Mali - Economic Management and Training Project

Docnbent of The World Bank FOR OFFlCIAL USE ONLY RbiWtA N. 9130 PROJECT COMPLETION REPORT MALI ECONOMIC MANAGEMENT AND TRAINING PROJECT (CREDIT 1307-MLI) NOVEMBER 12, 1990 ountry Operations Division ountry Department V ,xrica Region eat km a restcted ditdbutlou and may be usd by reipkaet only Is tie peorman of di duties. Its contents may not otherwise be disclosed witbout Word Bank authorization.  CURRENCY EQUIVALENTS Appraisal completion US$1 MF 680 na. US$1 na. CFA 332 SDR 1 US$1.07 US$1.27 ABBREVIATIONS %ND ACRONYPM ACM - Association des Comptables du Mali BDM - Banque de Dve loppeme4t du Mali BEP - Bureau des Entreprises Publiques CAA - Caisse Autonome d'Aaortissemnts CCP - Comptes Ch&ques Postaux CEPI - Centre d'Etude at de Promotion Industrielle CIDA - Canadian International Development Agency CMDT - Compagnie Malienne pour l Developpement des Textiles CNRA - Coauission Nationale pour la Riforme Administrative COMATEX - Compagnie Malienne de Textiles DNAE - Direction Nationale des Affaires Economiques DNFPP - Direction Nationale de la Fonction Publique et du Personnel DNP - Direction Nationale de la Planification DNSI - Direction Nationale de la Statistique et de l'Informatique DNUC - Direction Nationale de l'Urbanisme et de la Construction FAC - Fonds d'Aide et de Coop6ration (France) FAO - Food and Agriculture Organization FED - Fond Europeen de Developpement ICB - International Competiti7e Bidding IDA - International Development Association IER - Institut de l'Economie Rurale ILO - International Labor Office (Geneva) IPGP - Institut de Productivit6 et de Gestion Privisionnelle ODR - Opiration de Dfveloppement Rural OPAM - Office des Produits Agricoles du Mali OSRP - Office pour la Stabilisation et la Rigularisation des Prix PCU - Project Coordinating Unit PPF - Project Preparation Facility SEPOM - SociLt# d'Ixploitation des Produits Oleagineux du Mali SNED - Societe Nationals pour les Etudes ae DWveloppement SOMIEX - Societi Malienne d'Importation et d'Esportation UNDP - United Nations Development Programme UNCTAD - United Nations Conference for Trade and Development USAID - United States AgeIcy for International Development WAHU - West African Monetary Union WFF - World food Program FISCAL YEAR OF THE BORROWER January 1 - December 1  THE WORLD &ANx FOR OFFICIAL USE ONLY Waswhtof. DC 20433 UI A fles of Director-General Operatlin tyaluatles November 12, 199C MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on Mali - Economic Management and Training Proiect (Credit 1307-MLI) Attached, for information, is a copy of a report entitled "Project Completion Report on Mali - Economic Management and Training Project (Credit 1307-MLI)" prepared by the Public Sector Management Division of the Africa Region Technical Department, with Part II of the report contributed by the Borrower. No audit of this project has been made by the Operations Evaluation Department at this time. Attachment This dcument h4 a mtnctAd distbuion and may be ue by nmwent only in the plonsce Of theatr okcia duuits clontents maY not othevw be dmcmd Wnthout Word lank autonauaon.  FOR OFFICIAL USE ONLY MALI ECONOMIC MANAGEMENT AND TRAINING PROJECT (Credit 1307-MLI) PROJECT COMPLETION REPORT Table of Contents Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i Evaluation Summary . . . . . . . . . . . . . . . . . . . . . . . . . ii PART I - PROJECT REVIEW FROM BANK'S PERSPECTIVE Project Identity . . . . . . . . . . . . . . . . . . . . . . . 1 Project Background . . . . . . . . . . . . . . . . . . . . . . 1 Project Objectives and Description . . . . . . . . . . . . . . 2 Project Design and Organization . . . . . . . . . . . . . . . . 2 Project Implementation . . . . . . . . . . . . . . . . . . . . 4 Project Results . . . . . . . . . . . . . . . . . . . . . . . . 5 Project Sustainability . . . . . . . . . . . . . . . . . . . . 6 Bank Performance . . . . . . . . . . . . . . . . . . . . . . . 6 Borrower Performance . . . . . . . . . . . . . . . . . . . . . 6 Project Relationship . . . . . . . . . . . . . . . . . . . . . 7 Consulting Services . . . . . . . . . . . . . . . . . . . . . . 7 Project Documentation and Data . . . . . . . . . . . . . . . . 7 PART II - PROJECT REVIEW FROM BORROWER'S PERSPECTIVE Introduction . . . . . . . . . . . . . . . . . . . . . . . . . 8 Cereals Marketing . . . . . . . . . . . . . . . . . . . . . . . 8 Rural Development Agencies . . . . . . . . . . . . . . . . . . 9 State Enterprises . . . . . . . . . . . . . . . . . . . . . . . 9 Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Civil Service . . . . . . . . . . . . . . . I . . . . . . . . . 10 Public Debt Management . . . . . I . . . . . . . . . . . . . . 10 Business Management Institute . . . . . . . . . . . . . . . . . 10 Project Coordinat:.3n Unit . . . . . . . . . . . . . . . . . . . 11 Training Sub-component . . . . . . . . . . . . . . . . . . . . 11 Conclusion . I I . . . . . . . . . . . . . . . . . . . . . . . 11 PART III - STATISTICAL INFORMATION Related Bank Loans and/or Credits . . . . . . . . . . . . . . . 12 Projact Timetable . . . . . . . . . . . . . . . . . . . . . . . 13 Credit Disbursements . . . . . . . . . . . . . . . . . . . . 14 Project Implementation . . . . . . . . . . . . . . . . . . . . 15 Project Costs and Financing . . . . . . . . . . . . . . . . . . 16 Project Results . . . . . . . . . . . . . . . . . . . . . . . . 17 Status of Covenants. . . . . . . . . . . . . . . . . . 18 Use of Bank Resources. . . . . . . . . . . . . . . . . . . . 