro-economic Data

Technical Annex 2 : Financial Risk Assessment

Technical Annex 3 : Main analytical works used

Technical Annex 4 : Main partners intervening in social cohesion

Technical Annex 5: Ex-Combatants’ Reintegration Programme

Technical Annex 6: Rural Land Tenure

ii

Acronyms and Abbreviations

ADB African Development Bank

ADDR Disarmament, Demobilization and Reintegration Authority

ADF African Development Fund

AFD French Development Agency

BCEAO Central Bank of West African States

CDVR Dialogue, Truth and Reconciliation Committee

CSP Country Strategy Paper

EIG Economic Interest Group

FRG Federal Republic of Germany

FSF Fragile States Facility

GBV Gender-Based Violence

GDP Gross Domestic Product

HDI Human Development Index

HIPC Heavily Indebted Poor Country

IMF International Monetary Fund

INS National Institute of Statistics

MEEASFP Ministry of State in charge of Employment, Social Affairs and Vocational Training

MINAGRI Ministry of Agriculture

MPD Ministry of the Plan and Development

MSFFE

MPMEF Ministry under the Prime Minister in charge of the Economy and Finance

MRAH Ministry of Animal and Water Resources

MSFFE Ministry of Family Solidarity, Women and Children

NGO Non-Governmental Organization

ONUCI United Nations Operation for Cote d’Ivoire

OSCS Solidarity and Social Cohesion Observatory

PAIMSC Multi-Sector Institutional Support Project for Exiting the Crisis

PAP Priority Action Plan

PCR Project Completion Report

PEFA Public Expenditure and Financial Accountability

PNCS National Social Cohesion Programme

PND National Development Plan

PPP Public-Private Partnership

PSO Programme Support Operation

PURSSAB Emergency Programme for Restoration of Basic Social and Administrative Services

TFP Technical and Financial Partner

UNDP United Nations Development Programme

USD United States Dollar

Nis WAEMU West African Economic and Monetary Union

iii

GRANT INFORMATION

Client Information

DONEE: Republic of Cote d’Ivoire

EXECUTING AGENCY: Ministry of the Plan and Development

Financing Plan

Source Amount Instrument

FSF UA 27.54 million

ADF UA 2.43 million

GVT

Others EU : EUR 55 million;

UN : USD 14 million;

Japan : USD 2 million;

AFD : EUR 20 million

ADF Financing Information

Grant Currency

UA

Type of Interest Rate Not Applicable

Base Rate (Floating) Not Applicable

Interest Rate Margin Not Applicable

Financing Margin: Not Applicable

Commitment Fee Not Applicable

Other Fees Not Applicable

Duration 2 years (2014 and

2015)

Grace Period Not Applicable

Activities Date

1. Concept Note Approval 31 March 2014

2. Appraisal 9 to 19 April 2014

3. Country Team 13 May 2014

4. Operations Committee Not Applicable

5. Negotiation of Grant Agreement 21-22 May 2014

6. Board Presentation 25 June 2014

7. Signature of Grant Agreement 27 June 2014

8. Effectiveness 27 June 2014

9. Disbursement of 1st Tranche 10 July 2014

10. Mid-Term Review 15 to 25 March 2015

11. Disbursement of 2nd Tranche 1 May 2015

12. Final Review 15-25 February 2016

13. Completion Report 15 March 2016

iv

EXECUTIVE SUMMARY

Programme

Overview

The Social Inclusion and Cohesion Enhancement Support Programme (PARICS) mainly seeks

to support Cote d’Ivoire in its efforts to restore social cohesion, improve social inclusion so as

to address the social and psychological damage caused by the past conflict, as well as nip

conflicts in the bud to guarantee greater political stability and more equitable economic growth.

The support for PARICS is estimated at UA 30 million, to be disbursed in two tranches on the

basis of triggers identified by Government and discussed with development partners. In order

to harmonize aid, the programme was prepared with the Government following discussions

with key development partners involved in social cohesion. However, PARICS is not a joint

programme, but a programme developed mainly in consultation with the European Union, the

French Cooperation Agency, the United Nations System, and Japan.

Programme

Outputs

The main expected outputs are: (i) the socio-economic reintegration of ex-combatants; and (ii)

support for the resolution of inter-community conflicts and care of victims. The expected

outcomes are: (i) professional integration of about 15,500 ex-combatants, 2,000 of them women

into producers’ groups; (ii) demarcation of land for about 1,760 village communities to benefit

at least 3.5 million people; and (iii) free care and medical certificates for women who are GBV

victims.

Needs

Assessment and

Relevance

The financial support of UA 30 million, which represents about 8% of the budget deficit for

2014 and 2015, will be used to finance urgent measures and activities relating to: (i) care for

victims, (ii) the social and economic integration of ex-combatants, which fell far behind

schedule between 2008 and 2012, and (iii) the resolution of rural land-related conflicts. The

support will also help to strengthen the capacity of Government departments tasked with social

cohesion interventions. The intervention areas of PARICS are relevant to the CSP and PND

priorities. Indeed, the programme draws on the National Development Programme (PND), Cote

d’Ivoire’s Country Strategy Paper (CSP) for 2013-2017, and the specific strategies and action

plans of ADDR, PNCS and CDVR which are covered by the programme. Furthermore, the

programme supplements PURSSAB interventions in its capacity building component, as well

as ongoing programmes in the agriculture and transport sector, and the vocational training

project.

Bank’s Value

Added

The Bank’s value added in this operation lies in the experience and lessons learned from

previous programmes, especially PURSSAB and PAIMSC which supported women GBV

victims and the socio-economic reintegration of people in areas affected by the conflict. The

Bank also enjoys comparative advantage acquired from national ex-combatants’ socio-

economic reintegration programmes (Burundi, Congo, Democratic Republic of Congo, Guinea

Bissau, and Central African Republic) and the sub-regional programme managed by the

Transitional Demobilization and Reintegration Programme (TDRP) Trust Fund financed to the

tune of 62% by ADB. The Bank has also supported the design and implementation of ex-

combatants’ reintegration programmes in 10 African countries.

Institutional

development and

knowledge

building

PARICS will help to enhance overall coordination and monitoring of social cohesion

interventions. The programme will also contribute to institutional development by funding the

validation of the national social cohesion policy and backing the adoption and implementation

of orders allowing administrative structures to effectively implement social cohesion actions.

By analyzing key reviews and studies conducted with ADDR and innovative reintegration

projects on the green economy, PARICS will help to improve knowledge on the challenges of

social cohesion through the reintegration of ex-combatants.

v

RESULTS-BASED LOGICAL FRAMEWORK

LOGICAL FRAMEWORK BASED ON EARLY RESULTS

Project Country and Name: Cote d’Ivoire : Social Inclusion and Cohesion Enhancement Support Programme

(PARICS)

Project Goal: Contribute to the reintegration of ex-combatants, land security and the psycho-social care of

victims of conflicts in Cote d’Ivoire

Results Chain

Performance Indicators Means of

Verification

Risks /

Mitigation

Measures Indicator (including CSIs)

Baseline

Situation Target

Imp

act

Improvement of

social inclusion

(1) Rate of reintegration of groups

at risk

(2) Rate of resolution of inter-

community conflicts through

mediation

36.7% (2013)

32% (2012)

95% (2016)

60 % (2016)

INS /

ADDR/MIS

Eff

ect

s

1. The ex-

combatants are

better integrated

into social life

1.1. Proportion of male ex-

combatants re-socialized and

trained in various trades

1.2 Proportion of female ex-

combatants re-socialized and

trained in various trades

37% (2013)

20% (2013)

95% (2016)

100% (2015)

ADDR reports

Risk: Rise in social

unrest and political

tensions during

elections in 2015

Mitigation

Measure:

Reform of election

organs;

Continuation of the

DDR process, IEC

campaign targeting

citizens and

pursuance of the

economic recovery

effort.

Proportion of ex-combatants

integrated into active life

37.0% (2013) incl.

17% female ex-

combatants

95% (2016)

ADDR / ME-

MEASFP

reports

2. Peace and

social cohesion

are enhanced

2.1 Percentage of village land

demarcated and secured in the

West and North-East

2.2 Percentage of victims

receiving psycho-medical care

2.3 Rate of medical, psychological

and legal care for GBV victims

15% (2013)

30% (2013) incl.

50% women

56% (medical) and

50% (legal) 2012

At least 70% (2016)

50% (2016) incl.

75% women

At least 80%

(medical) and 70%

legal (2016)

Reports of

MSFFE/

OSCS,

Ministries

MINAGRI/

MIS

Ou

tpu

ts

Component 1: Support for reintegration of ex-combatants Risk: High

proportion of ex-

combatants fail

at their jobs

Mitigation

Measure:

Certificated

training,

formation of

EIGs, choice of

profitable

integration

activities and

mentoring given

to EIGs

Re-socialization,

training for

employment and

creation EIGs

for the ex-

combatants is

ensured

Number of male and female

combatants re-socialized and

trained in various trades

27 116 incl. 3%

women (2013)

At least 70 068

(incl. 95% women

(2016)

ADDR/ ME-

MEASFP

reports Number of ex-combatants

economically integrated and

mentored

27 116 incl. 3%

women (2013)

At least 70 068

(incl. 95% women

(2016))

Component 2: Support for resolution of causes of inter-community conflicts and care for

victims

2.1Securing of

rural land tenure

to prevent inter-

community

conflicts

Proportion of villages that establish

their land demarcation and

management committees

10% (2013) At least 70% (2016)

MINAGRI/

MIS MESFFE

reports

vi

Number of prefectoral land

management committees

established and comprising at least

40% women

0% out of a 15%

(2013)

At least 70% in

2016

MSP/PNCS/M

SFE reports

Risk: Slow and

improper use of

allocated resources

Mitigation

Measure:

Permanent

communication and

public

dissemination of

the activities,

results and identity

of beneficiaries

Percentage of village lands legally

demarcated

0% out of a total

of 15% (2013)

At least 1760

(2016)

2.2. Strengthen

dialogue and

mediation/

social cohesion

mechanisms

Percentage of local surveillance

and social cohesion preservation

committees commissioned and

comprising at least 40% women

25 (2013) 50 (2016) MC/PNCS

Number of central structures in

charge of enhanced social cohesion 4 (2013) 4 (2015) MPD/PNCS/

Number of campaigns for peaceful

election in conflict-prone areas 0 (2013)

15 most affected

sub-prefectures

(2015)

2.3 Care for

victims of past

crises

Percentage of victims benefiting

from psycho-medical care and

proportion of GBV victims

receiving free care and medical

certificate

50% (2013)

0 (2013)

70% (2016)

95% (2016)

MSFFE/ MSL

Component 3: Programme coordination, participation and transparency

3.1 Coordination

of social

cohesion policies

and actions

Collaborative social cohesion

platform prepared and adopted, and

capacities of CDVR, PNCS and

OBCS strengthened

National social cohesion policy

adopted

0 (2013)

None (2013)

1 (2016)

1 (2015)

ADDR/

PNCS

reports

Risks: Resistance

from the public

administration

and responsible

structures

Mitigation

Measure

Discussions with

other partners and

civil society

implementing

programmes on

behalf of the State

3.2 Enhance the

participation of

decentralized

units and

beneficiaries

Number of permanent IEC

campaigns on actions and results

10 mass

sensitization

sessions

(2013)

