AFRICAN DEVELOPMENT FUND

Langue: Français

PROJECT : Public Investment Management Support Project (PIMSP)

COUNTRY : Islamic Republic of Mauritania

APPRAISAL REPORT

OSGE DEPARTMENT

August 2013

Translated Document

TABLE OF CONTENTS

I. STRATEGIC THRUST AND RATIONALE ......................................................... 1

1.1 Project Linkages with Country Strategy and Objectives ............................................. 1

1.2 Rationale for Bank Involvement .................................................................................. 2

1.3 Aid Coordination ......................................................................................................... 4

II. PROJECT DESCRIPTION ...................................................................................... 6

2.1 Project Components ..................................................................................................... 6

2.2 Technical Solutions Adopted and Alternative Solutions Considered .......................... 8

2.3 Project Type ................................................................................................................. 8

2.4 Project Cost and Financing Arrangements .................................................................. 8

2.5 Project Area and Beneficiaries .................................................................................. 10

2.6 Participatory Approach in Project Identification, Design and Implementation ........ 11

2.7 Bank Group Experience and Lessons Reflected in Project Design ........................... 11

2.8 Key Performance Indicators ...................................................................................... 12

III. ENVIRONMENTAL AND SOCIAL IMPACTS ................................................. 13

3.1 Environmental Impacts .............................................................................................. 13

3.2 Climate Change ......................................................................................................... 13

3.3 Gender ........................................................................................................................ 13

3.4 Social ......................................................................................................................... 14

3.5 Involuntary Resettlement ........................................................................................... 14

IV. IMPLEMENTATION ............................................................................................. 14

4.1 Implementation Arrangements .................................................................................. 14

4.2 Monitoring ................................................................................................................. 16

4.3 Governance ................................................................................................................ 17

4.4 Sustainability ............................................................................................................. 17

4.5 Risk Management ...................................................................................................... 18

4.6 Knowledge Building .................................................................................................. 18

V. LEGAL FRAMEWORK......................................................................................... 19

5.1 Legal Instrument ........................................................................................................ 19

5.2 Conditions for Bank Intervention .............................................................................. 19

5.3 Compliance with Bank Policies ................................................................................. 19

VI. RECOMMENDATION ........................................................................................... 19

i

LIST OF ANNEXES

Annex I: Comparative Socio-economic Indicators of Mauritania

Annex II: Table of AfDB Portfolio in Mauritania (June 2013)

Annex III: Key Related Projects Financed by the Bank and Other Development

Partners of Mauritania

Annex IV: Map of Project Area

LIST OF TABLES

Table 1.1: Key TFP Projects in Areas covered by the Project

Table 2.1: Project Components and Activities

Table 2.2: Alternative Solutions Explored and Reasons for Rejection

Table 2.3: Project Cost Estimate by Component (in UA million)

Table 2.4: Project Sources of Financing (in UA million)

Table 2.5: Project Cost by Expenditure Category (in UA million)

Table 2.6: Project Cost by Expenditure Category of the Grant (in UA million)

Table 2.7: Project Cost by Expenditure Category of Government’s Counterpart Contribution

(in UA million)

Table 2.8: Expenditure Schedule by Component (in UA million) Table 4.1: Monitoring Milestones and Feedback Loop

Table 4.2: Potential Risks and Mitigation Measures

Currency Equivalents

(August 2013)

Currency Unit: Mauritanian Ouguiya (MRO)

UA1 = USD 1.51

UA1 = EUR 1.14

UA1 = MRO 459.1

Fiscal Year

1 January - 31 December

ii

Acronyms and Abbreviations

ADF

AFD

AfDB

African Development Fund

French Development Agency

African Development Bank

ARMP Procurement Regulatory Agency

CPW Construction and Public Works

CEDAW

CIB

Convention on the Elimination of All Forms of Discrimination against Women

Consolidated Investment Budget

CNCMP National Procurement Control Commission

CPMPSEF

CRC

Economy and Finance Sectors Procurement Commission

Conventions on the Rights of the Child

CSMP Procurement Sector Commission

DAD

DGPESD

DGPI

DGPPI

DGPSP

DMRCAE

DSEPP

EUD

FAO

GAP

GBS

GCF/TFPs

GDP

GII

GVT

HDI

IAS

IGF

IMF

LC

LCB

LDC

LFI

LOLF

MAED

MAFO

MDG

MIC

MTBF

MTEF

Development Assistance Data

Directorate General of Economic Policies and Development Strategies

Directorate General of Investment Programming

Directorate General of Investment Projects and Programmes

Directorate General of the Private Sector

Department of Resource Mobilization and External Aid Coordination

Department of Projects and Programmes Monitoring and Evaluation

European Union Delegation

Financial and Accounting Officer

Governance Action Plan

General Budget Support

Global Consultation Framework for Technical and Financial Partners

Gross Domestic Product

Gender Inequality Index

Government

Human Development Index

International Auditing Standards

General Inspectorate of Finance

International Monetary Fund

Local Currency

Local Competitive Bidding

Least Developed Countries

Initial Finance Law

Organic Law on Finance Laws

Ministry of Economic Affairs and Development

Bank’s Field Office in Morocco

Millennium Development Goals

Middle Income Countries

Medium Term Budget Framework

Medium Term Expenditure Framework

NA

NGO

Not Applicable

Non-Governmental Organization

PIMSP Public Investment Management Support Project

iii

PARPEF Economic and Financial Planning Strengthening Support Project

PCR

PHS

PIP

Project Completion Report

Permanent Household Survey

Public Investment Programme

PMT

PRSP

RBCSP

SC

Project Management Team

Poverty Reduction Strategic Paper

Results-Based Country Strategy Paper

Steering Committee

SDRFP

SIG

SME

Public Finance Reform Master Plan

Integrated Procurement Management Information System

Small and Medium-size Enterprise

SNIG

STC

National Strategy for Institutionalizing Gender

Sector Technical Committee

TFP Technical and Financial Partners

TOR Terms of Reference

TTG

UA

UNDP

US

USD

WB

Technical Thematic Group

Unit of Account

United Nations Development Programme

United States

United States Dollar

World Bank

iv

Project Information

Client Information

BORROWER: Islamic Republic of Mauritania

EXECUTING AGENCY: Directorate General of Investment Projects and Programmes

(DGPPI) at the Ministry of Economic Affairs and Development (MAED)

Financing Plan

Source Amount (UA) Instrument

ADF

0.74 million

Grant GOVERNMENT 0.86 million

TOTAL COST 1.60 million

Key ADF Financial Information

Loan /Grant Currency

UA

Interest Type * NA

Interest Rate Margin* NA

Commitment Fee * NA

Service Charge NA

Tenor NA

Grace Period NA

FRR, NPV (baseline scenario) NA

ERR (baseline scenario) NA

Period – Main Milestones (Expected)

Preparation Mission

April 2013

Concept Note Approval July 2013

Appraisal Mission July 2013

Project Approval September 2013

Effectiveness January 2014

Completion 31 December 2016

Last Disbursement 30 June 2017

v

PROJECT SUMMARY

Project

Overview

Project Name : Public Investment Management Support Project (PIMSP)

Geographic Scope : Nationwide

Project Period : 36 months (January 2014 – December 2016)

Project Cost: UA 1.6 million (0.74 million from ADF and UA 0.86 million

from the Government)

Project

Goals

The objective of PIMSP to improve public investment efficiency for strong and inclusive economic

growth. Its operational objectives are to: (i) improve public investment programming and linkages

between the various programming tools and the PRSP, and (ii) capacity building for identification,

development, implementation, and monitoring and evaluation of public investment projects. The

project comprises two components: (i) Improvement of public investment management, and (ii)

Project management and coordination.

Needs

Assessment

Mauritania’s major challenge is to ensure inclusive and sustainable economic growth for effective

poverty reduction. Better public investment management and promotion of gender equality and equity

are the main thrusts for anchoring Mauritania’s medium and long-term development. The key

challenges to be addressed for efficient public investments performance will mainly concern: (i)

improvement of public investment programming in light of PRSP priorities, (ii) gender mainstreaming

in PIP, planning, and monitoring and evaluation of public policies, (iii) efficiency of the various

phases of the project chain, namely identification, preparation and implementation, and (iv)

strengthening of project implementation monitoring and evaluation, (v) capacity building for DGPPI

responsible for steering the public investment programme.

Targeted

Beneficiaries

The project’s direct beneficiaries are: (i) MAED structures in charge of managing the Public

Investment Programme and monitoring the PRSP, (ii) Officers of Ministries whose project design and

appraisal capacities will be strengthened, and (iii) civil society whose capacity will be strengthened

and their views taken into account through their involvement in some project activities. PIMSP’s

indirect beneficiaries are the Mauritanian population as a whole. Women, as well as youths and other

vulnerable groups, will benefit from public investment projects and specific budget allocations thanks

to budgeting consistent with PRSP priorities.

Outcomes

and Impact

The expected outcomes of the project are: (i) in the short term, better investment budget allocation and

execution based on PRSP priorities (gender mainstreaming and employment) and improved public

resources absorptive capacity, and (ii) in the longer term, more inclusive economic growth that will

help to reduce gender inequalities.

