Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. 61307 - ML

INTERNATIONAL DEVELOPMENT ASSOCIATION

AND

INTERNATIONAL FINANCE CORPORATION

COUNTRY ASSISTANCE STRATEGY PROGRESS REPORT

FOR

THE REPUBLIC OF MALI

FOR THE PERIOD FY08-FY11

April 28, 2011

Country Department for Mali

AFCW3

Africa Region

The International Finance Corporation

Sub-Saharan Africa Department

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 authorization.

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CURRENCY EQUIVALENTS

Exchange rate effective on April 21, 2011

Currency Unit = CFA Franc (CFAF)

$1 = CFAF 449

GOVERNMENT FISCAL YEAR

January 1 – December 31

WEIGHTS AND MEASURES

Metric System

ACRONYMS AND ABBREVIATIONS

AAA Analytical and Advisory Activities

AFD Agence Française de Développement

(French Agency for Development)

AfBD African Development Bank

AMADER Agence Malienne pour le

développement de l’énergie (Malian

Agency for Energy Development)

API- Mali Agence de Promotion des

Investissements (Malian Investment

Promotion Agency)

ARV Antiretroviral

BHM Banque de l’Habitat du Mali (Malian

Housing Bank)

BIM Banque d’Investissement du Mali

(Malian Investment Bank)

BoA Bank of Africa

CAADP Comprehensive Africa Agriculture

CAS Country Assistance Strategy

CASPR Country Assistance Strategy Progress

Report

CC Climate Change

CD Capacity Development

CENA Capacity Enhancement Needs

Assessments

CFAF CFA Franc

CMDT Compagnie Malienne pour le

Développement des Textiles (Malian

Ginning Company)

CPAR Country Procurement Assessment

Report

CSIF Country Strategic Investment

Framework

DPL Development Policy Loan

DPT Diptheria, Pertussis and Tetanus

DRM Disaster Risk Management

DSA Debt Sustainability Analysis

DTIS Diagnostic Trade Integration Study

ECF Extended Credit Facility

ECOWAS Economic Community of West

African States

EDM Electricité du Mali (Electricity of

Mali)

EFA-FTI Education For All – Fast-Track

Initiative

ESSD TF Trust Fund for Environmentally and

Socially Sustainable Development

EU European Union

EITI Extractive Industries Transparency

Initiative

ESW Economic and Sector Work

EU European Union

FIAS Foreign Investment Advisory Service

FSAP Financial Sector Assessment Program

FY Fiscal Year

GAC Governance and Anti-Corruption

GBD TA Governance and Budget

Decentralization TA operation

GDP Gross Domestic Product

GEF Global Environment Fund

GoM Government of Mali

GPRSF Growth and Poverty Reduction

Framework

GSP Growth Support Project

ha Hectare

HIV/AIDS Human Immunodeficiency

Virus/Acquired Immunodeficiency

Syndrome

ICA Investment Climate Assessment

ICT Information and Communication

Technologies

IDA International Development Agency

IDF Institutional Development Fund

The last Country Assistance Strategy for Mali (report No.41746 - ML) was discussed by the

Board on February 5, 2008.

IFC International Finance Corporation

IMF International Monetary Fund

Kg Kilogram

JAS Joint Assistance Strategy

JSAN Joint Staff Advisory Note

M&E Monitoring and evaluation

MDG Millennium Development Goal

MIGA Multilateral Investment Guarantee

Agency

MoU Memorandum of Understanding

MSME Micro, Small and Medium Enterprises

MTEF Mid-Term Expenditure Framework

MW Mega Watt

NRM Natural Resource Management

OHADA Organisation pour l’Harmonisation

du Droit des Affaires en Afrique

(Organization for the Harmonization

of Business Law in Africa)

ON Office du Niger PAGAM Plan d’Action Gouvernemental pour la

- GFP Modernisation et le Renforcement de la

Gestion des Finances Publiques (Action

Plan for Modernizing and Strengthening

Public Financial Management)

PAPAM Projet d’appui à la productivité

agricole au Mali (Agriculture

Productivity Project)

PEFA Public Expenditure and Financial

Accountability

PEMFAR Public Expenditure Management and

Financial Accountability Review

PER Public Expenditure Review

PETS Public Expenditure Tracking Survey

PFM Public Financial Management

PHRD Japan Policy and Human Resources

Development Fund

PIU Project Implementation Unit

PRODEC Programme de Développement

Décennal de l’Education (Ten Year

Edcuation Development Program)

PRSC Poverty Reduction Support Credit

PRSP Poverty Reduction Strategy Paper

PSD Private sector development

RH Reproductive health

SDR Special Drawing Rights

SHA Secrétariat à l’Harmonisation de

l’Aide (Aid Harmonization

Secretariat)

SLM Sustainable Land Management

SME Small and Medium Enterprise

SREP Scaling Up Renewable Energy in Low

Income Countries Program

SOTELMA Société des Télécommunications du

Mali (Malian Telecommunication

company)

SSN Social Safety Net

STEP Support and Training for

Entrepreneurship Program

SWAp Sector-Wide Approach

T/ha Ton per hectare

TA Technical Assistance

UN United Nations

UNDP United Nations Development Program

WAEMU West African Economic and

Monetary Union

WAPP West Africa Power Pool

WBG World Bank Group

WBI World Bank Institute

IDA IFC

Vice President: Obiageli K. Ezekwesili (AFRVP)

Acting Country Director: Ousmane Diagana (AFCW3)

Task Team Leader: Sybille Crystal (AFCML)

Vice President: Thierry Tanoh (CXAVP)

Director:Yolande Duhem (CAFWO)

Senior Country Officer: Jérôme Cretegny (CAFW3)

The following World Bank Group Staff contributed to the preparation of the CAS Progress Report: Sybille Crystal

(TTL), Christian Eghoff, Fily Bouaré Sissoko, Clara Ana Coutinho de Sousa, Cheick Diop, Simon Davies, Tawfik

Ramlootah, Fabio Galli, Fabrice Bertholet, Olivier Durand, Abdoulaye Touré, Yeyande Sangho, Agadiou Dama,

Taoufiq Bennouna, Pierre Kamano, Aissatou Diack, John May, Setareh Razmara, Zié Coulibaly, Michel Noel, André

Ryba, Fadwa Bennani, Leonardo Iacovone, Maiko Miayke, Michel Rogy, Brigitte Bocoum, Amadou Dem, Jérôme

Crétegny, Deo Ndikumana, Conor Healy, Karima Laouali Ladjo, Mohamed Touré, Ronke Ogunsulire, and Frank

Douamba. The team benefited from advice and guidance from Ousmane Diagana.

MALI

COUNTRY ASSITANCE STRATEGY

TABLE OF CONTENTS

Page

I. INTRODUCTION ...................................................................................................................... 1 II. COUNTRY CONTEXT .............................................................................................................. 1

A. Political and Security Context ............................................................................................... 1 B. Economic Context ................................................................................................................ 2 C. Social and Poverty context .................................................................................................... 3

III. CAS IMPLEMENTATION PROGRESS .................................................................................... 4 A. Progress on CAS Strategic Objective I: Promote rapid and broad-Based Growth ................. 4 B. Progress on CAS Strategic Objective II: Strengthen Public Sector Performance................... 6 C. Implementation Progress ...................................................................................................... 7 D. Partnership and the Aid Effectiveness Agenda...................................................................... 9

IV. STRENGTHENED AND EXTENDED CAS PROGRAM ....................................................... 10 V. MANAGING RISKS ................................................................................................................ 12

List of Appendixes

Country Specific appendixes

Appendix 1: Mali CAS Updated Results Matrix

Appendix 2: IDA Lending and Analytical Program

Appendix 3: Status of MDGs

Appendix 4: IFC and MIGA Programs

Appendix 5: Partnership and Aid Effectiveness

Appendix 6: Climate Change Effects on Malian Main Development Sectors

Appendix 7: Mali Country At-A-Glance

Standard CAS Annexes

CAS Annex B2: Selected Indicators of Bank Portfolio Performance and Management

CAS Annex B3: IDA Program Summary

CAS Annex B6: Key Economic Indicators

CAS Annex B7: Key Exposure Indicators

CAS Annex B8: Operations Portfolio (IDA and Grants)

CAS Annex B8: Statements of IFC‟s Held and Disbursed Portfolio

Map No. IBRD 33443

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I. INTRODUCTION

1. The Country Assistance Strategy Progress Report (CASPR) reviews the relevance of the

Bank’s FY08-11 Country Assistance Strategy (CAS) for Mali. The CAS supports Mali‟s second

poverty reduction strategy, the Growth and Poverty Reduction Strategy Framework (GPRSF),

designed as the first phase of the 10-year action plan to achieve the Millennium Development Goals

(MDGs). The 2007-2011 GPRSF promotes strong growth of average 7 percent per year and targets a

reduction in poverty incidence from 56 percent in 2007 to 51.2 percent in 2011 through wealth

generation, employment creation and strengthened public sector performance. The GPRSF is

articulated around three strategic pillars: (1) developing infrastructure and strengthening productive

sectors; (2) consolidating the public sector structural reform agenda; and (3) strengthening the social

sector. The CAS selectively assists the Government of Mali (GoM) in achieving its key GPRSF

objectives. This CASPR provides an update on the country context, progress toward achieving the

CAS objectives and outcomes, evolution of key risks, and introduces areas of emphasis in the

framework going forward.

