Benin - Education Development (Third Education) Project

Docait of The World Bank FOR OMaCL USE ONLY Report No. P-6214-BEN MEMORANDUM AND RECON4ENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 13.2 MILLION (US$18.1 MILLION EQUIVALENT) TO THE REPUBLIC OF BENIN FOR AN EDUCATION DEVELOPMENT PROJECT Jf 1Q94 MICROGRAPHICS Report No: P- 6214 BEN Type: MOP This document has a resticted distribution and may be used by recipieots ordy in tbe performance of their ofricial d0ues. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EOUIVALENTS The rate of CFA fracs 590 to the US dollar is used for cost projections as of January 1994. The CFA franc (CFAF) is tied to the French franc (FF) in the ratio of FF I to CFAF 100. 1 m = 1.09 yd. I m = 10.76 sq.ft. 1 km = 0.38 sq.mi. Abbreviations and Acronms CAA - Debt Management Agency (Caisse autonome d'amotissement) DAF - Department of Financial Affairs (Direction des affairesfinanciares) MENV - Mistry of Education (Ministere de I'ducation natonale) SAL - Structral Adjustment Credit USAID - United States Agency for ntemnational Development Govemment Fiscal Year January 1 - December 31 School Year October 1 - June 30  FOR OFFICIAL USE ONLY REPUBLIC OF BENIN EDUCATION DEVELOPMENT PROJECT CREDIT AND PROJECT SUMMARY Borrower: Republic of Benin sAmount: SDR 13.2 million (US$18.1 million equivalent) Terms: Standard with 40 years maturity, including 10 years of grace Financing Plan: IDA 18.1 (in US$ million) Government 2.5 Communities 2.3 TOTAL: 22.9 Economic rate of return: Not applicable Poverty Category: Program of targeted interventions. Staff Appraisal Report: Report No. 12571-BEN Map: IBRD No. 25648 This document has a resticted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed wit*out World Bank ahorzation .  MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF BENIN FOR AN EDUCATION DEVELOPMENT PROJECT 1. I submit for your approval the following memorandum and recommendation on a proposed credit to the Republic of Benin of SDR 13.2 million (US$ 18.1 million eouivalent), to help finance an education project. The credit will be granted on standard IDA terms with 40 years maturity. The Government and beneficiary communities will contribute US$4.8 million equivalent. 2. Country Economic Background. Between 1975 and 1982, GDP grew at an average rate of 5%, partly as a result of the oil and uranium booms in Nigeria and Niger. This growth slowed between 1983 and 1987 due to the collapse in the regional transit traffic at the end of the oil boom, and the inefficiency and poor management of the productive sectors which the State dominates. By 1983, the Government was saddled with low-return investments, heavy external debt service, and inadequate economic incentives. In 1989, the Government introduced a first structural adjustment' program which represented a fundamental shift towards economic liberalization and private sector development, and a significant reduction of the public sector's role in the economy. Benin's successful transition to a multi-party democracy in 1991 and the emergence of a national consensus for pursuing the adjustment program led to the adoption of a second and more ambitious phase2 to deepen and expand fiscal, administrative, and public enterprise reform, and trade liberalization and deregulation. This has improved growth and revenue performance. 3. Benin's medium- and long-term economic prospects have been improved by the progress in the implementation of structural reforms and the recent adjustment of the CFA Franc parity. Although GDP increased by 4.3% in 1992 and 1993, thus allowing a slight increase in per capita incomes, the following major constraints to development remain to be addressed: (i) a high fertility rate of 7.1; (ii) a still substantial weight of the public sector; (iii) a heavy dependence on cotton; and (iv) an inadequate administrative and human resource capacity. Non- public sector employment opportunities remain severely limited. 4. Sector Background. Benin's education policy is based on the conclusions of a national conference on education (Etats GWnEraux) held in 1990. The conference's recommendations were translated into a strategy for education reform, adopted in 1991, together with action plans and programs. The reform program gives priority to primary education, and 'IDA and IMF supported the adjustment through a SAL I in May 1989, and a structural adjustment facility arrangement in June 1989. 2A SAL II (US$ 55 million equivalent) was approved by IDA in June 1991. The IMF approved a second-year structural adjustment facility arrangement and an enlarged structural adjustment facility.  