Mauritius - First, Second, Third, and Fourth Trade and Competitiveness Development Policy Loan Project

 Document of The World Bank Report No: ICR1639 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-74160) ON 4 CREDITS IN THE AMOUNT OF US$ 210 MILLION EQUIVALENT TO THE REPUBLIC OF MAURITIUS FOR A PROGRAMMATIC DPL 1-2-3-4 SERIES May 25, 2012 Poverty Reduction and Economic Management 1 Africa Region  Government Fiscal Year January 1 – December 31 (starting 2010) July 1- December 31 (2009) July 1 – June 30 (prior to July 2009) CURRENCY EQUIVALENTS (Exchange Rate Effective as of August 27, 2009) Currency Unit = Mauritius Rupee US$1.00 = Rs.32.65 Weights and Measures Metric System ACRONYMS and ABREVIATIONS AAA Analytic and Advisory Activities MOFED Ministry of Finance and Economic AfDB African Development Bank Development BOI Board of Investment MRA Mauritius Revenue Authority BOM Bank of Mauritius MTEF Medium Term Expenditure Framework CEB Central Electricity Board NEF National Empowerment Foundation CEM Country Economic Memorandum NLTPS National Long-Term Perspective Study DBM Development Bank of Mauritius NPC National Pay Council DDO Deferred Drawdown Option NTB Non-Tariff Barriers DPL Development Policy Loan NTMs Non-Tariff Measures DPO Development Policy Operation PBB Program Based Budgeting DPs Development Partners PDO Program Development Objectives EAP Eradicating Absolute Poverty PFM Public Financial Management EPZ Export Processing Zone ROSC Report on the Observance of Standards ESW Economic Sector Work and Codes ICR Implementation Completion and SAFE South African Far East Cable Results Report SEHDA Small Enterprise and Handicraft ICT Information and Communication Development Authority Technologies SMEs Small Medium Enterprises ICTA Information and Communication SMEDA Small and Medium Enterprise Technologies Authority of Mauritius Development Authority IMF International Monetary Fund SMSTs Sector Ministry Support Teams IPLCs International Private Leased Circuits WMA Waste Management Authority MBGS Mauritius Business Growth Scheme ZEP Zones d‟Education Prioritaires MFA Multi-Fiber Agreement  Vice President: Makhtar Diop Country Director: Haleh Z. Bridi Sector Manager: John Panzer Task Team Leader: Rafael Munoz Moreno ICR Team Leader: Sawkut Rojid This ICR was produced with contributions and support from Rafael Munoz (Senior Economist, AFTP1), Alain D‟Hoore (Lead Economist, AFTP1), Zhanar Abdildina (Senior Operations Officer), Khurshid Noorwalla (Team Assistant), and Wenda Rabot (Team Assistant). The team thanks Fernando Blanco for peer reviewing the document.  REPUBLIC OF MAURITIUS IMPLEMENTATION COMPLETION AND RESULTS REPORT CONTENTS Data Sheet 5 A. Basic Information 5 B. Key Dates 5 C. Ratings Summary 6 D. Sector and Theme Codes 6 E. Bank Staff 7 F. Results Framework Analysis 7 1. Program Context, Development Objectives and Design: 13 1.1 Context at Appraisal 15 1.2 Original Program Development Objectives (PDO) and Key Indicators 16 1.3. Revised PDO 16 1.4. Original Policy Areas Supported by the Program 16 1.5. Revised Policy Areas 19 1.6. Other significant changes 19 2. Key Factors Affecting Implementation and Outcomes 19 2.1 Program Performance: 19 2.2 Major Factors Affecting Implementation 23 2.3 Monitoring and Evaluation (M&E) Design, Implementation and Utilization 25 2.4 Expected Next Phase/Follow-up Operation 26 3. Assessment of Outcomes 26 3.1 Relevance of Objectives, Design and Implementation 26 3.2 Achievement of PDO 28 3.3 Justification of Overall Outcome Rating 34 3.4 Summary of Findings of