19 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed withou. World Bank authorization.I  MALI ECONOMIC MANAGEMENT AND TRAINING PROJECT (Credit 1307-MLI) PROJECT COMPLETION REPORT PREFACE This is the Project Completion Report (PCR) for the Economic Management and Training Project in Mali, for which Credit 1307-MLI in the amount of US$10.4 million was approved on December 7, 1982. The credit was closed on December 30, 1988, one-and-a-half years behind schedule. The Credit's last disbursement was on June 30, 1989, and an undisbursed amount of US$43,480 (SDR 35,084) was cancelled by IDA on December 7, 1989. The PCR was jointly prepared by the Public Sector Management Division of the Africa Region Technical Department (Preface, Evaluation Summary, Parts I and III), and by the Borrower (Part II). Parts I and III were sent to the Government with a request for their comments, but no comments were received. Preparation of this PCR is based on the President's Report, the Development Credit Agreement; supervision reports; progress reports; correspondence between the Bank and the Borrower; internal Bank memoranda; and discussions with Bank staff who worked on the project during its preparation and implementation.  - ii - MALI ECONOMIC MANAGEMENT AND TRAINING PROJECT (Credit 1307-MLI) PROJECT COMPLETION REPORT EVALUATION SUMMARY 1. Objectives The project was expected to assist in the strengthening of economic management in Mali and with the design of macro and sector policy reforms. It would provide assistance to the Government in the identification of better public financial and economic policies, the improvement of government institutions in elaborating reforms, and the training of Malian civil servants to make the improved institutions function better. (Para. 4, Part I) 2. Implementation Experience With the exception of two components (State Enterprises and Cereals Marketing), implementation of the project was slow-during the first years and at times difficult. This was caused by delays in the selection and recruitment of consultants and in procurement in general, and by the problems the Project Coordinating Unit (PCU) had in coordinating with the implementing ministries and in submitting an appropriate general training program. (Paras. 14-16, Part I) 3. Results The main results from the Credit were found in two components, State Enterprises and Cereals Marketing. The State Enterprises component financed studies which led to a Sector Adjustment program and a Public Enterprise Institutional Development project. Also under this component the Bureau des Entreprises Publiques (BEP) was created, audits of parastatals were completed and some state enterprises were liquidated. The project helped develop a program of reforms in the agricultural sector through the Cereals Marketing component, and to a certain extent helped in the restructuring of the Rural Development Agencies (ODR's). (Paras. 18-19, Part I) 4. Sustainability lechnical assistance financed by the Credit helped introduce new and more efficient procedures in the Malian economic and public sectors which have been adopted and consistently used: (a) new arrangements for petroleum procurement have provided Mali with a large finar 1. return, at an annual saving for the country of about four billion FCFA; (b) as a result of a field survey on expenditures of ur>an households, a Consumer Price Index  - iii - (CPI) was introduced and market prices have been regularly collected and published by the Ministry of Planning; (c) a simple computerized system of budget preparation and monitoring was developed, with the help of a consultant financed by the Credit, and continues to be effectively used by the Budget Directorate (DNB). (Paras. 23-24, Part I) 5. Findings and Lessons Learned More time should have been devoted to project preparation, as project design was not really completed before credit approval. In fact, there was concern at the time that the project was "underdesigned". The project had many components unrelated to each other and one of the design prcblems was the need for a great deal of coordination and input from various staff units in the Bank. This proved difficult to do during implementation. In addition to the problems experienced by the coordinating agency (PCU), superv:.sion was inadequate at times or did nol have the right staff composition. In the last two years project implementation accelerated with supervision being done by a public - ir management specialist. (Paras. 8-9 and 12-13, Part I)  MALI ECONOMIC MANAGEMENT AND TRAINING PROJECT (Credit 1307-MLI) PROJECT COMPLETION REPORT PART I. PROJECT REVIEW FROM BANK'S PERSPECTIVE A. PROJECT IDENTITY - Project Name: Economic Management and Training - Loan No.: 1307-MLI - RVP Unit: Africa Region, Country Operations V - Country: Mali - Sector: Public Sector Manageme-it B. PROJECT BACKGROUND 1. Sector Development Objectives. In response to unsustainable fiscal and external imbalances in the early 1980's, the Malian Government decided to launch a program of economic and financial restructuring, and IDA and the IMF were asked to assist in carrying out such a program. This request represented a significant change in attitude on the part of the Government, in recognizing that economic restructuring and improved put'1ic financial management must be part of any lasting solution to the country's economic problems. Technical assistance was needed to help elaborate policy options, as well as to enhance the country's institutional capacity to devise and carry out reforms. 2. Policy Context. Beginning in 1981 the Government introduced a number of measures to reduce budgetary deficits, public enterprise losses, and public sector arrears. Initial steps were also taken to restructure the state enterprise sector and to improve the medium-term viability of key enterprises. The Five-Year (1981-85) Plan for Economic and Social Development put special emphasis on the need for policy reforms to establish fundamental financial and economic equilibria, notably by balancing the government budget, reducing the balance of payments deficit, reducing the losses of the state enterprises, and controlling recruitment for the Civil Service. 3. Linkages Between Project, Sector and Macro Policy Objectives. The project was successful in leading to structural and sector adjustment operations for the first time in Mali. It paved the way for a Public Enterprise Sector Adjustment Credit. In addition the proposed Agricultural Sector Adjustment/Investment Credit (FY90) and the SAL (FY91) benefitted from the project's outputs.  