50% (2013)

100 mass

sensitization

sessions (2016)

At least 90%

(2016) Number of publications giving

results on achievements

4 (2013) 7 (2016)

0 (2013) 12 (2016)

Component 1 : Support for reintegration of ex-combatants

Component 2 : Support for resolution of causes of inter-community conflicts and care for

victims

Component 3 : Programme coordination, participation and transparency

Financing:

Grant (FSF): UA 27.57 million

ADF: UA 2.43 million

Total : UA 29.97 Million

vii

1

REPORT AND RECOMMENDATION OF THE AFRICAN DEVELOPMENT BANK

GROUP MANAGEMENT TO THE BOARDS OF DIRECTORS CONCERNING

A PROPOSAL FOR THE AWARD OF A GRANT TO THE REPUBLIC OF COTE

D’IVOIRE FOR THE SOCIAL COHESION AND INCLUSION ENHANCEMENT

SUPPORT PROGRAMME (PARCIS)

I. THE PROPOSAL

1.1 Management hereby submits a proposal and recommendation for the award of

an FSF grant of UA 27.54 million and an ADF grant of 2.43 million to the Republic of

Cote d’Ivoire to finance the Social Inclusion and Cohesion Enhancement Support

Programme (PARICS). It is the Bank’s second sector budget support (SBS) programme in

Cote d’Ivoire since the resumption of regular cooperation in 2007 following the lifting of

sanctions for non-payment of arrears. PARICS was designed jointly with the Ivorian

Government, in close collaboration with key development partners, particularly the European

Commission, the United Nations System, the French Development Agency (AFD), the World

Bank, Japan, Belgium, and the United States. All the partners felt that a Bank SBS to support

the restoration of social cohesion would be “useful and timely”. Furthermore, other

stakeholders including civil society organizations (CSO) and the private sector, who were

widely consulted, felt that this form of ADF support is beneficial to the country.

1.2 PARICS will support the implementation of reforms and priority actions,

pursuant to the objectives of PND 2012-2015, particularly Objectives 1 and 3, by

contributing to the socio-economic reintegration of ex-combatants. PARICS is in line with

the Bank’s CSP 2013-2017 for Cote d’Ivoire, and is the main operation of the Strategy’s Pillar

I. The CSP seeks to foster economic competitiveness for accelerated and inclusive growth, as

well as poverty reduction, through two strategic and complementary pillars: (i) Strengthening

of governance and social cohesion; and (ii) Development of infrastructure to support

economic recovery. PARICS is consistent with Pillar I of the CSP, which considers the

improvement of social inclusion and cohesion as a prerequisite to any process of accelerated

growth in better conditions of competitiveness with the other countries of the region. It is also

consistent with the intervention strategy in fragile States and the human capital development

strategy which prioritizes skills for competitiveness and employment, innovation and inclusive

financial systems. Furthermore, it is in line with the Bank’s Ten-Year Strategy for 2013-2022

which lays emphasis on inclusive growth and youth employment.

1.3 PARICS will support structural reforms and expenditure aimed at consolidating

land rights, ensuring the social and economic reintegration of ex-combatants, and contributing to psycho-medical care for victims of the conflict period. The programme will

allow for the social and economic integration of 15,500 ex-combatants, including 2,000 women,

with at least 75% of women to be reintegrated into profitable economic activities, as well as the

demarcation of 1,761 village lands to enable about 3.5 million residents live in harmony. It will

also strengthen the institutional capacities of CDVR, PNCS and the Solidarity and Social

Cohesion Observatory (OSCS), as well as support the installation of observation and early

warning tools for social cohesion issues, enhance the coordination of cohesion policies and

actions, and strengthen transparency in social cohesion. As regards gender, the programme will

help to sensitize the population on women’s rights to rural land and promote the effective

enforcement of the fundamental rights of GBV victims by lifting constraints on the exercise of

their rights (free medical certificate, re-opening of law courts). The programme will also have

a significant environmental impact through the collection and recycling of non-biodegradable

plastic waste.

2

II. COUNTRY AND PROGRAMME CONTEXT

2.1 Project Linkages with Country Strategy and Objectives

2.1.1 Cote d’Ivoire’s development strategy is based on its National Development Plan

(PND) for 2012-2015. The main objective of the PND is to place Cote d’Ivoire on the path to

robust, sustained and inclusive growth for it to become an emerging country by 2020. The

strategy targets the following five major outcomes: (i) the population lives in harmony in a

secured society where good governance is guaranteed; (ii) national wealth creation is increased,

sustained and its fruits shared equitably; (iii) the population, particularly women, children and

other vulnerable groups, has fair access to quality social services; (iv) the population lives in a

healthy environment and adequate surroundings; and (v) Cote d’Ivoire is effectively

repositioned on the regional and international scene.

2.1.2 The objective of PARICS is to support the Government in its efforts to restore

social cohesion and improve social inclusion. The programme will contribute to achieving

Outcomes 1 and 3 of the PND, and is line with the specific strategies and action plans of ADDR

(2014-2015), PNCS (2014-2015), and CDVR (2014).

2.2 Recent Socio-economic Developments, Prospects, Constraints and Challenges

Recent Macroeconomic and Social Trends

2.2.1 At the macroeconomic level, economic recovery is sustained and growth

prospects are bright. After stagnating for over a decade, the Ivorian economy again recorded

a robust growth of 9.8% in 2012. This new momentum was confirmed in 2013 with a rate of

8.7%, and is expected to continue in the medium-term in line with growth forecasts of 8.2%

and 7.7% for 2014 and 2015 respectively. Growth was sustained in all sectors in 2013. The

primary sector grew by 6.7% thanks to higher production of rice (37%) and cocoa which

reached a record level of 1,671,100 tonnes thanks to the renewal of plantations. Secondary

sector growth of 8.3% was sustained by construction, manufacturing and the energy sector. The

tertiary sector recorded a growth rate of 9.6%, driven essentially by trade and services. Through

external trade, the current account deficit fell to -1.5% of GDP in 2013, as against 3.1% of GDP

in 2012. The current account transactions balance will remain in deficit in 2014 in line with the

dynamism of economic activity. This deficit will be shored up by project grants and resumption

of foreign direct investments.

2.2.2 With regard to public finance, the budgetary situation has improved

significantly. At the end of 2013, fiscal revenue was higher than expected, rising up to 19.9%

of GDP. This was the outcome of capital gains obtained from export taxes and duties, profit tax

and social security contributions. Total budgetary expenditure remained globally within targets

set in the programme concluded with the IMF. Capital expenditure (excluding post-crisis

expenditure) was executed to the tune of 85.3% of the programme target. Reflecting the scale

of the national reconstruction effort (recruitment of ex-combatants and teachers), the wage bill-

to-fiscal revenue ratio (43.6% against 42.2% in 2012) exceeded the community maximum

threshold of 35%. However, the salary expenditure level between 2012 and 2013 remained

stable in GDP terms (7.4%). The combined effects of higher revenue and better expenditure

management after budget execution led to an overall budget deficit, including grants of about

2.2% of GDP as against 2.3% in 2013. FY 2014 and medium-term fiscal policies hinge on the

objectives of PND 2012-2015.

3

2.2.3 At the monetary level, the average annual inflation rate of 2.6% was higher than

in 2012 (1.3%) but lower than the 3% community standard set by the West African

Economic and Monetary Union (WAEMU). This stemmed from better supply of

foodstuffs to markets and efforts made to ensure free flow of transport. Inflation is

projected to rise by an annual average of 1.6% in 2014, reflecting the expected rise in foodstuff

supply thanks to the rehabilitation of feeder roads and programmes designed to develop

foodstuff farming. The upward trend of credit to the economy (+7.3%), especially short- to

medium-term credits (+27.2%) and farming season loans (+19.5%), indicates that the sector is

dynamic and confidence has returned among business operators.

2.2.4 With regard to public debt, Cote d’Ivoire reached the completion point of the

Heavily Indebted Poor Countries (HIPC) Initiative in June 2012. Its outstanding public

external debt fell from 55.1% of GDP at end-2011 to 27.7% at end-June 2013. An analysis of

debt sustainability shows that, after debt reduction, the risk of the country’s debt reduction is

now moderate.

Social Context

2.2.5 The main factors that caused the past crisis and need to be considered in working

for national reconciliation and building

national cohesion. The deterioration of

national cohesion in Cote d’Ivoire stems

from a combination of several adverse

phenomena. The long periods of economic

recession in the 1990s and 2000 had placed

more pressure on employment and natural

resources, particularly land. Over the past

several decades, this competition for fertile

land has created zones of inter-community

tensions, regularly exacerbated by social

and political unrest. Furthermore, the

feeling of exclusion and marginalization that gradually set in from the mid-1990s, coupled with

the behaviour of political party supporters and organs, led to a withdrawal syndrome and

distrust between the various communities. Lastly, the consequences of the takeovers in 1999

and 2002 and the epilogue of the 2011 post- election further compounded social imbalance.

Rebuilding social and political ties, based on compliance with the law and regulations, will

guarantee future political and economic stability.

2.2.6 Human development is still weak in

Cote d’Ivoire despite significant progress

made in recent years to bridge disparities.

Overall, Cote d’Ivoire made progress in human

development between 2002 and 2011. The

Human Development Index (HDI) rose from

0.390 to 0.404 despite the socio-political crisis.

This good performance in human development

stems from significant progress in many

dimensions such as education, life expectancy at

birth, and average incomes. Cote d’Ivoire was

ranked 168th out of 187 countries in 2012. Per

capita income has fallen by one-quarter over the past ten years. Half of the population lives

Measures and reforms to consolidate

social cohesion: - Enforcement of land laws 81

- Reform of security forces 77

- Fight against rising cost of living 74

- Reform of justice 72

0,4

0,4

0,4

0,4

0,4

0,5

0,5

0,5

2006 2007 2008 2009 2010 2011 2012

Graph1: Human Development Index

Côte d'Ivoire Average Africa

4

below the poverty threshold, with an incidence of 48.9%, according to 2008 data, a level the

Government plans to reduce to 16% by 2015.

2.2.7 Regional disparities is a major obstacle

to the country’s development. Before the

September 2002 socio-political crisis, the human

development situation was already fragmented, with

the Northern regions posting the lowest HDI levels:

North-West region (0.320) and North region (0.334)

have lower HDI than the South regions (0.480) and

the capital city (0.512). More recent data (2011)

indicate that this north-south disparity in human

development worsened with the socio-political

crisis. Various actions undertaken in the second half

of 2011 allowed for gradual reduction in regional

disparities, particularly in education, health, and

access to drinking water.

2.2.8 As regards the promotion of gender equality, Cote d’Ivoire is committed to

systematically mainstreaming gender in all sectors of activity by validating the policy on

equal opportunities, equity and gender adopted by Government in 2009. The National

Assembly passed a new law on marriage in November 2012 to strengthen the principle of

equality between spouses and increased empowerment for women. However, gender

inequalities persist in virtually all development sectors. The Bank recently financed the

preparation of Cote d’Ivoire’s gender profile, which has been submitted for approval. The

challenges mainly concern better knowledge of the gender approach and its mainstreaming

tools by national stakeholders, the design of indicators to measure gender equality, and the

establishment of a gender-sensitive budgeting mechanism.

