Document of The World Bank

FOR OFFICIAL USE ONLY

Report No. 95842-GA

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

INTERNATIONAL FINANCE CORPORATION

MULTILATERAL INVESTMENT GUARANTEE AGENCY

PERFORMANCE AND LEARNING REVIEW

OF THE COUNTRY PARTNERSHIP STRATEGY

FOR

THE GABONESE REPUBLIC

FOR THE PERIOD OF FY12-16

March 9, 2016 Gabon Country Management Unit Africa Region International Finance Corporation Africa Region The Multilateral Investment Guarantee Agency 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 without World Bank Group authorization.

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The date of the last Country Partnership Strategy was February 23, 2012

FISCAL YEAR January 1 – December 31

CURRENCY EQUIVALENTS

Currency unit = CFA Franc (CFAF) US$1.00 = 595.99 CFAF (February 26, 2016)

ABBREVIATIONS AND ACRONYMS

ADL Aéroport de Libreville (Libreville Airport Concessionnaire) AFD Agence Francaise de Développement (French Development Agency) ANINF Agence Nationale des Infrastructures Numériques et des Fréquences (National

Agency for Digital Infrastructure and Frequencies) ANPI-Gabon Agence de Promotion des Investissements du Gabon (National Promotion

Investment Agency) ARCEP Autorité de Régulation des Communications Electroniques et des Postes

(Posts and Electronic Communications Regulatory Agency) ASA Advisory Services and Analytics CAB Central African Backbone Project CAS Country Assistance Strategy CEMAC Communauté Economique et Monétaire d’Afrique Centrale (Economic and

Monetary Community of Central Africa) CNTIPPEE Commission Nationale des Travaux d'Intérêt Public pour la Promotion de

l'Entrepreneuriat et de l'Emploi du Gabon (Project Implementation Unit for the First Infrastructure and Local Development Project

CPF Country Partnership Framework CPS Country Partnership Strategy DFI Development Finance Institution DPF Development Policy Financing ECCAS Economic Community of Central African States EITI Extractive Industries Transparency Initiative EU European Union FDI Foreign Direct Investment FY Fiscal Year GDP Gross Domestic Product GEF Global Environment Facility GFC Gabon Fertiliser Company GGFR Global Gas Flaring Reduction Partnership GoG Government of Gabon GPRSP Growth and Poverty Reduction Strategy Paper GRAINE Gabonaise des Réalisations Agricoles et des Initiatives des Nationaux

Engagés (Gabonese Initiative for Achieving Agricultural Outcomes with Engaged Citizenry)

HDI Human Development Index IBRD International Bank for Reconstruction and Development ICT Information and Communications Technologies IDF Institutional Development Fund IFAC International Federation of Accountants

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IFC International Finance Corporation IMF International Monetary Fund IT Information Technology MIGA Multilateral Investment Guarantee Agency MDGs Millennium Development Goals MENP Ministère de l’Economie Numérique et de la Poste (Ministry of Digital

Economy and Post) MTEF Medium-Term Expenditure Framework NDC Nationally Determined Contribution NGO Non-Governmental Organisation NHIP National Health Insurance Program NRM-DPL Natural Resource Management Development Policy Loan OHADA Organization for the Harmonization of African Business Law ONE Office National de l’Emploi (National Employment Office) PER Public Expenditure Review PDIL Projet de Développement des Infrastructures Locales (Infrastructure and Local

Development Project) PDO Project Development Objective PFM Public Financial Management PPIAF Public-Private Infrastructure Advisory Facility PPP Public Private Partnership PSD Private Sector Development PRSP Poverty Reduction Strategy Paper PSGE Plan Stratégique Gabon Emergent (Emerging Gabon Development Strategy) RAS Reimbursable Advisory Services RBF Results Based Financing REDD Reducing Emissions from Deforestation and Forest Degradation ROSC Report on the Observance of Standards and Codes SAI Supreme Audit Institution SCD Systematic Country Diagnostic SDG Sustainable Development Goal SETRAG Société d’Exploitation du TransGabonais (Management Company for the

Trans-Gabonais Railway) SEZ Special Economic Zone SIHG Stratégie d’Investissement Humain du Gabon SME Small and Medium Enterprises TA Technical Assistance TVET Technical and Vocational Education and Training UN United Nations UNDP United Nations Development Program VAT Value Added Tax WB World Bank WBG World Bank Group

IBRD IFC MIGA Vice President: Director: Task Team Leader:

Makhtar Diop Elisabeth Huybens Sylvie Dossou

Dimitri Tsitsiragos Vera Songwe Mehita F. Sylla

Karin Finkelston Muhamet Fall Conor Healy

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TABLE OF CONTENTS I. INTRODUCTION ................................................................................................................ 1  II. MAIN CHANGES IN COUNTRY CONTEXT ............................................................... 2 A. Changes in key macroeconomic and debt developments ...................................................... 2 B. Changes in poverty reduction and shared prosperity ............................................................ 4 C. Political developments .......................................................................................................... 5  III. SUMMARY OF PROGRAM IMPLEMENTATION .................................................... 5 A. Program and portfolio performance ...................................................................................... 5 B. Evolution of partnerships and leveraging .............................................................................. 8 C. Overview of progress toward achieving CPS objectives ...................................................... 9  IV. EMERGING LESSONS ................................................................................................. 15  V. ADJUSTMENTS TO THE COUNTRY PARTNERSHIP STRATEGY .................... 16  VI. RISKS TO THE CPS PROGRAM ................................................................................ 20  Annex 1: Revised Results Matrix (including additional indicators for FY16-18) ................... 22 Annex 2. Matrix of Key Changes to Original CPS Results Matrix ........................................ 29 Annex 3. Matrix summarizing progress toward FY12-16 CPS Objectives ............................ 31  TABLES AND FIGURES: Table 1: Gabon: Selected Economic Indicators, 2012-2020 ..................................................... 4 Table 2: Planned Non-lending Services, and Actual Deliveries (FY12-18) .............................. 7 Table 3: Gabon Planned and Ongoing Operations FY12-18 CPS ($US millions) .................. 10 Table 4: Revised Systematic Operations Risk-Rating Tool (SORT)....................................... 21  Figure 1: Gabon World Governance Indicators Rankings 2011-2014 ...................................... 5 Figure 2: FY12-16 CPS Objectives and Indicators, Summary of Progress ............................. 12 

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THE GABONESE REPUBLIC

PERFORMANCE AND LEARNING REVIEW OF THE FY12-16 COUNTRY PARTNERSHIP STRATEGY (CPS)

I. INTRODUCTION 1. The FY12-16 CPS, which was discussed by the Board of Executive Directors on February 23, 2012, supports the Government’s 2011-2016 strategic development plan, the Plan Stratégique Gabon Emergent (PSGE). The PSGE aims to accelerate economic growth and diversify the economy, improve social outcomes through employment-generating and inclusive growth and ensure sustainable management of natural resources. In 2014, the Government augmented the PSGE with a dedicated Social Policy, the Stratégie d’Investissement Humain du Gabon (SIHG). 2. Progress against the CPS outcomes thus far is mixed but CPS implementation is accelerating. The pace of CPS implementation was initially very slow and by end FY15 the lending portfolio consisted of only three projects, against six planned. Bolstered by effective knowledge engagement through Advisory Services and Analytics (ASA) and Reimbursable Advisory Services (RAS), however, lending picked up dramatically in FY16. As of February 13, 2016, the World Bank had a net commitment of US$343.5 million in six projects, IFC’s committed portfolio was US$65 million comprising one client, and MIGA’s net exposure amounted to US$6.2 million to one client. 3. Remaining heavily dependent on oil and other commodities, Gabon’s economic outlook has worsened dramatically relative to 2012. The CPS was developed in a relatively favourable macroeconomic context. Oil prices today, however, are over 50 percent lower than they were in 2011, and the collapse of commodity prices has clearly jeopardized the implementation of the PSGE and progress toward emerging economy status. Additional structural measures are needed to accelerate the diversification of the economy, improve the effectiveness and efficiency of public spending, and mitigate the impact of the economic shock on the poor.

4. The concurrence of a severe economic shock and a strengthened relationship between the Government of Gabon and the World Bank provide an opportunity to adjust and expand the Bank’s assistance. The sobering context serves to underline the relevance and urgency of the CPS core themes: governance, economic diversification, and inclusion. To respond to the unusual macro-economic context, the PLR broadens and deepens the assistance program, with added or strengthened outcomes on access to social services, the investment climate, public sector governance, and social and economic data development. It highlights the addition of Development Policy Financing to the mix of instruments, rooted in a targeted ASA program, and together with a growing portfolio of investment lending and RAS. It presents the collaboration with IFC and

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MIGA, and underscores several potentially transformational IFC investments in the transport sector and key to economic diversification. The PLR further articulates how the assistance program will support the Bank’s twin goals of eradicating extreme poverty and fostering shared prosperity, as well as, the Sustainable Development Goals (SDGs). Finally, it lays out how the program will support Gabon’s leadership in climate change mitigation and adaptation, and the implementation of its Nationally Determined Contribution (NDC). 5. The Performance and Learning Review (PLR) also proposes a two-year extension of the FY12-16 CPS to the end of FY18, bringing the total period covered by the CPS to six years. Such an extension would enable the next Country Partnership Framework to reflect the findings of a Systematic Country Diagnostic (SCD) to be informed by the results of a national household survey planned for May 2016. It would allow time for the rapidly growing portfolio to show initial results. It would also allow the WBG to develop the next strategy in line with the political cycle as the Presidential elections are planned for August 2016.