C. PROJECT OBJECTIVES AND DESCRIPTION 4. Proiect Obiectives. The project was expected to assist in the strengthening of management of the Malian economy with the introduction of macro and sector policy reforms. In order to achieve this objective it expected to assist the Government in the identificatinn of better public financial and economic policies, the improvement of government institutions in elaborating reforms, and the training of Malian civil servants to make the improved institutions function better. 5. Project Components. The project consisted of the following components: (a) Cereals Marketing: to restructure agencies responsible for cereals marketing, especially the Cereals Marketing Board (OPAM) through the carrying out of studies and training. (b) Rural Development Agercies (ODRs): to carry out a diagnostic study of the ODRs with a view to analyzing policies and institutions operating in the rural development sector, and to recommend changes to help increase the efficiency and the economic and financial viability of the sector. *c) State Enterprises: to carry out a diagnostic study of the state enterprises sector with a view to examining the internal and external constraints to increased effectiveness of state enterprises. (d) Economic Policy Analysis and Data Management: to conduct an analysis of financial and economic policies in the Ministries af Plan and Finance; to help the National Oftice of Statistics and Data Processing in expanding and improving its data covering production, prices, employment, and national accounts. (e) Civil Service: the establishment by the National Office of Civil Service and Personnel (DNFPP) of an efficient management information system to ensure sound personnel management in government services. (f) Public Debt Management: to strengthen the Public Debt Agency (CAA - Caisse Autonome d'Amortissement) and put in place a computerized debt management system. (g) Management Training Institute (IPGP): construction and furnishing of classrooms and office space; to improve the curricula and teaching methods of the IPGP through provision of fellowships for its staff. D. PROJECT DESIGN AND ORGANIZATION f. The initial project idea was to assist in the carrying out of reforms in the cereals marketing and state enterprise sectors. The decision to assist these two sectors through a technical assistance project  resulted from policy discussions between the Government, the Bank and the IMF at the time of prep&ration for the first IMK' Standby. These discussions originated from the Government of Mali's request for technical assistance from the Bank in December 1980. Funds from a Project Preparation Facility (PPF) to finance diagnostic studies in the cereals marketing and state enterprise sectors were first disbursed in February 1981. 7. The other components were added later, in response to specific requests either by the Government, as in the case of the assistance to the Planning Ministry, or by staff from the Bank's various sector divisions. A decision on the scope of the project, number of components, their sizes and content, was made in early 1982 (Issues Paper of February 27, 1982), after a series of short missions to Mali, linked to the appraisal of the project. 8. .he project was not new in concept as there had been earlier technical assistance efforts by the Bank. But the project was unusual in the variety of government institutiors it was designed to assist and it was perhaps too ambitious in relation to its goal of overall institutional strengthening, particularly with regard to the Economic Policy Analysis and Data Management, Civil Service, and Public Debt Management components. 9. Although this was largely the result of the stage of the policy dialogue with Mali, the project components were probably too numerous and too independent of each other. Even before it was negotiated there re concerns among Bank staff that the project was attempting to do too much, and that this would make it difficult for both IDA staff and the Government to manage the project properly. But despite the feeling that the project was "underdesigned", it was also considered important to get the project started in order to assist the Governm,ent in its adjustment efforts. 10. About 80 staffweeks were used for project preparation (as shown on table 8, Part III, "Use of Bank Resources"), which is a little above the average for preparation on technical assistance projects. Two PPFs, totalling $1.0 million, contributed to the beginning of actual project activities by financing diagnostic studies and the start-up of activities in the Project Coordinating Unit (PCU). 11. Timing of the project was appropriate; the project helped pave the way for the implementation of macro and sectoral reforms, and this was consistent with the dialogue that had been recently started between the Governn'.4nt and the Bank and their subsequent agreement on the need for reform. 12. The role and responsibilities of the PCU as the agency responsible for managing implementation of the project were well defined at the time of appraisal and negotiations of the Credit. Although the PCU's functions had been described in detail at that time, the coordination requirements of the project were underestimated when the PCU component was designed. One of the institutional weaknesses of the project was that the PCU was not tied more directly to those in charge of implementing the  adjustment programi at the Ministry of Finance. Instead the PCU was attached to the Ministry of Plan. The PCU was expected to play a central role in managing and coordinating assistance to the various government implementing agencies in the project. In addition to experiencing administrative problems at the start of the project and lack of contin-uity in project management, it had difficulties coordinating with the other ministries as expected. A supervision mission in January 1988 found that performance of the PCU was not satisfartory concerning communications with implementing agencies, coordination of training activities, and the establishment of a training strategy. 13. 