2. The CASPR confirms that the strategic priorities of the CAS remain relevant and well aligned

with national priorities and the Africa Strategy, and that progress toward CAS outcomes is broadly

on track. The Bank‟s interventions, through its two strategic objectives to promote rapid and broad-

based growth and to strengthen public sector performance, remain valid. Given Mali landlocked status,

vulnerability to external shocks, low level of human development, and administrative capacity

constraints, the new Africa Strategy endorsed by the Board of Director on March 1, 2011 provides a

solid framework for moving towards achieving the CAS strategic goals. In that context, the CASPR

emphasizes the need for attention in the key areas of competitiveness and employment, vulnerability

and resilience, as well as governance and public sector capacity while deploying our partnership for

more inclusive growth and social cohesion. Therefore, during the proposed CAS extension period, the

Bank program will be a continuation of activities undertaken to support the GoM to enhance the

regulatory and institutional framework for infrastructure and private investment to improve the

provision of critical production factors as well as economic productivity and diversification, and to

strengthen public sector efficiency for improved access to and delivery of basic social services. In

addition, in order to take into account emerging challenges related to the volatility of commodity

prices and the national and regional security situation and to respond to GoM‟s new priorities, special

emphasis will be devoted to supporting the human development agenda and helping the GoM to

address the population, education, youth, social protection, and urban and peri-urban challenges.

II. COUNTRY CONTEXT

A. POLITICAL AND SECURITY CONTEXT

3. Mali continues to enjoy political stability and is deepening its democratic process in the run

up to the 2012 elections. Presidential and parliamentary elections will take place in April and July

2012 respectively under a democratic system reinforced by the proposed constitutional reform package

that includes the creation of an upper house of Parliament, strengthening of independent media and

election watchdogs, and a new code of conduct for politicians. A referendum on the proposed changes

is scheduled for 2011.

4. Insecurity in Northern Mali persists. The current situation results from a confluence of illicit

trafficking, global and regional terror networks, and armed groups connected indirectly or directly to

the legacy of armed insurgencies in the region. The area historically depends on trans-border flows of

goods and people, in particular with Algeria, Mauritania and Niger. Mali‟s geographic position

explains al-Qaida in the Islamic Maghreb‟s presence in Northern Mali, a lightly populated area with

few development solutions and hence susceptible to illicit economic activity. To overcome this

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challenge, Mali emphasizes the need for a regional “Sahelo-Saharan” solution combined with well

targeted development programs tailored to the specific needs of the North of Mali.

5. Ongoing political crisis in Libya and Côte d’Ivoire makes Mali even more vulnerable to

conflict and insecurity. Libya has a strong presence in Mali and plays a prominent role in the

economy with major investments in several sectors, including banking, tourism, and agriculture.

Furthermore, in the past, Libya‟s mediating role has been key in resolving conflict between Mali‟s

central Government and the Tuareg communities in the northern part of the country. Libya is also

home to thousands of Malian immigrants. In addition to their common membership in WAEMU, Côte

d‟Ivoire and Mali maintain strong economic, social and cultural relationships. Côte d‟Ivoire remains

Mali‟s biggest partner in the sub-region and its corridor still represents the channel for about 40

percent of Mali‟s trade. In addition, there is a significant number of Malians citizens living in Côte

d‟Ivoire.

B. ECONOMIC CONTEXT

6. Despite a difficult international environment, Mali’s macroeconomic performance has been

broadly favorable. The very limited integration of Mali with international capital markets insulated its

economy from the direct effects of the global economic slowdown. Remittances dropped somewhat as

labor markets weakened in Europe, but budget support by development partners was maintained. Real

gross domestic product (GDP) growth averaged 5.1 percent a year in the 2008-2010 period driven by a

strong performance of agriculture boosted by good climatic conditions, supportive policies ( including

GoM‟s input subsidies) and robust prices for gold (75 percent of exports) that more than offset the

decline in gold production. This contributed to the return of average inflation to 2.2 percent and 1.4

percent in 2009 and 2010 respectively, after reaching 9.1 percent in 2008 due to the oil and food crisis.

Year-on-year inflation reached 3.6 percent in January 2011 due to the rise in international commodity

prices and to trade disruptions linked to the turmoil in Côte d‟Ivoire. Favorable terms of trade helped

the external current account deficit (excluding official transfers) decrease from 13.9 percent of GDP in

2008 to 9.0 percent of GDP in 2010.

7. Fiscal performance in the 2008-2010 period was in line with the GoM’s program supported

under the IMF ECF arrangement. Despite the food and fuel crisis of 2008, the basic fiscal deficit

was maintained at the sustainable level of 1.0 percent of GDP. With the implementation of an

extraordinary program of investments financed with resources from the privatization of the telecom

parastatal, SOTELMA, the basic deficit is temporarily unsustainable but the GoM is implementing a

credible plan to return the deficit to sustainable levels by 2013.

8. While the medium-term macroeconomic outlook is favorable, Mali remains very vulnerable to

exogenous shocks that may hamper its growth. Given the critical importance of agriculture in growth

performance and consumer price trends, the Malian economy is particularly vulnerable to climatic

shocks. The economy is also vulnerable to terms of trade shocks. Uncertainties increased in recent

months with the political crisis in Cote d‟Ivoire and the political turmoil in Libya. Based on the above,

real GDP growth is expected to be 5.3 percent in 2011 and to remain at that level during the 2012-14

period driven by high gold, cotton and grain prices. Agriculture is projected to grow at 8.3 percent in

2011 and 6.3 percent in the medium term. Average growth rate for gold is projected at 10 percent in

2012 and 2013 before gold production starts declining moderately starting in 2014. The recent surge in

commodity prices is expected to cause a moderate increase in inflation to about 4.5 percent in 2011,

returning to below 3 percent from 2012. Buoyant gold and cotton prices are expected to more than

offset high oil and food prices thus helping strengthen the external current account balance in 2011

and beyond. The 2011 Budget Law targets a budget deficit of 2 percent of GDP, which could be

revised to 2.5 percent to account for measures to mitigate the impact of the fuel and oil price increases

on poverty. These could include reducing import taxes on some food items.

- 3 -

9. To increase its ability to respond to shocks, Mali needs to accelerate actions to increase

productivity and diversify its economy. This is rendered more urgent by the projected decline of

existing gold production, Mali‟s main source of foreign exchange and an important source of fiscal

revenues, which has already increased debt vulnerabilities. While the effects of rising commodity

prices have been rather positive on Mali on the supply side, with high gold prices mitigating the

decline of production in 2010 and the reinvigoration of cotton production as a result of rising

international cotton prices, there is concern on the demand side with oil prices affecting the balance of

payments and the budget deficit as the GoM is reluctant to pass the increase in international prices to

domestic consumers. In addition, caution should be exercised given the uncertainty of commodity

prices over the medium and long term. In line with the new Africa Strategy, the Bank program is

strengthening Mali‟s efforts to raise agricultural productivity, better link farmers to markets and

increase resilience on the agriculture side through its support to Office du Niger (ON) designed to

improve the management of irrigated agriculture, ongoing analytical work on growth, and policy

dialogue on the need for selectivity in the agriculture subsidy policy. The Bank is also supporting the

establishment of a transparent tariff adjustment mechanism for energy products. In addition, the 2010

Debt Sustainability Analysis upgraded the risk of debt distress from low to moderate due to increased

vulnerabilities related to higher volatility of gold exports.

C. SOCIAL AND POVERTY CONTEXT

10. Rapid population growth and high levels of fertility pose challenges to economic growth,

poverty reduction, and achievement of MDGs. Preliminary results of the 2009 population census

highlight the urgency in tackling demographic issues. At current net growth rate of 3.6 percent per

year, the population (14.5 million) will double in 23 years. With a total fertility rate of 6.6 children,

unchanged for the last two decades, and a mortality rate for children under five declining steadily,

population in Mali is bound to continue to increase for a long time, given its age structure. With such

population growth, GDP per capita growth is only about 1.5 percent. Mali‟s high population growth

puts excessive pressure on public resources for service delivery. Only 3 MDGs are likely to be

achieved (see Appendix 3).

11. Progress in expanding access to potable water has been made during the last decade, but the

challenge remains to achieve the MDG targets. Access rate to safe drinking water is estimated at 73

percent in 2009 (78 percent of the population served in rural areas and 91 percent in urban areas).

While progress in water supply is remarkable, sanitation remains confronted with major challenges.