Bank’s

Added

Value

The project comes at a time when the Government is seeking to substantially increase capital

expenditure to meet the country’s infrastructure needs. To that end, the project will help to improve its

public resources absorptive capacity by removing key public investment management bottlenecks.

PIMSP implementation will enhance public investment management efficiency for better allocation of

the Government’s financial resources to projects that enhance inclusive and sustainable growth.

Knowledge

Building

Several knowledge types will be built through implementation of this project, in particular: (i) the

technical capacity of DGPII at MAED will be enhanced through the different methodological guides

to be prepared, (ii) the other Ministries will benefit from best practices in public investment

management through training sessions on the various methodological guides (MTEF preparation,

maturation/ monitoring/evaluation of public investment projects) to be organized under the project.

vi

Results-Based Logical Framework Country and Project Name : Mauritania –Public Investment Management Support Project (PIMSP)

Project Goal : Improve public investment management efficiency for strong and inclusive economic growth

RESULTS CHAIN

PERFORMANCE INDICATORS MEANS OF

VERIFICATION RISKS/ MITIGATION MEASURES

Indicator (including

CSI)

Baseline

Situation TARGET

IMP

AC

T

Economic growth

more inclusive by

mainstreaming

gender and

employment

Average annual GDP

growth rate

6.9% in 2012 8% in 2018 MAED’s

macroeconomic

framework

Risk 1: Security risk at regional level due to

overall situation in the Sahel.

Mitigation measure No.1: The Authorities

are determined to reconcile development and

security priorities by continuing reforms and

strengthening security

.

Risk 2. Political instability

Mitigation measure No.2. The presidential

election in July 2009 facilitated the return to

democracy and the TFP re-engagement with

the government. The continuation of national

dialogue launched in 2011 and the prospect

of presidential elections in 2014 should

strengthen political stability.

Risk 3. Lack of financing for implementation

of the poverty reduction strategy.

Mitigation measure No. 3. The project

supports capacity building activities of the

DGPPI for better donor coordination and

resource mobilization.

Following the Brussels Roundtable, a State-

TFPs group was established to follow up

pledges (98.9% of commitments were

mobilized as at 19 June 2013).

Risk 4. Lack of involvement of stakeholders

Mitigation measure No. 4. The

establishment of a steering committee

including all project beneficiaries, the private

sector and civil society will foster the

participation of all stakeholders.

Risk 5. Weak capacity of the administration

for the implementation of project activities

and risk of poor fiduciary and procurement

management

Mitigation Measure No. 5. The training

activities under the project and supporting the

PMT will offset this risk. The project

involves the recruitment of two experts in

financial management and procurement on a

competitive basis to support the project

management unit. Monitoring the

implementation of the project will be

enhanced through regular supervision

missions of the Bank experts who will

provide, if needed, technical support for the

timely execution of the project.

Human Development

Index (HDI) adjusted to

inequalities

0.306 in 2012 0.315 in 2018 UNDP Human

Development Report

OU

TC

OM

ES

Impact I: The

investment budget

is allocated and

executed according

to PRSP priorities (

by mainstreaming

gender and

employment)

Pro-poor expenditure

against overall

expenditure

45% in 2012 50% in 2016 Ministry of Finance

and MAED Data

Gender Inequality

Index (GDI)

0.643 in 2012 0.623 in 2016 UNDP Human

Development Report

Impact II: The

absorptive capacity

of resources is

improved.

Annual rate of

execution of public

investment

60% in 2012 70% in 2016 Ministry of Finance

and MAED Data

RE

SU

LT

S

COMPONENT I : IMPROVEMENT OF PUBLIC INVESTMENT MANAGEMENT

I.1.1. MTEF

development

capacity is

enhanced

I.1.1. Availability of a

methodological guide

for MTEF preparation

Lack of guide for

MTEF

preparation

A methodological

guide for MTEF

preparation is available

before end - 2014

Annual report on the

implementation of the

public finance reform

master plan (SDRFP)

Project

Implementation

Reports

I.2.1. Gender and

employment

mainstreaming in

programming and

preparation of the

investment budget

I.2.1 Availability of a

methodological guide

for maturation of

projects to be included

in the PIP with gender

and employment-related

indicators

Lack of a

methodological

guide for

maturation of

projects to be

included in the

PIP

Availability of a

methodological guide

for maturation of

projects to be included

in the PIP before end-

2014

Project

Implementation

Reports

I.2.2. Public

investment

programme

monitoring is

enhanced

I.2.2. Availability of a

methodological guide

for public investment

project monitoring

Lack of a

methodological

guide for public

investment

project

monitoring

Availability of a

methodological guide

for project monitoring

before end-2014

Project

Implementation

Reports

I.2.3. Public

investment

programme

evaluation is

improved

I.2.3. Availability of a

methodological guide

for public investment

project evaluation

Lack of a

methodological

guide for project

evaluation

Availability of a

methodological guide

for project evaluation

before end-2014

Project

Implementation

Reports

I.2.4. Ministry

employees are

trained in project

design, monitoring

and evaluation

I.2.4. Number of

persons trained (number

of women trained)

- 140 persons (including

50 women) at end -

2014

Project

implementation

Reports

vii

KE

Y A

CT

IVIT

IES

COMPONENTS RESOURCES

COMPONENT I: IMPROVEMENT OF PUBLIC INVESTMENT MANAGEMENT

- Technical assistance activities: Recruitment of national and international experts and

consulting firms

- Human capacity building activities: training

- Physical capacity building activities Computer and office equipment

COMPONENT II: PROJECT MANAGEMENT AND COORDINATION

- Logistics, monitoring and evaluation, annual audits

Resources

Component I: UA 1.21 million

Component II: UA 0.30 million

Contingencies: 0.09

Total: UA 1.6million (0.74 million from ADF and UA 0.86 million

from the Government)

viii

Project Implementation Schedule

2013 2014 2015 2016

Activities/Month S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

Prior to start-up

Board presentation

Grant effectiveness

Appointment of Coordinator and Deputy

Coordinator

Establishment of the Project Team

Preparation of procedures manual

Project launching mission

Equipment and supplies

Office and computer equipment

Accounting software

Consultants

Preparation of bidding documents and short lists

Invitation for bids, analysis and award

Firm for preparation of public investment management tools and instruments and training of

senior staff

Design an IS for PRSP implementation

Design and installation of an electronic archiving

system for financing agreements

Design of commitments tracking system

Trilingual translation agency (French, Arabic,

English)

Financial and Accounting Officer

Procurement Expert

Monitoring/Evaluation Expert

Gender Expert for PRSP monitoring/evaluation

Computer Expert for DAD system administration

Miscellaneous

Operating costs

Supervision missions

Mid-term review

PSC meeting

Completion mission

Audits

Annual account audit

Final account audit

1

REPORT AND RECOMMENDATION BY MANAGEMENT CONCERNING

A PROPOSAL FOR AN ADF GRANT TO MAURITANIA FOR THE FINANCING

OF THE PUBLIC INVESTMENT MANAGEMENT SUPPORT PROJECT

This proposal submitted to the Board for approval concerns the award of an ADF grant

amounting to UA 0.74 million to the Islamic Republic of Mauritania for the financing of the

Public Investment Management Support Project (PIMSP). It is an institutional support project

to enhance the public investment management capacity of the Ministry of Economic Affairs

and Development (MAED). The project goal is to improve public investment efficiency so as

to ensure strong and inclusive economic growth. Its operational objectives are to: (i) improve

public investment programming and linkages between programming tools and the Poverty

Reduction Strategy Paper (PRSP), and (ii) strengthen capacities in public investment project

identification, preparation, implementation, and monitoring-evaluation. The expected

outcomes are: (i) in the short-term, improved investment budget allocation and execution

based on PRSP priorities (by mainstreaming gender and employment) and improved public

resources absorptive capacity, and (ii) in the longer term, more inclusive economic growth

that would help to reduce gender inequalities.

I. STRATEGIC THRUST AND RATIONALE

1.1 Project Linkages with Country Strategy and Objectives

1.1.1 The 2011-2015 Poverty Reduction Strategy Paper (PRSP III), which focuses on

achieving the MDGs by 2015, is the main reference document for Mauritania’s technical and

financial partners. It outlines the key short and medium- term development strategies and

centres on the following four areas: (i) acceleration of growth and stabilization of the

macroeconomic framework, (ii) anchoring of growth pro-poor economic concerns, (iii)

human resource development and expansion of basic services, and (iv) improvement of

governance and capacity building. With regard to economic governance, the Government has

set the following specific objectives: (i) ensure efficient and transparent public resources

management and combat all forms of corruption and mismanagement, (ii) strengthen public

investment planning and programming, and (iii) develop the statistics and information

systems. Within this framework, the Mauritanian Government has developed a five-year

(2012-2016) reform master plan for its public finance management system, which aims to

contribute towards achieving the objective of the 4th

Thrust of PRSP III. The planned reforms

are expected to increase tax revenue, control non-poverty-related current expenditure,

improve the preparation and execution of Finance Laws, as well as enhance budget

information dissemination and public spending quality.