2 aims to increase the gross enrollment rate from 43% in 1990 to 59% by 1999 in public primary schools and from 11% to 14% in public secondary schools. Supported by USAID, a program is being implemented to improve budget allocations between primary and the other levels of education, and between salary and non-salary expenditures. While this program and other adjustment measures have already succeeded in increasing the gross primary enrollment rate to 51 % in 1993, in spite of an annual population growth of 3.1 % in 1990, this rate remains well below the Sub-Saharan Africa average of 70%. Moreover, during the last three years, the gross enrollment rate has declined at the secondary level from 17% to 11 %. Although the proportion of girls has increased from 33% to 36% at primary, 21 % to 30% at lower-secondary and 11 % to 21 % at higher secondary levels, disparities are still wide; girls' participation varies from 26% to 40% among regions and gross enrollment rates at the primary level can range fron- 20% in some rural areas to 85% in some urban areas. The development of the whole education system is constrained by the inefficient management of resources. The quality and internal efficiency of the system are poor at all levels, demonstrated by high repetition and drop-out rates and very poor examination results, well below the norms for Sub-Saharan Africa. Benin's adult " =eracy rate stands at only 23%. 5. The critical issues that affect all levels of education are: (a) poor access and equity (affecting in particular girls and children in rural areas); (b) poor efficiency; and (c) financial constraints, high costs and weak sector planning and management. Overall, the quality of education is very poor. Between 1970 and 1986, average repetition rates increased from 19% to 27% in primary schools, and from 12% to 32 % in secondary general schools. Repetition rates are highest at the university where they have risen to above 40% in the general programs, and 24% in the professional schools. Two-thirds of an entering cohort drop out of primary school after an average of 4.7 years. This poor performance can be attributed in part to: (i) a shortage of teaching materials; (ii) a lack of attention to student learning outcomes; (iii) inadequate school facilities; (iv) systemic weaknesses in financial management, personnel administration and pedagogic planning; and (v) a highly centralized decision-making process. 6. To address these issues, IDA has helped the Govermnent to develop a reform program of the education sector through the second Structural Adjustment Credit. Over the past few years, education has received an average of 35% of the Government's recurrent budget and about 8% of the national investment budget, which is relatively high by the standards of Sub- Saharan Africa. In 1993, the budget allocations between primary, secondary and higher education have improved, wiyh allocations of 66%, 16% and 18% respectively. Government's budget projections for 1994-1999 have reduced the share of the university budget to 13% of the education sector budget. During the period 1990-1993, the Government has increased the teacher:student ratios from 1:31 to 1:41 at the primary level, and 1:18 to 1:33 at the general secondary level. The Government plans to increase the teacher:student ratio to a maximum of 1:50 by 1999. While redeployment of teachers from administrative positions to active teaching in classrooms is currently being implemented, the Government plans to implement other cost- saving measures by 1997: (a) multigrade teaching where applicable in rural areas; and (b) a double-shift system in urban areas. These measures will allow the Government to attain its enrollment targets by 1999 and contain total requirement for teachers to 2,100 (about 1,630 at  3 the primary level and 470 at the secondary level) and the requirement for additional classrooms to 1,630 for primary schools. The final shortfall of teachers will be met through the implementation of a new hiring system for contractual teachers to be developed by the project and adopted by March 31, 1997. 7. Project Objectives. The central objectives of the project are to: (a) increase the access to primary schools, with a specific emphasis on girls' participation both at the primary and secondary levels; (b) improve the quality and internal efficiency of primary and secondary education; and (c) improve the institutional capacity for planning and managing the human and financial resources of the sector. 