Only 32 percent of households have access to improved sanitation services in rural areas and 45

percent in urban areas. To sustain progress toward the MDG achievements, it would be necessary to

provide water services to over 400,000 additional people each year and sanitation services to 720,000

people. This would cost about US$110 million a year for water supply (excluding large water

production investments) and US$30 million a year for sanitation.

12. To reduce poverty, Mali needs to reach a higher level of GDP growth and better target pro-

poor expenditures. GDP growth has not achieved the 7 percent required for rapid poverty reduction.

Projections in the 2009 GPRSF Progress Report estimate poverty at 43.7 percent in 2009 (53.5 percent

in rural areas from 57.6 percent in 2006 against 23.5 percent in urban areas from 25.5 percent in

2006). Actual poverty rates are expected in the coming months based on data from the 2010 household

survey. The positive economic indicators have not translated into much improved human development

outcomes. The country ranks 160 out of 169 countries in UNDP‟s 2010 Human Development Index.

13. Mali’s high vulnerability to a variety of shocks has increased the demand for social safety

nets (SSN) programs. The scope and coverage of the existing SSN system is too limited and most

interventions (mainly food transfers) are small in scale, designed as temporary programs, and financed

- 4 -

by external and ad hoc resources. Spending on SSN programs only corresponds to 0.5 percent of GDP,

while over 25 percent of the population is food insecure. Given the needs of the chronic poor and the

limited fiscal space available for SSN programs, an expansion of the SSN programs and an allocation

of scarce resources to well targeted and cost-efficient programs are necessary.

III. CAS IMPLEMENTATION PROGRESS

14. Good progress toward CAS milestones and outcomes has been achieved and the CAS program

is generally on track. Notable advances have been made in relation to improved agricultural

productivity, irrigation capacities, competitiveness of selected supply chains, business environment,

efficiency of public expenditure management, immunization coverage, and access to rural

transportation, electricity, and education (in particular primary education). Progress has been

particularly slow in the health sector. Also, further progress will be required during the remainder of

the CAS period, especially on key institutional reforms which have faced delays due to the time

needed to reach a consensual approach rather than a lack of GoM‟s commitment to the reform agenda.

With regard to infrastructure, the key challenges that Mali needs to tackle are in the area of the

institutional and regulatory framework in the energy sector as well as electricity tariff issues, and the

restructuring of the TRANSRAIL concession. Mali needs to further promote private investment with a

regulatory framework for industrial zones and the implementation of the next phase of the investment

climate reform program. Mali also needs to improve fiduciary oversight (especially external control).

Special emphasis should be placed on improving equity and relevance of the education system, the

management of the health sector, and addressing the demand for and use of population and

reproductive health services given the high rate of demographic growth. AAA has been an important

component of the CAS, both in addressing knowledge gaps in emerging country challenges and in

supporting reforms at the sector level. IFC‟s strategy complemented IDA‟s efforts in the development

of the private sector and the private delivery of health services. Details of progress to date and updated

outcome indicators are reflected in the CAS results matrix (see Appendix 1).

A. PROGRESS ON CAS STRATEGIC OBJECTIVE I: PROMOTE RAPID AND BROAD-BASED GROWTH

15. Agricultural productivity, irrigation capacities, and competitiveness of selected supply chains

improved. The Bank has supported institutional reforms, investments in irrigable lands, and the rice

initiative launched by the GoM as a response to the 2008 food price crisis. Mali adopted a new price

mechanism linking domestic cotton prices to world market prices. The privatization of the four

Compagnie Malienne pour le Développement des Textiles (CMDT) subsidiaries was launched and is

expected to be finalized by mid 2011. The PRSC series has supported the privatization process and the

adoption of the legislative framework establishing the regulatory structure for the cotton sector after

the privatization of CMDT. The development of newly irrigated land developed led to a rice

production increase of 26,000 tons in 2010. Going forward, Mali needs to further exploit its irrigation

and commercial agriculture potential and to diversify its agricultural production beyond cotton and

rice at ON. The Bank will strengthen its support to increase irrigation capacities, facilitate technology

transfer to increase productivity with a particular focus on rice, cowpea and milk yields, and improve

competitiveness of selected supply chains by promoting value addition for agricultural and livestock

products.

16. Work is ongoing to improve natural resources management (NRM) and resilience to climate

change (CC). To help Mali‟s agriculture and natural resource-based economy to adapt to uncertain

climate, the Bank has provided analytical, TA and investment support (cost benefit analysis, public

expenditure review for NRM and sustainable land management - SLM, and a Country Strategic

Framework for Sustainable Land Management) (see Appendix 6). The Bank is helping to strengthen

the disaster risk management (DRM) institutional framework, reinforce key institutions‟ technical

capacities, and implement a pilot project for vulnerable communities‟ protection, given that nearly 30

- 5 -

percent of Mali‟s population lives in areas at risk. The Agriculture Productivity Project is developing

and disseminating land management tools and good practices for agriculture investments. Mali also

benefits from the Integrated Land and Water Management for Adaptation to Climate Variability and

Change trust fund which supports the establishment of an operational information system for DRM,

CC and SLM. Going forward, the Bank will help strengthen the resilience of agricultural and natural

resources sectors with the preparation of a regional Bank/GEF project in support of the Great Green

Wall initiative. The Urban Environment Analysis could help identify areas of collaboration for

sustainable urban development.

17. There has been good progress on several transport outcomes to increase access. With the

Bank‟s contribution through the Second Transport Project and Transport Corridor Improvement

Project, about 1,450 km of key unpaved rural roads have been either periodically maintained or

rehabilitated and 220 km of key paved roads have been improved. The percentage of main roads in

good condition increased to about 64.8 percent in 2011. Sustainability of road transport infrastructure

has been enhanced by supporting the institutional development of Road Fund and Authority. Also,

Bamako‟s airport safety has improved as a result of the investment in security and safety equipment

financed through the West and Central Africa Aviation Security Project as well as the strengthening of

the regulatory oversight of the airport operations by the Civil Aviation Authority. The restructuring of

the TRANSRAIL concession is still underway but is suffering from a lack of decision making of the

two governments overseeing the concession. TRANSRAIL legal protection from liquidation will

expire before June 2011 and the only credible rescue package would involve an immediate joint

contribution of CFA10 billion from Senegal and Mali ahead of reaching any agreement with the

current or a new primary shareholder on the revised terms of the concession contract. Going forward,

the Bank will focus on increasing all weather rural access, making rural and urban transport

infrastructure more resilient to climate change by focusing on the provision of better drainage, small

structures and culverts, improving the quality and efficiency of urban transport systems, supporting

transport facilitation and road transport infrastructure on key regional corridors, and working with the

governments of Mali and Senegal to ensure the effective restructuring of the TRANSRAIL concession

through direct financial support to TRANSRAIL‟s 2020 investment plan.

18. Access to electricity improved but challenges remain in the sector’s institutional reform and

its sustainability. Bank support to rural electrification contributed to increase access to electricity to

22 percent in 2010 (11 percent in rural areas). Mali is on track regarding the expansion of generation

with the completion of two thermal generation plants. In addition, progress has been made on the

regional power integration side with the 60MW Félou hydropower project expected to be

commissioned by end 2012. The restructuring of EDM-SA has been initiated and the legal unbundling

of the water and electricity sectors is ongoing. However, the implementation of EDM-SA recovery

plan is slow and the company‟s financial viability deteriorated, impairing efforts to improve its

operational performance. In a context of rising oil prices, the financial sustainability of the sector is a

major issue. Following the July 2009 adjustment of electricity tariffs, progress has been slow vis-à-vis

the adoption of the electricity tariff adjustment mechanism. An interim tariff mechanism, which

defines guiding principles and the methodology for tariff adjustments, was adopted in February

2011.The technical work to calibrate the tariff formula should be completed in June 2011. Going

forward, the Bank will support the GoM‟s emphasis on increasing access and pursue technical work

and dialogue on institutional, regulatory and tariff issues, and on enhancing energy efficiency and

demand-side management. In addition, as part of the Scaling Up Renewable Energy in Low Income

Countries Program (SREP), AfDB, IFC and IDA will support the GoM to develop an investment

strategy for renewable rural electrification with private sector involvement.