Beneficiary Survey and/or Stakeholder Workshops 37 4. Assessment of Risk to Development Outcome 37 5. Assessment of Bank and Borrower Performance 38 5.1 Bank Performance 38 3  5.2 Borrower Performance 41 5. Lessons Learned 42 6. Comments on Issues Raised by Borrower/Implementing Agencies/Partners 44 Annex 1 Bank Lending and Implementation Support/Supervision Processes 52 (a) Task Team members 52 (b) Staff Time and Cost 53 Annex 2. Beneficiary Survey Results 54 Annex 3. Stakeholder Workshop Report and Results 54 Annex 4. Summary of Borrower's ICR and/or Comments on Draft ICR 54 Annex 5. Comments of Co financiers and Other Partners/Stakeholders 54 Annex 6. List of Supporting Documents 54 4  Data Sheet A. Basic Information Development Policy Country: Mauritius Program Name: Loan 1,2,3,4 P101570, P106650, Program ID: L/C/TF Number(s): IBRD- P112369, P116608 ICR Date: 10/04/2012 ICR Type: Core ICR Government of Lending Instrument: DPL Borrower: Mauritius Original Total USD 210.00M Disbursed Amount: USD 210.00 M Commitment: Revised Amount: USD 210.00M Implementing Agencies: Ministry of Finance and Economic Development Co Financiers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: Effectiveness: DPL 1 21-Sep-2006 DPL 1 31-Jan-2007 DPL 2 04-Sep-2007 DPL 2 29-May-2008 DPL 3 08-Sep-2008 DPL 3 22-May-2009 DPL 4 26-Aug-2009 DPL 4 28-Jan-2010 Appraisal: DPL 1 18-Oct-2006 DPL 2 18-Dec-2007 Restructuring(s): DPL 3 17-Feb-2009 DPL 4 21-Sep-2009 Approval: DPL 1 12-Dec-2006 DPL 2 28-Feb-2008 Mid-term Review: DPL 3 31-Mar-2009 DPL 4 12-Nov-2009 Closing: DPL 1 31-Dec-2007 5  DPL 2 31-Dec-2008 DPL 3 31-Dec-2011 DPL 4 31-Dec-2011 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Highly Satisfactory Risk to Development Outcome: Moderate Bank Performance: Highly Satisfactory Borrower Performance: Highly Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Highly Satisfactory Government: Highly Satisfactory Implementing Quality of Supervision: Highly Satisfactory Highly Satisfactory Agency/Agencies: Overall Bank Overall Borrower Highly Satisfactory Highly Satisfactory Performance: Performance: C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Rating: Performance (if any) Potential Problem Quality at Entry Program at any time No None (QEA): (Yes/No): Problem Program at any Quality of No None time (Yes/No): Supervision (QSA): DO rating before Closing/Inactive status: D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) – DPL 1 Central government administration 45 General industry and trade sector 30 General education sector 15 Power 5 General water, sanitation and flood protection sector 5 6 Theme Code (as % of total Bank financing) – DPL 1 Administrative and civil service reform 27 Public expenditure, financial management and 18 procurement Debt management and fiscal sustainability 18 Export development and competitiveness 18 Education for the knowledge economy 18 E. Bank Staff Positions At ICR At Approval DPL 1: Vice President: Gobind T Nankani Makhtar Diop DPL 2,3 & 4: Obiageli Katryn Ezekwesili DPL 1& 2: Country Director: Ritva Reinikka Haleh Z. Bridi DPL 3 & 4: Ruth Kagia DPL 1: Emmanuel Akpa Sector Manager: John Panzer DPL 2,3&4: John Panzer DPL 1 & 2 Robert Keyfitz Program Team Leader: Rafael Munoz Moreno DPL 3 & 4: Fabiano Bastos ICR Team Leader: Sawkut Rojid ICR Primary Author: Sawkut Rojid F. Results Framework Analysis Program Development Objectives (from Project Appraisal Document) The objective of the program was to support the comprehensive structural reforms which respond to two major challenges: (i) the “triple trade shock