8. Project Description and Financing. To achieve these objectives, the project will support Government's efforts to: (a) increase non-wage expenditures for primary and secondary schools, provide basic school supplies and continuous in-service training to teachers, strengthen school and teacher supervision; (b) establish a sustainable system for textbook provision; and (c) contain recurrent costs by reducing redundant administrative staff, redeploying teachers currently in administration to the classrooms, developing multigrade teaching and a double-shift system where applicable, and increasing teacher:student ratios. The Govermment will respect budget allocation criteria based on an indicative spending plan for 1994-1999 agreed with IDA. 9. The project will finance investments designed to: (a) increase access to primary education, with a particular focus on girls' participation (US$6.2 million) through (i) primary school rehabilitation and reconstruction with the participation of beneficiary communities and (ii) the implementation of a program to encourage girls' schooling at the primary and secondary levels; (b) improve the quality and efficiency of primary and secondary education (US$11.0 million) through (i) in-service training for teaching staff, and management training for secondary schools heads, and (ii) textbooks provision; and (c) improve sector planning and management capacity of the Ministry of National Education (Ministere de l'&ducation nationale, MEN) at central and regional levels, and rehabilitate the offices of the MEN (US$5.3 million). 10. Total project costs, including duties and taxes, are estimated at US$22.9 million, with a base cost of US$19.3 million and a foreign exchange component of US$17.5 million. Price contingencies, estimated at US$1.8 million assume a foreign inflation rate of 2.5%; and annual domestic inflation rates of 10.9% (FY1995-1996); 6.4% (FY1996-1997); and 3% from FY 1997-1998 onwards. Physical contingencies, estimated at US$1.8 million, provide for 10% of base costs for works and goods. IDA will fnance 79% of total project costs (US$18.1 million). The Government will fmance 11.0% of total project costs, including 100% of all taxes and duties (US$2.5 million). The communities will contribute US$2.3 million or 10% of total project costs. 11. Project Ihnlementation. The MEN will implement and coordinate the project as part of its overall reform program. Technical assistance and training will be provided in support of planning, management, project accounting and contract management. MEN's  4 Department of Analysis, Forecasting and Synthesis (Direction de I'analyse, la prevision et la synth?se) will be responsible for the overall coordination and evaluation of project activities. The Department of Financial Affairs (Direction des Affaires financiWres, DAF) will be responsible for all financial matters related to the project implementation. Each project component will be executed by existing units in the MEN. The management of the rehabilitation of primary schools and of the construction of boarding facilities for secondary female students will be contracted to non-governnental agencies. Procurement and distribution of an initial stock of textbooks, and the rehabilitation of the MEN offices, will be carried out by the private sector. 12. Project Sustainability. Recurrent costs generated by project activities (mainly teachers' salaries) will be limited through efiiciency measures and will be financed within the budget during the project period. Measures to contain these increases include: (a) at the primary school level, increasing progressively the current teaher:student ratio, and developing where applicable multigrade teaching in rural areas and a double-shift system in urban areas by March 31, 1997, after a study on these reforms financed by the project has been completed; (b) at the secondary level, redeployment of teachers from current administrative positions to active teaching in classrooms; and (c) at the level of the MEN, further reduction of administrative staff. The total estimated savings of CFAF 7.6 billion (US$ 12.8 million equivalent) assume a strict enforcement of these measures, thus reducing the additional cost to the Government to CFAF 1.7 billion (US$ 2.9 million equivalent) per year. Furthermore, the decentralization and rationalization of communities' participation, estimated at US$2.3 million, for primary school building maintenance and textbook replenishment at the lower-secondary level wvill promote operational efficiency and long-term sectoral development. 