19. Mali has achieved considerable progress in improving the investment climate. SOTELMA, the

national telecom company, has been privatized. An investment promotion agency has been established

in 2006, and a one-stop shop for investors in 2009. It now takes 72 hours to register a new business in

- 6 -

Mali. Documentation requirements for trade logistics have been cut, the property transfer tax rate has

been reduced, and tax filing has been consolidated. As a result of the implementation of a joint TA and

partial credit facility by IFC and IDA, the share of short and medium-term small and medium

enterprise (SME) credit in total bank credit has increased significantly. In addition, the IFC and the

Bank implemented several programs to improve SME productivity and skills, including the Support

and Training for Entrepreneurship Program (STEP), the Trickle Up Program and the Grassroots

Business Initiative. Finally, IFC trained more than 250 entrepreneurs in the advantages of leasing, in

partnership with 10 professional associations. Despite this progress, several challenges remain. The

new industrial zone law, approved by the Cabinet, has not been submitted to Parliament. There is no

equipped industrial zone in the country. As a result, access to equipped agro-industrial land is severely

limited. Access to long-term credit remains a severe constraint for enterprises, in particular SMEs. To

address these challenges, the Bank will support: (i) preparation of the regulatory framework for

industrial zones following the adoption of the new law by Parliament; (ii) initial infrastructure

investments in the industrial zone of Bamako-Sénou; and (iii) feasibility studies for agro-processing

zones of Sikasso and Mopti. The Bank will also support phase 2 of the investment climate reform

program and the new wave of reforms in the information and communication technology sector.

B. PROGRESS ON CAS STRATEGIC OBJECTIVE II: STRENGTHEN PUBLIC SECTOR PERFORMANCE

20. Reforms are improving public expenditure management. Important steps were taken by the

Government since 2007 in the context of the implementation of the PAGAM-GFP, supported by the

second PRSC series. The budget is prepared with increasing regard to Government policy, reflecting a

larger number of Ministries with rolling MTEFs. Competitiveness, value for money and controls in

procurement has also improved. Procurement controls and regulatory bodies have been established

and in 2010, open bidding procedure corresponded to about 77 percent of the total recorded

Government contracts. The effectiveness of internal controls has also improved, helped by concerted

efforts to increase capacity. Finally, good progress was made in budget reporting practices, as

evidenced by the regular publication of intra-year budget reports and the submission of annual

financial statements to the National Assembly on time for the discussion of the following year budget.

Areas in which progress was unsatisfactory include external audit and intergovernmental fiscal

relations. The framework for scrutiny of public finances and follow up by the executive is weak.

Similarly, the framework for inter-governmental relations is inadequate, resulting in lower than

planned transfers of resources from the central government to the decentralized level. To advance

public finance management (PFM) reform, the Government approved in 2010 the 5-year PAGAM II,

which will benefit from Bank support though PRSCs and the Governance and Budget Decentralization

(GBD) TA operation. Priorities will include strengthening procurement practices, including through

increased transparency and participation, strengthened quality of budget reports and financial

statements, strengthened capacity for fiscal operations in a context of decentralization and enhanced

fiduciary oversight.

21. Mali has made significant progress in expanding access to education, especially basic

education. The Bank has continued its support to the GoM‟s ten-year education program (PRODEC).

Implementation of the PRODEC resulted in increased gross enrollment rates for primary and lower

secondary education. Communities, Medersas and private schools contributed to this increase. Primary

completion rates improved going from 43.5 to 56.5 percent over the past five years and the gap in

completion rates between boys and girls declined from 15 to 8 percent. The GoM performed well in

terms of financing basic education with the share to primary education going from 35 to 40 percent

and the share of non-teaching staff declining thereby improving the quality of education expenditures.

However, there are serious regional and gender disparities, particularly in Northern Mali. Efforts to

improve quality have been made but equity and relevance of the education system remain problematic.

Training goals were surpassed but only 300 schools have the necessary books. Secondary and post

secondary, including vocational education and training, are particularly affected by the weak quality of

- 7 -

the system. This translates into low literacy and skill levels, scarce qualified labor, and almost non-

existent and costly business support services resulting in low labor productivity. Going forward, the

Bank will support the GoM to better define and implement an education program to increase the

output and quality of the education system to improve the overall qualification of the labor force and

to link the sector to the job market.

22. Except for immunization coverage, progress in the health sector is too slow. Immunization

coverage has greatly progressed. The percentage of children under 1 year of age immunized with

DPT3 progressed from 68 percent in 2006 to close to 100 percent in 2009. However, infant mortality

at 103 per 1,000 live births and maternal mortality at 830 per 100,000 live births remain very high.

Reproductive health (RH) indicators are poor with only 57 percent of deliveries attended by skilled

personnel, and 8.2 percent of 15-49 year old women using contraceptives. So far, only 2.9 percent of

Malians have access to health mutuals. Quality of care remains a problem. Human resource reforms

have been implemented but they are limited to the creation of a new directorate that has not yet

achieved its objective to post midwifes and nurses in the rural areas, thus resulting in large inequities

in access to quality health services. Going forward, interventions have to be reinforced in the areas of

RH, family planning, and financial protection of people requiring access to health services. IFC

supports the private delivery of health services through the Health in Africa initiative and is providing

TA to establish a public private dialogue committee and to create a private health sector alliance,

improve the regulatory framework governing the private health sector, and increase access to

financing for the private sector.

23. The national response to the HIV/AIDS and access to HIV/AIDS related services have

improved. Sustained financial contribution to fight HIV/AIDS has enabled the provision of voluntary

counseling and testing to more than 12,000 persons. Out of about 35,000 persons eligible for

antiretroviral treatment, 70 percent have access to the treatment. Twenty-two private centers now offer

testing services and more than 70 enterprises and business associations have implemented an action

plan to fight HIV/AIDS. The GoM allocates about US$4 million every year to fight HIV/AIDS and is

planning to set up a dedicated fund to try to address the unpredictability of development partner

funding. The study to set up this fund is ongoing. The Bank plans to support GoM by strengthening

the system in place to distribute antiretroviral drugs and provide screening services. The proposed

Reproductive Health Project will continue the dialogue on strategic issues related to HIV/AIDS,

including its mainstreaming in the GoM‟s program.

C. IMPLEMENTATION PROGRESS

24. Delivery of the planned IDA lending program has been on track and lending commitments

exceed the indicative CAS program. Only the Governance and Budget Decentralization TA operation

slipped in order to fully align its design with the 2010 action plan for modernizing and strengthening

PFM. Mali has benefited from increased IDA amount thanks to the pilot crisis response window and

reallocations. The Urban Local Governments Support Project will be delivered as planned. The

grant/loan mix of IDA allocation in FY12 will be determined in June 2011 based on the risk of debt

distress now assessed as moderate. Appendix 2 presents planned and actual deliveries of the CAS

program.

25. While portfolio quality is overall satisfactory, challenges remain especially in procurement,

and monitoring and evaluation (M&E). The current IDA portfolio comprises 10 operations, including

one IDA-GEF blended operation, with net commitments of US$568.5 million and an undisbursed

balance of US$334.2 million. The portfolio focuses on agriculture, energy, and institutional reforms.

The Bank relies on annual development policy loans to assist the GoM with key structural reforms.

Weak procurement capacity at project level, procurement delays, and deficiencies in planning

projects‟ activities persist. Efforts are underway to ensure that all projects have a formal M&E

- 8 -

framework and an operational monitoring system. The weak statistical capacity is a main challenge in

terms of results monitoring. The GoM and the Bank are working closely to address these issues

through joint annual Country Portfolio Performance Reviews, regular project implementation reviews,

and fiduciary trainings. In addition, the decentralization of the management of the Mali program is

progressing steadily, thus providing enhanced and just-in-time support.

26. The Bank has developed sector-based and cross-cutting support in the area of governance.

The Bank is supporting the GoM in strengthening the management capacity of the mining sector and

improving its governance. A governance structure for EITI implementation was established which led

to the designation of Mali as an EITI candidate country that is „close to compliant” in December 2010.

International validation of Mali‟s EITI process is expected to take place during 2011 when the country

achieves Compliant Status. The Bank carried out a governance assessment of the energy and transport

sectors. Identified measures to deal with significant losses at the electricity company, EDM, were

integrated in the design of the Energy Support Project, and discussions took place notably with regards

to tackling the pervasive controls faced by the transport sector. The Bank is also focusing its

governance work on streamlining the bidding process for greater transparency, enhancing the budget

process. Two Public Expenditure Tracking Survey (PETS) in education and health uncovered

significant leakages in delivery of key services. Following the suspension of some grants by the

Global Fund to fight AIDS, Tuberculosis and Malaria after confirmation that US$4 million (36 percent

of the funds) were embezzled or unjustified, the GoM prepared and shared a report of procurement and

internal control breached in the management of these funds. The Bank is conducting a comprehensive

financial management and procurement assessment which will result in the design of a fiduciary

capacity building plan that will cover central, district and local levels, and of a governance

strengthening plan. The Bank‟s work has also started emphasizing the demand side of accountability.

27. Challenges remain to better mainstream governance and anti-corruption actions in Bank’s

operations, implement them at the sector level, and build social accountability. The PRSC series and

the GBD TA operation will emphasize transparency, accountability and governance in public

expenditure management and will build capacity to carry out PETS. The proposed Urban Local

Governments Support Project operation will aim to support strengthened institutional capacity of five

targeted urban local governments for improved service delivery and enhanced governance and

accountability at the local level built around an effective fiscal framework designed to enable

predictable resource transfers to urban local governments. A comprehensive analysis of the

governance agenda is under preparation to review the legal, regulatory, institutional, and policy

frameworks in place and their adequacy. To tackle the emerging challenges and slow implementation

of key structural reforms, strengthened social accountability mechanisms could play a strong part to

improve good governance and service delivery. The slow progress in EDM restructuring, its recovery

plan and the electricity tariff adjustment mechanism is linked to sector governance challenges.