1.1.2 Mauritania’s Results-Based Country Strategy Paper (RBCSP) for the 2011-2015

period is closely linked to PRSP III. The Bank’s assistance strategy is centred on the

following two pillars: (i) reinforcement of infrastructure, and (ii) improvement of economic

and financial governance. The second pillar is in line with the 4th

Thrust of the PRSP.

Through this pillar, the Bank supports implementation of reforms and institutional capacity

building for the public administration to improve public resource management and the quality

of public services. The Bank’s objective under this pillar is to promote macroeconomic

stability and sustain growth by supporting the Government's efforts to improve public finance

management, modernize the administration, enhance its capacity, and improve the business

climate.

2

1.1.3 The project is consistent with the 4th

Thrust of PRSP III and the guidelines of Pillar II

of Mauritania’s RBCSP. It also falls within the framework of consolidating and deepening

public finance reforms, particularly those concerning public investment management.

Strengthening the administration’s capacity in defining and implementing development

policies, programming, implementation, and monitoring/evaluation of public investment

projects is a major challenge for public spending efficiency. Furthermore, the project is

consistent with the guidelines of the Bank’s Strategy (2013-2022), particularly those relating

to strengthening governance. Indeed, the project seeks to create conditions conducive to

economic recovery through more efficient and credible public finance management. It is also

in line with the Bank's strategy on Governance.

1.2 Rationale for Bank Involvement

1.2.1 Political, economic and social context: Mauritania has gone through a period of

political instability, notably with two military coups in 2005 and 2008. The June 2009 Dakar

Agreements facilitated a return to constitutional order, leading to the July 2009 presidential

election and resumption of international cooperation. New presidential elections are scheduled

for 2014. As regards the economy, Mauritania has recorded good macroeconomic

performance, with a real GDP growth rate of 5.3% over the past three years from 2010 to

2012. After a slight slowdown to 3.9% in 2011 following the major drought that affected the

entire Sahel region, the real GDP growth was given fresh impetus in 2012, with a rate of 6.9%

(8% excluding the extractive industries), driven mainly by the dynamism of the construction

and public works sector supported by major public investments and the investment

programmes of mining companies. In 2012, the inflation rate was only 3.4%, well below

projections. The country recorded a positive budget balance of 2.8% of GDP in 2012, despite

increased spending from own resources, particularly for major emergency social programmes.

This performance is due mainly to considerable tax collection efforts, substantial

improvement in mining revenue, and control of non-essential spending. At the social level,

Mauritania made significant progress in some of the MDGs, particularly those relating to

education, access to drinking water, and control of HIV/AIDS, malaria and tuberculosis.

Conversely, in other areas, despite the progress made, the results remain inadequate.

According to the most recent data from the 2008 Permanent Household Survey (PHS), overall

poverty stands at approximately 42%, well above the target of 25% by 2015. Poverty is

largely a rural phenomenon, with a rate of 59.4% in 2008. The country is also lagging behind

for other MDGs such as health, environment, employment and some aspects of gender

disparity,1 hence the need to continue supporting effective implementation of its poverty

reduction strategy. Mauritania’s key challenge is to ensure inclusive and sustainable economic

growth. The most recent data from the 2008 PHS puts the unemployment rate at 31.2%. The

challenge of creating jobs will be even greater for several years, given the persistent high

1 Source : Statistics Department of AfDB

The primary school completion rate increased from 29% in 1990 to 79.2% in 2011

The female/male ratio in primary school improved from 83.5% in 1990 to 91.0% in 2011

The percentage of the population having access to safe water improved from 50% in 1990 to 58% in 2011

The overall HIV prevalence (% of population aged 15-49) improved from 4% in 1990 to3.6% in 2011

The maternal mortality rate (per 100000) remains high, moving from 1100 in 1990 to 840 in 2011

The percentage of the population with access to improved sanitation facilities remains low, dropping from 36% in 1990 to 31% in

2011

The employment/ population aged 15 and over ratio remains weak, moving from 52.3% in 1990 to 51.8% in 2011

The female literacy rate (% of women aged 15-24 years) remains high, moving from 62.5% in 1990 to 65.3% in 2011

3

increase in the working population. New labour market arrivals will stay above the 3% growth

rate. To meet this challenge, it is vital to mainstream job creation in all public policies. The

project supports the inclusion of job creation in the various methodological guides to public

investment programming, as well as the maturation, monitoring and evaluation of public

investment projects.

1.2.2 The project comes at a time when the government is seeking to significantly increase

capital expenditure to meet the country’s infrastructure needs. The country’s current financial

situation is marked by high Treasury account balances, increased revenue mobilization and

exceptional external support that have helped to generate substantial resources. The public

investment expenditure more than doubled between 2009 and 2012 from MRO 51.8 billion to

MRO 128.5 billion. However, both the government and TFPs are aware of Mauritania’s weak

absorptive capacity. Indeed, the public investment disbursement rate scarcely exceeds 60%.

The project will help improve the public investment management capacity by removing major

bottlenecks in the design, implementation, monitoring and evaluation of public investment

projects. This will improve the public resources absorptive capacity. The World Bank’s 2011

public expenditure review, conducted in collaboration with other technical and financial

partners, revealed significant shortcomings in public investment management, in particular:

the lack of preliminary screening of projects based on the PRSP strategic guidelines, the lack

of standardized formal project appraisal, the weak public procurement system, the lack of a

comprehensive project database, and the poor monitoring and evaluation of projects. At the

operational level, the different departments of DGPPI at MAED lack technical and material

capacity to perform their duties, and do not work in an integrated and coordinated manner. A

detailed description of the institutional framework for public investment management, its

weaknesses and challenges is provided in Technical Annex A2.

1.2.3 Given the huge development challenges to be addressed, the Mauritanian

government has decided to restore the medium-term budgeting principle. To that end, various

budget programming tools have been developed by the government: MTEF, PIP,

Consolidated Investment Budget (CIB) and the Finance Law. The Medium-Term Expenditure

Framework is a document that summarizes all operating and investment expenses for a 3-year

rolling period (overall MTEF). It is the main tool that provides the linkage between the PIP

and the PRSP. In 2011, MAED started to develop an overall MTEF covering the 2012-2014

period to serve as basis for preparation of the 2012 and 2013 annual budgets. A steering

committee was set up for that purpose. However, the preparation of the MTEF never

materialized due to lack of an appropriate methodology and human capacity to carry through

the exercise. Thanks to the availability of a methodological guide for MTEF development and

the training of officers of various departments on this guide, the project will strengthen

MAED capacity in developing overall MTEFs and the capacity of sector ministries in

developing sector MTEFs. Mastery of the MTEF as a tool for programming medium-term

expenditure by the State should enable it to secure sustainable resources for public

investment. Furthermore, operationalizing annual monitoring of PRSP III implementation

requires adopting a new and more appropriate monitoring system. The project will support the

design of an information system for monitoring PRSP III implementation. The use of this

system will facilitate production of PRSP implementation progress reports. Finally, the

project promotes responsible control of public action by involving civil society in some

activities (steering committee, field missions for physical monitoring and evaluation of

projects, and training activities).

4

1.2.4 The persistence of relations of inequality and lack of equity remain an obstacle to the

country’s sustainable development. Beyond the significant progress made in terms of

women’s political representation (introduction of quotas for women on electoral lists), gender

disparities and inequalities persist in the country as regards women's access to basic social

services and productive resources, participation in economic life, and reproductive health. The

Government is aware of these issues and has undertaken various actions, including the

formulation of a National Gender Institutionalization Strategy (SNIG). Mauritania faces

difficulties in operationalizing SNIG in the country, in particular, the lack of financial

resources, weak technical and operational capacity of public structures tasked with promoting

SNIG in the development of policies and programmes, monitoring their implementation, and

monitoring and evaluation. The virtual absence of gender disaggregated statistics hampers the

conduct of gender-sensitive monitoring and evaluation to measure the impact of the policies

implemented and inform policy makers to reduce discrepancies or correct inequalities

between men and women and boys and girls. Overall, planning and budgeting are not gender

sensitive. The project supports the recruitment of a Gender Expert to provide technical

support to MAED in the implementation of the gender institutionalization strategy.

Specifically, the gender expert will provide technical support for gender mainstreaming in

planning, monitoring and evaluation of public policies and the public investment programme.

1.3 Aid Coordination

1.3.1 External aid coordination is one of the top priorities of PRSP III. In this area, the

priority actions include: (i) support for public investment programming and establishment of

efficient operational mechanisms to ensure proper management of national commitments

under financing agreements and investment programming, (ii) better coordination of external

aid, including the establishment of permanent monitoring and coordination structures, (iii)

development of an integrated information system for external assistance, (iv) dissemination of

reports relating to such assistance, and (v) establishment, in accordance with the Paris

Declaration, more efficient mechanisms for joint management of programmes and projects

with technical and financial partners. Following the June 2010 donor roundtable in Brussels, a

State-TFP Coordination Committee for official development assistance and monitoring

mobilization of funds was set up. It is chaired by the Minister of Economic Affairs and

Development. To make an effective and coordinated contribution to the country’s

development, donors have created a two-tier internal consultation framework: an overall level

and a sector level. Ten (10) Clusters (Clusters/TFPs), including a Governance Group

(Governance Cluster), meet at the technical level chaired by previously designated leaders.