II. MAIN CHANGES IN COUNTRY CONTEXT

A. Changes in key macroeconomic and debt developments 6. The economic outlook for Gabon today is significantly worse than it was at the start of the CPS. In the early period of the CPS, Gabon performed better than had been anticipated. Actual real GDP growth during 2011-2014 was stronger than initially projected in the FY12-16 CPS because of higher than expected levels of public investment. As a result, economic growth averaged 5.1 percent from 2012 to 2014 as compared with a May 2011 projected growth rate of 2.2 percent for the same period. 7. With oil production accounting for roughly 40 percent of GDP, contributing to 45 percent of government revenues, and nearly 85 percent of exports in 2014, the dramatic decline in international oil prices is a serious shock to the Gabonese economy. Relative to the beginning of the CPS period, oil prices have declined by more than 50 percent and other commodity prices have also fallen by more than 30 percent. GDP growth is projected to have declined to 4.0 percent in 2015, from 5.5 in 2012. Higher-than-expected production for oil (thanks to the introduction of new wells and performance improvements), mining (manganese), and agriculture (due to a large, ongoing international agribusiness joint venture) were offset by a strong contraction in construction, transport, commerce, and services, as the public sector had to rein in spending and oil companies are sharply curtailing exploration and operating expenditure.

8. The commodity price decline has also resulted in a considerably worse growth outlook with GDP growth projected at 3.5 percent in 2016. This reflects the impact of continued weakness in the oil price on the prospects for oil exploration and government revenue. To reflect the negative outlook for the oil sector, the IMF revised downward its overall medium-term growth

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rate projections to around 5 percent in its 2015 Article IV consultation, a decline of about one percentage point relative to the 2014 forecast. 9. Despite significant fiscal adjustments since 2014 and delays in the implementation of capital spending, public debt has increased rapidly. Public debt more than doubled between 2012 and 2015, from 21 percent to 43 percent of GDP, above the 35 percent ceiling imposed by the Government. This is in part due to the two Eurobonds issued in December 2013 (US$1.5 billion) and in June 2015 (US$500 million), respectively. The fiscal balance is projected to remain in deficit for the coming years. State deposits and foreign exchange reserves with the central bank have also been declining. The projected overall budget deficit for 2015 is 3.4 percent of GDP, the first time a deficit has been recorded since 1998.

10. Fiscal measures have been adopted to adjust to the oil price shock but these may prove challenging to implement fully. The 2016 budget is based on optimistic revenue growth projections, in particular for non-oil revenue. At the same time, it assumes only a small increase in current expenditure and a reduction in investment expenditure (excluding projects related to the hosting of the Africa Cup of Nations in 2017). This may prove challenging especially since less than 20 percent of the infrastructure planned in the PSGE has been delivered. On February 1st, 2016, the Government of Gabon (GoG) has removed subsidies on the sales of fuel and diesel, while maintaining subsidies for gas and kerosene.

11. The GoG’s plan to control public spending would largely protect social sectors. The 2016 budget does not provide for an increase in wages and salaries or for total capital expenditure. Expenditure on goods and services, transfers and subsidies, and interest payments increase modestly. The GoG aims to limit the public wage bill to 35 percent of fiscal revenues and has requested support from the World Bank to help design measures to achieve this. Within this tight fiscal framework the GoG’s priority for 2016 is to continue to implement the SIHG.

12. There are significant downward risks to the outlook. Oil prices may decline even further. Insufficient fiscal adjustment could further deplete fiscal buffers and weaken the external position. Also, the spillover of the oil price shock to non-oil economic activity could be stronger than expected.

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Table 1: Gabon: Selected Economic Indicators, 2012-2020

20121 20131 20141 20151 20162 20172 20182 20192 20202

Gabon oil prices ($US/barrel) 105 104 96 51 42 48 52 56 58

Manganese prices ($US/tons) 202 224 224 179 165 179 179 179 179

GDP Growth (annual percent)

5.5 5.6 4.3 4.0 3.5 4.8 5.0 5.2 5.2

Oil GDP Growth (annual percent)

-4.4 -2.2 1.8 4.2 -5.3 -4.0 0.4 0.5 0.4

Non-oil GDP Growth (annual percent)

10.4 7.8 5.0 4.0 5.7 6.8 5.9 6.1 6.1

Public revenue (percent of non-oil GDP)

54.1 51.2 42.1 31.2 27.8 27.8 27.9 28.0 27.8

Public expenditure (percent of non-oil GDP)

49.6 48.2 38.0 34.6 34.0 32.9 31.8 30.5 29.2

Overall Fiscal Balance (percent of GDP)

4.5 3.0 4.1 -3.4 -6.2 -5.1 -3.8 -2.4 -1.4

General Government Debt (percent of GDP)

21.1 29.2 32.2 43.0 46.3 44.6 43.8 42.0 39.6

Source: IMF Article IV 2015 1/ Estimates 2/ Projections

           

B. Changes in poverty reduction and shared prosperity 13. Although poverty data are out of date, estimates suggest that the poverty rate has fallen slightly. The last national household survey was completed at the end of 2005. It showed a poverty rate of 24.4 percent, based on the World Bank international poverty threshold for middle income countries of US$3.1 per day (purchasing power parity basis). Estimates suggest that by 2014 the share of the population living in poverty had fallen only slightly to 22.7 percent (World Bank 2015). The next national household survey is planned for 2016 with results expected to be available in 2017. Gabon also lags its middle income peers in terms of human development indicators, due to high income inequality and low investment in human capital. The country ranks 58th in terms of GDP per capita, but only 110th in the 2015 UN Human Development Index. Estimates from the 2013 population census show that health indicators are well short of international targets: the rate of maternal mortality is 271 deaths per 100,000 live births and the under-five child mortality rate is 60.4 deaths per 1,000 live births. 14. Following national consultations, the Government has adopted a Social Policy, the SIHG, in April 2014, the relevance of which has further increased in the context of the macroeconomic downturn. The policy aims to: (i) assist the most vulnerable members of the population including the elderly, orphans, and the disabled through an integrated mix of social

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programs; (ii) help low-income populations to develop income-generating activities; and (iii) reduce inequalities in access to basic services.

C. Political developments 15. Gabon is heading into presidential and other elections in August 2016 in the context of heightened social tensions. Gabon fares relatively well in terms of political stability and the rule of law as measured by the Worldwide Governance Indicators (Figure 1). Both of these indicators, however, have deteriorated somewhat in recent years and Libreville was the scene of political violence in both December 2014 and April 2015. In January 2014, the Government lifted the ban on Gabon’s main opposition party, the ‘Union Nationale’, and announced a broader reform of legislation governing political parties.

Figure 1: Gabon World Governance Indicators Rankings 2011-2014

Source: Kaufmann and Kraay (2015). Worldwide Governance Indicators. www.govindicators.org.

III. SUMMARY OF PROGRAM IMPLEMENTATION A. Program and portfolio performance 16. The pace of lending during the first three years of the CPS was considerably slower than expected. When the CPS was approved by the Board of Executive Directors in February 2012 there was no active project in the lending portfolio. One project in ICT, the Central African Backbone Project, APL4 (FY12), was approved soon after and the CPS aimed to further increase the portfolio to US$250 million during FY12-16, a four-fold increase in lending. However, only three projects were approved by the end of FY15. Reasons for this included the time needed to re-

0 10 20 30 40 50 60 70

Voice and Accountability

Regulatory Quality

Government Effectiveness

Control of Corruption

Rule of Law

Political Stability and Absence ofViolence/Terrorism

percentile

2014

2011

6

establish a mature relationship between the Bank and the GoG; a lack of Government experience preparing and implementing Bank projects; and coordination issues within the GoG that led to delays in obtaining final Government approval for projects, the “visa d’opportunité”. 17. The quality of the active portfolio of projects is satisfactory. The total active portfolio amounts to US$343.5 million. Three projects, with a total net commitment of US$83.5 million, are effective. The Central African Backbone Project, APL4 (FY12), effective since March 2013, the GEF Sustainable Management of Critical Wetlands Ecosystems Project (FY14) effective since July 2014, and the Investment Promotion and Competitiveness Project (FY13), effective since March 2015, are all making satisfactory progress against their Project Development Objectives (PDOs). Two further projects were approved in the second quarter of FY16 in the areas of basic services and local infrastructure and a third, in skills development, in the third quarter. All are making satisfactory progress and are expected to become effective before the end of FY16. Gabon has also benefited from regional projects as further set out in the following section.

18. The Government of Gabon is now increasingly turning to the WBG for support. The Bank’s ability to deliver support in areas of priority to the Government, and its modes of delivery (e.g. the RAS), have helped build the Bank’s credibility and deepened trust between the Government and the Bank. As a result, the Bank’s portfolio is now growing rapidly and a total of four additional projects and one Additional Financing could be submitted to the Board for approval over FY16, amounting to new commitments of US$292.3 million.

19. RAS and ASA have been effective and successful tools of engagement, helping to build trust between the Bank and the Government, and underpinning new lending (Table 2). In 2012, the Bank signed the first RAS with a focus on public financial management, the extractives sector, sources of growth, and transport. Three additional RAS contracts were signed in March 2014, in the areas of public financial management, tax system reform, and statistics. Most planned non-lending services were delivered on time. A few planned non-lending services were dropped - for example an assessment of social safety nets - reflecting changed priorities within the Government. Bank administered trust funds have not played a major role in financing activities in Gabon. However, an agreement to support the Court of Accounts with an Institutional Development Fund grant was signed in November 2014 and has been implemented satisfactorily.

20. IFC investment has focused on strengthening natural resource value chains in order to promote inclusive economic opportunities. IFC’s outstanding portfolio comprises a loan accorded in September 2013 to Vaalco Gabon to finance the company’s oil exploration and development programs under the offshore Etame Permit. The project comprises: (i) the construction of two new platforms and associated facilities; (ii) the construction of production wells; and (iii) the installation of crude sweetening facilities. In addition to Vaalco, IFC and the WB jointly provide advisory services on the investment climate and business environment.