Building political support for the reform by better showing the positive results the reform would bring

would be key in the resolution of the current challenges. A proposal under the demand for good

governance window of the Social Development Civil Society Fund has been accepted in order to carry

out a study on instruments and tools for accountability for civil society representatives.

28. The Bank committed to strengthen capacity development (CD). Using the Capacity

Enhancement Needs Assessment (CENA) approach sponsored by WBI in a few countries, four CD

action forms were prepared on M&E, public procurement, regulatory framework in the energy sector,

and public revenue administration. The financial and human capacity to implement the approach

proved to be an obstacle to implement the approach. It was therefore only implemented through the

IDF to strengthen the GPRSF results framework while the findings of the other CD action forms were

used for procurement training sessions and embedded in the Energy Sector Support Project and two

successfully completed IDFs on PFM. Statistical capacity development was provided through

household survey analysis under the Belgian trust fund. CD needs are now being identified and

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addressed through project preparation and implementation and under various non-lending and trust

fund activities.

29. The Bank has strengthened its interventions to address gender-specific constraints. As a result

of the 2006 gender assessment, gender specific measures are incorporated in Bank‟s operations and

non-lending activities and the Bank is advocating incorporating gender-responsive actions into country

strategy documents. Donors have supported the GoM design a gender and equity strategy. Through the

Household Energy and Universal Access (HEURA) Project, women‟s associations manage some of

the multifunctional platforms installed in 64 communities resulting in 7, 200 connections. Under the

Gender and Energy Program of the Africa Renewable Energy Access Program, the HEURA Project

strengthened the capacity of the national agency on household energy and rural electrification,

AMADER, to integrate gender activities. The Bank will now carry out a full gender and energy needs

assessment in selected villages to develop an action plan for training, knowledge sharing and CD

activities for women in rural communities. Gender-specific measures were also incorporated in all

agriculture, NRM and CC activities. The main issues tackled relate to the vulnerability of women and

female-headed households, capacity building for social institutions and women‟s groups, and

promotion of specific adaptation strategies under the leadership of women‟s organizations. An ESSD

TF on gender helped design an operations manual which addressed access to financial resources and

training for female producer groups, and female participation in agricultural policy decision making.

Under the GSP, two women associations are participating in the managing association of the matching

grant fund under the Enterprise Support Services component. In the context of the analytical work on

SSN, the Bank prepared a report on welfare effects of widowhood in Mali. Going forward, the

upcoming RH constraints assessment will include social norms analyses that affect women‟ RH

choices and inform new social marketing campaigns to increase uptake in family planning use. The

preparation of the RH Project will address gender issues as they are related to RH outcomes. In

addition, work has begun on a series of poverty and gender notes using the 2010 Household and Firm

Enterprise surveys to inform the preparation of the new GPRSF.

D. PARTNERSHIP AND THE AID EFFECTIVENESS AGENDA

30. The GoM and donors have made some progress on harmonization and alignment, but room

for progress remains. A first joint donor assistance strategy (JAS) for the 2009-2011 period was

signed by 14 donors and focuses on results and linkages to the GPRSF with the view to improving

complementarities and joint policy matrices, funding mechanisms, and reviews. Key achievements

include: improved disbursement predictability; reduction in the total number of budget support

triggers; increase in number of donors using direct budget support; and progress towards more

programmatic approaches in some sectors (water, decentralization and transport, and to some extent

agriculture). Country-led aid management is being strengthened through the gradual operationalization

of the GoM‟s Aid Harmonization Secretariat (SHA). The JAS II process will build on the challenges

faced in many countries to move forward with joint programming and division of labor. On its side,

the Bank is advocating an incremental process with up-front focus on measurable measures. The

development of a National Aid Policy should provide increased visibility and traction to aid

effectiveness issues.

31. Donor assistance is better coordinated at sector level but remains fragmented overall, and the

capacity of Mali’s institutions and financial management mechanisms remain weak. Three sectors

are covered by sector budget support (education, health, and decentralization) and two others are in

process (irrigation and water). During the CAS period, two new donors have started using budget

support, but the share of budget support to total disbursements has gone down from 33 percent in 2006

to 23 percent in 2010. The Bank chairs the donor working group on macro-economic issues, and

progress has been made in terms of quality of the joint budget review. Efforts to harmonize the

conditionality framework have reduced the joint trigger matrix to 39 triggers. The CAS period has

- 10 -

seen progress on a number of harmonization indicators (especially the JAS, framework for budget

support and program-based approaches). However, reducing the use of project implementation units

has proved to be challenging. The Bank is carrying out a PIU study to gain deeper understanding of

the drivers behind the creation of PIUs, and the impact on portfolio quality (see Appendix 5).

IV. STRENGTHENED AND EXTENDED CAS PROGRAM

32. Drawing on the lessons from the implementation of its first two GPRSFs, the GoM launched

in December 2010 the preparation of its GPRSF III. The 2009 Progress Report of the GPRSF II

indicates that priority measures for 2011 will focus on six areas: education, health, food security and

rural development, development of SMEs, reforms in the business environment, and the promotion of

democratic governance. It further lays out key challenges to ensuring stronger growth, namely (a) the

high population growth with growing and unsustainable pressure on production resources and

increased demands in terms of nutrition, water supply, health, education and training, (b) youth

employment, (c) environmental degradation and CC, and (d) MDG achievement. These challenges

were reconfirmed during the launching workshop for the new GPRSF that will cover the period 2012-

17 to coincide with the electoral cycle. The GoM also launched the process to update the JAS in

February 2011.

33. In light of these considerations, the Bank proposes to extend the CAS period by one fiscal

year. The extension will allow the Bank to fully align the preparation of its next CAS with the new

GPRSF and the updated JAS. During the CAS extension period, the Bank‟s approach will be to: (a)

maintain a continuous engagement on its activities to consolidate gains to promote rapid and broad-

based growth and to help address critical structural and governance related weaknesses in key

productive sectors; and (b) increase its engagement to support the GoM‟s renewed strategic priorities

in human development and service delivery (population growth, education sector, youth, and urban

water supply and sanitation) in order to place greater emphasis on inclusive growth. To that effect, the

lending program for the remainder of FY11 (Urban Local Governments Support Project) will be

delivered as planned and the Bank will deliver Reproductive Health and Higher Education Projects

and prepare Youth Employment, and Water and Sanitation Projects in FY12. The third PRSC series

will start in FY12. It will be integrative and focus on reforms to strengthen governance foundations

(including PFM), reduce poverty, and protect the vulnerable. The IFC will continue to complement

IDA activities to explore opportunities to support the private sector.

34. The Bank will complement its lending support with targeted analytical work and TA to tackle

emerging challenges. Consistent with the GoM‟s commitment to building its social protection base

and the findings of the Bank‟s FY11 Social Safety Nets review, and in a context of high volatility of

commodity price, the Bank will continue to provide TA for policy dialogue on social protection,

including support to reforms in contributive and non contributive schemes. Ongoing analytical work

on growth, gender (including a poverty profile) to support the GoM‟s medium term policy formulation

on growth, and poverty and gender challenges will be completed in FY12. In addition, the Bank is

providing TA for the preparation of the PEFA update, which will inform revisions to be made to

PAGAM II. The analytical work program will also encompass TA for the information and

communication technologies (ICT) sector, PRSP dialogue and the preparation of a PRSP-JSAN. The

Bank will also continue to support GoM activities to better engage its Diaspora in the transfer of

knowledge and use of remittances for community development through the implementation of an

Institutional Development Grant and a Japanese Social Development Fund to conduct need

assessments at the community level in the Kayes region.

35. The Bank is responding favorably to the request for addressing the rapid population growth

and higher education challenges. The Bank will prepare a RH operation that takes into account the

multi-sectoral dimension of RH and family planning. The operation will aim at increasing the demand

- 11 -

for and use of reproductive health services with a clear focus on family planning, nutrition and high

impact interventions proven to contribute to the reduction of maternal, neonatal and child mortality. In

addition, the Bank will pay special attention to improving girls‟ education and will use the

Demography and Economics Study as basis for public debate and policy formulation to strengthen

incentives for addressing demographic challenges. The GoM has renewed its focus on the importance

of higher education and skills development as a way to address shortcomings in the governance

system, weak linkages between public financial management, sector strategy and decentralization, the

low level of labor productivity on account of insufficient and low quality of education. The Bank is

expanding its support to higher education and skills development with the aim to build a solid

foundation for growth and to create new opportunities for youth to access the labor market. The FY12

Higher Education Project aimed at improving the sector‟s relevance, management and efficiency will

be complemented by an EFA-FTI Grant Development Policy Support (currently under preparation)

which focuses on policy and institutional reforms and the preparation of a Youth Skills Development

operation (delivery in FY13) aimed at improving productivity, leadership, and competitiveness.

