Burkina Faso - Private Sector Assistance Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 11567-BUR STAFF APPRAISAL REPORT BUWIA FASO PRIVATE SECTOR ASSISTACE PRJECT EBlRUARY 23, 1993 r .; ' j jV i' ;L y ' ._ .'\711. y' :i'~~ t,' 3', ,i Industry and Energy Division Sahelian Department Africa Region Tbis docment has a rsticft dI stftbtond mNay be used by rents only in the pedonnanme of thei officl dutis Its content may not otberwse be disdosed wiout World Rank autholidaion,  Currency Unit - CFA Franc (CFAF) US $1.0 = 276.625 CFAF I milion US $3,615 SDR 1.0 3 USS1.371 A&BBRV,IA=IN$N AND,CRONYMS AGSECAL Agricultural Sector Adjustment Loan BCEAO Banque Centrale des Etats de l'Afrique de I'Ouest BFCI Banque pour le Financement du Commerce et de ldndusre BIB Banue inernationle du Burkina BICIA Banque Internationale pour le Commerce, l'Industrie et 1'Agriculture BND-N Banque Nationale de DEveloppement du Burkina BRCB Bureau de Recouvrement des crdances du Burkina CARFO Caisse d'Autonome de Retraite des Fonctionnalres CB Commission Bancaire de l'UMOA CBC Conseil Burkinabe de Changes CCIA Chambre de Commerce de 'Industrie et de l'Arsanat CCP Compte Cheques Postaux CNCA Caisse Nationale de Credit Agricole CNE Caisse Nationale dEpargne CNSS Caisse Nationale de SJcurite Sociale EPIC Etablissement Public I Caract&re Industriel et Commercial EPA Etablissement Public I Caractre Administratif G3OBF Government of Burkina Faso MIFP Ministtre des Finances et du Plan MICM Ministere de lIndustrie, du Commerce et des Mines ONAC Office National du Commerce ExtErieur PC Privatization Commission PID Projet Institutionnel de Ddveloppement SAL Strucural Adjustment Loan SE Socie d'Etat SEM SociEtE d'Economie Mixte SGS Societe GQErale de Surveillance TSAIP Transport Sector Adjustment and Investment Program UMOA Union Monetaire Ouest Africaine FISCAL YEAR January 1 - December 31  E : ........* 4 . . ... .. . . ..4 . .. . . . . . 4 . . . . * . . . . zg~~~~~~ 4 * ** * * ** .* ........ .... ...E........ a~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ . ...... .. .... ... ... 4 ... . . 4 * * * * * . . . . . 4 . . . . . . . 4 4 ...... 4..... . . 4.. 4 .... 4 4 9 4 4 4. 4. 4 V * . 4 4 z * .- * 4. 4 4.. 4... * . 4 ... 4* 4. 4. 4.. 4*.-;* 4 4 4 4 4 4 4 4 9 4 . 4.. ..4.4 4 .........~~~~~~~~~~. 9..... .. 4.. . . .. ... 4_ 4..... * 4.. ... 4..a... . . . . . . . . . . . . . . . . . . . . . . . e; ka~~~~~~~~~~~~~~~ * * * * cg * * * * * ** * * * * . . . . . . . . . . . . . . . . . . . ~~~~. . . .:. 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E~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 4p 4 * 4 xS~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ X . * . *. * . . . *.* [Er!F X ......... 4 X~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ . . . 4 4 4 4 4  lUSr OF ANNE= Annex I Litd ofpublc aetpis ............................... 36 Annex 2 PrivatLzatin program ... . ............. 38 Annex3 Lls ofprvatprofhsoionarginzdo ....... ............. 40 Annex4 Privateconsultlngfis ........ .................. 41 Anex 5 Exten Donors Programs .. ....... .................. . 42 Annex 6 Govrnment's Policy Letter on a program fbr srengthening support and finncinsttions ........................... 43 Annex 7 Overview of the Banking sector . . . ........ ... ..51 Anex. 8 Tms of refec for the orgaization of the two one-step-windows .... 54 Annex 9 A Terms of trer for the privatization of the Chamer of Comme (CCIA) .......................... 58 Annex 9 B Tems of reeemnc for the rerganizatn of the structure comprised ofCCIA, ONAC and CBC .. ..... ................... 61 Annex 9 C Tms of rferee for the raionaliadon of the mogomen of CCIA's d CBC's warhousingf i .....................facili 64 Anni 10 Terms of refec for the convesion of the CCP/CNE into a financi stution ........ ...... ........ . 66 Annex 11 Terms of reference for a feasibility study on new fincial Annex 12 Estimated proje costsand financing pln .... . ... 72 Annx 13 poplnng...... .... 74 Anex 14 Keyprojectactviiesand evautioncrithera ........... .. 80 Annex 15 SupeviionPlan.................. 83 Ann 16 schedule............ 85  i BU1U - FASO Creit and-l"oJot SWIMWQ Bon: ~~Govermn Of Burkina FMs B:ndkiarin-, Mintry of 1n_y, Commerce and Min (MJCM) and Mistry of Fine and Planning (IhP); support insitonm: Chambred Commerce de lInduste et de 'Artisanat - CCIA, Office Nal op Anmnerce Extrir - ONAC and Consegl de Ca - CBC; Prvae nsitutons providing support and services to the private sector; Pivate Entrepreneurs; banks and financial insttutions. AntM: SDR 5.1 mllion (US$ 7 million equiaent) Imm: Sandard IDA terms, with 40 years maty ftWectiond:ft The proposed project would primaiy focus on the instuona deveopment oft (f) the governmt agencies delivering adminstratie services to the private sector; and, (i) the fincial termediies. It would also support measures aiming at deepening financi intermedistion. The project contsts of the following three components: (a) his to component will fiane short-erm techcal sistance, taioig and equipment to impre the MICM capacit in: ) administerig the pwcedu relag to eteral trde and the estblishment of ew private businese; and, (ii) efkiently caying out the Govwnment's program for divestiure from public entaeise. Ob) J niu cmponent. The purpose of this component is to rganze, privatize, and strengthen the support sttre comprised of the CCIA, the CBC and ONAC by: (i) transfrg to the Government the tasks of adminitve nature that they presentiy perform and to the CCIA all those consisting of providing extenion serices to private e nep n; (d) stheng CCIas ability to bep private entrepreneurs obta the assistance that they need; and, 1 rationalizing the management of warehouses and shipping equipme presently under CCIA and CBC contol. In addition, the project would finance thugh the restuctured CCIA, technical assistance to privae entrpreneurs who wish to Improve their operations or create new (c) Em=a seialscor mazon eut. Under this component, the project would fiance: () the sevices of an expert investent bankr to assist the MFP in evaluating private investors proposals to buy shares In public eprises or financil ntiuns nd in negodating with them; (Hi) tecnical assistance to  II rove the orgaWnzatio and proceur of the BRC1, and equpmen to computerize its operations; ffO) the updae by Indepdnt auditors of the banks auifts prior to thei prlvatelzio (lv) a study ito prear te conversion of the postl checking and ags system (CCP/CNE) In a fidal ialtudon (v) a roview of the las rdatig to bad checds and delincuent debtors; and, (vi) a feaibily stdy to Ideny the condon for ithe creon and the viility of longem f