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Table 2: Planned and Actual Deliveries of Non-lending Services (FY12-18)

FY CPS PLANS (02/23/2012) STATUS 2012 RAS:

Debt management study, budget management, tax system assessment Port concession Sources of growth (tourism, financial services, agribusiness) IFC business climate improvement (extension) Oil and gas, and mining ASA: Household survey Policy note: growth and employment EITI support Electricity sector TA (PPIAF)

RAS Delivered Delivered Delivered Delivered Delivered ASA: Rescheduled to FY16 Delivered Dropped Rescheduled to FY15

2013 ASA: Policy note: export diversification and competitiveness Policy note: ICT Health sector status report Civil society capacity building

ASA: Delivered Delivered Renamed and rescheduled to FY14 Dropped

2014-16 (up to 02/ 2016)

ASA: Policy notes: (1) assessment of the fiscal decentralization system; (2) human development challenges, obstacles for redistribution Social safety nets assessment

ASA: Dropped Dropped (substituted by Health financing report - actual) Dropped Rescheduled/initially unplanned actuals: PFM II RAS (FY14) Tax System Reform TA (FY14) Electricity sector TA (PPIAF) – rescheduled to FY15 from FY12 IDF grant for strengthening national audit institutions TA (FY15)

PERFORMANCE AND LEARNING REPORT PLANS (from 03/2016) 2016 (from 03/2016)

RAS: Statistical capacity development ASA: Forestry study Wage bill TA

2017-2018

RAS: Civil service reform ASA: Innovative approaches in social sector financing and delivery (TA) Update of PEFA and Boost to underpin DPF Analytical note on HD to underpin DPF Note on agriculture and fisheries to underpin potential new lending

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21. MIGA has continued to offer guarantee products to foreign investors to support investment in Gabon that is sustainable, environmentally sound and with significant development impact. MIGA’s current exposure in Gabon comprises a guarantee, concluded in 2013, of an investment by Cotecna Inspection S.A. of Switzerland (COINS) in the “Société de Scanning du Gabon S.A”. The project comprises a six-year build-operate-transfer (BOT) contract to support the installation and operation of import inspection equipment, as well as, related maintenance, training and technical assistance to the operation. Since October 2015, following an initial delay, all imported wood containers are passing through the scanning system. The new technology helps the authorities to achieve greater port efficiency. B. Evolution of partnerships and leveraging 22. The CPS emphasizes the importance of working closely with other development partners. For example, the Bank is developing a close partnership with the European Union (EU) and the French Development Agency (AFD) in the area of park and wildlife management. Through the planned Wildlife and Human-Elephant Conflict Management Project (FY16), the Bank will help finance the management of four parks in South Gabon (Loango, Moukalaba-Doudou, Mayumba and Waka), AFD will support three parks in North East Gabon (Minkebe, Mwagna and Ivindo) and the EU plans to support a number of other parks in the North and South (Minkébé, Lopé, Loango and Mayumba). The three partners will work together and hence ensure economies of scale to support the development and implementation of anti-poaching strategies, to strengthen the Government’s law enforcement efforts, and to support local communities in the area of park management, eco-tourism, and other income-generating activities. In another example of collaborative working, IFC is working closely with AFD to finance investment in SETRAG, thus improving the functioning of a critical transport corridor. 23. Gabon has also benefited from a number of Bank-supported regional initiatives. The IDA-funded regional Economic & Monetary Community of Central Africa (CEMAC) Financial Institutions project (FY09) has helped build Gabon’s capacity in the area of financial market oversight. As a member of the Organisation for the Harmonization of Business Law (OHADA), Gabon also benefits from the IDA-funded Improved Investment Climate within OHADA Project (FY12), which has supported the adoption of a Commercial Companies Uniform Act in 2014 and an Insolvency Uniform Act in 2015. The project is currently supporting the development of an Accounting Standards Uniform Act. All these are expected to contribute significantly to the improvement of Gabon’s investment and business climate. Also, they are rated satisfactory and making good implementation progress.

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C. Overview of progress toward achieving CPS objectives 24. The CPS aimed to support the Government’s vision to transform Gabon into an emerging economy by 2025. The CPS was built around two strategic themes: increasing competitiveness and employment; and vulnerability and resilience. There was an underlying foundation of improved governance and public sector capacity and a cross-cutting theme of gender equity. The strategy aimed to achieve six outcomes: (i) improved governance, transparency, and accountability in the management of the national budget, debt management, and mining resources; (ii) improved access to energy, infrastructure and telecommunications; (iii) improved investment climate and private sector development; (iv) improved vocational skills and capacity; (v) more transparent and sustainable management of natural resources; and (vi) improved knowledge of basic service delivery for health and social protection. 25. Progress towards the six CPS outcomes has been mixed as illustrated in Figure 2. On the one hand there has been particularly good progress in the areas of more transparent and sustainable management of natural resources (Outcome 5) and access to telecommunications (part of Outcome 2). These are sectors for which Gabon is considered a regional champion. Progress in governance, transparency, and accountability in the management of the national budget, debt management, and mining resources (Outcome 1) and improved knowledge of basic service delivery for health and social protection (Outcome 6), on the other hand, has been slow. Progress towards each outcome in the CPS is further summarized below.

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Table 3: Gabon Planned and Ongoing Operations FY12-18 CPS ($US millions) CPS PLANS (02/23/2012) STATUS

FY Project Projected Financing

Committed Financing

2012 Central African Backbone Project (APL4) - Gabon 58 Actual 58 Subtotal: 58 58

2013 Electricity Project 60 Dropped Economic Diversification and Competitiveness Project 30 Renamed as Investment Promotion and Competitiveness

Project: actual 18

Subtotal: 90 18 2014-16 Natural Resource Management Project 15-25 Renamed as GEF Sustainable Management of Critical Wetland

Ecosystems Project (FY14): actual 7.5

E-government Applications Project 10-15 Renamed and rescheduled to FY16 as E-Gabon (post PLR) Human Development Education Project 60 Renamed as Skills Development Project (FY16): actual 100 Additional actuals: Access to Basic Services in Rural Areas and Capacity Building

Project (FY16) 60

Infrastructure and Local Development Program II (FY16) 100 Subtotal: 85-100 267.5 Subtotal FY12-16 (up to 02/2016) 233-248 343.5

PERFORMANCE AND LEARNING REPORT PLANS (from 03/2016) 2016 GEF Wildlife and Human-Elephant Conflict Management

Project 9.3

Central African Backbone Project (APL4) - Gabon AF 23 Subtotal: 32.3

2017-18 Statistics Development Project NRM project (TBC)

50

E-Gabon Project (FY17) 56 HD focused DPF (1) 50 HD focused DPF (2) 50 Subtotal: 206 Subtotal FY2016-2018 (from 03/2016) 238.3 238.3 Total planned FY2012-2018 471.3-486.3 Potential total actual (FY12-18) 581.8

Memo: (1) Table shows projects approved after February 2016 in lower section of table under Performance and Learning Report plans. Amounts are tentative in 2017-18. (2) FY14: IFC provided a loan for US$65 million to Vaalco Gabon. IFC have signed an MOU with Aéroport de Libreville to assist with the rehabilitation and expansion of passenger facilities. A further investment of Euro 55 million in SETRAG is planned by end FY16. (3) Total FY12-18 (actual to 02/2016+planned during PLR) = US$343.5+US$238.3 = US$581.8.

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CPS Outcome 1: Improved governance, transparency, and accountability in the management of the national budget, debt, and mining resources: partially on track 26. The Government has made some progress in strengthening public financial management (PFM) systems and processes. In 2012, Gabon adopted a Public Procurement Code that calls for greater transparency in procurement and value for money in public spending. This was complemented by a revision of the PFM Act aimed at increasing the effectiveness and efficiency of public spending through the roll-out of a program-based approach. Implementation of these two key reforms began with the mandatory use of procurement, commitment, and treasury plans in 2013 in eleven ministries under a pilot supported by the PFM II RAS (FY14). It was followed by implementation of the program based approach in 2015. This laid the basis for a wider roll-out of program budgeting and implementation of the Public Procurement Code under the PFM II RAS. The Bank is also supporting the Supreme Audit Institution to: (i) adjust its Organic Law in line with the provisions of the new PFM Act to include the right to carry out performance and financial audits; (ii) pilot a number of performance and financial audits in social sectors; and (iii) increase the demand for greater accountability by strengthening the role of parliament and civil society. 27. On the other hand, Gabon lost its status as an Extractive Industry Transparency Initiative (EITI) candidate in February 2013. A roadmap to restart the process, however, has been approved by the Government. The Bank convened a workshop in October 2014 in collaboration with the Government and the EITI International Secretariat to develop the roadmap. The Bank has facilitated consultations with NGOs to appoint delegates for a future EITI Gabon multi-stakeholder Group. The Government did not pursue the planned preparation of an action plan to improve fiscal decentralization and the delivery of basic local services. CPS Outcome 2: Improved access to energy, infrastructure and telecommunications: partially on track 28. Gabon has met most of the CPS targets relating to telecommunications, but progress towards achieving the targets for access to electricity is off track (outcome 2). A number of targets and milestones for the telecommunications sector have already been achieved with support from the Central African Backbone Project, APL4 (FY12). These include a significant increase in access to internet services from 14 to 59 percent of the population, connection of Libreville to the ACE submarine cable, and the introduction of competition in the international connectivity market via a wholesale operator. A national broadband strategy is being launched and the basic Telecommunication Law and second generation ICT laws are being revised. 29. There has been no measurable improvement in access to energy services. However, an energy sector TA funded by PPIAF (FY15) renewed the dialogue and facilitated the preparation

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of the Access to Basic Services in Rural Areas and Capacity Building Project, which was approved in September 2015. The Project is expected to improve access and strengthen the utility during the remaining period of the CPS.