Development of the Political Situation and Governance

2.2.9 Recent political reforms and initiatives for national reconstruction. With regard

to policy reforms, the adoption of the Nationality Code is a solution to the marginalization of

the 1990s. At the political level, a framework has been established for consultation between

political parties1 and regular meetings have helped to identify a number of political and

institutional reforms (composition of the independent electoral commission, reform of the

electoral code) which should be implemented as soon as possible. Furthermore, the organization

of legislative and local elections completed the electoral process. Through the country’s efforts

to ease tensions, about 95% of internally displaced persons and 70% of refugees in

neighbouring countries have returned home2. The return of refugees accelerated during the last

quarter of 20133, showing that social tensions had eased, but this was also a challenge for

Government since the refugees’ social and economic expectations needed to be addressed

quickly.

2.2.10 Lastly, with regard to economic and financial reforms, the Government has

established an attractive legal and institutional arrangement to improve the business

climate and favour the emergence of SMEs. The Government’s efforts have helped to improve

Cote d’Ivoire’s ranking in the World Bank’s Doing Business 2014, featuring among the highest

1 The Front Populaire Ivoirien (Ivorian People’s Front) does not formally participate in the consultation framework 2 OCHA data, source : reliefweb.int/report/c-te-divoire/c-te-divoire-tableau-de-bord-humanitaire-au-02-d-cembre-2013 3 The return of over 2/3 of servicemen from exile (December 2013 and January 2014), coupled with the campaign that the ex-President’s

Party undertook in neighbouring countries to encourage Ivorians to return shows how much social tension has dropped and security has

improved.

Inégalités régionales 2008-2011

5

reforming countries in the world in 2013. The measures taken by Government to improve the

business climate, including fighting corruption and promoting good governance, have

strengthened private sector confidence and attracted more investments. Foreign direct

investments increased sharply (+300%) with a large proportion (CFAF 60 billion, 14%)

channelled to agriculture. The target production sectors are building and construction (cement

factories), agribusiness (breweries, rice farms), services (including financial institutions), and

extractive activities. The private investment rate rose from 9.1% of GDP in 2012 to 10.3% of

GDP in 2013, reflecting greater private sector support to economic recovery.

Prospects, Obstacles and Challenges

2.2.11 Medium-term prospects: Cote d’Ivoire has a very favourable economic situation

with a high GDP growth rate, which will be maintained over the medium term. This

projected high growth will be driven mainly by the industrial sector, whose share in GDP will

rise to about 40% in 2020 (against 30% in 2013) with the creation of around 100,000 SMEs

and some core projects (Extension of Abidjan Port Authority). The primary sector, particularly

the agriculture sub-sector, will receive fresh impetus through agro-industrial zones created on

a PPP model. GDP growth momentum will come from the mining sector with the exploitation

of new deposits (gas, oil and gold). Medium-term forecasts indicate that the budget deficit

(2.2% in 2014) will be kept within WAEMU convergence rates, and domestic inflation will

stand at around 1.6%. This economic growth, coupled with an employment and redistribution

promotion policy (free social services for the most vulnerable people and health insurance), as

well as with improved competitiveness (business climate, quality of manpower) and a prudent

macro-economic and debt policy (fight against corruption) will help to significantly improve

the population’s living standards and conditions. Furthermore, the Authorities have adopted a

strategy to ensure integrated and rational public debt management.

2.2.12 Obstacles and challenges: The security situation remains a major cause for

concern, despite measures taken by Government to mitigate this risk. The proliferation of

small and light weapons as a result of successive socio-political and armed crises over the past

ten years, the slow ex-combatants’ DDR process and the still fragile situation in neighbouring

countries (particularly the Mano River Union countries and Mali which could spread) are major

concerns for the Government. Under the auspices of the National Security Council (CNS),

placed under the Presidency of the Republic, the overall security-sector reform is well on track,

especially in terms of training, equipment of security services, and stronger

coordination/collaboration among various intervention units of the police, gendarmerie and

army. The return of exiled soldiers and ex-combatants also helps to consolidate internal

security. However, a regional approach to insecurity will be necessary to wipe out the risk of

destabilization. The ex-combatants’ reintegration programme is a good means of mitigating the

risk of internal insecurity, while strengthening the social inclusion of this category of the

population.

2.2.13 Rural land tenure, a source of inter-community conflicts. As a result of the national

policy to develop forest areas, there has been a massive influx of people into the Grand West

of Cote d’Ivoire since the 1960-70s; this has gradually stiffened competition for access to the

most fertile lands. For several decades, this competition has created inter-community tensions

which are regularly exacerbated by political demands, brought to a peak by the armed conflict.

Despite the consensual adoption of Law No. 98-750 instituting the Rural Land Code in 2013,

the conflicts have persisted because of inadequate communication on the law and, above all,

the prohibitive costs of the process for the rural community. In fact, between 1998 and 2012,

6

only 2% (171 out of 9000) of village lands were demarcated, resulting in low registration of

village lands.

2.2.14 Much still needs to be done to strengthen institutions and economic governance. Indeed, the successive crises have helped to erode Government capacity and weaken public

services. The restoration of Government capacities initiated in 2008 is continuing, especially in

the areas of justice and improvement of economic governance and natural resource

management. Since 2012, the Ivorian Government has undertaken major reforms in good

governance, improvement of the business climate, and the fight against corruption.

Furthermore, the Government has adopted a National Good Governance Plan and created a

special court punish fraud, as well as established an anti-corruption observatory to fight against

corruption. The Government is also committed to pursuing reforms and providing the structures

in place with the means required for their work. To win back citizens’ confidence, these

measures need to be equitably implemented.

2.3 Social cohesion and related programmes

2.3.1 National cohesion in African countries could be defined primarily as the

perception that people have of the realities they experience. This reality refers mainly to the

level of poverty, social welfare, justice, discrimination, and participation in political decisions

that all help to shape the "living together" base. The Ivorian Government has adopted various

strategies, policies and laws to redefine and strengthen social cohesion in two main areas,

namely: (i) resolution of the causes of conflict, and (ii) management of the consequences of the

socio-political crisis.

2.3.2 With regard to resolution of the two main causes of conflicts, namely nationality

and rural land tenure, the Government in 2013 adopted a new Nationality Code, revised

the Rural Land Tenure Code (Law No. 613-655 of 13 September 2013) extending the

registration period to ten years, and issued Decree No. 2013-296 of 3 May 2013 defining the

procedure for demarcating village lands which makes the Government solely responsible for

all village land demarcation costs, a measure intended to ensure adequate social protection and

open the way for securing land and reducing inter-group conflicts (see Technical Annex 2). The

new strategy which the Government intends to implement to secure all agricultural land before

the end of 2017 has received strong support from partners (the EU and AFD) since 2013.

2.3.3 Government policies and actions in managing the consequences of the socio-

political crisis are many and have become increasingly significant since 2012. The

Government has set up the CDVR responsible for transitional justice and establishing the truth

about the causes and major events of the conflict (1999-2011), as well as identifying the

perpetrators, proposing compensation and redefining the bases of a new social framework. The

mission of CDVR ends in 2014 with public hearings and submission of its recommendations.

In addition, the Government has established a Disarmament, Demobilization and Reintegration

(ADRR) Authority which has developed a strategy for socio-economic reintegration of all ex-

combatants and ex-militia numbering 74,068. Government support for the reintegration of ex-

combatants was extremely high in 2013 (78% of 100 million US dollars), and maintains its goal

of ensuring the reintegration of all ex-combatants before the end of 2015 (see Technical Annex

5). This strategy, validated by the key development partners, particularly the EU, UNOCI, the

UN System, World Bank and Japan, helped to ensure the reintegration of 27,116 ex-combatants

in 2013. The Government has also prepared a social cohesion policy and increased the resources

of specialized structures such as the Solidarity and Social Cohesion Observatory in charge of

monitoring and providing early warning on social cohesion issues, and the National Social

Cohesion Programme (NSCP) responsible for coordinating and mainstreaming social cohesion

7

issues in national policies and programmes. In addition, the Government has undertaken a major

programme to improve and construct social infrastructure (schools, health centres, water supply

projects) and established targeted free programmes (maternal and child health, access to

primary education) which all help to reduce regional disparities and strengthen the sense of

belonging to a nation.

2.4 Bank Portfolio Status

2.4.1 The Bank’s active portfolio currently comprises 11 operations, representing a total

commitment of about UA 228 million, with UA 105 million for the Public Sector Window and

UA 123 million for the Private Sector Window. The total disbursements rate for the 11

operations currently stands at 26.58%, with 24.65% for the public sector and 28.21% for the

private sector. The portfolio is relatively young, with an average age of less than 2 years, and it

has no problematic project or project at risk. The portfolio review of May 2013 showed that

speedy preparation and approval of emergency operations, fulfillment of conditions precedent

to effectiveness and signature of agreements, as well as the use of delegated contracting

authorities (DCA) has helped to speed up implementation of activities. On the other hand, the

review also highlighted administrative bottlenecks in the appointment of project coordinators

and senior staff and in preparing their performance contacts and administrative, financial and

accounting procedures manuals.

2.4.2 Lessons learned from this comprehensive review also apply to recent social sector

projects. The implementation of the two sector operations approved by ADF in 2008 and whose

activities focused on enhancing social cohesion and creating jobs and incomes for the

disadvantaged groups, including ex-combatants, showed that programme support was delivered

on time and the operational outcomes were significant.

III. RATIONALE, KEY DESIGN AND SUSTAINABILITY ELEMENTS

3.1 Linkage with CSP, Country Readiness Assessment, and Analytical

Underpinnings

PARICS draws on strategies and relevant analytical documents. Indeed, it draws on

Cote d’Ivoire’s National Development Programme (2013-2017) and specific strategies and

action plans of ADDR (2014-2015), PNCS (2014-2015) and CDVR (2014) covered by the

programme. The use of reports produced by national agencies and supplemented by data on

studies, programmes and assessments by partners involved in programme activities has helped

to enhance the analysis. The choice of focus areas for Bank support is based on targeted

activities for which feasibility studies have been conducted and/or a satisfactory pilot phase

implemented, as is the case with the DDR and land tenure security.

3.2 Donor collaboration and coordination

3.2.1 PARICS has been designed in close collaboration with partners who support the

reintegration of ex-combatants and enhancement of national cohesion. Partners like ADB

have been involved in designing the ex-combatants reintegration programme, while EU/GIZ,

ONUCI, and JICA/UNDP have provided financial support and act within the purview of the

Bank-backed national programme. The social cohesion component is supported by the above

partners and the United States, France and Japan. Partner support is in the form of projects

(United States, Japan, Germany, UNDP and ONUCI) or budget support (European Union, AFD

and BAD). However, PARICS is not a joint programme, but a concerted programme, mainly

in consultation with EU/GIZ, ONUCI and AFD.