36. To better mitigate the consequences of exogenous shocks, the GoM has asked the Bank to

help develop a comprehensive social protection strategy, including more efficient and relevant SSN

programs. The priority actions toward the development of a more efficient and cost-effective SSN

system would include: (i) strengthening the strategic, institutional, and financial framework for

designing, implementing, managing, monitoring, and evaluating SSN programs; and (ii) developing a

plan for improving the effectiveness of the SSN system by reforming existing programs and designing

new ones aiming to reduce small or ineffective programs while strengthening other viable programs

with better targeting and outcomes. Going forward, the Bank will consider an operation to help

develop a permanent SSN system that addresses the needs of the chronic poor and that can readily be

scaled up during periods of adverse natural hazards and exogenous shocks.

37. A key priority for the GoM is to mobilize the financing for Water Supply Project (Kabala

Project) to ensure adequate water supply for Bamako and eradicate the recurrent water shortages in

most neighborhoods of the capital city. While major investments have been made to rehabilitate and

expand water and sanitation infrastructure, investment sustainability remains an important challenge

for the sector. Lack of maintenance and underinvestment put at risk the gains made in the expansion of

the service. This is evidenced by the large number of rural water systems that are not operational and

the insufficient water production and distribution capacity in Mali, and notably Bamako. As the urban

population continues to grow, especially the peri-urban areas of Bamako, the Bank will complement

donor efforts by supporting the Kabala program with a targeted Water and Sanitation Project in early

FY13.

38. The Bank stands ready to help weather the impact of the insecurity in Northern Mali as well

as the regional instability. While the GoM has a special investment program for the Northern part of

Mali and is taking the lead in responding to the regional uncertainty, if needed, the Bank could scale

up development activities currently implemented in the Northern part of the country through its

operations, and further adapt its ongoing projects. Following the preparation of an internal note on the

potential impact of the Libya crisis, the Mali and the Post Conflict and Social Development Unit teams

have started working together to prepare a follow through of the 2011 World Development Report on

conflict, security and development for which Mali was a focus country. The analysis will deepen the

understanding of the underlying factors behind insecurity and how our operations can best mitigate

security risks. Associated to this, the Bank is partnering with the UN agencies, other multi-laterals,

and bilaterals to help the GoM deal with the conflict and insecurity.

39. The extended CAS period approach is fully consistent with the new Africa Strategy’s

Governance foundations, in addition to its pillars designed to address competitiveness and

employment, and vulnerability and resilience challenges. It also enables the Bank to target IDA 16

- 12 -

priority themes and results expectations. The Bank will (a) implement its portfolio of operations

supporting infrastructure, agriculture productivity, and growth-oriented sectors, (b) launch the urban

and GBD TA Projects to tackle urbanization challenges and the provision of basic service delivery at

the decentralized level, and (c) build on TA, analytical work and trust funded activities carried out to

help tackle vulnerability to commodity price fluctuations, better promote climate change resilient

development, improve resilience to exogenous and natural shocks, and foster greater transparency,

accountability and governance. In addition, the Bank will engage more directly to help Mali address

the low level of human capital and generate jobs, especially for the young population. The Bank will

also seek to renew the momentum of economic reforms with a new PRSC series that will focus on a

limited set of multi-sectoral issues to catalyze policies for faster growth, a more competitive economy

with employment opportunities, and better delivery of basic services. Finally, the Bank team will pay

special attention to further scaling-up gender mainstreaming and efforts on gender-related MDGs. The

development of the new CAS will fully integrate gender and climate resilient development issues and

strengthen its results framework accordingly.

V. MANAGING RISKS

40. Overall, the risks assessed in the CAS remain valid but the challenging international and

regional environment of recent months has somewhat raised the risk level. While Mali‟s political

environment still represents a limited risk to the program, the 2012 electoral process is more than

likely to maintain stable political arrangements based on democratic rule. Mali is, however, highly

exposed to the political uncertainties of its neighbors. Persistence of the crisis in Côte d‟Ivoire and

Libya could have significant negative effects, through various transmission mechanisms, on the

Malian economy and society at large. The Bank is preparing an analysis to better understand the

underlying factors behind the insecurity and how we can best respond through our development

program. To minimize the risk of trade disruptions due to the political crisis in Côte d‟Ivoire, Mali has

strengthened alternative trade routes and the Malian council of shippers has reached a customs

agreement with the Benin authorities to use the port of Cotonou as an import/export gateway which

includes preferential arrangements for customs clearance and other services. The potential increase in

transportation costs as a result of the diversion of exports and import to more distant ports, fall in

livestock exports and decline in remittances may be mitigated by the rising demand for domestic

products, resulting from higher domestic supply, higher international prices and transaction costs. The

turmoil in Libya, could affect foreign direct investments as Libya is a major investor in ON and

tourism and is financing a number of public projects, as well as remittances and aid flows.

41. Mali remains highly vulnerable to fluctuations in commodity prices, external shocks and to

CC. Continued upward pressures in food and fuel prices in global markets could affect Mali‟s

inflation, lead to an increase in poverty, further burden the budget, and have significant fiscal impact

depending on the GoM‟s response to weather the price increases. Mitigation factors include Mali‟s

strong record of prudent macroeconomic management, in addition to Bank support to (a) enhance

productivity and competitiveness of the cotton sector, diversify agricultural production and further

develop commercial agriculture, and improve management of natural resources to reduce vulnerability

and enhance resilience to climatic shocks, (b) lower energy costs through connecting with lower-cost

regional producers; (c) reform the investment climate, (d) strengthen PFM, and (e) monitor closely

parastatal companies‟ financial and cash positions and restructuring efforts.

42. The upcoming presidential election might be a period of delay in reform implementation. In

the wake of the 2012 presidential elections, internal vested interests may slow further reforms and

commitment to finalize key structural reforms in energy, service delivery at decentralized level, and

investment climate may fade away. The Bank will continue to engage through its operations and in

dialogue on the benefits of timely implementation of the reform agenda.

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APPENDIX 1. MALI UPDATED CAS RESULTS MATRIX FY08–12

Original CAS Outcomes and Indictors

Revised CAS Outcomes

and Indicators

(If applicable)

Progress Towards CAS Outcomes

Progress Towards CAS

Milestones

WBG and Development Partners’ Support

CAS Strategic Objective 1. Promote rapid and broad-based growth

Agriculture productivity increases for specific crops in

targeted areas:

Cotton yield increases by 15% from its 2005/06 level (950t/ha) by 2011.

Cowpeas yield increases from 400 kg/ha (2004) to 600 kg/ha (2011).

Indicator met. Cotton yield at 1,020 t/ha.

Indicator met. Dissemination of selected cowpea seeds raised yields from 250 to 750 kg/ha.

Grower networks are in place for potatoes/cowpeas seed multiplication, and more and more farmers have adopted new post-harvest & irrigation technologies. Work has started on technology dissemination mechanisms and on improvement of research-extension linkages.

Ongoing lending:

Ag Competitiveness and Diversification Project

Rural Community Development Project + AF from the global food crisis response window

GEF Gourma Biodiversity Conservation Project

Growth support Project

Agricultural Productivity project

GEF Agricultural Productivity

PRSC 5

West Africa Agriculture Productivity Program

West Africa Biodiversity Project

IFC – Agribusiness: GRIMAS, Grand Moulin du Mali

Planned lending:

PRSC-6

AAA and TFs:

Rural Finance Study -completed

Urban Environmental Analysis – to be completed by end FY11

Sustainable Land Management PER/CBA – completed

TA dialogue on SLM –

Competitiveness for selected supply chains improves in

targeted areas

Mango exports progress from 5,500t (2007) to 8,000t (2011).

Local potato seed production covers 60% of national needs by 2011 from ~ 0% in 2007.

Indicator met. Mangoes export increase on the international market. Estimation: 10,000 t.

Indicator on track. The volume of potatoes marketed on the national and regional markets reached 29,000 tons.

Coordination mechanisms along specific supply chains are in place: Two inter-professional entities created for cotton and mangoes have been established; private operators and producers for fruit and vegetables filières are organized; and a fruit and vegetable packaging facility is functioning.

Availability of credit for agriculture improved:

Credit granted by BNDA and MFIs to agriculture increases from CFA 70.3 billion (2003) to 72 billion by 2011.