Figure 2: FY12-16 CPS Objectives and Indicators, Summary of Progress

CPS Outcome 3: Improved investment climate and private sector development: on track 30. Gabon has made good progress against the CPS indicators of reduced time and cost to register a business. The Bank and IFC have jointly supported the GoG in the area of investment climate and business advisory work, bolstered by the Investment Promotion and Competitiveness Project. In addition, foreign direct investment (FDI) in Gabon is estimated to have increased from 5.1 percent of GDP in 2012 to 5.6 percent of GDP in 2014 and is projected to increase further to 7.3 percent of GDP in 2015 (IMF 2015). Other positive reforms include a reduction in the paid-in minimum capital requirement for starting a business; and making the transfer of property less costly by lowering the property registration tax. The establishment of a Special Economic Zone

1.3 Development of procurement,  commit‐ment, and treasury plans to  improve budget management and pave the way for program budgeting

2.2 Increased coverage and use of regional broadband and network  services: access to internet services (number of subscribers per 100)

= achieved

= on track

= partially on track

= off track

1.1 Gabon achievement of EITI‐compliant status

1.4 Development of a governance and debt management strategy

2.1 Improved  access to modern energy services in urban and rural services: number   of people provided with access to electricity by house‐ hold connections  in target areas

4.1 A skills development system is articulated and operationalized through government, PPP, and WBG financing

6.2 Action plan to  implement social safety net system

4. Improved vocational skills and capacity 

6. Improved knowledge of basic service delivery for health and social protection

I. Improved governance, transparency, and accountability in management of the national budget, debt and mining resources

Foundation: Governance and public sector capacity 

Strategic theme 1: Increasing Gabon’s competitiveness and employment

Strategic theme 2: Vulnerability and resilience

= outcome statement

5.1 Hectares of land for protection when a biological survey is completed. 

5.  More transparent and sustain‐able management of natural resources

6.1 Identification of policy options for addressing the challenges in the health sector

2.3 Average monthly price of wholesale international E1 capacity link from capital city to Europe.

3.1 Time to register a business

1.2 Action plan  on how to  improve fiscal de‐centralisation and delivery of basic local serv‐ices completed and shared with the authorities

5.2 Increase in management effect‐iveness in three national parks (700,000 hectares) per the GEF tracking tool 

3.2 Cost to register a business

3. Improved investment climate and private sector development

2. Improved access to energy, infra‐structure, and telecommunications

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(SEZ) at Nkok and a free-trade zone in Port-Gentil have also been positive as was the creation of the ANPI-Gabon, the National Investment Promotion Agency. 31. Against a broader set of measures, however, the overall climate for business did not progress. Gabon’s overall “Ease of Doing Business” ranking has not improved and stood at 162, out of 189, countries in 2015. Much therefore remains to be done to achieve a legislative, institutional and economic context that is conducive to private sector development and to the attraction of FDI outside of the oil sector. CPS Outcome 4: Improved vocational skills and capacity: off track 32. Little progress has been made to improve vocational skills and capacity. In October 2013 the Government organized a National Employment Forum focused on training, entrepreneurship and the integration of young people into the labor market: more than 80 percent of graduates are not hired in the sectors for which they have received training, and only two in three graduates find a job. In January 2014, the Government introduced a Public Private Partnership (PPP) model to encourage private investment in skills training and a new division of roles and responsibilities among sector players. A new Technical and Vocational Education and Training (TVET)/skills development strategy was adopted in 2012 and the Skills Development Project, approved in February 2016, will support its operationalization and implementation. CPS Outcome 5: More transparent and sustainable management of natural resources: achieved 33. Gabon has made significant progress in increasing the transparency and sustainability of natural resources management and has achieved all related CPS targets. A national database on biodiversity has been created, three sites have been covered by a biological inventory, three key national parks are subject to increased surveillance efforts, and park ranger quarters are operational in two parks. Furthermore, biological surveys have been conducted for significant land areas—700,000 hectares—and participatory management plans have been finalized and approved for the Loango, Moukalaba-Doudou and Mayumba parks. 34. Gabon is a strong champion of climate action and was the first African country to submit its INDC (Intended Nationally Determined Contribution) well in advance of COP 21 in Paris. Its NDC pledges to keep 2025 emissions to at least 50 percent below business-as-usual levels, which corresponds to a 3 percent increase in emissions relative to 2000 levels. This will be achieved primarily through improving land-use planning, reducing gas flaring, and boosting hydroelectricity production. Land-use change accounts for over 60 percent of Gabon’s greenhouse gas emissions. However, the country, which has the second highest forest cover in the world (88 percent of the national territory) has undertaken ambitious policies that have reduced emissions

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considerably. These include the creation of a network of 13 protected areas, the pursuit of forest management plans, and a ban of raw log exports. The Government estimates that these policies have helped reduce deforestation and forest degradation by about 475 million tons of carbon dioxide since 2000. This is a very significant contribution to sustainable development and global climate change mitigation, which Gabon has financed mostly on its own. To continue these policies, a national land allocation plan is now being prepared, which is designed to allocate and secure land areas for the multiple uses that will be needed for Gabon to diversify its economy and grow its domestic food production while conserving and managing its forest estate. With respect to gas flaring, all operators in Gabon currently have flaring reduction plans, all expected to be implemented by 2020. Gabon has also recently endorsed the World Bank Global Gas Flaring Initiative, which aims at achieving zero routine flaring by 2030. The third pillar of Gabon’s climate mitigation action is based on the gradual development of hydroelectricity and gas reserves, which would represent, respectively, 80 percent and 20 percent of energy production in 2025. Finally, in terms of climate adaptation, the Government has published a National Strategy on Coastal Adaptation to Climate Change and a draft National Coastal Adaptation Law has been submitted to Parliament.

CPS Outcome 6: Improved knowledge of basic service delivery for health and social protection: partially on track

35. Gabon is on track to achieve the health element of Outcome 6, but not the social protection target. The Bank’s ASA engagement in the health sector has generated pertinent and usable knowledge and information, which is being absorbed by policy- and decision-makers. A 2014 Bank health financing study showed that Gabon’s health outcomes are below those of countries with a similar level of per capita income and that the health system is inefficient. As a result, the Government has asked the Bank’s help with the preparation of a new national health development plan (2016-2020) and with sharing best practices and innovative strategies for the financing and delivery of health care. Planned support to implement a social safety net system has not materialised, however, nor has an associated action plan been developed. This is because the Government decided not to pursue the proposed RAS on this topic. Further ways to engage are being assessed, including through TA.

Cross-cutting theme: gender equity 36. Little progress has been made in pursuing gender equity. This is mostly the result of the general slow progress in the implementation of the CPS. None of the RAS delivered thus far has offered clear opportunities for engagement on gender, while the investment lending, where there is great potential for gender action has been delayed. Gender equity will be pursued more vigorously in the remainder of the CPS period.

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IV. EMERGING LESSONS 37. The Bank’s portfolio in Gabon is growing rapidly from a small base and after a long period of minimal activity. It is therefore too early to draw operational lessons. Nevertheless, CPS implementation thus far has yielded a number of insights:

It takes time and flexibility to re-build a strong program, for which ASA and RAS have been critical. The CPS program was slow to get off the ground for a number of reasons. First, the relationship between the Bank and the GoG has taken time to mature. Flexibility in responding to changed priorities, and delivery of ASA and RAS have been key to strengthening trust. Second, the lack of recent experience with Bank projects resulted in low capacity for preparing and implementing Bank projects. Third, internal GoG coordination was initially poor which resulted in long delays in obtaining the “visa d’opportunité”, the final government approval for investment projects. As witnessed by the fast pace of project approval in FY16, this issue has been resolved with the assignment of the Ministry of Economy, Investment Promotion, and Planning as the sole coordinator for WB activities.

The RAS have been successful, but efforts are needed to further improve delivery. The demand-driven approach for support through RAS has worked well in Gabon—it ensures that the Bank engages where the Government feels it most needs support. Nevertheless, the Bank needs to strengthen its RAS implementation capacity. RAS is a new product to many Bank staff working in Gabon and internal processes often take too long. Quality assurance sometimes comes too late to shape products effectively. The Gabon team will therefore strengthen its capacity to respond to demand for RAS products. This will be complemented by ASA that ensures the Bank has the knowledge base needed for the full breadth of its operations.

A centralized implementation unit for Bank-financed projects is providing fiduciary capacity in a cost-effective way. The Commission Nationale des Travaux d'Intérêt Public pour la Promotion de l'Entrepreneuriat et de l'Emploi du Gabon (CNTIPPEE), the Project Implementation Unit for the First Infrastructure and Local Development Project, which closed in December 2011, now provides fiduciary support to the Government in the implementation of most Bank projects. This is working effectively and CNTIPPEE will become a central provider of fiduciary services for all Bank-financed projects, and a “hub” to develop fiduciary capacity in the country. This will facilitate project preparation and implementation. It will also lead to efficiency gains as fiduciary personnel will be provided from a central pool.

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V. ADJUSTMENTS TO THE COUNTRY PARTNERSHIP STRATEGY 38. To respond to the dramatically changed macro-economic context, and bolstered by a strengthened relationship between the Bank and the GoG, the assistance program will be significantly expanded and adjusted. Planned support to the Governance and Public Sector Capacity Pillar will be expanded to include improved poverty and economic statistics, civil service reform, and a return to EITI candidate Status. Assistance to the Competitiveness and Employment Pillar will be strengthened by a closer collaboration between the Bank and IFC to strengthen the investment climate and by potentially transformational IFC investments in the transport sector. Support to the Human Development and Environmental Sustainability Pillar will be bolstered to include additional support to access and quality of social services and to wildlife conservation. 39. The adjustments are laid out below under a revised set of CPS pillars. The overall structure of the results matrix has been adjusted to better reflect changes to a number of outcomes and indicators. Three pillars replace the previous structure of a foundation pillar and two strategic themes. Names of some pillars, as set out below, have also been adjusted. The proposed adjustments make for a tighter alignment with the Bank’s twin goals of eliminating extreme poverty and boosting shared prosperity for example through additional support for expanded access to basic services. The revised Results Matrix is shown Annex 1. Changes to the original Results Matrix are detailed in Annex 2.