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3.2.2 Aid coordination is built on 7 thematic groups. The Bank is the lead for the

transport sector and participates in other thematic groups. Given its cross-cutting nature,

social cohesion and the various areas covered by the programme are jointly coordinated by

partners and the Government in consultation groups. Weekly meetings, coordinated by ONUCI

and attended by the Bank, are organized on the security services reform/DDR theme. This group

coordinates informal discussions on internal policy issues. Furthermore, ADDR organizes

monthly coordination meetings of partners tasked with programme implementation. Lastly,

issues on security of rural land tenure are considered by TFPs in charge of rural development.

The creation of a TFP group for reintegration of ex-combatants, social protection and

employment, to be led by the Bank, is being finalized.

Table 1

Conditions precedent to sector budget support

Government’s

commitment to reduce

poverty

Government’s commitment to reduce poverty is seen in PND for 2013-2015 which

aims to achieve strong economic growth so as to make Cote d’Ivoire an “emerging

country” in 2020. According to the IMF, poverty reduction and more inclusive

growth are at the core of the PND strategy. The authorities have already adopted

measures that will help to reduce poverty; for example, reform of the cocoa sector

and fixing of minimum prices for cotton and cashew nuts. They have also sharply

increased pro-poor expenditure, since the priority is to institute free education and

renovate some health and education facilities.

Macro-economic

stability

Cote d'Ivoire reached the HIPCI completion point in 2012. According to IMF

forecasts, the GDP growth rate will move from 8.7% in 2013 to 8.2% in 2014.

Economic performance is very good in terms of fiscal revenue and economic growth.

The country is implementing an IMF programme, and half-yearly macro-economic

performance reviews are satisfactory. However, improving economic governance

and the level of domestic arrears are still a cause for concern. The Government has

adopted a debt sustainability programme.

Satisfactory assessment

of fiduciary risk

The recent diagnoses of the Public Expenditure Management and Financial

Accountability Report (PEMFAR 2013 and PEFA Indicators Trend 2008-2013)

concluded that the system is reliable to a certain extent. Nevertheless, efforts are still

needed in some areas of ongoing reform: (i) overhaul of basic public finance

management instruments; (ii) gradual implementation of medium-term expenditure

frameworks (MTEF) in Ministries; (iii) modernization of the tax system and

organization of taxation services; (iv) reform of State accounting; (v) strengthening

of the regulatory and institutional framework of public procurement; and (vi)

development of new IT tools. The global fiduciary risk trend is favourable, and the

overall risk will become moderate once the measures to be taken are completed.

Political stability Significant improvement of the political climate through regular consultations with

the opposition parties and agreement on reforms to be implemented before the next

elections in 2015 have helped to foster the massive return of refugees and internally

displaced persons. Despite a few very isolated actions of destabilization, political

stability is not threatened.

Harmonization Cote d’Ivoire’s main partners are the Bank, the World Bank, the European Union,

France, USAID, China, the IMF and the United Nations system. Overall,

coordination is being put in place under the supervision of the Prime Minister. Seven

thematic groups, comprising partners and national representatives, ensure regular

sector coordination. Areas covered by the programme are coordinated regularly by

the current TFPs. In line with the Paris Declaration on Aid Effectiveness, the Bank

consulted the main donors involved in DDR and social cohesion sector.

3.3 Outcomes and lessons learned from similar past and ongoing operations

Although the Bank has no similar ongoing operation in Cote d’Ivoire, it had

financed two crisis exit and emergency operations in the past: PAISMSC and PURSSAB.

Both programmes had satisfactory social outcomes since they helped to restore access to basic

9

social services such as health, education and protection. The rate of functionality of basic social

and public administrative services rose from 40% in 2010 to 80% in 2012. They also helped Cote

d’Ivoire to re-open dialogue for better social cohesion by building CDVR’s capacities and

effectively establishing it. The main lesson learned from the implementation of PAISMSC and

PURSSAB is the need for beneficiaries and local authorities to effectively participate in project

formulation and implementation. Another important lesson is the need to properly sensitize the

populations beforehand on the objectives and rationale of the project. PARCIS has been

prepared and its implementation will be based on the same principles so as to consolidate the

outputs of previous operations.

3.4 Linkage with Bank operations

PARICS complements other Bank operations, and its capacity-building component

complements PURSSAB. Actions aimed at improving social cohesion under PURSSAB are

underway to strengthen the operational capacities of CDVR. PARICS contributes to the

integration of ex-combatants since it supplements the budget support (PAAEIJ) meant to

strengthen the capacity to manage vocational training, and helps to create jobs through labour-

intensive operations for which ex-combatants are eligible. This programme is also coordinated

with interventions programmed by ADF XIII. Indeed, the regional road project (MANO River)

to be implemented mainly in the Grand West will benefit from the previous social cohesion-

related actions implemented by this programme. The same holds true for agriculture sector

projects, which will benefit from the impact on land tenure security and social cohesion.

Through the jobs to be generate, the above-mentioned two projects will also offer more

opportunities for jobs and reduction of regional disparities. Lastly, the programme will help to

consolidate social, political and security stability without which production and economic

growth cannot be achieved in the medium- to long-term under competitive conditions.

3.5 Bank’s value added and comparative advantages

The Bank has undeniable comparative advantage and value added in areas covered

by the programme. Since 2007, the Bank has implemented two support operations for Cote

d’Ivoire’s National Post-Conflict Reconstruction Programme. Indeed, it gave substantial

support under PURSSAB (48% of public financing received in 2011-2012 for post-conflict

reconstruction). Its intervention under PAIMSC provided significant support for social

inclusion through support for women GBV victims and the socio-economic reintegration of

people in conflict zones using a community-based approach which has produced very good

results. The Bank has also acquired comparative advantage from programmes for socio-

economic reintegration of ex-combatants (Burundi, Congo, Democratic Republic of Congo,

Guinea Bissau, and Central African Republic) and under the Transitional Demobilization and

Reintegration Programme (TDRP) Trust Fund financed to the tune of 62% by ADB, which

provided support for the design and implementation of ex-combatants’ reintegration

programmes in 10 African countries. The Bank’s value added in this programme also stems

from ADF’s assistance in preparing the strategies and action plans of ADDR and PNCS.

3.6 Application of good practice principles on conditionality

The good practice principles on conditionality were taken into account in the

design and formulation of PARCIS. In fact, PARCICS is fully aligned with PND (2012-2015)

and sector strategies in the specific areas covered. The proposed institutional measures and

support are relevant, and can be achieved during PND implementation.

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3.7 Application of Bank Policy on Grants

In 2012, Cote d’Ivoire reached the completion point of the Heavily Indebted Poor

Countries Initiative and qualified for the Multilateral Debt Relief Initiative (MDRI). Under

these conditions, it was eligible for concessional resources. Since Cote d’Ivoire is eligible for

the resources of the Fragile States Facility (FSF), the financing for this project, which falls

mainly within Pillar 1, will be provided through a grant.

IV. PROPOSED PROGRAMME AND EXPECTED OUTCOMES

4.1 Goal and Objectives

PARICS seeks to support Cote d’Ivoire’s efforts to restore social cohesion and

improve social inclusion. Specifically, the programme covers activities relating to the

reintegration of ex-combatants and strengthening of dialogue and social cohesion by providing

psycho-social and psycho-medical care to the most affected groups. It also helps to create

necessary and adequate social and material conditions for a lasting solution to problems relating

to rural land tenure – the main source of inter-community tensions.

4.2 Programme Components

4.2.1 PARICS has three components: (a) Socio-economic integration of ex-combatants in

trades that generate decent incomes; (b) Support for resolution of the causes of inter-community

conflicts and care for victims; and (c) Support for coordination, community participation and

transparency.

Component 1: Support for the reintegration of ex-combatants

4.2.2 Context and challenges: The Ouagadougou Political Agreement (2007) and its

related plans and strategies made the reintegration of ex-combatants an important priority for

political stability which guarantees robust growth. Drawing lessons learned from the poor

results of programmes to integrate 74,068 ex-combatants from the two antagonistic groups

involved in various episodes of the Ivorian conflict (2002-2011) (see Technical Annex 1), the

Government in 2012 created the Disarmament, Demobilization and Reintegration Authority

(ADDR) supervised by the National Defence Council, the sole body tasked with steering the

process of transition of ex-combatants into civilian life. Designed as a national internal security

priority, the reintegration programme approved in March 2013 helped to finance the effective

reintegration of 27,116 ex-combatants in 2013 using mainly internal resources (78%). This

good result is due to the substantial resources mobilized by the State and the employment niches

identified for ex-combatants (informal sector 81% and Government departments 18%).

Drawing lessons from the assessment of its first year, ADDR improved its implementation

strategy by: (i) strengthening the initial management phase (re-socialization through education

in values and choice of trades); (ii) ensuring professional reintegration through economic

interest groups; and (iii) strengthening coaching and post-integration monitoring. This more

holistic approach to the integration of ex-combatants significantly reduces the risk of short- to

long-term failure through the pooling of resources. PARICS supports the action plan of ADDR

for which consensus was reached with development partners.

4.2.3 Institutional support measures: PARICS will lend institutional support to ADDR

for the following measures: (i) signing of 4 partnership agreements between ADDR and key

structures that support the implementation of its strategy (ANADER, Ministry in charge of

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Transport, Federation of Industries of Cote d’Ivoire); (ii) signing of various agreements with

agencies specialized in re-socialization, professional training, coaching and monitoring of

economic integration; (iii) adoption of a model statute governing economic interest groups

created by ex-combatants and compliant with OHADA law; (iv) adoption of a strategy tailored

to specific cases of female ex-combatants with children of tender age and/or are pregnant; (iv)

payment of demobilization benefits to constitute financial capital to create EIGs; and (iv)

adoption and establishment of a mechanism for psychological monitoring for ex-combatants

who so desire.

4.2.4 Expected outcomes: The expected outcomes of the programme are as follows: (i)

ADDR’s operational effectiveness is improved; ii) about 15,500 ex-combatants, with at least

2,000 of them female, are trained in social values; (iii) about 15,500 ex-combatants, with at

least 2,000 of them female, trained in identified trades and are coached; (iv) about 15,500 ex-

combatants, with at least 2,000 of them female, are integrated into EIGs or other production

structures; and (v) psychological follow-up is provided for ex-combatants needing care.

Component 2: Support for resolution of the causes of inter-community conflicts and care

for victims

4.2.5 The Government, determined to resolve the causes of inter-community conflicts,

has adopted a number of policies and measures to rebuild national cohesion. In addition to

the Nationality Code revised in 2013, the Government: (i) has adopted a decree defining the

procedure for demarcating village lands and subsidizes the related costs (see paragraph 2.2.14

and technical Annex 2) and various partners help to give visibility to the decree; (ii) has

maintained its support for CDVR which conducts transitional justice operations and will

conclude its mission in 2014; (iii) is preparing a national social cohesion policy and establishing

tools for early warning and surveillance of social cohesion; (iv) continues to provide individual

and/or collective psycho-medical care for cases of more or less serious and/or permanent trauma

due to the psychological hardships borne by the population, especially in the conflict areas; and

(v) intends to strengthen social, medical and legal protection for GBV victims by facilitating

their access to medical care, providing subsidies for medical certificate needed to prove the

harm suffered by victims and legal protection measures, especially the reopening of law courts

to try cases of rape, as well as the revision of the penal code, particularly the chapter that defines

and qualifies rape.