1.i retrospect, problems associated with the design of the project seem to have contributed to the difficulties and slowness in achieving the expected results in some of its components. In addition to the PCU problem, described above, the diversity of the project components :equired extensive coordination and input from different Bank divisions, which proved difficult to realize during implementation. E. PROJECT IMPLEMENTATION 14. Critical Variances in Project Impleme-itation. The most critical variance between planned and actual project implementation was the rather slow progress of many of the components, particularly during the first years of the projec . The exceptions were the Cereals Marketing and State Enterprise components which were operational from the start of the project and which were instrumental in helping to restructure the cereals marketing and public enterprise sectors. 15. There were delays in the selection and recruitment of consultants to do the studies and to provide technical assistance, on procurement activities in general, and on the purchase of equipment and materials for construction work, as in the case of the Business Management Institute headquacters, which was completed and inaugurated at the end of the life of the project. Also, training activities, a major component throughout the Droject and an important tool in achieving its overall objective of improving general ecowomic management practices in Mali, suffered fr-.n a lack of proper planning and strategy. 16. These variances in project implementation could have been avoided or been less sericus if the project had had a stronger PCU. The first supervision mission, at the beginning of 1984, noted that structurally the PCU was more adapted to project preparation and less to project implementation. Although the counterpart staff at the PCU be-efitted from extensive training, both external (study tours and courses) and internal (on the job training on public and financial management), the PCU failed to perform according to appraisal expectations on the supervision of the tec:hnical and financial execution of the project, on the coordination with implementing ministries, and on the submission of an appropriate general training program. More frequent supervision of project activfties on the part of IDA would also have helped to better implement the project.  17. Project Risks. The two major potential risks for this project. ds mentioned in the President's Report, operational difficulties, including trouble in recruiting specialists, shortages of qualified Malian cournterFarts and trainees, and the complexity and slowness of alministrative reform in general, proved to have been rightly identified at the e me of appraisal. F. PROJECT RESULTS 1.8. Project Objectives. The State Enterprises coirponent was the most successful component of the project. It provided for studies that led to a sector adjustment program and a PE institutional development project. Restructuring of some state enterprises was successfully undertaken (as in the Development Bank of Mali - BDM), some others, including Air Mali and Sor.uiex, were liquidated, albeit after many delays. The objective of developing a program of reforms in the agricultural sector was achieved through the Cereals Marketing component. To a certain extent the objective of restructuring the ODRs under the rural development agencies component was attained; as a result of a diagnostic study, the Government adopted a reform program, resulting in the dismantling of several ODRs. But the training which had been included under this component never materialized. '.9. The other two objectives. the building of stronger government institutions and the training of civil servants, under other components _Ecr.ornic Policy Analysis/Data Management; Civil Service; Public Debt Management) were not attained as expected. Nonetheless under these three em=onents there were a number of achievements. Details are in Table 4, 'Pro,ect Implementation", Part III of this r3port. 20. Impact of Project. The impact of the project was evident in the state enterprises and financial sectors in Mali, and the activities implemented under the state enterprises component constitute a major acomplishment in that sector. The restructuring and privatization of the Mali Development Bank (BDM) was a big step in the overall public enterprises reform program, which inclucied audits of state enterprises, liquidation of a number of them, and the creation of the Bureau des Entreprises Publiques (BEP). Also, studies financed under the state enterprises component led to two new projects and IDA credits: a PE Sector Ad,ustment Credit (Cr. 1937-MLI), the first of its kind in Mali, and a PE -nstitutional Development Credit (Cr. 1938-MLI). 21. The project also had an impact in other sectors, although not as strong as in the PE sector described above. With the help of two technical advisors, cereals marketing policy reforms were introduced and OPAM's restructur:ng was begun. The Government also adopted a reform program for the rural development agencies, following the recommendations of a study on the subject. 22. The variances between planned and actual impact of the project as regards the other components which aimed mainly at building itrr,n'-. gover.nment lnstitutions and the training of civil servants, can be exca1ained by a varying commitment to reform on tne part of different  ministries, as well as the unavailability of personnel for training activities. G. PROJECT SUSTAINABILITY 23. A major benefit of this Credit was the new arrangements for petroleum procurerrent, recormended by a study undertaken with the Ministry of Finance, and which has provided Mali with a large financial return, at an annual saving for the country of about four billion FCFA . 