1.3.2 The Sector Group on Governance which comprises all the TFPs, including the Bank,

meets regularly to coordinate donor support. Despite the absence of an office in Nouakchott,

the Bank participates actively in periodic meetings of the group, and is kept regularly

informed of the group’s work. Assignment of the technical responsibility for monitoring the

Bank's projects in Mauritania to MAFO in 2012 should further strengthen the presence of

Bank experts in the various sector TFP coordination meetings. TFP supports in the areas

covered by the project are presented in Table 1.1 below. A detailed description of these

projects is given in Technical Annex A3 (Donor support). The PIMSP complements these

TFP interventions, strengthening planning, design, implementation, and monitoring-

evaluation of public investment projects. Improving transparency and efficiency in public

procurement, which is an important component in the execution of public investment projects,

is covered by the support of other technical and financial partners (World Bank and AFD).

5

However, the Bank supported procurement through an operation in 2011 with resources from

the Governance Trust Fund.

Table 1.1

Key TFP Projects in Areas Covered by the Project Technical

and

Financial

Partners

Projects and Costs

Areas Covered

European

Union

Delegation

Budget Support Programme to

establish the Poverty Reduction

Strategy Framework in Mauritania

(GBS PRSP III)

EUR 46 million in 2013-2015 (EUR

40 million for general budget

support and EUR 6 million for

institutional support). Ongoing

Institutional support is intended to: (i) provide specific

support for the PRSP monitoring mechanism, (ii)

operationalize the public finance reform master plan,

(iii) strengthen the national and sector statistics

production system, and (iv) provide multi-sector

technical assistance.

World Bank

Public Sector Capacity Building

Project

USD 13.0 million (USD 750,000 to

support transparency in public

procurement). Ongoing

In public procurement, the project supports: (i) funding

of public awareness campaigns and dissemination of the

new regulatory framework for procurement (done), (ii)

funding of an individual consultant to diagnose

constraints and assess capacity building needs of

institutions emerging from the public procurement

reform (done), (iii) financing of a few days’ retreat to

review the draft standard documents (done), (iv)

procurement of some computer equipment and office

furniture for structures resulting from the reform

(ARMP-CNCMP and CSMP) (ongoing), (v) selection of

a firm to provide technical assistance and training to

structures resulting from the reform (selection ongoing).

UNDP Capacity building support for

inclusive growth

USD 5.05 million in April 2013-

December 2016.

Planned

Led by MEAD, the project will contribute to

development of PRSP and MDG planning and

monitoring/evaluation tools, as well as enhancement of

the capacity of the national statistical system to collect,

process, analyze and disseminate disaggregated and

gender-sensitive data.

UNDP Technical assistance:

USD 600,000 support in 2011-2012

Ongoing

USD 153,056 support in 2013-2015.

Planned

Technical assistance from "Synergy International

System, Inc." for establishment of Database

Development Assistance (DAD) software. DAD is an

automated information management system designed to

improve the efficiency and transparency of the planning

and coordination of national development and

reconstruction activities in the country. In additional, it

is a powerful tool for documentation and analysis of aid

flows. The system is the main database and data entry

and reporting system for the Government, donors and

NGOs, providing easy access to development data.

AFD Technical assistance:

EUR 87,000 Ongoing

Support for implementation of the new Public

Procurement Code (finalization of Standard Bidding

Documents).

6

II. PROJECT DESCRIPTION

2.1 Project Components

2.1.1 The objective of PIMSP to improve public investment efficiency for strong and

inclusive economic growth. Its operational objectives are to: (i) improve public investment

programming and linkages between programming tools and the PRSP, and (ii) capacity

building for identification, preparation, implementation, and monitoring and evaluation of

public investment projects.

2.1.2 The project comprises two key components: (i) improvement of public investment

management, and (ii) project management and coordination. The first component aims to

improve economic planning and strengthen the identification, preparation, implementation,

monitoring and evaluation of public investment projects. The second component seeks to

support project management and strengthen the capacity of DGPPI, which is responsible for

project implementation monitoring and evaluation to ensure proper implementation of the

various project activities. The DGPPI comprises three departments: (i) the Department of

Investment Programming, (ii) the Department of Resource Mobilization and External Aid

Coordination, and (3) the Department of Project and Programme Monitoring and Evaluation.

A detailed description of the project activities is provided in Technical Annex C1.

7

Table 2.1

Project Components and Activities Name of

Components

Cost

Estimate

(UA million)

Component Description

Component I :

Improvement of

public investment

management

1.21UA M This component comprises two (2) sub-components:

Sub-component I.1: Improvement of public investment programming in line with

PRSP priorities

• Development of a methodological guide for developing MTEF and training Ministry

officials on the development of the MTEF tool;

• Recruitment of a Gender Expert for technical support to thematic groups to include

gender among selected PRSP indicators, technical support to strengthen the

operational capacity of senior staff of the Directorate General for Economic Policies

and Development Strategies (DGPESD) in gender-sensitive monitoring and

evaluation, and support gender mainstreaming in the PIP;

• Support for the Directorate responsible for monitoring the PRSP to design a reliable

and automated information system that will provide indicators for monitoring PRSP

III implementation;

Sub-component I.2: Capacity building in the identification, development,

implementation, monitoring and evaluation of projects and public investment

projects and programmes

• Preparation of an operating procedures manual and methodological guides

(Methodological Guide for maturing projects to be included in the PIP,

methodological guide for monitoring public investment projects and methodological

guide for public investment project evaluation) taking into account the gender and

employment dimensions; and training of employees of MAED and sector ministries on

the operating procedures manual and the different methodological guides;

• Field missions for physical monitoring and evaluation of projects and programmes

(including civil society);

• Capacity building for the Unit responsible for agreements (Hiring a translator for

agreements who will work when needed throughout the project)

• Strengthening of the DAD system for aid management, public investment, and

monitoring and evaluation (recruitment of a computer expert throughout the project

who will be the DAD administrator);

• Design and implementation of a system for electronic filing of financing agreements

and design of a system for monitoring commitments;

• Logistic support (computer hardware, office automation and office furniture) for

DGPPI, DMRCAE (Agreements unit) DGPI (Feasibility Studies Unit) and DSEPP

(Audit Unit).

• Communication activities

Component II :

Project

Management and

Coordination

UA 0.30

million

It comprises: installing the project management team at DGPPI, procurement,

installation of accounting software + training and user’s guide; preparation of a

procedures manual; preparation of interim and annual financial statements; annual

accounts audits; coordination; organization of meetings of the Steering Committee

(two meetings per year); premises for the project team; and logistic support

(transport equipment)

Base Cost UA 1.51

million

Contingencies UA 0.09

million

Total Cost UA 1.60

million

8

2.2 Technical Solutions Adopted and Alternative Solutions Considered

2.2.1 At project preparation, several options were presented, particularly as regards on the

anchoring of the project, the number of structures to be supported, the scale of investments to be

made, and the management of all the constraints in some potentially selected structures. Faced

with all these issues, trade-offs were necessary, so as to: (i) set project objectives to meet targets

compatible with the available financial package, and (ii) take into account synergies with the

other TFP interventions.

Table 2.2

Alternative Solutions Considered and Reasons for Rejection Solution Brief Description

Reason for Rejection

Establishment

of an

independent

project

management

unit

The independent project

management unit would be

responsible for regular

monitoring of

implementation of project

activities.

PIMSP will be implemented by the beneficiary, which will be

the executing agency. The project targets ownership by the

beneficiary and project management cost reduction.

Support to the

Directorate

General for

private sector

promotion

The Directorate-General for

private sector promotion is

mainly responsible for

promoting public-private

partnerships in public

investment projects.

Bank support targets the key structures of MAED in charge of

public investment and the PRSP. The Directorate-General

responsible for private sector promotion has not benefited

from Bank support due to division of roles among donors, the

World Bank having to provide support for the study to

establish the legal and regulatory framework for public-private

partnerships.

Support for

procurement

The public procurement

system has many

weaknesses that hamper

effective and transparent

public investment.

The aspect relating to improved transparency and efficiency in

public procurement is covered by the support of other

technical and financial partners (World Bank and AFD).

However, the Bank had supported procurement through an

operation in 2011 from the Governance Trust Fund resources.

This operation has strengthened the capacity of actors and

institutions involved in the procurement process and the

preparation of standard bidding documents (including standard

appraisal reports and manuals).

2.3 Project Type

PIMSP is an ADF-financed institutional support project seeking to improve public

investment efficiency. Strengthening institutional capacity in public investment management is

essential for the PRSP implementation.

2.4 Project Cost and Financing Arrangements

2.4.1 The total project cost is estimated at UA 1.60 million, comprising UA 0.70 million in

foreign currency (44%) and UA 0.90 million in local currency (56%). These costs include a

6%provision for contingencies per year for foreign exchange and local currency expenditures.