Indicator met. Loans granted by MFIs and BNDA totaled 161.1 billion CFA in 2009 (most recent data available)

New financing instruments (warehouse receipt, weather-index-based insurance) have not been developed. The study on weather index insurance and the regulatory framework for the warehouse were not done. Also, the microfinance institutions were not consolidated into networks. Focus was put on restructuring existing networks rather that bringing in the independent MFI into

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Original CAS Outcomes and Indictors

Revised CAS Outcomes and Indicators

(If applicable)

Progress Towards CAS Outcomes

Progress Towards CAS Milestones

WBG and Development Partners’ Support

networks.

ongoing

CSIF – ongoing

DRM grant – ongoing

Integrated Land and Water Mgt. for Adaptation to Clmate Variability and Change TF - ongoing

Partners:

AfDB, MCC, USAID, Denmark, Dutch, France, Canada, EU , IFAD, Swiss.

Agricultural pressure on natural

resources reduced in Office de Niger and cotton zones:

By 2011, cotton producing areas remain at 2006 level (500,000 ha).

By 2011, soil salinity remains at its 2006 level in Office du Niger (20% of irrigated ha) zone.

Indicator revised. Cotton producing areas remains at maximum of 2006 level. Revision to clarify that objective is to reduce land extension for cotton production to increase intensification of cotton production areas.

Indicator dropped since the evolution of salinity is difficult to assess and monitor on such a large scale area.

Indicator met. Cotton production intensified without increased land extension. Cotton producing areas currently at 250,000 ha.

Work to disseminate sustainable land management tools & good practices integrated in agricultural investments to producers has started.

Improved donor coordination and country leadership:

GOM has set up a national pooled financing mechanism for agricultural development.

Indicator on track. FNDA created but not yet operational. PAPAM operation now effective is supporting such instrument.

With the set up of the FNDA mechanism and PAPAM implementation, work has started to move toward pooled financing mechanism for agricultural services co-managed by producers and the GoM, as well as to formulate sector MTEF and its use for programming.

Integration of Mali with regional and global markets by increased

efficiency of transport operators

(roads, railway, and air) :

Transport costs between unloading imported containers (20-foot TEV) from ship to final destination are reduced by at least 10%. Baseline: $1300 in 2006.

Rail freight has increased

Indicator on track. Indicator linked with ongoing progress from activities from the regional project. Outcome by end of CAS period will be conditioned by external context – crisis in Côte d‟Ivoire, and spike in oil prices.

Achievement of indicator is

Decrees and legislation to reduce security checkpoints and safety checkpoints to an agreed minimum on internal routes adopted. Sustained political commitment and capacity of GoM to enforce rules is needed.

Ongoing lending:

Transport Sector 2 + AF

WA Transit and Transport Facilitation Project

West and Central Africa Security Project

Growth Support Project

IFC – US$25 million investment in Aga Khan Foundation for Celeste Air which includes Air

- 15 -

Original CAS Outcomes and Indictors

Revised CAS Outcomes and Indicators

(If applicable)

Progress Towards CAS Outcomes

Progress Towards CAS Milestones

WBG and Development Partners’ Support

Baseline: 423,000 t in 2005. Target: 50% increase by 2011.

contingent on concession being restructured and political commitment or lack of from Malian and Senegalese Govt.

Mali, Air Burkina and Air Uganda

AAA and TFs:

Governance diagnostic note - completed

Partners:

AfDB, EU, MCC, BOAD, KfW

GOM ensures effective

leadership and coordination in

transport sector:

Bi-annual joint evaluation and review missions conducted.

Joint evaluation matrix prepared and used as monitoring tool.

Indicator dropped. The sector has a coordinated approach between development partners and partners and the Government but in a less structured manner than through the monitoring of a formal joint evaluation matrix.

Indicator on track. Extensive consultations between donors and development partners are meeting on a regular basis with the Government to ensure coherence with the Govt. strategic objectives.

National transport sector strategy study was completed jointly by GOM and other donors and national transport sector strategy adopted by the Authorities.

More rural localities have year-

round transport access:

Less than 20% of rural population lives more than 2 km from a year-round passable road. Baseline 2006: 41%.

% of main roads in good condition increases from 35% (2005) to 65% (2011).

Indicator revised. Percentage of people who have access to all weather roads has increased in the project impact areas. Indicator reformulated since baseline data is only collected for project impact area. Baseline 2007:32%; target for end 2011:42%.

Indicator on track. 40% of people who have access to all weather roads in the project impact areas at end 2010.

Indicator met. 64.8% of main roads are currently in good condition.

1,450 km of rural/secondary roads rehabilitated by 2009.

Improved air safety and security

in Mali as measured by:

70% compliance rate with ICAO safety standards.

Indicator on track but implementation delays of IDA funded project and delays in

Funding mechanisms have been strengthened to ensure adequate resources for annual road maintenance overseen by the Road Authority

- 16 -

Original CAS Outcomes and Indictors

Revised CAS Outcomes and Indicators

(If applicable)

Progress Towards CAS Outcomes

Progress Towards CAS Milestones

WBG and Development Partners’ Support

40% compliance rate with ICAO security standards.

Fewer than 10 serious airport security problems per year.

Time to clear arriving passengers reduced from 70 minutes (2006) to 30 minutes (2011).

refurbishment of Bamako airport under MCA funded project.

Indicator on track but implementation delays of IDA funded project and delays in refurbishment of Bamako airport under MCA funded project.

Indicator met. 5 airport security problems in 2010.

Indicator met. About 30 minutes to clear arriving passengers.

through the creation of a combined road agency and road fund and increased levy on fuel to fund road maintenance. Work is ongoing on the new regulatory framework for operation of road, air, and river transport agencies, and the concession contract between the GoM and a private operator.

Availability of critical production factors increased.

Additional 30-45 MW of thermal

capacity installed by 2011 to

increase power system reliability. EDM SA achieves financial viability and operational

efficiency through improved

sector governance as measured by:

EDM maintains technical and non-technical losses below 20%.

Electricity access rates have increased from 2% in 2005 to at least 6% in 2011 in rural and peri-urban areas.

Significant physical progress is made on electricity interconnection with neighboring countries: 85% of planned transmission lines constructed.

Indicator on track. +80 MW of thermal capacity confirmed for 2012.

Investments to reduce technical losses only expected to have full effect in 2013.

Indicator met.

Indicator on track. Current rate of construction of the interconnection is 47.9%. However, ongoing crisis in Côte d‟Ivoire and lack of political commitment on the Ivorian side for the interconnection could compromise progress.

+80 MW of thermal capacity delivered first quarter 2011 to reduce power outages; Rural electricity access rates are increased to 11% today. EDM SA technical and nontechnical losses remain stable at 23%; tariff adjustment took place in July 2009. Awaiting regulator decision on tariff indexing formula. Ongoing work on construction of transmission lines. Satisfactory progress on the Malian side. No progress on the Ivorian network.

Ongoing lending:

Household Energy and Universal Access + AF

Energy Support Project

WAPP APL 2 Felou Hydropower Project + AF

PRSC-5

Planned lending:

PRSC-6 AAA and TFs:

AF with trust funds from Russia and The Netherlands – ongoing

Scaling Up Renewable Energy in Low Income Countries program (AfDB, IFC and IDA) – ongoing

IFC Kenie Hydro Project – ongoing

Governance diagnostic note - completed

Partners:

AfDB, France, Aga Khan,

- 17 -

Original CAS Outcomes and Indictors

Revised CAS Outcomes and Indicators

(If applicable)

Progress Towards CAS Outcomes

Progress Towards CAS Milestones

WBG and Development Partners’ Support

BOAD, ECOWAS, EU, India, KfW, Sweden, Dutch

Efficiency of commercial banks improved for better financial

intermediation:

Spread between lending and deposit rates reduced from average of 9.1% in 2005 to 8% by 2009.

Ratio of gross NPL to total loans decreased from 29% in June 2005 to 10% by 2011.

Share of total credit to private sector to increase from 51.7% in Dec 2005 to 60% in 2009.

Revised indicator. Ratio of gross NPL to total loans decreased from 29% in June 2005 to 17% by 2011. Target revised to 17 % (10% unrealistic)

Revised indicator. Bank credit to SMEs increase from 25.6% in 2006 to 30% of total loans and advances by 2011. Original indicator no longer tracked following restructuring of the project. Data for this indicator is collected through GSP Project. A proxy is being used to measure credit to SMEs.

Indicator met. Spread between lending and deposit rates of 7.9% in 2009 (more recent data available)

2009 ratio is 22.6%.

The value for 2009 is 52.6% (latest data available).

GoM share in BIM reduced from 61.5 % in 2007 to 10.5%. A strategy to reduce number of NPLs is not yet in place.

Ongoing lending:

Growth Support Project

PRSC-5

IFC – financial markets (BoA Mali, Ecobank Mali)

IFC - tourism (Hotel Salam) ; food processing and packaging (GRIMAS – supports industries that supply to hotels; manufacturing of printed products (Graphique Industries – prints posters and brochures for tourism industry)

Planned lending:

PRSC-6

Urban Local Governments Support Project

Water Supply and Sanitation Project

AAA and TFs:

Rural Finance Study – completed

ICA update – ongoing

Programmatic TA: ICT policy dialogue - ongoing

IFC PEP-Africa /FIAS:TA in investment climate – ongoing

IFC support to micro-entrepreneurs program (STEP) – ongoing

IFC Africa leasing

Increase in private sector investment (domestic and

foreign):

Number of formal manufacturing enterprises increased by 10% by 2011. Baseline: 350 firms in the manufacturing sector.