24. Two other benefits which were achieved by the project should also be mentioned. First, as a result of a field survey on expenditures of urban households, a Consumer Price Index (CPI) was introduced and price data has been collected and published regularly. Second, the Budget Directorate (DNB) benefitted from the acquisition of computer equipment and software. With the help of a consultant, a simple computerized system of budget preparation and monitoring was developed, and is still used by DNB. H. BANK PERFORMANCE 25. After identification of the project, following the Malian Government request for technical assistance, a good deal of work was devoted to project preparation on the part of Bank staff. There were also inputs from the relevant sector divisions during the appraisal stage. But, during implementation, although the number of actual staffweeks sper.t under supervision are in line with Bank guidelines, documentation of supervision missions is very limited, giving the impression that the supervision effort was rather sporadic. Before approval and actual implementation of this credit .t was proposed to distribute supervision tasks to the various relevant sector divisions in the old Projects Department. This proved unworkable during implementation and the sectoral supervision never materialized. After the initial supervision missions, no record of supervision ceports can be found for 1985 and 1987. In fact, there were staffing problems. the project officer in charge of this credit left in 1985 and there was a gap cf six months until a new project officer came on board. Supervision was subsequently transferred to the Resident Mission in Bamako, but this did not work, as local staff there lacked the necessary skills and Bank experience. In early 1988 supervision responsibilities were transferred back to Headquarters and supervision intensified. I. BORROWER PERFORMIANCE 26. The performance of the Borrower, through the main agencies involved, varied considerably from agency to agency. The Ministry of Finance provided important support to the computerization of the budget; the Ministry of Labor and Civil Service was less forceful in fostering institutional development. As already mentioned the PCU had numerous problems in coordinating among these agencies.  J. PROJECT RELATIONSHIP 27. The relationship between the Bank and the Borrower in this project varied from agency to agency and over time reflecting changes in government personnel. and particularly in the PCU. K. CONSULTING SERVICES 28. The effectiveness of consulting services provided under the project varied considerably depending on the commitment of the concerned government agency and on the quality of the consulting services provided. The project did encounter difficulty in recruiting highly experienced consultants for long-term assignments in Bamako. The long-term consultants originally provided to the PCU were not particularly effective and, as a result, greater emphasis was placed on periodic short consultant missions in the later stages of the project. Consultant services had the greatest impact in cereals reform, the petroleum procurement study, the restructuring of BDM, and strengthening the Budget Department of the Ministry of Finance. L. PROJECT DOCUMENTATION AND DATA 29. The original documentation for the project was adequate. The President's report should have provided a useful framework for the Bank and Borrower during project implementation. 30. The data to prepare this PCR, including progress and audit reports, was mostly available, except the Progress Report for 1988, the last year of project implementation.  - 8 - MALI ECONOMIC MANAGEMENT AND TRAINING PROJECT (Credit 1307-MLI) PROJECT COMPLETION REPORT PART II. PROJECT REVIEW FROM BORROWER'S PERSPECTIVE 1/ Introduction. The present report gives a detailed description of the state of execution of each component of the Credit. Two PPFs became effective in February 1981 and April 1982 respectively, at the Government of Mali's request to finance as soon as possible the first five components (Cereals Marketing, Rural Development Agencies, State Enterprises, Civil Service, and the Project Coordination Unit) of the project. Technical assistance to the Government, as provided under the proposed credit, constituted a first step to the first structural adjustment lending operation in Mali. The Credit Agreement would support and assist the Government of Mali to implement the 1983 "stand-by" program with the IMF. The IMF program and the Credit helped develop and complement the technical assistance program provided by other donors. The project's main objective was to strengthen the management of the Malian economy and to help identify a better government policy regarding financial and economic matters, and as a result to improve government institutions. Also included in the project were a training program and diagnostic studies. The Credit Agrement was signed on December 21 1982 for an amount of 9,700,000 SDR, and disbursed by June 30, 1989, under the different categories. I. Cereals Marketing Objective. The Office of Agricultural Products (OPAM) in Mali, created in 1965, had the monopoly of the commerce and sale of cereals. At the end of 1980 the Government decided that a reform of OPAM was needed. Implementation. The implementation of this component started before the Credit was signed. Two specialists financed by the PPF were hired in 1/ This is a summary translation of Part II. For more a more detailed account the original version in French (Projet d'Assistance pour le Renforcement de la Gestion Publique de l'Economie et pour la Formation, Rapport d'Ach&vement) is available in the Africa Regional Files.  