The detailed table of costs is shown in Annex B2 of the Technical Annexes to this report.

Below is a summary table of overall project cost by component.

9

Table 2.3

Project Cost Estimate by Component

Components Cost in USD (thousand) Cost in UA (thousand) As %

FE LC Total FE LC Total

Component 1 : Improvement of

public investment management

783.75 997.35 1781.10 522.78 665.25 1188.03 74%

Component 2 : Project

management and coordination

213.75 269.79 483.54 142.58 179.96 322.53 20%

Total base cost 997.50 1267.14 2264.64 665.35 845.21 1510.57 94%

Contingencies 59.85 76.03 135.88 39.92 50.71 90.63 6%

Total project cost 1057.35 1343.17 2400.52 705.28 895.92 1601.20 100%

NB: The exchange rates used are shown in (page (i)

2.4.2 The ADF contribution will amount to UA 0.74 million (46% project cost) and the

Government will contribute UA 0.86 million (54% of project cost).

Table 2.4

Sources of Financing (UA Thousand)

Source of financing FE Cost in UA LC Cost in UA Total cost in UA As %

ADF - Grant 705.28 37.12 742.40 46%

Government 0.00 858.80 858.80 54%

Total Project Cost 705.28 895.92 1,601.20 100%

10

Table 2.5

Project Cost by Expenditure Category (UA Thousand) Expenditure Categories (Overall) FE Cost LC Cost Total

Cost

% in FE

A. Goods 0.00 96.78 96.78 0%

B. Services 665.35 456.91 1,122.27 59%

C. Operating costs 0.00 291.52 291.52 0%

Total base cost 665.35 845.21 1,510.57 44%

Contingencies 39.92 50.71 90.63

Total Project Cost 705.28 895.92 1,601.20 44%

Table 2.6

Project Cost by Expenditure Category of the Grant (UA Thousand) Expenditure Category (Grant) FE Cost LC Cost Total

Cost

% in FE

A. Goods 0.00 0.00 0.00 0%

B. Services 665.35 35.02 700.37 95%

C. Operating costs 0.00 0.00 0.00 0%

Total base cost 665.35 35.02 700.37 95%

Contingencies 39.92 2.10 42.02

Total Project Cost 705.28 37.12 742.40 95%

Table 2.7

Project Cost by Expenditure Category of the Government’s Counterpart Contribution

(in UA Thousand) Expenditure Category (GVT) FE Cost LC Cost Total

Cost

% in FE

A. Goods 0.00 96.78 96.78 0%

B. Services 0.00 421.89 421.89 0%

C. Operating costs 0.00 291.52 291.52 0%

Total base cost 0.00 810.19 810.19 0%

Contingencies 0.00 48.61 48.61

Total Project Cost 0.00 858.80 858.80 0%

Table 2.8

Expenditure Schedule by Component (in UA Thousand)

Components 2013 -2014 2015 2016 Total

Component 1 : Improvement of public investment

management

642.81 272.61 272.61 1,188.03

Component 2 : Project management and coordination 106.18 108.18 108.18 322.53

Base cost of project 748.99 380.79 380.79 1,510.57

Contingencies 44.94 22.85 22.85 90.63

Total 793.93 403.64 403.64 1,601.20

As percentage of total project cost 50% 25% 25% 100%

2.5 Project Area and Beneficiaries

The project covers Mauritania’s national territory, which has a total population

estimated at 3.5 million inhabitants. The direct project beneficiaries are: (i) MAED structures

responsible for preparing, implementing, monitoring and evaluating the Public Investment

Programme, as well as monitoring the PRSP, (ii) officers of Ministries, whose project design

and monitoring/evaluation capacities will be strengthened (through gender mainstreaming),

and (iii) the civil society, whose capacity will be strengthened and their views taken into

account through their involvement in some project activities. PIMSP’s indirect beneficiaries

are the Mauritanian population as a whole. Improved public investment management,

11

particularly in basic infrastructure (water and sanitation, agriculture and energy), will foster

the development of poverty reduction priority sectors. Women, as well as youths and other

vulnerable groups, will benefit from public investment projects and specific budget

allocations thanks to budgeting consistent with PRSP priorities. In order to reduce gender

inequalities, the project will promote gender mainstreaming in public policies and in the

preparation, implementation and monitoring/ evaluation of the PIP.

2.6 Participatory Approach in Project Identification, Design

and Implementation

At project preparation in April 2013, consultations were held with Public

Administration structures (MAED and Ministry of Social Affairs, Childhood and Family,

Department of Relations with Civil Society) and the private sector (Chamber of Commerce,

Industry and Agriculture of Mauritania). The Department of Relations with Civil Society is

responsible for coordinating relations between the Government, civil society and TFPs, and

developing and implementing a national strategy for civil society promotion. The

consultations continued during the appraisal mission in July 2013. This process has shown

that the project objectives meet the expectations of economic actors. The involvement of all

stakeholders (including the private sector and civil society) will continue during project

implementation through their participation in the Project Steering Committee. The civil

society will also take part in some project activities: training in methodological guides for the

design, monitoring and evaluation of public investment projects, and field missions for the

physical monitoring and evaluation of projects and programmes. The Department of Relations

with Civil Society will coordinate with MAED in appointing civil society stakeholders to

participate in these activities. This project will contribute towards strengthening citizen

control over public action.

2.7 Bank Group Experience and Lessons Reflected in Project Design

2.7.1 The Bank’s current portfolio in Mauritania comprises eleven (11) ongoing

operations, with total commitments of UA 146 million. Its overall performance is satisfactory

with a 2.5 rating. The detailed portfolio status is provided in Annex 2.

2.7.2 Technical Annex B1 presents the key lessons learned from previous projects in the

area of governance and which have been reported in their completion reports2. The

completion report of the Economic and Financial Programming Strengthening Support Project

(PARPEF), which was approved in 2007 and closed in May 2010, shows that the project

achieved average results with a rating of 2 out of 4. Despite the difficulties encountered

during its implementation, its key achievements are: (i) a report on official development

assistance and an LDC exit strategy for PRI were produced, (ii) the simulation model of the

Mauritanian economy was updated to include poverty and oil sector aspects. In addition,

officers were trained in macroeconomic modeling, and management tools were improved. In

2011, the Bank has also financed the finalization of the public finance reform master plan

through a technical assistance mission and an operation trough the governance trust fund

closed in June 2013 that strengthened the capacity of actors and institutions involved in the

procurement process and preparation of standard bidding documents (including standard

2 Poverty Reduction Project (PRP) : Completion Report References - ADF/BD/IF/2006/207

Multi-sector Institutional Support Project(PAIM) :Completion Report References - ADF/BD/IF/2007/84

Strengthening of Economic and Financial Programming Support Project (PARPEF) : Completion Report References -

ADF/BD/IF/2011/19

12

appraisal reports, manuals, etc.); the operation was closed in June 2013. PIMSP will

complement these previous Bank interventions. By strengthening the planning, programming,

implementation and monitoring/evaluation of public investment, it will promote greater

efficiency in public investment management and better allocation of financial resources from

the Government to inclusive and sustainable growth-oriented projects.

2.7.3 PIMSP design takes into account lessons learned from the implementation of

previous projects. First, the implementation problems faced by some institutional support

projects are due to limited capacity of beneficiary structures. Specific capacity building

activities are planned under the project. PARPEF encountered implementation problems that

led to two closing date extensions. To address these risks, the project implementation period

provided is 3 years, which is the final duration of PARPEF. Secondly, the Project

Implementation Unit with a light structure will reduce operating costs, but poses a risk in

terms of fiduciary and procurement management. The issue of this risk was raised in recent

portfolio performance reviews of projects in Mauritania (2011 and 2012). To mitigate the said

risk, two experts, one in financial management and the other in procurement, will be recruited

on a competitive basis to support the project management unit. Thirdly, at project design as

well as implementation monitoring, it is necessary to strengthen the participatory approach by

closely involving all beneficiary Ministries to ensure their support not only for the objectives

but also the procedure that will be followed in the development of activities. The participatory

approach was adopted in the project by involving all beneficiaries in the project design and

implementation. All beneficiaries are members of the Steering Committee to ensure proper

coordination in the implementation of project activities.

2.8 Key Performance Indicators

2.8.1 The key performance indicators identified and the expected outcomes at project

completion are those featured in the results-based logical framework and in Box 1 below. In

the short term, it is expected that the investment budget will be allocated and executed in line

with PRSP priorities (by including the gender and employment dimensions) and that the

resources absorptive capacity will be improved. Indeed, the methodological guides for MTEF

formulation and public investment management to be produced will ensure alignment of the

budget with the PRSP, proper selection of projects for inclusion in the investment budget in

line with their feasibility and impact on gender and employment, proper performance and

monitoring/evaluation of the said projects. The project will help enhance design,

implementation, and monitoring and evaluation capacities for public investment projects. This

will help improve the public resources absorptive capacity. In the longer term, a more

inclusive economic growth is expected, and it will help reduce gender inequalities.