13. Lessons learned. The Bank Group has been involved in Benir.'s education sector since 1975. IDA financed two Education projects (Cr. 583-DA, 1976-1983; Cr. 1246- BEN, 1982-1989), all completed, to support efforts at improving the relevance and quality of education. The construction of three regional teacher institutes and textbook production and distribution were the main elements of the Second Education Project. Since 1989, IDA, under the Social and Emergency Funds of the Health Services Development Project (Cr. 2031-BEN) and SAL II (Cr. 2283-BEN) has financed textbook provision, rehdbilitation of primary and secondary schools, and the development of the university library. The completion reports for the first two projects and the supervision of ongoing interventions indicate delays in contract awards, inadequate project monitoring and coordination and institutional incapacity to meet textbooks production targets. The implementation of ongoing interventions has been constrained by: (a) the absence of a decision-maldng framework to guide the selection of schools to be rehabilitated as well and the procurement of textbooks; and (b) the weak institutional capacity within the MEN to implement a modest program of school rehabilitation. The proposed project will address these problems by: (i) procuring textbooks through ICB and building capacity for textbooks evaluation within the three units of the MEN in charge of pedagogy; (ii) finalizing the draft implementation manual, submitted during negotiations, by credit effectiveness; (iii) strengthening the newly created Department within the MEN (DAF) that assumes the key responsibilities for budget monitoring, accounting and the overall fnancial management of the  5 sector; and (iv) conducting joint annual reviews to evaluate the execution of budget allocations agreed upon and the progress achieved in carrying out planned activities. The standard bidding documents for ICB procurement of goods have already been prepared, and the Government has confirmed that it will contract the management of the primary schools rehabilitation and of the boarding facilities construction to non-governmental agencies. 14. Rationale for lIDA Involvement. IDA activities in the sector have, over the past two years, focused on assisting the development of the policy framework for the adjustment and development of the sector and for the re-organization of the structtres, functions and staffing of the MEN. Having assisted the Government under the SAL II to establish the policy and institutional framework for the development of the sector, IDA is now responding to the Government's request for substantial assistance in implementing these revised policies and plans, in order to strengthen the human resource basis of Benin. IDA's financing will complement the budgetary support and technical assistance for primary school development provided by USAID and will also focus on secondary school development. This operation is consistent with the Country Assistance Strategy discussed by the Board in February 1992 through: (i) addressing institutional development and human resources constraints notably by improving the management capacity for budget and personnel within the MEN; and (ii) improving basic social services by better allocations of resources between primary and higher education. It is in line with the poverty reduction strategy of the Government. A Country Assistance note is currently under preparation; it will be presented to the Executive Directors in June in the context of a proposed Economic Rehabilitation Credit. The project is also closely linked to objectives sought under the Food Security project and the Rural Water Supply and Sanitation project which are scheduled to be presented to the Executive Directors during this fiscal year. 15. Aged Actions. As conditions of credit effectiveness, the Government will have: (a) submitted bidding documents acceptable to IDA for all major packages to be procured through International Competitive Bidding during the firt year of the project; (b) prepared contracts for the consultant's services required under the project for the first year of the project; (c) appointed an independent auditor under a multi-year contract acceptable to IDA; (d) adopted an implementation manual detailing project procedures; (e) developed draft operational guidelines for textbook replenishment; and (t) within the MEN, developed a more efficient budgetary process, a project accounting and procurement capacity, and have trained the appropriate staff. As conditions of disbursements for civil works, the Government will have: (a) signed a contract with a non-profit organization and developed operational guidelines for the management of the boarding facilities for girls; and (b) signed contracts with non-governmental agencies for the management and supervision of the civil works related to the boarding facilities and classroom rehabilitation and reconstruction programs. As a condition of disbursement for textbooks, the Government will have adopted operational guidelines for textbook replenishment. 