June 1981. Some progress was evident a year later: price barriers were lifted, the State monopoly of cereals marketing was abolished. OPAM's role was reduced and measures were taken to limit its operating expenses. Conclusion. The program for the restructuring of cereals marketing was considered to have had a positive impact on this sector. II. Rural Development ARencies (ODRs) Obiective. Financing of diagnostic study to identify ways of reducing deficits, to provide an analysis of the financial and economic policies of the ODRs, and to propose institutional reforms with a view to rehabilitate the sector. Implementation. The first disbursement (PPF) in September 1983 financed the start of the diagnostic study. The study's proposals for the restructuring of the ODRs were submitted to the Council of Ministers. Conclusion. A total of 351 million FCFA was disbursed, which helped finance the two phases of a study (diagnostic and restructuring proposals), a seminar, the elaboration of a Plan of Action for each ODR, and a study on the statutes of the ODRs. Total rehabilitation of the ODRs was not attained, due to slowness in approving proposals. III. State Enterprises Obiective. Financing of diagnostic study of the sector, which would determine which state enterprises should remain and propose specific reforms to make the sector more profitable. Implementation. As a result of a diagnostic study and of discussion with IDA staff, the Government classified the state enterprises in three types: those which would be eliminated from the public sector, either through privatization or liquidation; those which would be kept in the public sector; and those which would be the subject of studies to prove their viability within the Malian economy. Audits were undertaken of Air Mali, SOMIEX, and BDM. The Office of Public Enterprises (BEP) was created in March of 1985, to propose the sector strategies to the Government. Conclusion. The main result from this component was that it gave government institutions the instruments to (a) elaborate and implement reforms in the sector; and (b) contribute to their execution. IV. Planning Obiective. At the time the Credit was signed UNDP had approved a project for strengthening the capacity of central and regional planning in Mali, and to provide training. The IDA credit aimed mainly at strengthening the Government institutions, by improving economic and financial policy analysis, economic statistics and data processing operations. Implementation. (a) National Planning Directorate (DNP): technical assistance consultant submits report proposing creation of the National  - 10 - Budget Commission imnd indicating methodology for the preparation of investment budget. Implementation was quite slow and at the end most of this subcomponent was financed by UNDP. (b) Statistics and Data Processing: Computerization National Plan Study submitted by a consultant was approved by the Government in September 1985. Consultant's proposals for computerization were not executed. A survey of urban households is undertaken which served as a model for consumer price index calculations. Conclusion: Financing of the DNP subcomponent by IDA was much less than expected and it was picked up later by UNDP. The Computerization Plan was not implemented. The survey of urban households was successful. V. Civil Service Obiective. To introduce a management information system in the Civil Service and Personnel Directorate (DNFPP). Implementation. Report by consultant on the situation at DNFPP serves as basis for the assistance to be provided, which was divided into four phases. Coding and updating of files was done. Conclusion. Activities under this component contributed to create a basis for rational management which should be be consolidated through computerization. VI. Public Debt Management Objective. To help the office in charge of managing public debt (CAA) function more effectively, through the training of staff and the acquisition of office equipment. Implementation. Debt census finished at end of 1984. Consultant submitted report to Government, identifying operations and management problems within the CAA, and recommending actions to solve the problems. Conclusion. Although execution of this subcomponent was achieved, problems still remain regarding the restructuring of CAA and its computer system. VII. Business Management Institute (IPGP) Objective. To help in the restructuring of IPGP, and to strengthen staff and training capabilities at IPGP. Implementation. During 1985-87 IPGP provided training through seminars and its staff did consulting work in particular for the state enterprises. Transfer of technology also occurred throug)' the assistance of expatriate consultants and overseas training of IPGP st.ff. Construction of building. Conclusion. Technical assistance component was completed :n December 1986. The IPGP building was ready to be inaugurated.  - 11 - VIII. Project Coordination Unit (PCU) Obiective. General supervision and implementation of the project, coordination among the components, etc. Implementation. Two technical assistance consultants provided support during the first three years of project implementation; projet audits were done by consultants financed by the Credit; training provided to managers and secretarial staff. The PCU submitted quarterly progress reports on a regular basis. IX. Training Sub-component Training was a constant in all components as an instrument for improving economic management. There were implementation problems in this subcomponent, mainly as a result of the lack of diagnostic studies under some of the components; the slow implementation of some cc iponents; the absence of consensus in general; difficulties in the choice of apprentices, training centers, etc.; the unwillingness of some managers to release staff for training. X. Conclusion Final disbursements for this Credit took place at the end of June 1989. A large percentage of disbursement was for technical assistance while a much smaller one was for training. Supervision by the PCU and by Bank staff (including the Resident Mission) was provided on a regular basis, which helped manage the project as expected. The project contributed to the strengthening of the Government's economic policy; it paved the way for economic and financial reforms.  .. . :, ... ^::, .... , .... .. . . . .F . :' *12 MALL x~mucmc KAEADmFrAND TRA&NXrnu fiz- (Credit 1307-KLU) Part Ut. STATISTICAL . . .. Table 1. ktste Sank toem *ader C#edlte veesr o Credilt 7U?