4.2.6 Institutional support measures: PARICS supports the following measures and

activities adopted by Government in the 2014 and 2015 budget: With regard to security of

rural land tenure, PARICS supports: (i) the validation of the list of selected regions, prefectures

and sub-prefectures by joint MAT/MINAGRI administrative decision; (ii) capacity building for

stakeholders tasked with village land demarcation (the population, local authorities in the

Government department directly concerned); (iii) the validation, by prefects, of reports on the

establishment of Village Land Management Committees (CVGF); and (iv) the issuance of land

titles by MAT/MINAGRI to village communities in the prefectures concerned. With regard to

other strategies to enhance social cohesion, PARICS supports: (i) the allocation of sufficient

funds to CDVR for its communication activities relating to public hearings, as well as disclosure

and sharing of its results; (ii) the finalization and adoption of the social cohesion policy, as well

as the finalization and implementation of social cohesion surveillance and warning tools; (iii)

the introduction of free care and medical certificates for GBV victims; (iv) the resumption of

court hearings on GBV cases; (v) the introduction of a standard psycho-medical care protocol

for crisis victims with trauma; and (vi) the allocation of adequate resources for awareness

campaigns on social cohesion, particularly in conflict-prone sub-prefectures.

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4.2.7 Expected Outcomes: The expected outcomes are as follows: (i) Village land

management committees are operational in 1,761 villages; (ii) Land titles issued for 1,761

villagers; (iii) about 3.5 million inhabitants of the Grand West live in harmony, and inter-

community conflicts are brought under control and/or are reduced significantly; (iv) awareness

campaigns are conducted on the land code, including women’s rights to inherit rural lands; (v)

persons charged with crimes following the preliminary investigations effectively participate in

the CDVR hearings, and the Ivorian experience in transitional justice is shared with the

international community; (vi) the State and citizens have an early warning tool for risks that

undermine social cohesion; (vii) the population of conflict-prone zones prepare and disseminate

their messages of peace; (viii) medical care and medical certificates are free for at least 95% of

GBV victims; (ix) at least 70% of health facilities have care management algorithm; and (x) at

least 60% of health facilities collect GBV-related data and enter them in the health information

system.

Component 3 Coordination, community participation and transparency

4.2.8 Context and challenges: Social cohesion is a broad policy and action field involving

various Ministries (Ministry in charge of Social Protection and Employment, Ministry in charge

of Gender, Ministry in charge of Youth) and specialized structures created by the State (CDVR,

OBCS, PNCS, ADDR), as well as national and international NGOs most of which are

established due to the crisis. Although the respective roles of Ministries and specialized

structures are well defined in their organic instruments, several forms of duplication, and

sometimes competition, exist among them. This needs to be clarified to better ensure

coordination. The mid-term review of PND (2012-2015) makes coordination and monitoring-

evaluation an essential condition for PND effective implementation, and the Government is

committed to taking appropriate actions. The Government and structures put in place also make

transparency and accountability cardinal conditions for building citizens’ confidence.

4.2.9 Institutional support measures: PARICS will support: (i) the definition of a

collaborative platform between Ministries, and public and private agencies working in social

cohesion; (ii) the allocation of adequate resources to ensure coordination and monitoring-

evaluation of social cohesion policies and programmes; (iii) observation capacity building for

OSCS; and (iv) the proactive dissemination of results obtained under this programme.

4.2.10 Expected Outcomes: The expected outcomes of PARICS are as follows: (i) an

information system on social cohesion programmes/projects is in place; (ii) programme outputs

are published in appropriate media (press and relevant Government/Ministries/Organizational

Units websites); (iii) for the ADDR, the list of beneficiaries (indicating the demobilization

number and sex) is published; and (iv) contracts awarded and using the programme resources

are disseminated.

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4.3 Financing Requirements and Arrangements

4.3.1 The table of 2014 and 2015 financing requirements is as follows:

4.3.2 Programme Resources: UA 30 million, representing about 11.1% of financing

requirements for 2014-2015, will be disbursed in 2 tranches: the first tranche of UA 18 million

in 2014 represents 11.5% of the overall deficit, while the second tranche of UA 12 million in

2015 represents 11.2% of the 2015 deficit. Part of the fiscal resources will be used to finance

the programme actions described above for the components.

4.4 Sustainability

The programme will allow for measures to be taken and activities carried out.

Indeed, administrative decisions will facilitate social cohesion interventions within a better

coordinated regulatory framework. For example, the institutional measures to be taken by

ADDR will ensure more sustainable integration of ex-combatants. Lastly, the demarcation of

village lands will finally grant ownership rights to communities, and thereby do away with

inter-community conflicts.

4.5 Programme Beneficiaries

The final programme beneficiaries are the entire Ivorian population. The

programme will restore social cohesion in the country mainly by ensuring the social integration

of ex-combatants socially, providing support to conflict and GBV victims, and ensuring better

management of land issues. Specifically, the programme beneficiaries are therefore 15,500

heads of households, including at least 3,700 women, who will earn decent incomes, and 3.5

million inhabitants of conflict-prone zones whose land ownership rights will be recognized, and

who will therefore enjoy peaceful relations with the other communities. Measures for free care

and free medical certificates for GBV victims and, more generally, compensation to be paid to

victims of past conflicts (following CDVR hearings) will benefit several hundreds of thousands

of Ivorians whose well-being will be improved by the programme.

4.6 Impact on Poverty and Gender

With regard to gender equality, PARICS will support the following actions: (i)

consideration of the specificities of female ex-combatants with children of tender age or who

are pregnant, by helping to organize the socialization period where these women reside; (ii)

Table 2

Government financing requirements and sources for 2012-2015

(CFAF Billion)

2012 2013 2014 2015

Total revenue and grants 2,621.4 3,039.5 3,448.7 3,879.1

Total expenditure 3,054.1 3,385.4 3,868.0 4,968.0

Arrears variation 30.4 -50.0 -50.0 -40.0

Overall balance (cash base) -402.3 -306.3 -479.9 -646.2

Financing 402.3 306.3 479.9 575.9

Internal financing 156.6 32.4 153.1 42.4

External financing 245.7 273.9 210.4 285.2

Financing gap 0.0 0.0 107.6 116.6

Sources: Government of Cote d’Ivoire (MPMEF) and MF projections.

14

setting of a quota, that is 70% of female ex-combatants, who will receive care under this

programme; (iii) free care and free medical certificates for GBV victims; (iv) support for the

revision of the penal code to better qualify rape and better enforce the law; and (v) sensitization

of the population on women’s right to inherit landed property. Furthermore, by supporting the

professional integration of about 15,500 households into profitable trades with induced effects

on incomes and indirect jobs and by fostering an increase in the value attached to rural lands

for over 3.5 million people, the programme will have measurable impacts on the poverty level

of beneficiaries.

4.7 Impact on the Environment and Climate Change

At the environmental level, PARICS will also support the economic reintegration

of ex-combatants through: (i) the collection and recycling of plastic waste and other non-

biodegradable products of the plastic processing industry (tyres, bags, bottles, and plastic

components of audio/video and IT equipment); (ii) contribution to the renewal of Abidjan-

based taxis and other public transport vehicles whose average age is 17 years and which are

major sources of pollution; and (iii) the installation of micro solar power generation units very

remote regions. The programme is classified in Environmental Category III, and will have no

negative environmental impact. A number of pro-employment activities that will be taken into

consideration, especially the use of plastic waste, will rather have a positive effect. Appropriate

measures will also be taken to mitigate the negative environmental effects of agriculture and

transport-related activities.

V. IMPLEMENTATION, MONITORING AND EVALUATION

5.1 Implementation Arrangements

5.1.1 Sub-programmes will be implemented based on the areas of jurisdiction of

specific Ministries/services. Consequently, the ADDR will be responsible for implementing

all activities related to the re-integration of ex-combatants, while MINAGRI will ensure

implementation of the rural land security sub-component. The Ministry in charge of Solidarity

and Gender (MSFFE) will be responsible for the providing psycho-medical to victims,

preparing the social cohesion policy and issues relating to care for GBV victims in collaboration

with the Ministry of Health and PNCS. PNSC will be responsible for coordinating and

monitoring social cohesion activities, conducting awareness and training campaigns, and

managing the “psycho-medical care for refugees” sub-programme. In line with their usual

operating methods, technical departments in charge of the implementation will conclude

agreements/contracts with various technical partners and service providers. In compliance with

their budget execution procedure, the Ministry of the Economy and Finance and the Ministry

of the Plan and Development, through the General Directorate of the Plan and Poverty

Reduction, will respectively ensure financial coordination and monitoring-evaluation of the

programme.

5.1.2 Financial Management: The Ministry of the Economy and Finance is tasked with the

programme’s administrative and financial management as per its traditional State budget

prerogatives. The programme resources will therefore pass through the usual budgetary

expenditure channel comprising four (4) main public expenditure phases: commitment,

settlement, order to pay and payment. Naturally, the Financial Control review and endorsement

will be required like for any budgetary expenditure. At the end of the fiscal year, the

administrative accounts (budget) and financial statements (Treasury) will be prepared and

submitted to the Audit Bench of the Supreme Court for consideration.

15

5.1.3 Disbursements: The Ministry of the Plan and Development will open a special

account in the name of the Programme with the National Branch of the Central Bank of West

African States (BCEAO) in Abidjan to receive the ADF grant and FSF resources. The

references of the account should be communicated to the Bank. Disbursements in 2014 and in

2015 will transit through this account to finance overall fiscal expenditures, and particularly

targeted actions in the Programme. Transaction notices and account statements issued by

BCEAO should be kept and presented to the external auditors.

5.1.4 Procurement: The programme will receive sector budget support, and all

procurements will be made in accordance with national procurement procedures. The public

procurement authorities, namely the National Public Procurement Directorate and the National

Public Procurement Authority, will be involved in the supervision and audit of procurements

in accordance with their respective missions.

5.1.5 External Audit: The Audit Bench of the Supreme Court will perform the external

audit of programme funds under the 2014 and 2015 budget accounts. The financial flows

between the special account with the BCEAO to receive the grant resources and the Treasury

will be audited by the Audit Bench of the Supreme Court on the basis of terms of reference

communicated by the Bank. The audit report of the financial flows will be submitted to the

Bank within 90 days following each disbursement.

5.2 Monitoring and Evaluation Arrangements

5.2.1 Responsible Institutions: The Ministry of the Plan, through the General Directorate

of the Plan, will be responsible for the programme monitoring and overall evaluation.

5.2.2 Monitoring-evaluation Mechanism: Monitoring-evaluation will be conducted

during Bank supervision missions (twice every year) and during quarterly consultations

between Cote d’Ivoire and partners involved in social cohesion activities. Implementation will

be monitored using agreed performance indicators and triggers. The Government and the Bank

will prepare the project completion report in March 2016.

VI. LEGAL INSTRUMENTS AND AUTHORITY

6.1 Legal Instruments

The proposed financing instrument for this programme is a grant. The Grant

Agreement will be signed by the African Development Fund and the Republic of Cote d’Ivoire.