Mainstreaming gender and employment as well as proper implementation of the public

investment programme will promote stronger and more inclusive economic growth.

13

Box 1: Key Performance Indicators Results Indicators

1(one) methodological guide for MTEF preparation is available before end-2014

1(one) methodological guide for project maturation is available before end-2014

1(one) methodological guide for project monitoring is available before end-2014

1(one) methodological guide for project evaluation is available before end-2014

140 persons (including 50 women) persons at end -2014

Outcome Indicators

The poverty-related expenditure to overall expenditure ratio increases from 45% in 2012 to 50% in

2016

The Gender Inequality Index (GII) drops from 0.643 in 2012 to 0.623 in 2016

The annual implementation rate of public investment increases from 60% in 2012 to 70% in 2016.

Impact Indicators

The average annual GDP growth rate rises from 6.9% in 2012 to 8% in 2018

The Human Development Index (HDI) adjusted to inequalities increases from 0.306 in 2012 to 0.315

in 2018

2.8.2 The achievement of results on these indicators will be verified using the data that

will be collected by DGPPI, whose capacities will be strengthened by a monitoring and

evaluation expert to be recruited throughout the project. DGPPI will produce quarterly

progress reports and reports on the project implementation status, which will be produced

during the Bank’s supervision missions. PIMSP performance will be measured by comparing

2012 baseline data with progress made during project implementation and at project

completion.

III. ENVIRONMENTAL AND SOCIAL IMPACTS

3.1 Environmental Impacts

The project has no direct negative effect on the environment given that its activities

are limited to training, technical assistance, studies and the procurement of logistics, including

minor office and computer equipment. Indeed, the project has been classified in Category 3 in

accordance with Bank Guidelines.

3.2 Climate Change

The project activities, which focus on strengthening human and institutional

capacity, have no negative impact on climate change.

3.3 Gender

Mauritania has signed and ratified the Convention on the Rights of the Child (CRC)

and the Convention on the Elimination of All Forms of Discrimination against Women

(CEDAW). Furthermore, at the Millennium Summit, the country undertook to achieve the

eight (8) Millennium Development Goals (MDGs), including Goal No. 3 to promote gender

equality and empower women, with 33% by 2015 (MDG 3). However, persistent relations of

inequality and inequity hamper sustainable development. These imbalances, which concern

the political, economic and legal, social and cultural dimensions, constitute an obstacle to

equal human rights for all, hindering women, who represent more than half of the population,

from fully playing their role in the country’s growth and development process. To reduce this

gender inequality, it is crucial for public policies to include a cross-cutting gender approach to

14

achieve the desired effects. The Government is aware of these issues and has undertaken

various actions, including the formulation of a National Gender Institutionalization Strategy

(SNIG). This project supports the recruitment of a Gender Expert to provide technical support

to the Ministry of Economic Affairs and Development (MAED) in the implementation of this

gender institutionalization strategy. Specifically, the Gender Expert will provide technical

support to thematic groups to mainstream gender in PRSP indicators, technical support to

strengthen the operational capacity of officers of the Directorate General for Economic

Policies and Development Strategies (DGPESD) in gender-sensitive monitoring and

evaluation, and support for gender mainstreaming in the PIP. The expert will ensure gender

mainstreaming in the different methodological guides for investment and MTEF management.

3.4 Social

According to the latest data from the 2008 PHS, overall poverty is approximately

42%. The measures under the project will, on the one hand, help include the PRSP action plan

projects in the investment budget and, on the other hand, ensure more effective coordination

in their implementation. Women, as well as youths and other vulnerable groups, will benefit

from public investment projects and specific budget allocations thanks to budgeting consistent

with PRSP priorities. One of the expected outcomes of the project is an improvement in the

Gender Inequality Index (GII), from 0.643 in 2012 to 0.623 in 2016.

3.5 Involuntary Resettlement

The project will not entail and population displacement.

IV. IMPLEMENTATION

4.1 Implementation Arrangements

4.1.1 Institutional Arrangements

4.1.1.1 The institutional framework for project management is described in detail in

Appendix B3 of Technical Annexes to this report. In accordance with the provisions of the

Paris Declaration on harmonization and alignment of project management with country

systems, the project executing agency is the DGPPI of MAED. It will comprise a

Coordinator, Deputy Coordinator and support staff. The Coordinator will be the Director

General of DGPPI, who will coordinate project activities whose main beneficiaries are the

sub-directorates of DGPPI. The Deputy Coordinator is the Deputy Director-General of

DGPPI who will regularly monitor the implementation of activities and report to the

Coordinator. The project team will be reinforced by a Financial and Accounting Officer, a

Procurement Expert, and a Monitoring and Evaluation Expert who will be recruited on a

competitive basis using ADF resources.

4.1.1.2 The project implementation will be supervised by a Steering Committee (SC) that

will provide guidance. The SC is responsible for supervising and validating project activities.

In this regard, it will: (i) approve project activities, examine the coordinator’s activity report,

and (ii) define performance criteria and thresholds, promote dialogue and consultation

between the partners, and submit to the Project Team all measures for streamlining project

activities. The Steering Committee will hold at least two meetings a year. Its composition is

as follows: the Secretary General of MAED, who will chair the committee, the Director

15

General of DGPPI who will serve as Secretary of the committee, one representative of each

support beneficiary structure, one representative of the private sector, and one representative

of civil society.

4.1.2 Procurement Arrangements

4.1.2.1 All Bank-financed goods and consultancy services will be procured in accordance

with Bank Rules and Procedures for the Procurement of Goods and Works (May 2008

Edition, Revised July 2012), or as appropriate, Rules and Procedures for the Use of

Consultants (May 2008 Edition, Revised July 2012), using the Bank’s standard bidding

documents and requests for proposals.

4.1.2.2 The Economy and Finance Sector Public Procurement Commission (CPMPSEF) will

be responsible for the procurement of goods and services. It will prepare documents in

accordance with Bank procedures and submit no objection requests to the Bank. The

Chairperson, members and staff of the CPMPSEF have procurement skills and experience

gained from projects funded by the various donors. As regards implementing procurement

procedures under the project, the project executing agency and CPMPSEF will be supported

by a consultant, who will be a Procurement Expert recruited under the project.

4.1.2.3 All procurements will be subject to prior approval by the Bank. The procurement

procedures for Bank-financed works, goods and services and the procurement plan are

provided in Technical Annex B4.

4.1.3 Financial Management Arrangements

4.1.3.1 In accordance with the Paris Declaration on aid effectiveness and use of country

systems, the DGPPI of MAED will be responsible for PIMSP implementation, including

financial management. PIMSP appraisal highlighted an initial overall level of fiduciary risk

deemed to be substantial (Technical Annex B5); this level could be moderate through

implementation of the following financial management system proposed and approved by the

Borrower. However, to ensure proper project implementation, including financial

management, the DGPPI will need more skills and tools. The project team will be reinforced

by a Financial and Accounting Officer (FAO), who will ensure efficient and sustainable

financial management. It is recommended that the FAO be recruited, on a competitive basis,

prior to effective project start-up. PIMSP’s budget management system will be put in place by

DGPPI. The budget should include all activities and related expenditures on a rolling annual

basis. It will be incorporated into the PIMSP computerized accounting system to allow for

tracking of budget actuals and making the necessary adjustments. The establishment of a

computerized accounting system, right from project start-up, should allow for tracking of

programme expenditures by source of financing, expenditure category and component and for

the preparation of annual financial statements using accounting software. It will be necessary

to establish an effective internal control system under the responsibility of the Coordinator.

To ensure that the internal control systems remain operational and are efficient, the FAO will

conduct concomitant pre-control and the Inspectorate General of Finance (IGF) will have the

right to verify the application of the procedures in place. The Coordinator and FAO will

participate in fiduciary clinics on financial management organized by the Bank. Given the

level of the overall fiduciary risk, the project will be subject to regular monitoring and

enhanced supervision.

16

4.1.4 Disbursement Arrangements

The ADF grant disbursements under PIMSP will be made in accordance with the

project expenditure schedule and list of goods and services. They will be made using the

direct payment method. The direct payment method will be used to procure services for

amounts exceeding the equivalent of UA 20,000. The audit firm will be paid through the

direct payment method. The first disbursement will be made after grant effectiveness and

fulfillment of the conditions precedent to the first disbursement. Furthermore, a contra

account will be opened in accordance with applicable procedures in the country to receive the

Government’s counterpart contribution. It will be funded in three annual installments

throughout the life of the project. The first tranche will be disbursed upon project

effectiveness. The other two tranches will be disbursed at the start of the fiscal year

respectively.

4.1.5 Audit Arrangements

PIMSP’s external audit will be conducted annually in accordance with International

Auditing Standards (IAS) by an independent audit firm that will be recruited according to

Bank procedures within six months following the first disbursement. The TOR for the

external audit will prepared in compliance with the model proposed by the Bank. The final

audit report, prepared in accordance with International Auditing Standards and comprising an

opinion report and an internal control report, will be submitted to the Bank within six (6)

months following the end of each fiscal year. The first audit report will cover 2014 and will

be submitted to the Bank no later than 30/06/2015.