- Meform of seclees, technoloy " C Ipted Only link Nee b.imos Edue"ae IIt and related lntruolon In M1_aeme.t Intitvu (1P) rural lawr aeory PI chol, componet, origally In and develo_en t I o-oot Cr. T7S-MI, but laer balsc eduction program Included In Cr. 1W744 de, tb of" wvrro Credit 1937-MLI As the fIrot phase of a longr 19" GOd program. Projet originated from PE Sootr AdJuateat term ajtmet effort to Improve S _cod trnch.e etue une"r Cr. 13-IL eaonom nrmt objective roleoame 13/9. are imrore pblac reoree mna t, prtculrly the per-formaceof the Pg soetr, and red-ce Its burden en public t I nenew Credit 1903-1.1 Insotltutional support providW to 1OS Progreee Project orlglnated from Pe Znoltional Government to ex_tnd aeW d_mp well. No mjor studies under Cr. 1307-MU Development Its Pt reform effort., to addes Problems. Ion?@term Issue of Governent abilities to devise and imple_mt PE reform, and to wnitor th oeter's portormn Nd manage Its future develop_ent. redit 2101-111 lotral Policy rfor_ in the rd Apva1 Partl originated fr *rliultoral leoter cotetn and crele ecuore, and Juno 10 Cerels Market/ON ijuetmeet/Invetmamt relate Investments. cmoet Pr,_sed Po ley rfoms to lprove publIC 130 ProJect undr Strcural Adjuta rero sam e 1 1 mestivee AWralel Credit far privt esector dvelopment.  - 13 - Table 2: Projoet Timetable Date Date Ztm pIannns -jtugl - Identification Nov-Us Nov-U (Project Briet) Jan-8I Jon-01 - Pr-paration Sep-8i Sep-8I - Appraisal Mission Dec-S1 Jnn-82 - Crodit Neotiatione Jun-82 Oct-62 - Board Approval Aug-82 Dec-82 - Credit Signature Doc-82 Dec-02 - Credit Effectivenoeo Mar-S3 May-8S - Credit Closing Jun-87 Dec-SO - Credit Complotion Dec-87 Jun-89  - 14 - Table 3: Credit Disbursements Cumulative Estimated and Actual Disbursements (USS Million) IDA Fiscal Year 1983 1984 1985 1986 1967 1988 1989 Appraisal Estimate 2.0 5.7 6.9 10.4 Rovised Estimates (as of June 30, 1983) 1.0 2.4 6.9 3.9 106. 10.4 Actual 1.0 2.0 3.7 5.2 7.3 6.3 11.5 Actual an % of Appraisal Estimate 49% 35! 41X BOX Actual as % of Revised Estimate lOX 826 62X 568 73X 64X Date of Final Disburement: 30-Jun-89 Time Lino Showing Plannod, Revisod and Actual Disburseent Schedules 12 I 11 I 10 = 91 _ C 71 (USS Million) I 6 1 4l SI 3l I = 21 _ 1 1 5= FY83 FY64 FY85 FY36 FY87 FYO3 FY89 - Appraisal Esti"te = Revisod Estimate e Actual Comments: Disbursement estimates at appraisal were unrealistic and they were revised in June -------- of 1983. Other reasons for the low disbursement rate at the beginning of the project were: procurement delays, appreciation of the USS, and the use of funds from Credit 966-MLI to finance 20 percent of the PE Study.  - 15 - Table 4: Project Implementation Implementation Toole as defined In Indicators under Project Components President's Report Actual Impleomntation Cereals Maorkting: Specialists (6 my) Two technieol advisors with OPAM, over 6 my in total Public Cereals Marketing Policies Training helped restructuring of cereals markoting sector. Reforms Small Studies Studies on cereals pollcies/price structuroo under- taken. Training of OPAM staff in commercialization/ stock protection and mnag em nt. Rural Development Agencies (ODRa): Specialists (5 my) Diagnostic study by consulting fire submitted in two Improve Finoncial Porformance/ Training phases "ado recommendations for the restructuring of Sector Reforms Sall Studios DODR. As a result of study Government adopted reform program. State Enterprises: Specialists (6 Sy) The Bureau des Entreprises Publiques(SEP) was created. Sector policy reforms/Increase Training Studios (diagnostic/rector rehabilitation) and audit Sector profitability Small Studies of parastatels dono. Liquidation of some stato enterprisoo. PE staff attended courses on project project managemnt, some on-the job training. Economic Policy Analysis/Data Mgmt.: Specialists (4 sy) TA on methods/procedures of budgeting and Investments Policy Analysis: Evaluate current/ Equipment/Oper.Costs started mid-1988; contributed to proparation of first proposed policies Training 3-year rolling Investment program/annual investment Statistics: Improve national budget. Data collection in field done for survey o statistics urban households published. Price collection system Data Processing: Strengthen data introduced: calculation/publication of CPI has been processing operations done on regular basis. Pianning staff received training in computer science (analysis/programing), statistics, price index calculation, and external trade. Civil Sorvice: Specialists (S Sy) Civil Service Dept. rohabilitated fil-e for all civi Implement program of employment Training servants in sevoral mjor cities. Delays in monitoring and salary control Equipment computerization affocted all other tasks of component. Micro-Ficho A 'Schoma Directeur' for computerization was prepared. Public Debt Managemont: Specialist (6 si) Serious management problems threatened efficient Improvo debt information processing Computer equipment utilization of dobt managemnt system. Debt census, done manually, provided good information for CAA. Computer equipment delivored/installed at CAA. Trui ing of relevant civil servants included study tours for cobinot directors and personnel management courses abroad. Poor CAA responsiveness and in particular lack of lood-rship led to unsuccossful conclusion. Business Management Institute (IPGP) Specialist* (3 sy) Contract signed with confulting firm for TA Strengthen training capabilities; Civil Works to strengthen training capacitieo of IPGP. provide much of training financed Equipment Firm provided training to 321 participants in by this credit; provide TA needed 22 seminars. Construction of IPGP headquarters took for reforms. a long time due to procuroent desys. Equipment and materilso installed, building inaugurated June 69. Project Coordination Unit Project Coordinator Counterpart staff benofitted from extensive training: Supervise technical/financisl Two Assistants study tours abrood and courses, including on-the-job execution of project; coordination training, on public/financial management. Performance with implementing Ministries of Unit was unsatisfactory regarding coordination with implementing agencios; progress/audit reports were submitted regularly every year.  - is6 Table 5: Project Costs and Financing A. Project Costs (In USS Million) Appraisal EstimatA Actual Item Local Foroign Total Local Foreign Totel Cereals Marketing 6.27 06.2 0.89 0.66 1.16 1.16 Rural Development Agencies 6.52 1.13 1.65 6.60 0.44 0.44 Stat. Enterprises 0.46 0.97 1.42 1.56 1.71 3.26 Econ.Policy Anal./Data Mgmt. 0.46 0.76 1.22 6.60 0.46 0.48 Civil Service (DNFPP) 0632 0.62 .094 6.10 0.71 6.01 Public Debt Management (CAA) 6.67 0.13 0.20 09.2 0631 06.4 Bualnees Management Training (IPGP) 06.51 089 1.40 06.1 0.90 1.71 Follow-up TA/Studies 0.21 0.69 o.06 1.76 1i09 2.79 Project Coordinating Unit (PCU) 0 39 0 6.9 0." 0.04 0634 0.39 Base Costs 3IF 2 0370 9.60 Physical Contingencies 0.13 06.47 6.6 Price Contingencies 0.47 0.93 1.40 Total Costs 80.6 7.70 11.60 4.44 7.16 11.59 Comments: Actual costs were calculated bosed on disbursement records of the Credit. B. Project Financing (In USJ Million) Planned Rovis-d Final IDA Expenditure Categories 10.4 10.4 11.5 Government 1.1 1.1 6.2 Total 11.5 11.5 11.7  Tables: Prejeot Remilt. Direst Isnefit. ZSIedsate ^Appraisal stimte Estimtd St Closing Date Polley Reform Olo P rf etfoers In r of t qu n w _tzl In t welrewltvpnol and Wtaeo enterprise Pl rprIas aor, an low s in the sconrs. Agriculturel $ . It can ald projoet provided dlrat bfit to these Ostors. Stronger Institutions Help build *tr r goverunt Dlret beweIt nto vildent so a re_lt of a institutions -- bttr lack of plannins la tw Pr Pe training of organlsed, atafVd, eqippe relevant civil servant ando a1s to implemet revised pollelso. on thelret of Government In i.plenlZng the C1i1 Servants Training Train civil ervant. to staff Trainlig of selected civil servants en institutions Involved In subjects like projeWt moogmet, ceputr defining and carrying out science, statistics, external trade. policy reform. Alaso twuly tes in Europe and ether African countiese, were provlded to higher-level civl servant.. One Asisatent Director In the CM relved an 1A diplom In the United Stat.. financed under the Debt Management component of the Crdit. On-the-job training under several compnents took place under the Credit. r !  Table 7: Status of Covenants Compliance Covenant Subject Deadline Status 3.01 (b) The Borrower shall maintain in its Ministry na. Complied with. of Planning a Project Coordinating Unit (PCU) consisting of a Coordinating Committoe (CC) comprising representatives of the ministerial departments benefiting from the Project and a Secretariat. (c) The Borrower ahall assign to the PCU an 30-Jun-83 Complied with. adoquate number of staff with qualifications No advisors remaining. and experience, including one technical advi2or and a training specialibt. 3.04 (b) The Borrower shall furnish to IDA at regular n.a. Progr-oe rep*rts were intervals all information concorning the received for the years project, its cost, and whore appropriate, the 1984 through 1967. No benefits to be derived from it, the expenditure report sent for 1986, tho of the Credit proceeds and tho goods and project's last yeor. sorvices financed out of such procoods. (d) After complotion of tho Projoct, but not later 30-Jun-89 Complied with. than six months aftor the Closing Date, tho Borrower shall propare and furnish to IDA a report on the execution and initial operation of tho Projoct, its cost and tho benefits derivod and to be derived from it, tho perform- ance by tho Borrower and by IDA of thoir respectivo obligations under the DCA and the accomplishment of the purposes of the Crodit. 3.05 The Borrower shall furnish to IDA torms of 30-Jun-83 Not complied with. reference showing details of how proceods of As of last supervision the Credit aro to bo usod for the consultants', mission in October 1988, experts' and spocialists' sorvices and training studies still ongoing, included in the Project, and for such other new needs 'dentified matters as may be necessary to follow up the sinco original date. diagnostic studies provided for in Parts B(2) and C(2). 3.08 The Borrower shall continue to assign to IPGP, na. Not complied with; there during execution of Project, an adequate number was no attempt to enforce of staff, including its Director, with covenant. qualifications and experience satisfactory to IDA; and provide IPGP with amounts sufficient to meet any operating deficit. 3 !7 The Borrower shall furnish to IDA proposed na. Not complied with. terms of reference for the consultants, experts No record of TOR on filo. and specialists to be rotained to assist in carrying out Part D(1). 3.0a1 (a) tho Borrower shaHi assign an adequate number of na. Mostly complied with. qualified and experienced countorpart personnel Counterparts generally to work with the consultants, experts and assigned. No records sp#-ialisto to be erfloyod under tho Project. available on trainees. 4.02 Audlit Reports four months Complied with for all after end the years. Last report of each FY. dated December 31, 1988.  - 19 - Table 8: Use of Bank Resources A. Staff Inpute (in staffwoeks) Stage of Project Cycle Planned Actual Through Appraisal n.a 23.8 Appra'sal through Board Approval n.n 66.6 Board Approval through Effectiveneos n.r 1.2 n.a 81.5 Supervision FY84 12.0 18.3 FY85 12.0 16.9 FY86 12.0 16.3 FY87 12.0 9.2 FY88 12.0 17.7 FY69 12.0 8.8 FY90 (PCR) 106.5 1060 Total Supervision 82.6 96.2 Total n.n 176.7 Comuente: Although the actual figure suggests a lot of time being spent on supervision, only a few supervision reports are ava;lable ;n the Regional Files. B. Missions Perform. Stage of Month/ Number of Days in Special. Rating Types of Project Cyclo Yeor Persons Fio'd Repres. a/ Status b/ Problems c/ Through Appraisal Jun-81 3 10 E, RD, LO Appraisal through Dec-81 2 26 E, LO Board Approval Apr-82 1 6 E May-82 1 5 C Oct-82 2 a FA (2) Board through Effect. May-83 1 20 YP Supervision 1 Jun-88 3 18 E (2), FA 1 M 2 Jan-84 2 21 E (2) 2 M, F 3 Nov-84 1 21 E 1 M, F 4 Apr-86 1 16 E 1 - 6 Jan-68 1 16 PS 8 M, O 6 May-88 2 6 PS, E 3 M, O 7 Nov-88 1 7 PS 3 L, 0 a/ Key to specialization: b/ Koy to statue: c/ Key to problems: E Economist 1 Problem Free or Minor Problems F Financial RD Rural Development Specialist 2 Moderste Problems M Managerial LO Loan Officer 3 Major Problems T Technical C Consultant P Political FA Financial Analyst 0 Other YP Young Professional PS Public Sector Management Specialist