40. The PLR proposes a two year extension of the on-going CPS to end FY18. Such an extension would accommodate a portfolio that is growing rapidly and provide time for the initial results of new lending to materialize. The extension will also enable the next CPF to be informed by an SCD based on data from the household survey that is scheduled to be initiated in May 2016. Finally, it would also allow the WBG to develop the next strategy in line with the political cycle, as the Presidential elections are planned for August 2016.

41. The volume of lending is scheduled to increase through the proposed extended CPS period, the instrument mix will be expanded to include DPF, and both IFC and MIGA are expected to enhance their engagement. As set out in Table 3, investment lending is expected to increase from an originally planned US$248 million for FY12-16 to a total of US$581.8 million for the period FY12-18. The Gabon country team is requesting an increase in the exposure limit to accommodate the Government’s demand for new Bank lending, potentially leading to aggregate commitments in the amount of US$489 million during FY16-18. Of this amount, US$100 million would be for budget support in the form of a DPF series of two US$50 million operations, tentatively planned for FY17 and FY18. The remaining US$389 million will be investment project financing. The mix of WBG instruments will continue to include investment lending, ASA and RAS. To respond to the acute need for financing in the face of the precipitous decline in oil prices, Development Policy Financing will support a strengthened poverty focus, particularly in human development areas. Actual lending volumes will depend on final country demand, overall

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performance, global economic developments affecting IBRD’s financial capacity, as well as demand from other IBRD borrowers. Pillar 1: Governance and Public Sector Capacity 42. The Bank will strengthen its support under the governance and public sector capacity pillar. Based on a July 2015 request from the GoG and on-going RAS work, the Bank will prepare a Statistical Development Project. The proposed project will help build capacity of the national statistical system to produce quality and timely data relevant to policy and decision making. The project will also seek to fill a number of significant data gaps, including through a new household and poverty survey in 2016. Ongoing RAS work, not anticipated at the time of the drafting of the CPS, in the areas of tax system reform and public financial management will support efficiency gains in public spending and raising internal revenues. This will include new work on the procurement code and practices. At the request of the GoG a study is underway on the public sector wage bill and this will be followed by a new RAS on civil service reform. The Second Infrastructure and Local Development Project will introduce City Contracts, which target incremental improvements to local governance and service delivery and can serve as a future entry point for deepening the decentralization process. The Bank will provide support to the Government’s activities to re-gain candidate country status with the EITI by the end of 2016. Pillar 2: Competitiveness and Employment

43. The Bank, IFC, and MIGA will step up their collaboration to help improve Gabon’s competiveness, which is urgent as it is key to economic diversification and reduced vulnerability to commodity prices. The challenges impeding competitiveness have been identified in the 2013 Bank policy note on Gabon Export Diversification and Competitiveness and include: (i) ineffective support to exporting SMEs; (ii) lack of specialized skills in the growth sectors; (iii) relatively high Common External Tariffs in the CEMAC region; and (iv) high transport and electricity costs. 44. Support to improving the investment climate and the relevancy of skills will be expanded. The Investment Promotion and Competitiveness Project (FY13), IFC Advisory Services, the regional Improved Investment Climate within the OHADA Project (FY12), and the IFC OHADA Project will all support improvements in the investment and business climate. Enterprise development will be supported by the Investment Promotion and Competitiveness Project (FY12), as well as by the forthcoming e-Gabon Project (FY16). Several initiatives will enhance the relevancy of skills to private sector development. The recently approved Skills Development Project will finance the expansion and improvement of TVET in sectors with strong employment potential. It will also strengthen youth employability by promoting the integration of

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young people into the labor market through apprenticeships, internships, and entrepreneurship programs, all in partnership with the private sector. The Second Infrastructure and Local Development Project (FY16) will train SMEs in the construction sector in bid preparation, financial management, site management, labor-intensive construction techniques, environmental and social safeguards management, and social awareness and responsibilities. IFC Advisory Services will help to build SME capacity. The forthcoming E-Gabon Project (FY16) will foster digital job creation by supporting incubators for digital enterprises. To bolster access to credit, IFC plans to provide trade, SME, and housing finance opportunities. IFC advisory services will support enhanced credit market information. A Bank assessment of the prohibition of the export of raw logs will focus on identifying measures to grow the wood transformation industry. 45. Both the Bank and IFC will expand the support to the development of critical infrastructure. An Additional Financing to the Central African Backbone Project will expand the fiber optic backbone. Building on its ongoing portfolio, the IFC aims to increase private sector participation (through PPP projects) in physical infrastructure (power generation and transport), value creation in the oil and gas industry, and diversification of activity in non-oil sectors (agribusiness, forestry and petrochemical projects). Two potentially transformational investments in the transport sector are:

Aéroport de Libreville (ADL - Libreville Airport Concessionaire): IFC has signed a memorandum of understanding to assist ADL with the rehabilitation and expansion of the Libreville Airport passenger facilities. IFC will provide a loan and will help ADL in raising funds.

Transgabonais Railway Company (SETRAG): IFC is considering support for the rehabilitation of the track infrastructure between Libreville and Franceville and the acquisition of new rolling stock for the replacement and expansion of transport capacity. To this end, IFC is instructing the mobilization of a commercial loan to SETRAG from its own account and from other DFIs including PROPARCO, the private arm of the ‘Agence Française de Développement (AFD). The Government’s contribution to the investment program is expected to be financed through a concessional loan from AFD.

46. MIGA will also seek to support private investment in Gabon. It will focus its engagement around infrastructure projects with complex and high volume transactions, including PPPs, with large development potential. MIGA has recently engaged with the GoG and bankers to identify possible areas where the new Non-Honoring of Sovereign Financial Obligation instrument can be of use. Based on this engagement, the GoG has articulated a list of priority projects that may be of interest for MIGA support. No concrete decisions have been made to date. Using its core product line of Political Risk Insurance, MIGA may offer support to large private sector investments considered by international investors and other DFIs.

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Pillar 3: Human Development and Environmental Sustainability 47. The Bank will strengthen its support for basic service delivery with an emphasis on poor and vulnerable populations. New TA will support the GoG in the development of the 2016 – 2020 National Health Development Plan with a view to improving core health outcomes, including maternal and child health. Efficiency gains in the health sector will be supported by sharing best practice in the financing and delivery of healthcare and the forthcoming E-Gabon Project will strengthen the national health information system to achieve “more health for money spent”. New ASA may also support greater efficiency in the provision of education services and social protection initiatives. This work will lay the ground for the development of a pilot on results-based financing and the preparation of a series of two Development Policy Loans in support of improved coverage and efficiency of social services. The recently approved Second Infrastructure and Local Development Project (FY16) will support the vulnerable communities of nine provincial capitals with improved connectivity and sanitation infrastructure. Finally, the recently approved Access to Basic Services Project (FY16) will expand the provision of water and electricity services in target rural areas. It will establish mechanisms to ensure sustainable service provision. The project will be the cornerstone of a larger rural water and electrification program that will be financed by the Government and other donors, putting in place a new model that will create a market for basic water and energy services in rural areas. 48. The Bank’s support for basic service delivery is aligned with the SDGs approved by the UN General Assembly in September 2015. The Bank’s programs in health and education are fully aligned with, respectively, SDG Goal 3 (Ensure healthy lives and promote well-being for all at all ages) and SDG Goal 4 (Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all). Equally the Bank’s support for sustainable electricity, water and sanitation aligns with Goal 6 on ensuring sustainable management of water and sanitation and Goal 7 which concerns access to sustainable energy for all. 49. The Bank will support the implementation of Gabon’s NDC. It will support Gabon’s land-use planning and the implementation of a national land allocation plan (Plan national d’affectation du territoire). Building on past and on-going GEF-financed environmental operations in Gabon, and in close partnership with the AFD and the EU, a GEF-financed operation (GEF-6), Wildlife and Human-Elephant Conflict Management (FY16), is currently under preparation. The proposed project will support the Government in the implementation of the African Elephant and National Ivory Action Plans, seeking to reduce elephant poaching and elephant trade and improve community livelihoods. Gabon has joined the Central African Forest Initiative (CAFI) from which it is planning to request support for completing its national land allocation process. The Government has requested the Bank’s assistance in assessing the impact of the 2010 decision to outlaw the export of raw logs as a way to stimulate domestic wood processing and value addition, and in revising the Forest Code. Opportunities may also exist to

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expand World Bank Group support to investments in the forest sector. With respect to climate adaptation, the Second Local Infrastructure and Development Project (FY16) will strengthen community resilience to climate change through improved drainage in under-served urban neighborhoods, which are particularly vulnerable to coastal erosion and flooding, an issue highlighted in Bank’s recently published Africa Climate Business Plan. Cross-cutting theme: gender equity

50. Gender equity will be pursued through targeted actions throughout the portfolio. With the proposed acceleration of lending in FY16 gender is being addressed explicitly in new operations where relevant. The recently approved (FY16) Second Infrastructure and Local Development and Skills Development Projects, for example, both include gender specific actions and indicators. The forthcoming E-Gabon Project (FY17) will also include targeted gender actions.

VI. RISKS TO THE CPS PROGRAM 51. The CPS identified several potential risks to the achievement of the envisaged results. These included macro-economic risks, which indeed have materialized, political risks, social risks, and institutional risks, including weak implementation capacity. The SORT analysis presented in Table 4 confirms that these risks remain broadly valid with an overall Substantial rating:

Political and social risk. Political tension and social unrest is possible in light of the forthcoming 2016 Presidential elections. This could be exacerbated in the event of disputed election results. A change in government could result in a period of debate and deliberation during which policy direction, and preferences regarding Bank support, are less clear. All CPS outcomes would potentially be affected as a result. This risk is mitigated by extending the CPS for two years, thus allowing for sufficient time to reflect any new policy and program directions in the future Country Partnership Framework.

