Burundi - Development Bank (BNDE) Project

Doument of The World Bank VOR OFFICIAL USE ONLv Repou No. 6956 PROJECT COMPLETION REPORT BURUNDI BANQUE NATIONALE DE DEVELOPPEMENT (BNDE) (Credit 731-BU) September 29, 1987 Industrial Development and Finance Division Eastern and Southern Africa Projects Department T dc dmeot bo a resbtod dsibudom and mwy be wed by repkets ady In the perfomne Of theIr oail duds lbs coxseu may not oterwie be ds dcdoe withot Word lank auhorifmo".  GLOSSARY OF ABBREVIATIONS ADB African Development Bank BNDE Banque Nationale de D6veloppement Economique CAMOFI Caisse Centrale de Mobilisation et de Financement CCCE Caisse Centrale de Coop6ratioa Economique CPI Centre de Promotion Industriel DEG Deutsche Etutwicklungsgesellschaft EIB European Investment Bank KFW Kreditanstalt fur Wiederaufbau SBF Societe Burundaise de Financement UNIDO United Nations Industrial Development Organization UNDP United Nations Development Program CURRENCY EQUIVALENTS Currency Unit Burundi Franc (FBu) US$ 1.00 FBu 90.0 * FBu US$0.011 FISCAL YEAR January 1 - December 31 * Since November 23, 1983, the Burundi Franc is pegged to the Special Drawing Right (SDR) at a rate of 122,70 FBu for 1 DTS (or 0,00815 DTS for 1 FBu).  THt WORLD BANK O OFFICL USE ONLY Wdshntnton DC 2041J u s A OWase of 0Dr,t 0wC sa September 29, 198' MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report oit Burundi - Banque Nationale de Devel,ppement (BNDE) Project (Credit 731-BU) Attached, for information, is a copy of a report entitled "Project Completion Report on Burundi - Banque Nationale de Developpement (BNDE) Project (Credit 731-BU)" prepared by the Eastern and Southern Africa Projects Department. Under the modified system for project performance :ing further evaluation of this project by the Operations Evaluation *tment has not been made. Attachment This document has a restrcted distribution and may be used by recipients only in the performance of their offictal duties. Its contents may not otherwise be disclosed without World Bank authoizautori.  FOR OFMICI4L USE ONLY PROJ@CT COMETIOX REPORT DURURDI BANQUE NATIONALS DE DEVELOPPEMENT tBNDE) (Credit 731-BU) TABLE OF CONTENTS Paze No. Prefacse............................... Basic Data Sheet ..... .............................*.... ii Highlights ....................................... i v Is Introduction ........................ 1 1I. Macroeconomic, Industrial anAl Financial Objectives .a.....,2 III . Obes ..................... ................ 2 I'!. Allocation of the Credit ......., 8 V. Operational and Financial Performance 9 VI. Conclusions and Lessons Learned 12 Annexes 1. Projected and Actual Lending Operations, 1976-1983 ..... 15 2. Projected end Audited Balance Sheets, 1976-1983 16 3. Projected and Audited Income Statements, 1976-1983 ..... 17 4. Projected and Actual Financial Ratios, 1976-1983 18 5. Analysis of all Loans and Equity Investments Approved between 1977 and 1983................... 19 6. Subprojects Refinaced under Credit 731-BU ............ 20 7a. Financial Characteristics of Subprojects (large and medium) Refinanced under Credit 731-BU ............... 21 7b. Financial Characteristics of Subprojects (SSE) Refinanced under Credit 731-BU .. ............ .. . 22 8. Economic Characteristics of Subprojects Refinaneed under Credit 731-BU .......................... 23 9. Summary Description and Present Status of Subprojects Refinanced under Credit 731-BU ...................... 24 10. Arrears Situation on Subprojects Refinanced under Credit 731-BU ..... . .. ..................... ... 