6.2 Conditions precedent to Bank Intervention

A - Conditions precedent to Grant Effectiveness

Effectiveness of the Grant Agreement shall be subject to signature of the Grant Agreement by

the Donee and the Bank.

B - Conditions precedent to disbursement of the first tranche of eighteen million

(18,000,000) Units of Account

The disbursement of the first tranche of the grant shall, in addition to the grant effectiveness,

be subject to fulfillment of the following conditions by the Donee to the satisfaction of the

Fund. The Donee shall:

16

(i) submit a copy of the three (3) framework agreements signed with: (a) the

National Rural Development Support Agency (ANADER); (b) the Ministry of

Transport (MT); and (c) the National Federation of Industries and Services of

Cote d’Ivoire (FNSCI) to ensure sustainability of the jobs created under the

programme;

(ii) submit a letter from the Ministry of Justice and Human Rights (MJDH)

confirming the convening of law courts for hearings to try cases of gender-based

violence;

(iii) submit a copy of the joint document listing the villages whose lands are

demarcated under the programme; (iv) submit a copy of the document relating to the coordination of social cohesion

actions.

C - Conditions precedent to disbursement of the second tranche of twelve

million (12,000,000) Unit of Accounts

The disbursement of the second tranche of the grant shall be subject to fulfillment of the

following conditions by the Donee to the satisfaction of the Fund. The Donee shall:

(i) submit a list of the ex-combatants undergoing re-socialization and reintegration,

as well as the last quarterly publication of statistical data indicating a breakdown

of the re-socialized and reintegrated ex-combatants by sex and category;

(ii) submit a copy of the texts creating village land management committees in the

targeted regions;

(iii) submit a copy of the text demarcating the lands in the Grand West and North-

East; and

(iv) submit a copy of the text extending targeted free care services to gender-based

violence victims.

6.3 Compliance with Bank Group Policies

The objectives of PARCICS are consistent with the guidelines of the Bank’s Ten-

Year Strategy for 2013-2022. The programme is also in line with the Bank Group’s Strategy

for Enhanced Engagement in Fragile States and the Operational Guidelines of the Fragile States

Facility. It complies with all Bank safeguard policies, and no waiver of any Bank Policies,

Strategies and Guidelines is requested.

17

VII. RISK MANAGEMENT

Table 3

Risks and mitigation measures

Risks Level Mitigation Measures

Rising social unrest

and political tensions

during the 2015

elections

Moderate The factors likely to mitigate social tensions are completion of the post-crisis

electoral process, the return of refugees, the success of DDR operations, mediation

mechanisms established in zones at risk, compensation paid to victims, the creation

of jobs, increase in salaries (2014), the creation of new jobs, and better distribution

of the fruits of growth (more inclusive growth that will help to reduce inequalities).

High proportion of

ex-combatants fail in

their jobs

Moderate This risk can be mitigated by offering qualification-based training, forming EIGs,

choosing profitable integration activities and coaching EIGs. Furthermore, the

policy of development poles in each region will offer more alternative jobs to ex-

combatants.

Slow or poor use of

allocated resources

Moderate Ex-combatant’s reintegration and rural land issues are political and security

priorities for the country. The preeminence of these issues will guarantee efficient

use of resources. Furthermore, regular dissemination of the programme outcomes

will enable a very active civil society and beneficiaries to minimize the risk.

Risks: Low

collaboration

between the

government

departments involved

Moderate The programme finances regular activities of the Ministries/structures included in

the budget. The responsibilities of the beneficiaries are well defined and the

Ministries in charge of Finance and the Plan will ensure financial coordination and

monitoring respectively.

VIII. RECOMMENDATION

In light of the foregoing, it is recommended that: (i) the Boards of Directors of the

Bank and the Fund should approve a grant not exceeding UA 27.54 million from Fragile States

Facility (FSF) Window I resources; and (ii) the Board of Directors of the Fund should approve

an ADF loan not exceeding UA 2.43 million, for the Government of the Republic of Cote

d’Ivoire to finance the Social Cohesion and Inclusion Enhancement Support Programme

(PARCIS), for the purpose and in accordance with the terms and conditions stipulated in this

report.

I

ANNEX 1

GENERAL POLICY LETTER

MINISTRY AT THE PRIME MINISTER’S OFFICE REPUBLIC OF COTE D’IVOIRE

IN CHARGE OF THE ECONOMY AND FINANCE Union-Discipline-Work

THE MINISTER Abidjan, 14 May 2014

No. 2048/MPMEF/DGE

To Mr. Donald KABERUKA

President of the African Development Bank (BAD)

TUNIS

Subject: Development Policy Letter

Mr. President,

1. This Development Policy Letter (DPL) presents the socio-economic situation of Cote d’Ivoire

in 2013 and prospects for 2014. It defines the specific objectives and priority sector policies

of the Authorities, particularly in terms of social inclusion and cohesion.

I Political and Economic Context

2. National reconciliation and political dialogue have made significant progress. Security has

been restored throughout the country, and the overall reform of the security sector is well on

track. The disarmament and reintegration of ex-combatants by the Disarmament,

Demobilization and Reintegration Authority (ADDR) has made significant progress thanks to

the restoration of the authority of the regular forces. Furthermore, the term of the Dialogue,

Truth and Reconciliation Commission (CDVR) was extended by the Head of State on 21

November 2013 for one year. The implementation of the recommendations of the first term

for the preservation of peace and enhancement of social cohesion is ongoing. In addition, the

adoption of the rural land tenure and nationality laws in August 2013, which clarify the

conditions and procedures for obtaining Ivorian nationality and on rural land tenure has helped

to reduce the sources of permanent tension within the population.

3. At the economic level, after 9.8% in 2012, the GDP growth rate of 9.1% in 2013 reinforced

Cote d’Ivoire’s position as a strong growth country in the world. The performance of the

economic and financial programme supported by the Enhanced Credit Facility has been good.

The business climate has improved significantly with, in particular, the implementation of the

new attractive investment, mining and electricity codes that comply with international

standards, the operationalization of the single window for investments, access to landed

property, reduction of time lines, and the simplification of formalities to create businesses.

These reforms have resulted in a sharp increase in foreign direct investments (CFAF 407

billion, which is more than triple the 2012 level) and the number of businesses created (2775

in 2013 against 396 in 2012). Consequently, the World Bank, in its 2014 Doing Business report

placed Cote d’Ivoire among the 10 countries that made the most significant progress in the

implementation of reforms. These results have helped to increase the nominal per capita GDP

by more than 15% in two years. Maintaining this growth rate over the next few years and

pursuing effective structural reforms are expected to sustainably improve household living

conditions and promote the emergence of Cote d’Ivoire by 2020.

II. Implementation Status of Reforms in 2013

4. As part of the strategy to support economic recovery, the Government has pursued

implementation of major structural reforms, particularly in the public finance sector, the

financial sector, and improvement of the business climate.

II

(a) Public Finance Management Reforms

5. Fiscal management is in line with improvement of public finance and transparency

through implementation of action plans defined by the Public Expenditure

Management and Financial Accountability Review (PEMFAR).

6. In efforts to improve public procurement, the Government prepared and disseminated

to credit administrators a standard procurement plan for execution of the 2014 budget.

Similarly, a Pluriannual Economic Fiscal Programming Document (DPBEP) has been

appended to the 2014 Finance Law.

7. As regards improvement of the absorptive capacity of public and private sectors, the

overall Medium Term Expenditure Framework (MTEF) for 2014-2016 is appended to

the 2014 Finance Law, and an expenditure commitment plan was prepared in February

2014 for programming the consumption of fiscal credits.

8. With respect to improvement of the debt management framework, a medium-term debt

management strategy (MTDMS 2013-2017), which complies with international

standards, was adopted by the Cabinet Meeting of 19 December 2013. It is in harmony

with the Debt Sustainability Analysis (DSA) updated at the end of October 2013 with

IMF technical support.

(b) Financial Sector Reforms

9. A Financial Sector Development Strategy (SDSF) was prepared and adopted by the

Cabinet Meeting of 16 April 2014 to better meet the financing needs of the economy.

10. As regards the restructuring of public banks, an action plan based on the results of the

bank evaluation conducted by international consulting firms has been prepared and

submitted to the Government for adoption in a Cabinet Meeting.

11. With regard to micro-finance, the rehabilitation of the sector falls within an action plan

focused on four major aspects: (i) consolidation of the regulatory and institutional

framework; (ii) strengthening of supervision; (iii) restructuring and rehabilitation of

structures in difficulty; and (iv) liquidation of decentralized financing structures whose

authorizations have been withdrawn. Implementation of this plan will ensure better

supervision of the sector and facilitate access to financing for the poorest social groups.

Furthermore, the Cabinet Meeting of 22 January 2014 adopted the implementing

decree of Ordinance No. 2011-367 of 3 November 2011 defining regulations

governing Decentralized Financing Structures (DFS). The other actions on the

promotion, control and assistance for DFS are being carried out.

(c) Improvement of the Business Climate

12. Several reforms have been undertaken to create an enabling environment for private

investment by establishing an attractive legal and institutional mechanism:

Emphasis was laid on reducing the cost of creating businesses by simplifying and

reducing the number of procedures, as well as the tax on the various formalities

required. In this regard, a Single External Trade Window has been created, as

well as reductions made on custom duties for goods in the Abidjan Port, the cost

III

of transfer of ownership and publication of business creation notices.

Furthermore, the Bill on competitiveness was adopted by the Government on 2

May 2013;

a Good Governance High Authority and a National Anti-Corruption Secretariat

were created by decree on 20 November 2013 to promote good governance

through awareness campaigns and institute criminal proceeding against

offenders;

a domestic arrears clearance plan was adopted by Cabinet Meeting on 14

November 2013. The implementation of this plan has started with the settlement

of CFAF 56.5 billion in 2013 and seeks to support national economic activity.

III. The 2014 Programme

A. General Objectives

13. The Government intends to make Cote d’Ivoire an emerging country by 2020 by implementing

the National Development Plan (PND) 2012-2015. The development plan seeks to reduce

poverty and lay the bases for an emerging Cote d’Ivoire by 2020. The objective is to achieve

a double-digit growth rate as from 2014. The investment rate is expected to increase from

13.6% of GDP in 2012 to 16.5% of GDP in 2013, 20% in 2014 and 21.8% in 2015. Public

investments are expect to increase from 4.9% in 2012 to 7.2% in 2013, 8.2% in 2014 and 9.2%

in 2015. For the PND financing, a Consultative Group was organized on 4 and 5 December

2012 in Paris with World Bank support. The meeting recorded intentions for external public

and private financing required for PND implementation. All in all, the official announcements

of partners amounted to CFAF 4319.4 billion (USD 8.6 billion), comprising CFAF 1102.4

billion (USD 2.2 billion) acquired financing and CFAF 3217 billion (USD 6.4 billion) new

financing.

14. After the Consultative Group in 2012, the Government, from 29 January to 1 February 2014,

organized a forum known as “Investir en Cote d’Ivoire: ICI 2014” which welcomed 5717

participants and 270 exhibitors from 71 countries.