Macroeconomic risk. The recent drop in international oil prices and the subsequent impact on Gabon’s growth, employment and fiscal situation highlight the vulnerability of CPS objectives to continued low commodity prices. For example Outcome 6, Improved Access and Quality of Services, depends on adequate government investment in electricity, water, and roads. In view of the current outlook, with continued low commodity prices, Gabon will need to further adjust spending and investment levels, potentially resulting in lower spending for social sectors. Lower spending could affect the CPS targets for access to basic services. These risks are being mitigated in the short term by supporting PFM reform as well as increased efficiency in social spending; and in the long term by supporting the diversification of the economy.

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Institutional risk. The Government’s capacity to execute the investment budget, including Bank funded projects, remains limited. This may affect the smooth implementation of Bank projects, especially as the portfolio is growing rapidly. It also affects outcomes under the governance pillar specifically those relating to improved public financial management. This risk will be mitigated by pursuing only those activities for which the Government has expressed strong ownership, and by assigning fiduciary responsibilities for the portfolio of Bank projects to CNTIPPEE.

Table 4: Revised Systematic Operations Risk-Rating Tool (SORT)

Risk Rating Rating

(H, S, M, L) 1 Political & governance S 2 Macro-economic S 3 Sector strategies and policies M 4 Technical design of project/program M S Institutional capacity for implementation and sustainability S 6 Fiduciary M 7 Environmental & social M 8 Stakeholders M 9 Other - Overall S

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Annex 1: Revised Results Matrix (including additional indicators for FY2016-18)

CPS Indicators (FY12–18) Milestones Bank Engagement CPS Pillar One: Governance and Public Sector CapacityPSGE Pillar Element: (i) Economic diversification; (ii) Reform and modernization of the state Issues: Poor governance and weak institutional capacity present challenges for Gabon’s development. Indexes relating to perception of corruption remain weak Need to improve efficiency and effectiveness in budget and public investment management to ensure both fiscal sustainability and external competitiveness in an environment of low oil prices, declining oil production, and hence lower national revenues CPS Outcome 1: Increased transparency and accountability in the extractives sectorIndicator 1.1: Gabon readmission as EITI candidate. Baseline (2012): Non-EITI compliant. Target (2016): Gabon to be readmitted as an EITI candidate country. Indicator 1.2: Development of a governance and debt management strategy. Baseline (2012): No strategy Target (2013): Strategy developed.

Milestone 1.1: Submission of candidature for re-admission as EITI candidate by December 2016.

Completed Knowledge Oil, gas, and mining study - RAS (FY12) Debt management study, budget management, tax

system assessment - RAS (FY12) Ongoing: Knowledge EITI TA (FY14) IFC loan Vaalco Gabon (FY14)

CPS Outcome 2: Strengthened public financial management Indicator 2.1: Development of procurement, commitment and treasury plans to

improve budget management and pave the way for program budgeting.

Baseline (2012): 0 Target (2016): three line ministries

Indicator 2.2: Development of a public finance strategy. Baseline (2012): none Target (2016): strategy developed

Milestone 2.1: Inspections and audits implemented twice a year in all major operations by December 2016.

Milestone 2.2: Public Expenditure and Financial Accountability review completed by June 2017.

Completed Knowledge Policy note: growth and employment (FY12) Debt management study, budget management, tax

system assessment, RAS (FY12) Ongoing (knowledge) PFM II, RAS (FY14) Pipeline (knowledge) Civil service reform RAS (FY17/18).

Indicator 2.3: Investment budget execution (commitment basis) Baseline (2013): 87.5 percent or C PEFA PI 1 Target (2017): 90 percent or B PEFA PI 1 Indicator 2.4:

Milestone 2.3: Implementation of program budgeting approach in key line ministries by December 2016

Ongoing: Knowledge PFM II, RAS (FY16) IDF grant for strengthening national audit

institutions TA (FY15)

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CPS Indicators (FY12–18) Milestones Bank Engagement Improved transparency and accountability of external audit by

publication of 3 performance audit reports Baseline (2015): 1 Target: 3 by December 2017 Indicator 2.5: Operational risk-based system for selection of tax payments

subject to audit in place Baseline (2015):0 Target: 1 by December 2017

Milestone 2.4.1: Adoption and enforcement of a new PFM framework and Public Procurement Code focused on efficiency of public spending by December 2016

Milestone 2.4.2: Performance Evaluation Report on health and education program budget prepared by December 2017

Milestone 2.5: Adoption and enforcement of a revised Supreme Audit Institution Organic Law by December 2016

Pipeline: Knowledge Civil service reform RAS (FY17/18). Wage bill study TA (FY16).

CPS Outcome 3: Improved social and economic data Indicator 3.1: Household and poverty data available for use in policy- and

decision-making by December 2017. Indicator 3.2 The new Statistical Agency is operational by December 2017. Indicator 3.3 Reducing the National Statistical Institute’s backlog in producing

provisional national accounts from 4 years to 1, by June 2018. Indicator 3.4: The consumer price index uses a new base year and number of

cities covered increases from 1 to 4 by December 2017.

Milestone 3.1: Household and poverty survey launched by December 2016

Completed Knowledge Household survey Pipeline: Financing Statistical capacity development RAS (FY16) Knowledge Statistics development project IPF (FY17/18)

CPS Pillar Two: Competitiveness and Employment PSGE Pillar elements: (i) Economic diversification; (ii) Development of infrastructure and regional planning; (iii) Improving the investment climate and private sector development; (iv) Development of human capital; (v) Fight against exclusion and vulnerability. Key issues: Low oil prices and dwindling production create the need for economic diversification Slow growth in non-oil sectors Poor business environment/ investment climate, including burdensome regulations involving lengthy procedures, thereby holding back economic growth and

job creation Capacity constraints of existing bandwidth infrastructure High cost of access to international bandwidth Out-dated TVET system and institutions

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CPS Indicators (FY12–18) Milestones Bank Engagement Skills mismatch CPS Outcome 4: Improved investment climate Indicator 4.1: Increased coverage and use of regional broadband and network

services: access to internet services (number of subscribers per 100)

Baseline (December 2011): 14 percent Target (December 2017): 65 percent

Indicator 4.2: Average monthly price of wholesale international E1 capacity

link from capital city to Europe Baseline (December 2011):US$10,000 Target (December 2017):US$500

Milestone 4.1: Cross border interconnection of fiber optic link between Ndjolé – Oyem – Bitam – Eboro (border with Republic of Cameroon) / KyeOssi (border with Rep. of EQG) by 2017. Milestone 4.2: Price of US$800 by December 2016.

Completed: Knowledge Economic & Monetary Community of Central

Africa (CEMAC) Financial Institutions Project (FY09)

Port Concession, RAS (FY12) Sources of Growth: Tourism, Financial services,

Agribusiness, RAS (FY12). IFC Business Climate Improvement, RAS

(FY12) Policy note: export diversification and

competitiveness, ASA (FY13) Policy note: ICT, ASA (FY13) Ongoing: Financing Central African Backbone Project (APL4) –

Gabon, IPF (FY12) Improved Investment Climate within the

OHADA, TA loan (FY12) Guarantee Cotecna Inspection (FY13) Knowledge Electricity sector PPIAF grant, TA (FY15) Pipeline: Financing Central African Backbone Project (APL4) –

Gabon AF, IPF (FY16) Aéroport de Libreville, IFC loan SETRAG tbc IFC loan

Indicator 4.3: Time to register a business Baseline (2012):58 days Target (June 2018):28 days Indicator 4.4:

Milestone 4.3: A one stop shop for streamlined business registration is set up and operational by September 2017.

Ongoing: Financing Central African Backbone Project (APL4) –

Gabon, IPF (FY12)

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CPS Indicators (FY12–18) Milestones Bank Engagement Cost to register a business Baseline (2012):17 percent of per capita income Target (June 2018):12.5 percent of per capita income Indicator 4.5: Length of fiber optic network built (in km) Baseline (December 2011): 0 Target (December 2017): 1,561 Indicator 4.6: Retail price of Internet Services (per Mbit/s per Month, in US$) Baseline (December 2011): 218 Target (December 2017): 80 Indicator 4.7: Number of start-up projects incubated (digital economy) Baseline (December 2015): 0 Target (December 2017): 8

Milestone 4.4.1 Cost in June 2017: 13.5 percent of per capita income Milestone 4.5: 1140km by December 2016. Milestone 4.6: US$100 by December 2016.

Investment Promotion and Competitiveness Project, IPF (FY13)

Pipeline: Financing Central African Backbone Project (APL4) –

Gabon, AF E-Gabon Project, IPF Access to Basic Services in Rural Areas and

Capacity Building Project, IPF Infrastructure and Local Development Program

II, IPF

CPS Outcome 5: Strengthened vocational skills-building system Indicator 5.1: Number of public-private joint management agreements signed for TVET institutions based on performance contracts Baseline (2015):0 Target (February 2018): 5 Source: M&E system Skills Development Project Indicator 5.2: Number of participants in new skills development programs

(apprenticeship, internships, entrepreneurship training) Baseline (2015):0 Target (2017): 200 Percentage of female:30 percent Source: M&E system Skills Development Project Indicator 5.3: Number of participants in training sessions organized by

incubators (digital economy), Baseline (December 2015):0 Target (December 2017): 300

Milestone 5.1: Labor market survey (2017)

Milestone 5.2: Trace survey (2017-2018) Milestone 5.3: 210 Participants by December 2016.