4.2 Monitoring

4.2.1 Project implementation is expected to span 3 years, from January 2014 to December

2016. The DGPPI will assume primary responsibility for internal monitoring of the

implementation of activities and their impacts. It will, using the format recommended by the

Bank, prepare quarterly and annual progress reports based on the monitoring of indicators of

the project's logical framework. The capacity of DGPPI will be enhanced by a Monitoring and

Evaluation Expert to be recruited under the project.

17

4.2.2 Monitoring by the Bank will be through regular dialogue and enhanced supervision.

The Departments of the Bank responsible for financial management (ORPF2), procurement

(ORPF1) and disbursements (FFCO) will be involved. The implementation schedule is as

follows:

Table 4.1

Monitoring Milestones and Feedback Loop Milestones Responsible Date /Period

Approval of the financing ADF September 2013

Establishment of Project Management Team GVT October 2013

Grant Effectiveness ADF/GVT October 2013

Preparation/Invitation to Bid DGPPI/AfDB November-December 2013

Award/Signature of Contracts DGPPI January 2014

Start of Consultancy Services DGPPI January 2014

Mid-Term Review AfDB/DGPPI June 2015

Physical Project Completion DGPPI December 2016

Completion Mission AfDB/DGPPI December 2016

4.3 Governance

4.3.1 The 2008 PEFA and various diagnoses of Mauritania’s public finance system show

the existence of some weaknesses in performance indicators, particularly in the process of

budget formulation, execution and control. There are also persistent shortcomings in financial

reporting and internal and external auditing. This results in poor donor alignment with the

national system. However, the fiduciary system is expected to gradually improve, especially

in view of the fiscal reform programme initiated by the Government, such as the adoption and

implementation of the public finance management reform master plan prepared with Bank

support.

4.3.2 The project’s governance risk concerns procurement and financial resource

management. These risks will be mitigated through close monitoring of the strict application

of the Bank’s procurement rules and the recommended establishment of an efficient financial

management system. Supervision missions and technical and financial audits will ensure

compliance and consistency between resources committed and services actually provided.

Training sessions organized by the Bank on the project cycle and procurement for the project

team, as well as the technical assistance to be provided for financial management and

procurement will also help improve governance. As regards the Government, the involvement

of MAED in monitoring Bank-financed projects and the establishment of the project steering

committee will strengthen good governance given that the latter has the right to look into

financial resource management and the quality of its outputs.

4.4 Sustainability

The first sustainability factor lies in the Government’s willingness to improve public

investment management for the implementation of its ambitious investment programme. The

second factor is that methodological guides for maturation and monitoring/evaluation of

public investment projects and a methodological guide for MTEF preparation be made

available to the Mauritanian Authorities. Officials from the various Ministries will be trained

on the use of these guides. Acquisition of knowledge and mastery of modern management of

the investment budget will enable beneficiaries to perform their duties better and promote the

dissemination of good practices learned. The project implementation will enhance DGPPI

18

capacity and substantially improve the design and monitoring of public investment projects.

The project will facilitate proper use of public resources to combat poverty more effectively.

4.5 Risk Management

4.5.1 The table below outlines the residual risks (other than those related to governance

and sustainability) as well as mitigation measures.

Table 4.2

Potential Risks and Mitigation Measures Risks Level Mitigation Measures

Security risk at

regional level due to

overall situation in the

Sahel

High There is a major risk due to insecurity in the Sahel, which could reverse national

priorities and delay implementation of project activities. However, the

authorities are determined to reconcile development and security priorities by

continuing with reforms, while strengthening security.

Political

instability

Moderate The presidential election in July 2009 facilitated the return to democracy and re-

engagement of TFPs with the Government. The continuation of national

dialogue launched in 2011 and the prospect of presidential elections in 2014

should strengthen political stability.

Lack of funding for the

implementation of the

poverty reduction

strategy

Moderate The project supports capacity building activities of the Resource Mobilization

Department at DGPPI. Following the Brussels Roundtable, a State-TFP group

was established to track pledges. The situation as at 19 June 2013, prepared by

DGPPI, shows a TFP commitments mobilization level of 98.9%.

Lack of stakeholder

involvement

Moderate The establishment of a Steering Committee comprising all project beneficiaries,

the private sector and civil society will foster the participation of all

stakeholders. The civil society is involved in some project activities.

Weak capacity of the

administration to

implement project

activities and fiduciary

and procurement

management risk

Moderate The training activities under the project and support to the project management

team will mitigate this risk. The project involves the recruitment, on a

competitive basis, of three experts in financial management, procurement and

monitoring and evaluation to support the project management team. Project

implementation monitoring will be enhanced through regular supervision

missions of Bank experts who will provide, if needed, technical support required

for timely implementation of the operation.

4.5.2 The foregoing analysis shows that the project has moderate risk levels.

4.6 Knowledge Building

Several knowledge types will be built through implementation of this project, in

particular: (i) capacity building in public investment programming, design, and

monitoring/evaluation of investment projects through the different methodological guides to

be prepared, (ii) overall MTEF and sector MTEF preparation capacity will be strengthened

through the methodological guide for MTEF preparation, (iii) practices will be disseminated

to other Ministries through the validation and dissemination of studies conducted, the use of

procedures manuals and training sessions that will be organized under the project. Knowledge

will also be acquired with the production of the following reports: reports by technical

assistants, activity reports prepared by the project management team, supervision reports, and

the project completion report.

19

V. LEGAL FRAMEWORK

5.1 Legal Instrument

For the financing of the project with ADF grant resources not exceeding UA 0.74

million, a Grant Protocol Agreement will be signed between the ADF and the Mauritanian

Government.

5.2 Conditions for Bank Intervention

Conditions precedent to effectiveness of the Grant Protocol Agreement

5.2.1 The Grant Protocol Agreement shall become effective on the date of its signature by

the Donee and the Fund.

Conditions precedent to first disbursement of the grant

5.2.2 In addition to grant effectiveness, the first disbursement shall be subject to

fulfillment, by the Donee and to the Fund’s satisfaction, of the following conditions:

(i) Provide the Fund with evidence of the opening of a contra Treasury account to

receive the counterpart contribution of the Donee to the Project;

(ii) Provide the Fund with evidence of funding of the contra account with a

minimum of fifty million Ouguiya (MRO 50,000,000).

Other Conditions

(i) Provide evidence of the Donee’s undertaking to mobilize its full counterpart

contribution under the Project amounting to three hundred and ninety four

million seven hundred and forty thousand Ouguiya (MRO 394 740 000);

(ii) Provide, on an annual basis, evidence of inclusion of the Donee’s annual

counterpart contribution in the Finance Law;

(iii) Submit, to the Fund, an administrative, financial and accounting procedures

manual, deemed acceptable by the Fund, within three (3) months following

effectiveness of this Grant Protocol Agreement.

5.3 Compliance with Bank Policies

5.3.1 This project complies with all applicable Bank policies.

VI. RECOMMENDATION

Management recommends that the Board approves the proposed ADF grant of UA

0.74 million to the Islamic Republic of Mauritania for the purpose and under the terms and

conditions set forth in this report.

Annex I

Comparative Socio-Economic Indicators of Mauritania

Year Mauritania Africa

Develo-

ping

Countries

Develo-

ped

Countries

Basic Indicators

Area ( '000 Km²) 2011 1 031 30 323 98 458 35 811Total Population (millions) 2012 3,6 1 070,1 5 807,6 1 244,6Urban Population (% of Total) 2012 42,0 40,8 46,0 75,7Population Density (per Km²) 2012 3,5 34,5 70,0 23,4GNI per Capita (US $) 2011 1 000 1 609 3 304 38 657Labor Force Participation - Total (%) 2012 31,7 37,8 68,7 71,7Labor Force Participation - Female (%) 2012 26,6 42,5 39,1 43,9Gender -Related Dev elopment Index Value 2007-2011 0,516 0,502 0,694 0,911Human Dev elop. Index (Rank among 186 countries) 2012 155 ... ... ...Popul. Liv ing Below $ 1.25 a Day (% of Population)2008-2011 23,4 40,0 22,4 ...