16. Environmental Asnects. This is a Category C project, without any direct impact on the environment.  6 17. Program Objective Categories. This project responds to the human resources development and anti-poverty objectives of the Government by improving access to primary education in general and for girls in particular, improving the quality of education, and strengthening the participation of beneficiary communities in the education sector. Since the proportion of the poor among the project beneficiaries will be significantly larger than their proportion to the overall population of Benin, this project is part of the Program of Targeted Interventions. It also responds to the African Capacity Building Initiative objectives through the strengthening of the management and planning capacity within the MEN. 18. ProJect iBn t. There are two main benefits. The first benefit will be provision of more and better education, which in the long term will contribute to poverty reduction. Access to school will increase, and the primary school gross enrollment rate will raise from 51% to 59% during the project period. Girls' enrollment will increase from 36% to 42% at the primaiy level as a result of targeted activities and the increased number of places in schools, and from 30% to 40% at the lower-secondary level as a result of the creation of boarding facilities. The improvement of female education will in the long run translate into: (i) better infant and maternal health; (ii) increased women's labor productivity; (iii) improved women's employment opportunities; and (iv) a better predisposition to adopt measures for family planning among educated girls and women. The quality of education will be improved through the rationalization of school building and maintenance and the provision of an initial stock of textbooks at the primary and lower-secondary levels. Improved training and supervision of teachers by school officers and school heads, pedagogical material availability and better student examination will increase internal efficiency and improve student learning outcomes. The second benefit will be the development of capacity witiin the MEN to plan and manage the sector more effectively. The development of competent technical and administrative staff in the newly established structures, better functions and staffing pattern of the MEN, and increased decentralization of responsibilities for educational planning, management and administration to the regional education offices will improve systems operations and responsiveness to local needs. The new primary school building procedures and textbook replenishment at the lower secondary- level will rationalize the participation of communities and strengthen their role in the education system. 19. Risks. There are two main risks. The first risk is failure to attain project goals if the budget allocations for the sector, agreed with the Government and analyzed thoroughly to ensure their coherence with implications of project components, are not executed. This risk has been addressed by agreements reached with IDA regarding budget allocation; budget execution will be monitored and reviewed annually. Moreover, the release of funds for the ongoing USAID program of budgetary support and technical assistance for primary education is conditioned upon agreements for budget allocation and execution that are identical to those agreed upon with IDA. Project activities directed towards establishing a better framework for teacher employment, including the recruitment of contractual (non-civil servant) teachers for primary schools will be equally significant in this respect. A second risk is delayed project implementation due to the fact that project implementation goes in parallel with the development of staff competence and changes in management behaviors. This risk is addressed by ongoing  7 efforts to match defined posts with staff profiles, the provision of technical expertise to the sector, the use of technical assistance to transfer skills to staff, and the continuous monitoring and evaluation to remove bottlenecks to implementation. Equally significant in this regard is the dclegation of responsibility for managing classroom rehabilitation and reconstruction to non- governmental agencies. 20. Recommendation. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Association and recommend that the Executive Directors approve it. Lewis T. Preston President May 17, 1994 Washington, D.C. Attachments  Schedule A REPUBLIC OF BENIN EDUCATION DEVELOPMENT F ROJECT ESTIMATED PROJECT COSTS AND FINANCING PLAN (US$ millions, including taxes and duties) ESTIMATED PROJECT COSTS Local Forei9n Total 1. INCREASE ACCESS TO PRIMARY EDUCATION 1.9 3.3 5.2 2. IMPROVE QUALITY AND EFFICIENCY OF 1.2 8.1 9.3 PRIMARY AND SECONDARY EDUCATION 3. IMPROVE SECTOR PLANNING AND 1.3 3.1 4.4 MANAGEMENT CAPACITY 4. PROJECT PREPARATION ADVANCE 0.2 0.2 0.4 Total Base Costs: 4.6 14.7 19,3 Physical Contingencies: 0.4 1.4 1.8 Price Contingencies: 0.4 1.4 1.8 TOTAL: 5.4 17.5 22.9 Taxes & FINANCING PLAN (US$ million) Local Foreign Duties Total IDA (net of taxes and duties) 3.5 14.6 0.0 18.1 Government (including 100% taxes and duties) 0.4 0.7 1.4 2.5 Communities 0.1 2.2 0.0 TOTAL: 4.0 17.5 1.4 22.9  Schedule B Page 1 of 2 REPUBLIC OF BENIN EDUCATION DEVELOPMENT PROJECT Summary of Proposed Procurement Arrangements (US$ million equivalent, including taxes, duties and contingencies) ------Procurement Method -- Total Category of Expenditure ICB LCB Other N.I.F. Cost 1. WORKS (a) Rehabilitation and reconstruction of 200 schools 3.4 3.4 (2.8) (2.8) (b) Rehabilitation and reconstruction of 6 boarding facilities 0.9 0.9 (0.7) (0.7) (c) Rehab. of MEN CentraURegional Offices 1.4 1.4 (1.1) (1.1) 2. GOODS (a) Vehicles 0.3 0.1 0.4 (0.3) (0.3) (b) Equipment 0.7 0.1 0.8 (0.7) (0.7) (c) Furniture 0.5 0.1 0.6 (0.5) (0.5) 3. TEXTBOOKS (a) Textbooks Procurement 6.0 2.7 8.7 (6.0) (6.0) (b) Textbook Distribution 0.8 0.8 (0.6) (0.6) 4. SERVICES (including training abroad) (a) Policy Support 0.5 a! 0.5 (0.5) (0.5) (b) Project Preparation & Implementation Support 1.7 a/ 1.7 (1.7) (1.7) (c) Institutional Development 0.5 a/ 0.5 (0.5) (0.5) ,5. MISCELLANEOUS (a) Local T.aining and Seminars 1.0 l/ 1.0 (1.0) (1.0) (b) Pilot Programs for Girls 0.5 b/ 0.5 (0.5) (0.5) (c) Operations and Maintenance 1.3 b' 1.3 (0.8) (0.8) 6. PPF REFINANCING 0.4 0.4 (0.4) (0.4) TOTAL 8.4 5.6 5.9 3.0 22.9 IDA Credit: (8.1) (4.6) (5.4) (0.0) (18.1) Note: Figures in paranthesis are the respective amounts to be financed by IDA. net of taxes and duties. Slight differences may occur as a result of the rounding of figures. N.I.F.: Not IDA-financed. (a) In accordance with World Bank Guidelines: Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency. August, 1981. (b) In accordance with Government procedures and in compliance with the Implementation Manual to be finalized by credit effectiwness.  Schedule B Page 2 of 2 REPUBLIC OF BENIN EDUCATION DEVELOPMENT PROJECT Proposed IDA Allocation Financed by IDA % of Expenditures |CAtgry of Exppnditures (in US$ millions equivalent) (1) CIVIL WORKS (a) Reconstruction and rehabilitation of 2.8 80% 200 schools (b) Construction and rehabilitation of 0.7 80% 6 boarding facilities (c) Rehabilitation of MEN offices 1.2 80% 1(2) EQUIPMENT AND VEHICLES 1.0 100% of foreign expenditures and 80% of local expenditures (3) FURNITURE 0.5 100% of foreign expenditures and 80% of local expenditures (4) TEXTBOOK (a) Procurement 5.0 100% of foreign expenditures (b) Distribution 0.6 80% of local expenditures (5) SPECIALIST SERVICES 2.2 100% (6) TRAINING 1.2 100% .(7) OPERATING COSTS 0.8 60% (8) PILOT PROGRAMS FOR GIRLS 0.5 100% (9) REFUNDING OF PPF 0.4 100% (10) UNALLOCATED 1.2 - TOTAL: 18.1 Estimated ID)A Disbursernents: US$ million IDA FY 95 96 97 98 99 2000 Annual 1.0 2.6 5.7 4.6 3.6 0.6 Cumulative 1.0 3.6 9.3 13.9 17.5 18.1 Economic Rate of Return: Not Applicable Map: IBRD No.25648  Schedule C Page 1 of 1 REPUBLIC OF BENIN EDUCATION DEVELOPMENT PROJECT Timetable of Key Project Processing Events (a) Time taken to prepare 1990-1994 (b) Prepared by Government with IDA, UNESCO and USA/fslD assistance* (c) First IDA mission April 1990 (d) Appraisal missior, departure May 1993 (e) Post-appraisal mission October 1993 (fl Negotiations February 1994 (g) Planned date of effectiveness September 1994 * This report is based on the findings of the Bank appraisal and post-appraisal missions which visited Benin in May and October, 1993. The appraisal mission comprised Messrs./Mesdames. R. Crown (Senior Economist and Mission Leader). C. Laurent (Economist), R. Prouty (Education Specialist), M. Laleye (Institutional Development). S. Diop (Textbook Specialist), J. Waechter (Architect), J.C. Hameidat (Implementation Specialist), M. Bradley (Operations Analyst), and 0. Diagana (Resident Mission). The post-appraisal mission was carried out by Mme./Messrs. C. Laurent (rask Manager), J.C. Hameidat (Implementation Specialist), and 0. Diagana (Resident Mission). Mr. 0. Adamalekun is the Leader Adviser. Peer Reviewers included Mmes. A. Sayeh (economic aspects), R. Bellew (Primary and Secondary Education). Mr. Olivier Lafourcade and Mr. Ok Pannenborg are the Department Director and the managing Division Chief, respectively, for the operation.  