Ongoing (financing): Investment Promotion and Competitiveness

Project, IPF (FY13) Skills Development Project, IPF (FY16)

Pipeline (financing): E-Gabon Project, IPF

CPS Pillar Three: Human Development and Environmental Sustainability

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CPS Indicators (FY12–18) Milestones Bank Engagement PSGE Pillar Elements: (i) Economic diversification; (ii) Development of human capital; (iii) Fight against exclusion and vulnerability Issues: Weak human development and social indicators Unlikely to meet MDG targets Significant urban/rural differences in access and delivery of services Lack of up-to-date statistical data and analysis in social sectors Weak governance in natural resource management Poor efficiency and equity in the use of public resources CPS Outcome 6: Improved access and quality of services Indicator 6.1: Number of people provided with access to electricity by

household connections in target areas, including women Baseline (2015): 0 Target (June 2018): 7,500 Indicator 6.2: Number of new community electricity connections including

communities, schools, and health clinics, water pumping systems electrified

Baseline (2015): 0 Target (June 2018): 30 Indicator 6.3: Percentage of households in villages covered by project

operations and maintenance operator having functional electricity and water services

Baseline (2015): 0 percent Target (June 2018): 90 percent Indicator 6.4: Number of people provided (under the project) with access to

“improved water sources” in target areas, including women Baseline (2015): 0 Target (June 2018): 7,500 Indicator 6.5:

Milestone 6.1: Master plan for access to basic services in rural areas completed and approved (2017)

Milestone 6.2: Electricity generation and transmission master plan completed and approved (2017)

Milestone 6.4: 3000 people with access by 2017

Milestone 6.5: 4,700 people by December 2016.

Pipeline: Financing Access to Basic Services in Rural Areas and

Capacity Building Project, IPF E-Gabon Project, IPF Infrastructure and Local Development Program

II, IPF HD focused DPF Statistics Development Project, IPF Knowledge Innovative approaches in social sector financing

and delivery, TA Update of PEFA to underpin HD focused DPF,

ASA Analytical note on human development to

underpin HD focused DPF, ASA

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CPS Indicators (FY12–18) Milestones Bank Engagement Number of people in urban areas provided with access to all-

season roads within a 500 meter range and other urban infrastructure and services

Baseline (2015): 0 Target (Feb 2018): 20,000

Indicator 6.6: Number of localities with broadband internet Baseline (December 2011): 3 Target (December 2017):18 Indicator 6.7: Working level achieved with the National Health Information

system among health professionals (in percentage) Baseline (December 2015):0 Target (December 2017):30 percent

Milestone 6.6: 15 localities by December 2016. Milestone 6.7: Development and adoption of a new National Health Development Plan (2016)

CPS Outcome 7: Improved transparency and sustainability in natural resource management Indicator 7.1: National parks: Hectares of land for protection when a biological

survey is completed. Baseline: 0 (2010) Target: 900,000 (2013)

Indicator 7.2: Increase in management effectiveness in three national parks

(700,000 hectares) per the GEF tracking tool Baseline: Loango: 57 percent; Mayumba: 58 percent; Moukalaba-Doudou: 50 percent Target (2013) Loango: 65 percent; Mayumba: 65 percent; Moukalaba-Doudou: 65 percent

Milestone 7.1.1: National database on biodiversity is created by 2013. Milestone 7.1.2: Three sites with high biodiversity potential covered by biological inventory by 2013. Milestone 7.2.1: Increased surveillance efforts in the three key national parks from 300 person-days per month in 2010 to 500 person-days per month in 2013. Milestone 7.2.1: Quarters for park rangers built and operational in Loango, Mayumba, and Moukalaba-Doudou by 2013.

Completed: Knowledge Strengthening capacity for managing national

parks and biodiversity, TA (FY06) Capacity building in environmental management

of large infrastructure projects, TA (FY08) Ongoing: Financing GEF Sustainable Management of Critical

Wetlands Ecosystems Project, IPF (FY14) Knowledge Global Gas Flaring Reduction (GGFR) Trust

Fund, TA (FY12)

Indicator 7.3: Number of ecosystem services valuations undertaken (selected

sites) Baseline: 0 (2013)

Milestone 7.3: National wetlands management strategy adopted (December 2016)

On-Going: Financing GEF Sustainable Management of Critical

Wetlands Ecosystems Project, IPF (FY14)

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CPS Indicators (FY12–18) Milestones Bank Engagement Target: 3 (June 2018) Indicator 7.4: Development stage reached in management plans prepared for

forested wetlands (selected sites) Baseline: 0 (2013) Target: 2 (June 2018) Indicator 7.5: Proportion of elephants killed illegally in four targeted national

parks (Moukalaba Doudou, Loango, Mayumba, Waka) declines (absolute number stable).

Baseline: 15.38 percent (2015) Target: 25 percent/40,000 (June 2018)

Milestone 7.4: Development stage 1 reached by June 2017. Milestone 7.5: Proportion of 30 percent in June 2017.

Knowledge Global Gas Flaring Reduction (GGFR) Trust

Fund, TA (FY12) Pipeline: Financing GEF Wildlife and Human-Elephant Conflict

Management Project, IPF (FY16) Natural resource management project – tbc (IPF) Knowledge Forestry study (ASA) Note on agriculture and fisheries (ASA)

CPS Outcome 8: Improved knowledge, tools and policies for social service delivery Indicator 8.1: Begin roll out of National Health Information System (2017) Indicator 8.2: Design of RBF pilot completed by December 2017

Milestone 8.1: Identification of policy options for addressing the challenges in the health sector by 2016. Milestone 8.2: award of the NHIS Software development contract : March 31, 2017

Completed (knowledge): Health Financing Report, ASA (FY14) Pipeline: Financing HD focused DPF 1 and 2 Knowledge Innovative approaches in social sector financing

and delivery TA

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Annex 2. Matrix of Key Changes to Original CPS Results Matrix

Original CPS Results Matrix Updated CPS Results Matrix Comments Foundation Pillar: Governance and Public Sector Capacity

Pillar 1: Governance and Public Sector Capacity

Renamed Pillar 1. Otherwise no change in title, but single CPS outcome has been unbundled into three.

Outcome 1. Improved governance, transparency, and accountability in management of the national budget, debt, and mining resources

Unbundled into 3 outcomes: Outcome 1: Increased transparency and

accountability in the extractives sector Outcome 2: Strengthened public financial

management Outcome 3: Improved social and economic data

Indicator for new outcome 1 adjusted. New indicators added to new Outcomes 2 and 3. Wage bill TA (FY16) and civil service reform RAS (FY17-18) planned under new Outcome 2. Outcome 3 created to cover new activities under Statistical Capacity Development (RAS).

Indicator 1.1. Indicator 1.1 recast as Gabon being readmitted as EITI candidate

Change to reflect dropped candidacy. Milestone updated.

Indicator 1.2. Indicator dropped. Bank activity dropped as no government request. Indicator 1.3. Renamed indicator 2.1. Milestone updated. Indicator 1.4. Renamed as indicator 1.2. Milestone updated. New indicators and milestones 2.2 to 2.5 in area

of public financial management Indicators relate to new Outcome 2.

New indicators and milestones 3.1 to 3.4 in area of improved social and economic data.

Indicators relate to new Outcome 3.

Strategic Theme 1: Increasing Gabon’s Competitiveness and Employment

Pillar 2: Competitiveness and Employment Renamed Pillar 2.

Outcome 2. Improved access to energy, infrastructure, and telecommunications

Removed. Telecoms indicators moved to new Outcome 4. Energy indicator moved to new Outcome 6 and revised.

Indicator 2.1. Renamed as indicator 6.1 Milestone updated. Indicator 2.2. Renamed as indicator 4.1 Baseline and target adjusted. Milestone updated. Indicator 2.3. Renamed as indicator 4.2 Target adjusted. Milestone updated. Outcome 3. Improved investment climate and private sector development

Outcome 4: Improved investment climate Telecoms indicators moved to new Outcome 4 from old Outcome 2. New indicators added to new Outcome 4.

Indicator 3.1.

Renamed as indicator 4.3. No target set on original CPS indicator for business registration and costs and hence void for FY12-16. Indicator retained and new baseline and targets set for FY16-18. Milestones updated.

Indicator 3.2. Renamed as indicator 4.4

New indicators and milestones 4.5 to 4.7 in area of improved investment climate.

Outcome 4. Improved vocational skills and capacity

Outcome 5: Strengthened vocational skills-building system

No targets set in CPS. New targets set for FY16-18 (to replace old indicator 4.1)

Indicator 4.1. Indicator dropped. New skills indicators included as 5.1 to 5.3.

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Original CPS Results Matrix Updated CPS Results Matrix Comments New indicators and milestones 5.1 to 5.3 covering

strengthened vocational skills-building system.

Strategic Theme 2: Vulnerability and Resilience

Pillar 3: Human Development and Environmental Sustainability

New wording reflects increased emphasis on human development.

Outcome 6: Improved access and quality of services

New outcome in PLR for FY16-18. Incorporates indicators on energy from old CPS outcome 2 as well as new indicators on water and health.

Indicator 6.1 renamed from previous 2.1. New indicators and milestones 6.2 to 6.7 covering access to services (electricity, water, transport, internet and health information).

Outcome 5. More transparent and sustainable management of natural resources

Outcome 7: Improved transparency and sustainability in natural resource management

New indicators added on wetlands and stabilization of elephant population. Note on agriculture and fisheries and forestry study planned for FY17-18.

Indicator 5.1. Renamed Indicator 7.1. New target. Milestone updated. Indicator 5.2. Renamed Indicator 7.2. Milestone updated. New indicators 7.3 to 7.6 in area of natural

resource management. Milestones updated.

Outcome 6. Improved knowledge of basic service delivery for health and social protection

Outcome 8: Improved knowledge, tools and policies for social service delivery

Wording broadened and indicator added on health information system. Innovative approaches in social sector financing and delivery (TA) planned for FY17-18. Analytical note on HD and update of PEFA and Boost planned for FY17-18 to underpin HD focused DPF.

Indicator 6.1. Shifted to become milestone 8.1. Milestone updated. Indicator 6.2. Dropped. No Bank activity to support this. New indicators and milestones 8.1 and 8.2 in

health system information and RBF.