Demographic Indicators

Population Grow th Rate - Total (%) 2012 2,3 2,3 1,3 0,3Population Grow th Rate - Urban (%) 2012 3,0 3,4 2,3 0,7Population < 15 y ears (%) 2012 39,5 40,0 28,5 16,6Population >= 65 y ears (%) 2012 2,7 3,6 6,0 16,5Dependency Ratio (%) 2012 73,1 77,3 52,5 49,3Sex Ratio (per 100 female) 2012 101,1 100,0 103,4 94,7Female Population 15-49 y ears (% of total population) 2012 24,9 49,8 53,2 45,5Life Ex pectancy at Birth - Total (y ears) 2012 58,9 58,1 67,3 77,9Life Ex pectancy at Birth - Female (y ears) 2012 60,7 59,1 69,2 81,2Crude Birth Rate (per 1,000) 2012 32,9 33,3 20,9 11,4Crude Death Rate (per 1,000) 2012 9,3 10,9 7,8 10,1Infant Mortality Rate (per 1,000) 2012 71,1 71,4 46,4 6,0Child Mortality Rate (per 1,000) 2012 107,8 111,3 66,7 7,8Total Fertility Rate (per w oman) 2012 4,4 4,2 2,6 1,7Maternal Mortality Rate (per 100,000) 2010 510,0 417,8 230,0 13,7Women Using Contraception (%) 2012 13,9 31,6 62,4 71,4

Health & Nutrition Indicators

Phy sicians (per 100,000 people) 2004-2010 13,0 49,2 112,2 276,2Nurses (per 100,000 people)* 2004-2009 67,2 134,7 187,6 730,7Births attended by Trained Health Personnel (%) 2007-2010 60,9 53,7 65,4 ...Access to Safe Water (% of Population) 2010 50,0 67,3 86,4 99,5Access to Health Serv ices (% of Population) 2000 63,0 65,2 80,0 100,0Access to Sanitation (% of Population) 2010 26,0 39,8 56,2 99,9Percent. of Adults (aged 15-49) Liv ing w ith HIV/AIDS 2011 1,1 4,6 0,9 0,4Incidence of Tuberculosis (per 100,000) 2011 344,0 234,6 146,0 14,0Child Immunization Against Tuberculosis (%) 2011 86,0 81,6 83,9 95,4Child Immunization Against Measles (%) 2011 67,0 76,5 83,7 93,0Underw eight Children (% of children under 5 y ears) 2008-2011 15,9 19,8 17,4 1,7Daily Calorie Supply per Capita 2009 2 856 2 481 2 675 3 285Public Ex penditure on Health (as % of GDP) 2010 4,4 5,9 2,9 8,2

Education Indicators

Gross Enrolment Ratio (%)

Primary School - Total 2010-2012 101,0 101,9 103,1 106,6 Primary School - Female 2010-2012 103,9 98,4 105,1 102,8 Secondary School - Total 2010-2012 27,0 42,3 66,3 101,5 Secondary School - Female 2010-2012 24,7 38,5 65,0 101,4Primary School Female Teaching Staff (% of Total) 2011 36,3 43,2 58,6 80,0Adult literacy Rate - Total (%) 2010 58,0 67,0 80,8 98,3Adult literacy Rate - Male (%) 2010 64,9 75,8 86,4 98,7Adult literacy Rate - Female (%) 2010 51,2 58,4 75,5 97,9Percentage of GDP Spent on Education 2008-2011 3,9 5,3 3,9 5,2

Environmental Indicators

Land Use (Arable Land as % of Total Land Area) 2011 0,4 7,6 10,7 10,8Annual Rate of Deforestation (%) 2000-2009 2,7 0,6 0,4 -0,2Forest (As % of Land Area) 2011 0,2 23,0 28,7 40,4Per Capita CO2 Emissions (metric tons) 2009 0,6 1,2 3,1 11,4

Sources : AfDB Statistics Department Databases; World Bank: World Development Indicators; last update :

UNAIDS; UNSD; WHO, UNICEF, WRI, UNDP; Country Reports.

Note : n.a. : Not Applicable ; … : Data Not Available.

COMPARATIVE SOCIO-ECONOMIC INDICATORS

Mauritania

May 2013

646668707274767880828486

2004

2005

2006

2007

2008

2009

2010

2011

2012

Infant Mortality Rate( Per 1000 )

Mauritan ia Africa

0

200

400

600

800

1000

1200

1400

1600

1800

2003

2004

2005

2006

2007

2008

2009

2010

2011

GNI Per Capita US $

Mauritan ia Africa

0,0

0,5

1,0

1,5

2,0

2,5

3,0

2004

2005

2006

2007

2008

2009

2010

2011

2012

Population Growth Rate (%)

Mauritania Africa

1

11

21

31

41

51

61

71

2004

2005

2006

2007

2008

2009

2010

2011

2012

Life Expectancy at Birth (years)

Mauritan ia

Africa

Annex II

Table of ADB Portfolio in Mauritania (June 2013)

Project Name Approval

Date

Signature

Date Effectivene

ss

Amount

Source Amount

Disbursed

% Closing

Date

Approved (UA) Disb.

Rating at Last

Supervision

PUBLIC SECTOR OPERATIONS

REGIONAL OPERATIONS (Technical Assistance)

Prefeasibility study

for construction of

Rosso Bridge

30-March-

07

05/04/2007 5-Apr.-

2007 664 575.00 FAPA 0 0.00%

31-Dec.-2012

23-Apr.-08 23-Apr.-08 332 287.00 IPPF-

NEPAD 166143.5 50.00%

PROJECTS

Brakna -West

Irrigation Works 17-Nov.-04 03-June-05

27-July-

2005

2 670 000.00 ADF 2 284 719.00 82.57% 31-Dec.-13

2.76

4 300 000.00 NTF 2 523 670.00 58.69% 31- Dec. -13 2.76

Southern Zone

Rural DWSS

Project

15-Nov.-06 12/01/2007 19-June-07 9 700 000.00 ADF 2 954 620.00 30.46% 31- Dec.-2014

2.38

Capacity building

for micro-finance

actors (PRECAMF)

02-Mar.-07 21-Mar.-07 30-Oct.-07 5 980 000.00 ADF 4 056 832.00 67.84% 31- Dec.-2013

2.44

National Integrated

Rural Water

Programme

PNISER

07-Dec.-12 12-Feb.-13

3 052 000.00 ADF/Loan

0.00%

31/12/2018

2 448 000.00 ADF/Grant

0.00%

2 934 469.00 RWSSI

0.00%

TECHNICAL ASSISTANCE

Water Resources

Integrated

Management

Project (AGIRE)

07-Nov.-07 08-May-08 15-Jan.-09 459 617.97 AWF 459 617.97 100.00% 30-Sept.-13

2.12

Support for

Implementation of

Procurement

Reform

05/05/2011 20-Sept.-11 20-Sept.-11 171 000.00 GTF 171 000.00 100.00% 30-June-13

EMERGENCY ASSISTANCE

Humanitarian

Assistance to Malian

Refugees

10/09/2012 19-Dec.-12 19-Dec.-12 660 000.00 FSS 660 000.00 100.00% 30-June-13

TOTAL PUBLIC

SECTOR 33 371 948.97 17.74% 13 276 602.47 39.78%

PRIVATE SECTOR OPERATIONS WITHOUT STATE GUARANTEE

TECHNICAL ASSISTANCE (TA)

TA to Mauritanie

Leasing 27-Jan.-11 15-Nov.-11 15-Nov.-11 237 000.00 FAPA 0 0.00% 15-Nov.-13

TA to SNIM 01/12/2009 01/12/2009 03-Oct.-11 614 217.00 FAPA 237 701.98 38.70% 31-Dec.-13

PROJECT

SNIM -GUELB II

Extension Project 16-Sept.-09 01/12/2009 02-Oct.-10 111 750 000.00 AfDB 74 716 050.00 66.86% 31-Dec.-13

1.88

TOTAL PRIVATE SECTOR

OPERATIONS WITHOUT STATE

GUARANTEE

112 601 217.00 82.26% 74 953 751.98 66.57%

GRAND TOTAL 145 973 165.97 100% 88 230 354.45 60.44%

Annex III

Key Related Projects Financed by the Bank and Other Development

Partners of Mauritania

Technical and

Financial

Partners

Projects Project Cost Implementat

ion Status

European

Union

Delegation

Budget Support Programme for

establishment of the Poverty

Reduction Strategic Framework

in Mauritania ( GBS PRSF III)

EUR 46 million in 2013-2015 : (i)

EUR 40M for general budget

support (Fixed Tranche of EUR

20M and variable tranche of EUR

20M) ; and (ii) EUR 6M for

institutional support

Ongoing

IMF Extended Credit Facility 77.28 million SDR in 2010-2013 Ongoing

World

Bank

Public Sector Capacity Building

Project

USD 13.0 million (USD 750,000

to support procurement

transparency)

Ongoing

UNDP Capacity Building Support for

Inclusive Growth

USD 5.05 million in April 2013-

December 2016

Expected

UNDP Synergy International System

Inc. Technical Assistance for

installation of the DAD software

(Development Assistance Data

Base)

USD 600,000 support in 2011-

2012

USD 153,056 support in 2013-

2015

Ongoing

Expected

ADF Support for implementation of

the new Public Procurement

Code

EUR 87,000 Ongoing

AfDB Economic and Financial

Programming Improvement

Support Project (PARPEF)

¥ 88,174,250 The project was approved in 2007

and closed in May 2010.

Closed

AfDB Public Procurement Reform

Support to improve the business

climate in Mauritania

USD 274,000 from February 2011

to June 2013

Closed

AfDB Technical Assistance for

finalizing the public finance

reform master plan

Closed

Annex IV

Map of the Project Area

This map has been provided by the staff of the African Development Bank Group exclusively for the use of

the readers of the report to which it is attached. The names used and the borders shown do not imply on the

part of the ADB Group and its members any judgment concerning the legal status of a territory nor any

approval or acceptance of these borders.