30 11. Sample of Subprojects not Refinanced by IDA ............ 31 12. Fiancial Characteristics of Subprojects not Refinanced by IDA .................................... 32 13. Economic Characteristics of Subprojects not Refinanced by IDA ........... .. .... ........ . . . . . . . 33 14. Arrears Situation on Subprojects not Refinanced by IDA .........................*.................... 34 15. Burundi's Interost Rate Structure ....... 35 16. Compliance of Covenants .... 37 This document has a resticted distribution and may be used by recipients only in the performance of their official duties. Its conttnts may no. otherwise be disclsd without World Bank authorization.  PROJECT COMPLETION REPORT BURUNDI BANQUE NATIONALE DE DEVELOPPEMENT (BNDE) (Credit 731-BU) PREFACE This report presents an evaluation of Credit 731-BU, which is the only IDA credit to Banque Nationale de Developpement (BNDE) of Burundi. The credit was approved in July 1977, signed in Se.ptember 1977 and declared effective in April 1978. The original terminal date for submission of subloan applications was exterded twice. The closing date was extended once from December 31, 1981 to December 31, 1983. The Credit was fully disbursed except for a cancellation of US$124,000. The Bank's Eastern and Southern Africa Regional office has 'repared this report on the basis of information contained in the Staff Appraisal Report, a review of Bank files including supervision and progress * reports and information gathered during a project completion mission. The report prpsents a factual review of BNDE's use of the credit proceeds and of its institutional development between 1977 and 1986, especially within the context of the financial and industrial sector environment at the time of project execution. The Project Completion Report was sent in draft form to the Borrower for their comments, but none was received. This project has not been audited by the Operations Evaluation Department.  - ii - PROJECT COMPLETION REPORsT BURUNDI BANQUE NATIONALE DE DEVELOPPEMENT (BNDE) (Credit 731-BU) BASIC DATA (Amounts in USS million) As of June 3.Q,L 1.987 Original Disbursed Cancelled Repaid Outstanding CrediL No. 731-BU 3.4 3.276 .12!4 - 3.276 CUMULaTIVE DISBURSEMENTS Fiscal Year 1977 1978 1979 1980 1981 1982 1983 vi) Estimated 0.1 0.95 2.15 3.0 3.4 3.4 3.4 (ii) Actual - - 0.9 1.3 1.9 3.1 3.2 (iii) (ii) as Z of (l) - - 42% 43% 56% 91% 94% PR.OJECT DATA Credit Dates Original Actual First mention in files 10/24/73 10/24/73 Negotiations 05/31/77 05/31/77 Board Approval 07/07/77 07/07/77 Credit Agreement 09/30/77 09/30/77 Effectiveness 03/27/78 03/27/78 Final Commitment 09/30/79 31/12/81 Closing Date 12/31/81 12/31/83 Borrower Republic of Burundi Executing Agency BNDE 1/ The final commitment date was extended twice from September 30, 1979 to December 31, 1980 and again to December 31, 1981.  - iii - Mission Data No. of No. of Staff Month/Year Weeks Persons Weeks Date of Report Appraisal 10/76 2 2 4 06/10/77 Supervision 1 12/77 1 2 2 01/27/78 Supervision 2 11/78 1/2 1 1/2 12/04/78 Supervision 3 07/79 1 2 2 10/04/79 Supervision 4 03/80 1 2 2 04/18/80 Supervision 5 12/80 2 1 2 02/18/81 Supervision 6 05/81 2 2 4 07/23/81 Preappraisal 1/ 11/81 3 2 6 n.a. Supervision 7 03/84 4 1 4 05/16/84 Follow-up 05/84 1/2 1 1/2 05/16/84 Completion 11/84 1 2 2 01/30/87 I/ BNDI was pre-appraised for a second IDA credit in November 1981; further processing of this credit was dropped subsequently, because of limited demand anc1 the establishment of other government-owned financial intermediaries.  - iv - PROJECT COMPLETION REPORT BURUNDI BANQUE NATIONALE DE DEVELOP