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Annex 3. Matrix summarizing progress toward FY12-16 CPS Objectives

CPS Outcomes Indicator WBG Program CPS Pillar: Governance and Public Sector Capacity

Outcome 1: Improved governance, transparency, and accountability in management of the national budget, debt, and mining resources Indicator 1.1: Gabon achievement of compliant status by EITI Indicator 1.2: Action plan on how to improve fiscal decentralisation and delivery of basic local services completed and shared with the authorities Indicator 1.3: Development of procurement, commitment, and treasury plans to improve budget management and pave the way for program budgeting Baseline: 0 Target: three line ministries

Outcome 1: Partially on track. Outcome 1 consists of four indicators of which two are off track (EITI compliancy status and an action plan on fiscal decentralisation because the report was dropped), one is partially on (improvement of budget management) and one is achieved (development of a debt management strategy). Indicator 1.1: Progress: Off-track. Gabon lost EITI candidacy status in February 2013. Efforts are under way to relaunch the EITI process. Milestones for indicator 1.1: Gabon failed to produce an updated EITI development policy by June 2012. Mining cadastre system and inspection office was not in place by December 2012. Gabon lost EITI candidacy status in February 2013. A new petroleum code was adopted in 2014 and a new mining code in 2015. Indicator 1.2: Progress: Off track. Government did not request support and there was consequently no Bank activity. Milestones for indicator 1.2: Progress: off-track. Activity was dropped. Indicator 1.3: Progress: Partially on track. A pilot was undertaken for the 2013 budget, applied to 11 ministries. As part of the ongoing PFM RAS Technical assistance is being provided to support the implementation of the program budgeting approach in addition to the development of procurement, commitment and treasury plans. Milestones for indicator 1.3: Progress: On track. Adoption on May 2015 of a new PFM Act that makes mandatory the use of the Procurement, Commitment, and Treasury Plans as part of the preparation and execution of the budget

Completed (knowledge): Oil, gas and mining study, RAS

(FY12) Policy note: growth and employment

(FY12) Debt management study, budget

management, tax system assessment (FY12)

Dropped (knowledge): Civil society capacity building Assessment of the fiscal

decentralization system Ongoing: Financing(IFC) Vaalco Gabon (FY14)

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Indicator 1.4: Development of a governance and debt management strategy

Indicator 1.4: Progress: Achieved. A debt management reform plan was developed with Bank assistance under the first RAS.

CPS Strategic Theme 1: Increasing Gabon’s Competitiveness and Employment

Outcome 2: Improved access to energy, infrastructure, and telecommunications Indicator 2.1: Improved access to modern energy services in urban and rural services: number of people provided with access to electricity by household connections in target areas Baseline: 0 Target: 20,000 people Indicator 2.2: Increased coverage and use of regional broadband and network services: access to internet services (number of subscribers per 100) Baseline: 14 percent Target: 26 percent Indicator 2.3: Average monthly price of wholesale international E1 capacity link from capital city to Europe. Baseline:US$10,500 Target:US$800

Outcome 2: On track. Outcome 2 has three indicators of which one is achieved (access to the internet), one is on track (cost of Gabon-Europe connections) and one off track (improved access to energy services). Indicator 2.1: Progress: Off track. The project was approved by the Board on September 17, 2015. The main reason for delays was the design of a new model to ensure sustainability of basic water and electricity services in rural Gabon. Milestones for indicator 2.1: Progress: off track. There were delays in achieving new community electricity connections (including communities, schools, and health clinics, water pumping systems electrified). Indicator 2.2: Progress: Achieved. Access to internet services has increased to 59 percent of the population. Mobile broadband market with 3G and 4G services is vibrant thanks to competition in international capacity, established under the CAB4 project. Indicator 2.3: Progress: On track. The average monthly price of wholesale capacity has fallen to US$5,000. Further decrease is expected following commercial launch in September 2015 of the private wholesale operator of the ACE submarine cable. Milestones for indicators 2.2 and 2.3: Progress: On track. An e-government strategy and action plan were developed by the Government as planned and Libreville was connected to the ACE submarine cable End of 2012. An internet exchange point (IXP) was established in January

Completed: Financing: CEMAC Financial Institutions

Project (FY09) Knowledge: Port Concession, RAS (FY12) Sources of Growth: Tourism,

Financial Services, Agribusiness RAS (FY12)

IFC Business Climate Improvement RAS (FY12)

Policy note: ICT, ASA (FY13) Electricity sector PPIAF grant

(FY15)

Ongoing: Financing: Central African Backbone Project

(APL4) – Gabon, IPF (FY12) MIGA guarantee Cotecna Inspection (FY13) Knowledge: Improved Investment Climate within

the OHADA, TA loan (FY12)

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2015 and a management policy for Internet implemented. However a fiber optic link connecting Libreville - Franceville - Bakumba – Lekoko with the Dolisie – Mbinda (Rep. of Congo) was delayed (scheduled for 2016).

Outcome 3: Improved investment climate and private sector development Indicator 3.1: Time to register a business Baseline:58 days Indicator 3.2: Cost to register a business Baseline:17 percent of per capita income

Outcome 3: Progress: Achieved. There were two indicators both of which were achieved. Indicator 3.1: Progress: On track. The number of days to register a business has fallen to 50 days. Indicator 3.2. Progress: On track. The cost of registering a business has fallen to 15.1 percent of per capita income. Milestones for indicators 3.1 and 3.2: Progress: On track. Background papers were produced by the Bank on the following: sources of and constraints to economic growth; employment and growth; economic and export diversification and competitiveness.

Ongoing: Financing Investment Promotion and

Competitiveness Project, IPF (FY12) Knowledge Policy note: export diversification

and competitiveness, ASA (FY13)

Outcome 4: Improved vocational skills and capacity Indicator 4.1 A skills development system is articulated and operationalized through government, PPP, and WBG financing.

Outcome 4: Progress: Off track. The only indicator is off track. However, the project is scheduled to go to Board in February 2016 and the indicator is then expected to start moving in the right direction. Indicator 4.1 Progress: Off track. Project rescheduled to FY16. Milestones for indicator 4.1: Progress: Off track. No labour market survey was undertaken.

Ongoing (financing): Skills Development Project, IPF

(FY16)

CPS Strategic Theme 2: Vulnerability and Resilience

Outcome 5: More transparent and sustainable management of natural resources Indicator 5.1: Hectares of land for protection when a biological survey is completed.

Outcome 5: Progress: Achieved. Both indicators are achieved (ICR report n°ICR16270). Indicator 5.1. Progress: Achieved. A biological survey and socioeconomic studies were conducted in pre-identified areas to establish the basis for conservation priority setting. Three areas covering a total area of 945,000 ha were pre-identified and

Completed (knowledge): Strengthening capacity for managing

national parks and biodiversity, TA (FY06)

Capacity building in environmental management of large infrastructure projects, TA (FY08)

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Baseline: 0 (2010) Target: 900,000 (2013) Indicator 5.2: Increase in management effectiveness in three national parks (700,000 hectares) per the GEF tracking tool Baseline: - Loango: 57 percent, - Mayumba: 58 percent - Moukalaba-Doudou: 50 percent Target (2013) - Loango: 65 percent, - Mayumba: 65 percent - Moukalaba-Doudou: 65 percent

surveyed (biological and socioeconomic survey): (i) The Wongué-Evaro Complex (approximately 690,000 ha), (ii) the Mayumba-Mayombe Complex (approximately 250,000 ha) and (iii) the Mondah Forest (approximately 5,000 ha). Indicator 5.2. Progress: Achieved. The GEF Tracking Tool was used to track and report progress taking the year 2010 as baseline. As per the score indicated below, the targets were exceeded for all national parks. Scores in 2013: Loango: 75 percent, Moukalaba-Doudou: 71.91 percent and Mayumba: 65.56 percent. Milestones for indicators 5.1 and 5.2: Progress: Achieved. A national database on biodiversity was created by 2013. A biological inventory was completed for three sites with high biodiversity potential by 2013. There was an increase in surveillance efforts in the three key national parks from 300 person-days per month in 2010 to 581 person-days per month in 2013. Finally, Quarters for park rangers were built and operational in Loango and Moukalaba-Doudou by 2013. Mayumba quarters have not been rehabilitated however. Two milestones relating to gas flaring were not achieved: implementation of a gas-flaring reduction plan and approval of a gas resource development strategy. But Gabon has recently endorsed the World Bank Global Gas Flaring Initiative, aiming at achieving zero routine flaring by 2030. All operators in Gabon have gas flaring reduction plans under implementation.

Ongoing: Financing GEF Sustainable Management of

Critical Wetlands Ecosystems Project, IPF (FY14)

Knowledge Global Gas Flaring Reduction

(GGFR) Trust Fund, TA (FY12)

Outcome 6: Improved knowledge of basic service delivery for health and social protection Indicator 6.1. Identification of policy options for addressing the challenges in the health sector

Outcome 6 Progress: Partially on track. One indicator (identifying policy options in the health sector) is on track and one is off track (an action plan to implement a social safety net). Indicator 6.1 Progress: Achieved. Policy options for addressing the challenges in the health sector were identified. These include: (i) supporting the coverage of informal sector workers under the National Health Insurance Plan (NHIP) through, among other measures, the identification of new sources of financing for coverage and the set-up of formulas for cross-subsidization transfers between population risk pools; and (ii) improving the quality of services by focusing more on primary and preventive care and considering moving towards performance-based payments.

Completed (knowledge): Health financing report, ASA (FY14) Dropped: Social safety nets assessment, ASA

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Indicator 6.2. Action plan to implement the social safety net system

Milestone for indicator 6.1. Progress: On track. A report on the health sector was produced. Indicator 6.2 Progress: Off track. Milestone for indicator 6.2. Progress: Off track. Two reports were dropped based on feedback from the authorities: a) a report on social safety nets; b) a report on human development challenges and obstacles to redistribution.