15. The year 2014 is expected to confirm the sustained growth of the Ivorian economy, following

significant progress made in 2012 and 2013. The inflation rate is expected to remain within

the limit of the maximum community standard of 3%. To that end, the Government counts on

the positive impact of structural reforms, particularly improvement of the business climate,

sharp increase in core and innovative public investments, and private investments. The

nominal per capita GDP is expected to continue increasing sharply to 8.3% in 2014 for the

third consecutive year, as against an accumulated decline in per capita income over the past

decade. All these results should help to reduce poverty, make progress towards achievement

of the Millennium Development Goals (MDG), pursue efforts in good governance and poverty

reduction, and consolidate improvement of the living conditions of the population so as to

attain the goal of halving poverty in 2015.

16. The fiscal policy will pursue: (i) optimization of the tax revenue potential, particularly by

broadening the tax base and enhancing the means of collection; (ii) streamlining of expenditure

through better planning, improved public procurement management, and closer monitoring of

public investment execution; and (iii) a sustainable debt policy and broadening of financing

means. The budget margin obtained will be allocated to strengthening investments. The overall

budget balance is expected to improve from -2.3% of GDP in 2013 to -2.2% in 2014, while

the basic primary balance is expected to increase from 0.1% of GDP to 0.2%.

17. To achieve these objectives, the Government intends to complete the financial sector reform

taking into account the restructuring of public banks, restore financial balance in the electricity

sector, continue to improve public finance management, mainly by enhancing good

governance and maintaining external debt sustainability. The Government will also continue

IV

to lay emphasis on the redistribution of the gains of growth to the entire population,

particularly the most vulnerable groups.

18. The Government will also strive to strengthen regional integration. To that end, it will rely on

the consolidation of national reconciliation and preservation of security and social cohesion

throughout the country. Furthermore, the Government will also promote the implementation

of core and common investment projects, particularly the Abidjan-Ouagadougou and Abidjan-

Lagos highways.

19. Generally, the Government intends to enhance the quality of policies and institutions to foster

the efficient use of resources for the promotion of sustainable development, job creation and

poverty reduction. Furthermore, Cote d’Ivoire is convinced that the satisfactory

implementation of CPIA4 indicators developed by the World Bank will contribute to the

achievement of the Millennium Development Goals and its economic, political and social

emergence. The CPIA for Cote d’Ivoire improved from 2.9 in 2013 to 3.2 in 2014.

B. Poverty Reduction

20. Following a decade of crisis and two years of economic boom, the Government is determined

to improve the poverty and social indicators. In line with the PND objectives, Cote d’Ivoire is

back on the path to strong, sustainable, and inclusive growth that respects gander and the

environment, generates employment and helps to reduce poverty. The Government’s social

and poverty reduction strategy focuses on: (i) access to youth employment; (ii) better

remuneration for farmers; (iii) higher incomes for women through project financing; and (iv)

increased and targeted intervention for the most vulnerable groups in the priority sectors of

education, health, security, social protection and basic infrastructure, particularly access to

housing.

21. Increasing allocations for pro-poor expenditure will provide better public services. The

expenditure is estimated at CFAF 1521.8 billion in 2014 as against CFAF 1337.1 billion in

2013 and CFAF 1080.3 billion in 2012.

22. As regards drinking water, Abidjan district was provided with a drinking water treatment

station of 2000 m³/h, a ground reservoir of 1000 m³ and equipment for twelve (12) large

diameter productive boreholes in 2012. With the finalization of drinking water supply from

the underground water table in Bonoua, water shortage will be offset in Abidjan. A vast village

pump rehabilitation and construction programme has also been launched, particularly in the

north and west of the country, as well as the installation of drinking water treatment stations

in Abidjan and in the interior of the country.

C. Structural Reforms

(a) Public finance management reforms

23. In order to improve the resource and public expenditure management framework, the

Government intends to pursue implementation of the public finance reform plan based

on the conclusions of the PEMFAR missions conducted by the international financial

community, particularly the World Bank, the African Development Bank and the

European Union. In this regard, a consolidated standard procurement plan is available,

and an expenditure commitment plan has been prepared and disseminated. The

Government will continue to decentralize public finance management by connecting

five (5) localities to the SIGFiP network. In ensuring compliance of the national

legislation with the community standard, the four draft decrees relating to the

transposition of WAEMU directives on public finance will be prepared. Furthermore,

application of the management principles therein will help to enhance public finance

4 Country Policy Institutional Assessment.

V

rehabilitation. Lastly, the Government will adopt an implementation strategy for a

single Treasury account will help to ensure better traceability of Government

operations. In this regard, a census of the accounts of all public entities held in

commercial banks and in the Central Bank, and their balances as at 31 December 2013

is available. The Government will pursue efforts to reinforce public sector controls

through more effective monitoring of their financial operations. Collection of

information on public sector operations will be placed online with the installation of a

software so as to have data in real time.

24. In order to improve the absorptive capacity of the administration in view of the capital

expenditure level in 2013, specific support measures will continue to be taken for

budget execution. The measures seek to contain current expenditure within budget

allocations and improve the execution rate of capital expenditure and poverty

reduction expenses in continuation of efforts initiated in 2013. In 2014, the

Government will take appropriate measures to: (i) streamline its normal expenditure

procedure and reduce redundant controls; (ii) limit recourse to treasury advances to

emergency cases; (iii) reduce categories eligible for treasury advances and

authorizations to incur expenditure; (iv) reduce the initial advance maximum and

authorizations; (v) define the criteria for using these procedures, particularly criteria

of service needs and proven emergency; and (vi) define conditions for transfer orders.

Lastly, the Government will take measures to clear the balance of provisional

allocation accounts, and residual allocation authorizations will be cancelled at the end

of 2014.

(b) Debt Strategy

25. A medium-term debt management strategy (MTDS 2013-2017) and a debt

sustainability analysis (DSA) were adopted in December 2013 to preserve the public

debt sustainability on the medium to long term and comply with international

standards. It takes into account control of debt-related risks, particularly exchange and

refinancing risks for which the Government will give priority to the mobilization of

concessional external financing and improve its communication policy with the

market. In 2014, the MTDS will be updated on the basis of monitoring and evaluation

of debt variation in 2014. A revised MTDS will be appended to the 2015 Finance Law.

Furthermore, to ensure closer monitoring of Government debt, the Ministry of the

Economy and Finance will launch the creation of a centralized database for the debt

of public companies and the government guarantees granted. In addition, an order on

the organization and operation of the Department of Public Debt, particularly with

restructuring with front, middle and back offices was signed on 2 January 2014. A

service reorganization based on this restructuring is being implemented with IMF

technical assistance to ensure integrated and rational management of public debt.

26. Furthermore, the Government will continue to broaden its sources of financing. To

that end, the Government has taken measures to obtain a sovereign credit rating. This

initiative falls within the new debt strategy aimed at increasing the sources of financing

and improving the structure of domestic and foreign debt maturity, as well as

assets/liabilities management. For 2014, a Eurobond will be issued for USD 500

million. In addition, the Government will go to the international financial market to

finance two (2) structure projects for an amount of USD 1,700 million (Abidjan Port

Extension and Modernization Project and the Electric Network Rehabilitation Project).

VI

(c) Energy Sector Reform

27. Law No. 2014-132 of 24 march 2014 instituting the Electricity Code has been adopted

by the National Assembly. It includes better management of physical and financial

flows in the sector thanks to: (i) better definition of electricity sector activities and

their legal provisions; greater flexibility in possibilities of organization and

management of segments monopolized by the State which are now likely to be

transferred to one or more private operators; (iii) consideration of new and renewable

energy and energy control; (iv) strengthening of the mechanism to repress fraud and

criminal acts that are harmful to the electricity sector; and (v) the institution, by law,

of an independent regulation commission with powers necessary for the

accomplishment of its mission.

28. As regards the hydrocarbons sector, the Government has been implementing the new

automatic price fixing mechanism for fuel since 1 April 2013. With respect to the

extractive industries, the Government intends to maintain Cote d’Ivoire compliance

with the Extractive Industries Transparency Initiative (EITI). To that end, the

Petroleum Code has been amended and a new Hydrocarbons Code has been adopted

to ensure better transparency in resource management and environmental protection.

29. A new Mining Code was adopted by the National Assembly on 4 March 2014 to foster

foreign capital inflow to the mining sector and make Cote d’Ivoire a preferred

destination. It grants many benefits to investors and repeals, in particular, the tax on

exceptional profits.

(d) Coffee-Cocoa Sector Reforms

30. The Government will pursue its efforts to reform the coffee-cocoa sector and maintain

the minimum guaranteed prices for producers at not less than 60% of the CIF baseline

price so as to increase the incomes of farmers. The evaluation of cooperatives to build

the capacities of Farmer Organizations has partially identified 3747 cooperatives,

including 2856 in the coffee-cocoa sector. The finalization of this census for coffee-

cocoa sector farmers will provide a production map and better address the

implementation of the reform. The reforms will also be extended to other sectors,

particularly the cotton and cashew sectors, to ensure integrated management of crops.

Furthermore, the Rural Areas investment Fund (FIMR) will pursue its actions to

improve the living conditions of the population by rehabilitating rural roads and

building schools and health centres.

(e) Financial Sector Reforms

31. The Government will encourage the development and dissemination of new financial

instruments. The instruction on general rules applicable to Treasury Securities

Specialists (SVT) and the Charter governing relations between issuers and Treasury

Securities Specialists on the public debt securities market of Member States of the

West African Economic and Monetary Union (WAEMU) have been finalized. All

these new regulations have been forwarded to the banking and financial system

stakeholders for information. In addition, the rules governing repurchase agreements

and public securities issued by auction or syndication were adopted during the 28 June

2013 session of the WAEMU Council of Ministers. These various measures and the

development of information systems (credit agencies, registers) will help to deepen the

sub-regional financial market. Furthermore, the secondary market will be developed

VII

so as to increase the volume of trade on the regional financial market; financial

transactions between WAEMU and CEMAC zones will be strengthened.

(f) Business environment reforms and promotion of good governance

32. In order to reaffirm its commitment to create a general climate of good governance,

the Government will carry out specific actions to improve the business climate,

promote public service ethics, effectively fight against corruption and promote good

governance. It is convinced that improvement of ratings for the respective indicators

of Doing Business, Millennium Challenge Corporation and CPIA will help to achieve

its objectives.

33. As regards the business climate, the significant progress made in 2013 will be

consolidated. In this respect, the Government will implement new measures to beef up

the existing mechanism so as to improve the Doing Business indicators. These

measures will be implemented by the Investments Promotion entity (CEPICI) through

thirty-four (34) reforms, in particular: (i) simplification or reduction of procedures,

time lines and costs of formalities for creating businesses (legal, import-export, and

energy); (ii) broadening of channels for preparing and disseminating business creation

documents; (iii) reduction of fiscal costs and lifting of the requirement of minimal

capital for SMEs (share capital does not exceed CFAF 10 million; (iv) broadening of

the powers of the President of the Commercial Court and institution of a legal

commercial mediation framework; (v) strengthening of the mechanism for

rehabilitating businesses in difficulty; and (vi) strengthening of compliance with

appeal and debarment deadlines prescribed by the instruments.

IV. Monitoring and Evaluation

34. The Government appreciates the efforts made by the bank Group to define and

implement the development strategy for Cote d’Ivoire. It will work towards

strengthening this partnership.