Schedule D Page 1 of 3 REPUBLIC OF BENIN EDUCATION DEVELOPMENT PROJECT Status of Bank Group Operations (as of March 31, 1994) Amuunt in USS mifllan (leto cacellations) Loan or FiscaL Urdis- Closing Credit No. Year Borrcwer Purpose Dark IDA bursed Date .......... ........... ............ ........ ......... ....... ............ .. . . ........ ... Credits 29 Credits(s) closed m.s C15300-iEN 1985 REMLIC Of BENIN TECHNICAL ASSISTJCE 5.00 1.29 03/31/94(3) C07210-01EN 1986 REPUBLIC OF DENIN WATER II 10.00 1.12 12/31/93 C17480-fEN 1987 REPUBLIC Of DENIN PUBLIC ENTERPRISES 15.00 11.16 06/30/95 C1870-KEN 1987 REPUBLIC OF DENIN TRANSP.INFRAST. 19.50 .84 03/31/5 C19600-BEN 1989 REPUBLIC Of DENIN TELECIOUNICATIONS 16.00 2.41 12/31/94(R) C20310-IEN 1989 REPUBLIC Of DENIN HEALTH SERVICES DEV 18.60 9.10 09/30/97 C22830BEN(S) 1991 REPUBLIC OF BENIN SAL II 55.00 15.96 06/30/94(R) C840-BEN 1991 REPUBLIC Of BENIM PO.R REMIO 15.00 14.37 12/31/97 C22850-BEN 1991 REPUBLIC Of DENIN AGRIC. SERVIES 12.30 10.45 06/30/95 Cz2860-EN 1991 REPUBLIC OF DENIN PRE-tNVESTMNT 5.40 4.66 06/30/95 C233808-EN 1992 REPUBLIC OF DENIM LURAN REHAB & NOT 22.84 22.35 12/31/97 C23440-tEN 1992 REPU8LIC OF DENIN MGT OF NAT RESCURCES 14.10 11.00 12/31/97 C2590-DEM 1993 REPUBLIC OF DENIM RRAL CREDIT II 3.80 3.95 06/30/99 C25520-tEN 1994 REPUBLIC OF BENIN ECCN. "WT. 5.20 5.23 231/98 C26010-EN 1994 REPUBLIC OF DENIN FOOD SECURITY 9.70 9.70 12/31/99 TOTAL ruter Credits - 15 227.44 123.59 TOTAL** 500.42 of which repaid 20.50 TOTAL held by Bank & IDA 479.92 .^.t sold of hhich repaid TOTAL uLnisbursed 123.70 A2uat In US$ million (less cancellations) ..................... Loan or Fiscal UAdis- Closing Credit No. Year Borrower Purpose Bank IDA bused Date ~~~~~~~~~~~~,.......... ........ .. ... ... ....... .... '' ...... ....... C20230-BEN 1989 RPUBLIC OF BENIN SAL I 45.00 .00 12/31/1990(R) Total REPUBLIC OF MENIN 4S.OO .00 Notes: ..................... Not yet effective ** Not yet sigrmd "* Total At oed Repayrents, ad Outstardin belame represent both active and inactive Loans and Credits. (R) irdicates formalty revised Closing Date. (S) irdicates SAI/SECAL Loanm ard Credits. The Net Approved ard Bark Repaynents are historical value, all others are aarket value. The Signing, Effective, ard Closirn dates are based pon the Loan Deparmnent offfcal data and are not taken trum the Task 8ifget fiLe.  Schedule D Page 2 of 3 DISBURSEMENTS The bulk of the portfolio has been put in place since Benin's move to a democratic government and a market-oriented economy in 1991. Credit effectiveness and, for that matter, project implementation of some operations have been delayed because of the insistence of the newly elected Parliament, in which the Government only holds a small majority, to review in detail the related legal documents. Moreover, project implementation issues, such as poor administration of special accounts and non-compliance with the Bank's procurement procedures have slowed down disbursements. A country implementation review in June 1992 addressed these and other issues and agreed upon specific corrective actions, such as carrying out an audit of the government debt (CAA) management agency, restructuring of some projects and organization of a disbursement seminar for project coordinators which took place in February 1993. The reorganization of the CAA is expected to be completed shortly. Moreover, in September 1993, the Government agreed to improve management of special accounts, formerly administered by the CAA. Special accounts are now opened and maintained in a commercial bank, in line with the Bank's Disbursement Departnent's recommendations.  Schedule D Page 3 of 3 STATEMENT OF IFC OPERATIONS (As of December 31, 1993) Original Gross Amounts Fiscal Type of Loan Equitv Total Year Company Business (in US$ million) 1993/94 Bank of Africa- Benin (AEF) Banking - 0.29 0.29 1991 SOBEP (AEF) Fish Processing 0.28 0.06 0.34 1992 Frultex (AEF) Pineapple PlantatIon 0.41 - 0.41 TOTAL 0.69 0.35 1.04 Less droppage, non-commitments and write-offs 0.14 0.00 0.14 Net Commitment held by IFC 0.55 0.35 0.90  NOTES  MAP SECTION  _ MALI GE 2 "N E GR o i < < ) > E * ~~~~~~N I G E RIA\ _ i "It 4NIGERIA COTE N, D1V01RE / O N9 \ r . 12- B U R K I N A MAANIIT FASO I / GOrsu \ eoI GUINEAt gVGee *AO Kot-o /O OIINRAKS , 'N NAnoors , \ t < A D i Foogy \\ N I G E R IA /> Gbaai.&u 9 ANI/ 5 j OOl\ .2 I II,,.,., G.,gnunou~~~~~~~I 9~~ A T A C ? R A TANGUIETA NATITINGOU 0-0de 590k b.!s B. EF Gno S., \~~~~~~~AAO 99 <f 50r n-i----.- Ralwy r. ID_ I~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~4 nentinlArot EDUCATION D PROJECT J 5@f