35. The Strategic Monitoring Committee of the Economic and financial Programme

chaired by the Minister at the Prime Minister’s Office will be responsible for the

implementation of all the programmes concluded with the Technical and Financial

Partners, in particular the ADB Group. The day-to-day monitoring and evaluation of

the programme will be conducted by the Technical monitoring Committee of the

Economic and Financial Programme.

36. I hope that the orientations and commitments made by the Government will help to

consolidate financial cooperation with the African Development bank (ADB) and all

the other multilateral and bilateral partners, and thereby allow for a sector budget

support for the Social Inclusion and Cohesion Enhancement Programme.

Please accept, Mr. President, the assurances of our highest consideration.

Niale KABA

II

I

ANNEX 2

MATRIX OF PROGRAMME MEASURES 2014-2015

Objectives/Strategic

Thrusts

Baseline Situation

in 2013

Measures and Actions Supported Output Indicators Outcome Indicators Means of Verification of

Achievement of Measures 2014 2015

Component 1: Socio-economic integration of ex-combatants in trades with decent incomes

1.1 Re-socialization

and training in

trades

Difficulties of ex-

combatants in

readjusting to their

social environment

and civilian life.

Low level of

training in various

trades. The ADDR

conducted the socio-

economic

integration of

27,116 out of a total

of 74,068 ex-

combatants,

representing 36.6%.

Agreements signed

with specialized

citizenship education

agencies.

Implementation of agreements

Re-socialization training and choice

of trade and/or activity for 9,500 ex-

combatants

Around 15,500 ex-

combatants,

including 70% of

the stock to be

reintegrated, have

been trained in

social values

About 15,500 ex-

combatants, some 2,000

of them females, are

reintegrated into civilian

life.

ADDR reports

Agreements with

professional training

structures signed

Professional training of 9,500 ex-

combatants

Around 18,000 ex-

combatants

received training in

a trade

ADDR reports

Strategy tailored to

specific cases of female

ex-combatants who

have children of tender

age and/or who are

pregnant

A specific strategy

is adopted for

female ex-

combatants who

have children of

tender age and/or

are pregnant.

ADDR reports

Psychological follow-

up mechanism for

behaviour disorders

detected during the

period of socialization.

Psychological follow-up for people

with behaviour disorders detected

during the period of socialization

Psychological care

provided to ex-

combatants who

need it.

ADDR reports.

1.2 Demobilization

benefits to serve as

financial capital for

integration

The approach

consists in paying

ex-combatants a

benefit to serve as

financial capital for

the EIGs they create.

This builds

confidence in banks

and other private

operators. This

experiment was

4 agreements –

ADDR/ANADER,

ADDR/MT,

ADDR/UVICOCI,

ADDR/FICI – signed

Implementation of agreements signed Advice and

supervision offered

to ADDR and ex-

combatants’ EIGs

-Installation of about

300 EIGs

-About 15,500 ex-

combatants, including

about 2,000 females, are

integrated

-Improvement of the

quality of air in Abidjan

-Elimination of at least

70% of the stock of solid

ADDR reports.

Model EIG statutes

adopted

Demobilization

benefits paid to 6,000

ex-combatants to serve

Demobilization benefits paid to 9,500

ex-combatants to serve as financial

capital to start EIGs

Ex-combatants

employed in:

- 6,500 agro-

pastoral trades ;

- 5,500 in transport

II

Objectives/Strategic

Thrusts

Baseline Situation

in 2013

Measures and Actions Supported Output Indicators Outcome Indicators Means of Verification of

Achievement of Measures 2014 2015

successful in 2013

with 500 drivers and

1,000 jobs in the

green economy

(waste treatment)

as financial capital to

start EIGs

-3,500 in the green

economy

non-biodegradable

wastes

Induced effects on the

development of SMEs,

incomes, and the

economy in general and

social cohesion

Agreements with

executing operators

signed and

implementation

Coaching and monitoring of 9,000

integrated ex-combatants

15,500 ex-

combatants

mentored and

monitored

ADDR reports.

Component 2: Support for resolution of the causes of inter-community conflicts and care for victims

2.1. Support for

land security in

conflict-prone zones

Land is a major

source of intra-

community

conflicts, in

particular in

Western Cote

d’Ivoire. Rural lands

are considered by

82% of Ivorians as

the principal source

of inter-community

conflicts. The Land

Code was revised

and Decree No.

2013-263 grants the

State exclusive

responsibility to

finance the

demarcation of

village lands.

Validation by

MAT/MINAGRI of the

list of selected regions,

prefectures and sub-

prefectures

Validation of the reports creating

village land management committees

(CVGF) by prefects

Constitution of the

list of localities

The number of inter-

community land

conflicts reduces, and

appeals are settled by the

law courts

The property rights of

1,761 village

communities are

recognized

The 2015 elections are

peaceful in conflict-

prone regions

Traditional mediation

and conflict

management

mechanisms are deemed

credible by the people

who resort to them.

The State and the people

base their opinions and

decisions on credible

facts and not on rumors

MINAGRI,/MAT/MPD

Decision specifying the

rural lands to be

demarcated.

Prefectoral decisions ratifying

CVGFs and creating prefectoral

demarcation committees

CVGFs operational

in 1,761 villages

Training of local

officials tasked with

implementing the Land

Code (prefects, sub-

prefects, regional

directors, land agents

and technical

operators)

Issuance of land titles by

MAT/MINAGRI to recipient village

communities

Decisions fixing

village lands in

1,761 villages

Conduct of

sensitization

campaigns on the Land

Code including

women’s right to

inherit land

Continued sensitization campaign on

the Land Code and especially on

women’s rights to inherit land

The population of

1,761 villages

sensitized

2.2. Strengthen

dialogue and the

mediation and

There is a lack of

dialogue between

different

communities living

Adequate budgetary

allocations to CDVR

for its communication

activities

Install local committees monitoring,

warning and maintaining social

cohesion

Community

mechanisms for

maintaining peace

and promoting the

Rapports DSCS, PNSC

III

Objectives/Strategic

Thrusts

Baseline Situation

in 2013

Measures and Actions Supported Output Indicators Outcome Indicators Means of Verification of

Achievement of Measures 2014 2015

social cohesion

mechanism

in the same territory,

weakness or

disappearance of

traditional forms of

mediation. Political

manipulation and /

or religious

worsened the lack of

consultation and

common search for

solutions all the

more that people do

not necessarily have

confidence in the

impartiality of State

structures meant to

protect and defend

citizens’

fundamental rights.

Strengthen CDVR’s

capacities for IEC on

the public hearings and

dissemination and

sharing of its

experience

values of social

cohesion are

established and

operational

The victims of the crises

obtain pleas for pardon

from the guilty during

public hearings

Strengthening of

OBCS capacities in the

design of social

cohesion policies and

surveillance tools

Social cohesion policy validated and

adopted

Surveillance tools finalized and

functional

The people prepare

their peace

messages and the

State has an early

warning tool on

risks that

undermine social

cohesion

Allocation of adequate

resources for

sensitization

campaigns on social

cohesion in particular

in conflict-prone sub-

prefectures, revision of

the Penal Code.

Continued IEC campaigns in the

conflict-prone regions of Montagnes

and Zanzan

2.3. Care for victims

of past crises

Psychological

hardships for

displaced persons

returning home

since living and

security conditions

cannot be deemed

adequate. GBV

victims cannot

benefit from all legal

protection because

of the costs to be

borne, while the

competent courts do

not hold sessions.

Reintegration of

refugees and internally

displaced persons by

offering them psycho-

medical care

Continuation of reintegration

activities of refugees and displaced

persons

Psycho-medical

care for crisis

victims suffering

from trauma

Returning refugees have

confidence in the public

administration

Reports of the Ministry of

the Health

Reports of the Ministry of

Justice

Report of the Ministry of

Health and HIV/AIDS

Control

Reports of the Ministry of

Solidarity, the Family,

Women and Children

GBV data in the SIS

Production of an

algorithm for care of

GBV victims

Institution of free care and issuance

of medical certificates for women

who are GBV victims

Entry of GBV data into the SIS

- At least 70% of

women GBV

victims who go to

care centres receive

free care and

medical certificates

GBV victims obtain

legal protection and have

their dignity restored

Resumption of law

court hearings to try

GBV cases

Opening of law

court hearings to

try GBV cases

Component C. Coordination, Community Participation and Transparency

3.1 Support for the

coordination,

monitoring and

Social cohesion is a

broad policy, action

and stakeholder

Definition of a

collaborative platform

between Ministries and

Platform adopted

More effective

coordination in social

cohesion

MPD, CDVR, OBCS,

PNCS, ADDR

IV

Objectives/Strategic

Thrusts

Baseline Situation

in 2013

Measures and Actions Supported Output Indicators Outcome Indicators Means of Verification of

Achievement of Measures 2014 2015

evaluation of social

cohesion

interventions

field. Although the

respective roles of

Ministries and

specialized

structures are

defined in their

organic instruments,

there still exist

several forms of

duplication which

require coordination

public/private agencies

working in the field of

social cohesion

Social cohesion

related GIS in place

MPD/PNCS

Definition and

positioning of PNCS in

the national social

cohesion structure

Capacity building for PNCS in social

cohesion monitoring and

coordination

PNCS and OSCS

are more

operational

Allocation of adequate

resources for

coordination and

monitoring-evaluation

of social cohesion

policies and

programmes

Allocation of adequate resources for

coordination and monitoring-

evaluation of social cohesion policies

and programmes.

Management chart

on stakeholders and

results (GIS)

Better coordination of

public and private

actions

3.2. Strengthening

of participation and

transparency of the

programme

Proactive

dissemination of the

results obtained under

this programme

Proactive dissemination of results

obtained under this programme

Quarterly data on

the results obtained

Beneficiaries have

access to the outcomes

of the reintegration of

ex-combatants,

Improvement of the

confidence level of

beneficiaries

MPD, ADDR, PNCS,

ANNEX III

PREPARATION STATUS OF MEASURES PRECEDENT TO DISBURSEMENT

OF THE FIRST TRANCHE

Measures to be taken before

Board presentation

Implementation Status

Structures responsible

The three (3) agreements signed

between: ADDR / ANADER

ADDR / MT, ADDR / FNSCI to

ensure sustainability of jobs

created under the programme

Standard agreement with ANADER

exists in the IFAD project

Agreement with MT and FNSCI

already negotiated. The three

agreements will be signed following

negotiation of the grant

ADDR

Copies certified by MJDH

office for convening the hearing

sessions

The hearings have been convened and

at least 2 (Abidjan and Yopougon)

have been in session since 15 May

2014

Ministry of Justice and

Human Rights

(Department of

Cooperation)

Joint MIS / MINAGRI

administrative decision listing

the villages whose lands have

been demarcated under the

programme

The draft Ministerial Order has been

prepared in line with the program

model with the EU. The Orders will be

signed following negotiation of the

Grant Agreement

MINAGRI (Department

of Rural Lands)

The MPD / MSFFE

administrative decision

coordinating social cohesion

actions

The draft decision is ready in MPD. It

is being discussed with MSFFE, and

will be finalized and signed following

negotiation of the Grant Agreement

MPD (General

Directorate of the Plan

and Poverty Reduction)