Access time to land by firms is reduced from 180 days to 30 days.

Revised indicator. Time taken to approve new investments is reduced from 45 days in 2006 to 15 days in 2011. Original indicator dropped following restructuring of the GSP Project.

Revised indicator. Number of days for property registration reduced from 44 days in 2005 to 30 days by end 2011. Original indicator dropped

Indicator on track. Time taken to approve new investments is currently 26 days.

Indicator on track. Current value: 29 days.

New civil and commercial procedures adopted. Investment promotion agency operational. Business licensing has been streamlined with the creation and operationalization of the one stop shop.

Partial credit guarantee facility established and operating with 2 banks; trade finance guarantee launched with one bank.

- 18 -

Original CAS Outcomes and Indictors

Revised CAS Outcomes and Indicators

(If applicable)

Progress Towards CAS Outcomes

Progress Towards CAS Milestones

WBG and Development Partners’ Support

Total corporate tax burden reduced from 50% to 47% to be closer to level of best performers within WAEMU zone.

following restructuring of the GSP.

Indicator dropped following restructuring of GSP and indicator not being measurable.

Draft of PSD strategy prepared but not yet approved. Land tenure code not revised yet.

program - ongoing

Doing Business reviews (annual)

IFC Trickle up program – completed

IFC Grassroots Business initiative - completed

AAA and TFs:

Mali – FSAP - completed

Regional FSAP - completed

ICA update – ongoing

Support to EITI implementation TF

Partners:

AfDB, Denmark, France, EU, IMF, MCC

Improved performance of

nonagricultural sectors by 2011 :

Number of tourists increased by at least 30%. Baseline: 100,000 tourists in 2005.

At least 3 new investments undertaken in small-scale mining activities.

Number of people with access to information and communication technology doubled. Baseline: 23.5/10,000 inhabitants in 2005.

Indicator to drop as it may not be relevant by end CAS due to international factors and instability in the North of Mali.

Indicator revised. At least 10 new investments undertaken in small-scale mining activities.

Indicator revised: Teledensity increased from 2.5% (2005) to 30% by end 2011.

Indicator on track. In 2009, 115,500 tourists arrived by air in Mali.

Indicator on track. Several investments in small-scale mining sector already undertaken.

Indicator met.

Privatization of SOTELMA

completed in July 2009 and sector regulator‟s new staff trained; “One-stop-shop” focused on service to new entrepreneurs created; property registration eased by halving the transfer tax to 7%; Tourism sector strategy completed and action plan adopted. Ongoing inventory of regulations completed and reform proposals designed by 2009.

Mining Code revised in 2011 with a focus on incentive framework for improving the sustainable development impact of extractive industries activities.

Increased productivity of

targeted MSME

Increased sales.

Increased output.

Baselines and targets to be set once enterprises identified.

Indicator revised. Average revenue increase of beneficiary firms of STEP will increase from 25% in 2005 to 80% in 2011. Indicator is collected through GSP.

Indicator on track. 2009 value is 78%.

At least 50 MSMEs nation-wide have managerial training every year; Number of college graduates trained to provide support to MSMEs increased from 15 to 50 in 2009. STEP provided TA support to 1,200 MSMEs since 2005 and PCG with BoA helped

- 19 -

Original CAS Outcomes and Indictors

Revised CAS Outcomes and Indicators

(If applicable)

Progress Towards CAS Outcomes

Progress Towards CAS Milestones

WBG and Development Partners’ Support

extend term finance to SMEs. Assistance to BoA led to an increase in Bank‟s lending to SMEs from $4 m in 2007 to $37 m by end 2009. Implementing association established for the matching grants and institutional framework being finalized.

Strategic Objective 2. Strengthen public sector performance

More transparent budget practices as measured by:

PEFA indicators on quality and timeliness of in-year budget reports and annual financial statements improved from D+ (2007) to at least C+ by 2011

Indicator revised. Timeliness of in-year budget reports from D+ (2007) to at least C by 2011.

New indicator: Timeliness of annual financial statements improved from D+ (2007) to at least C+ by 2011.

Indicator on track. Timeliness improved and quarterly budget execution reports are published 6 weeks after the end of the quarter since Q3 2009. Quality also improved.

Indicator on track. Timeliness of financial statements and quality is now assessed with a rating of C.

PAGAM-GFP was revised to include intra-year reporting following the 2006 PEFA; The interconnection of MEF with finance departments (DAFs) of all ministries and the regional budget departments (DRBs) is complete. Additional work ongoing to ensure the interface between PRED and the Treasury software.

Ongoing lending:

PRSC 5 Planned lending:

PRSC 6

Governance and Budget Decentralization TA operation

Urban Local Governments Support Project

Water Supply and Sanitation Project

AAA and TFs:

CPAR – completed

PAGAM - completed

PEFA - completed

PEMFAR – completed

ROSC accounting - completed

Policy notes on growth- ongoing

PEFA update – ongoing

TA poverty monitoring – ongoing

TA action plan for ROSC – ongoing

TA poverty and PRSP brief – completed

Improvement in procurement

practices as measured by:

PEFA indicator on procurement will have increased from C (2007) to at least B by 2011.

2010 PEFA rates procurement as C. Limited progress reflects delays in the implementation of reforms.

New laws and regulations for procurement adopted and key institutions put in place. Revisions of the laws made in 2011 to better align the laws with WAEMU guidelines. TA is planned from FY12 and this will help accelerate progress.

Quality of internal and external budget control will have

improved as measured by:

PEFA grades on internal and external audit have risen from D+ and D (2007) to at least C

Indicator revised. PEFA grades on internal and external audit have risen from D+

Indicator on track. Achieved for internal controls; ongoing work on external controls with

PAGAM-GFP revised to incorporate actions to strengthen internal controls. PAGAM II adopted in 2010 includes actions to strengthen external controls. Cabinet

- 20 -

Original CAS Outcomes and Indictors

Revised CAS Outcomes and Indicators

(If applicable)

Progress Towards CAS Outcomes

Progress Towards CAS Milestones

WBG and Development Partners’ Support

(2011). (2007) to at least B (2011).

PEFA grades on external audit have risen from D (2007) to at least C (2011).

delays in the reform.

The PEFA grade on external audit remains at D but actions planned in 2011 may help improve the situation to D+.

adopted an action plan to clear audit backlogs and to prepare the creation of an Audit Court in December 2010.

Governance note - ongoing

Partners:

AfDB, EU, France, Canada, IMF, Netherlands, PAGAM, Sweden

Link between budget and sector strategies has improved as measured by:

Annual MTEF update to include sector operational plans (education and health).

Resources transferred from center to municipalities have doubled from 2007 level of 1 billion FCFA.

Service delivery has improved, as evidenced by beneficiary surveys.

Indicators dropped. A more objective indicator is proposed to measure policy-based budgeting. Similarly, a new indicator is introduced to measure PFM capacity at decentralized level focusing on the creation of systems rather than flow of funds.

New indicator. Share of primary expenditure of sectors for which statements of sector strategies exist and are fully costed, broadly consistent with fiscal forecasts. Baseline (2006): 48.2%; Target (2013): 75%

New indicator. PEFA indicator on timeliness of reliable information to sub-national entities on their allocations. Baseline (2006): D; Target (2011): C

Indicator on track. Much progress was made since 2008 in this area, with the expansion of the number of Ministries with MTEF.

Indicator achieved. Much progress made since 2008 with the expansion of the number of ministries with MTEF.

Indicator on track. Progress was made regarding the timeliness of information regarding the current budget but more needs to be done regarding information of the investment budget. 2010 rating: D. Work ongoing to improve the situation.

Indicator on track. Beneficiary survey to be undertaken in 2010 under TA operation.

Mechanism in place that links transfer of resources to municipalities (2009). Ministries have at least 6 weeks from time of budget circular to incorporate operational plans (2009).

Improve access to and quality of

basic education, including strengthening of institutional

management capacities as

1,400 classrooms constructed; 6, 000 teachers trained; 3,000 community teachers trained and paid by

Ongoing lending:

Devt. Learning Center

PRSC 5

IFC - US$11 million loan

- 21 -

Original CAS Outcomes and Indictors

Revised CAS Outcomes and Indicators

(If applicable)

Progress Towards CAS Outcomes

Progress Towards CAS Milestones

WBG and Development Partners’ Support

measured by:

67% primary completion rate by 2011 (disparities reduced between urban/rural and between girls/boys) Baseline: 2005–06: girls 38%, boys 59%, total 49%).

70 % of primary students reaching average score in language, reading, and mathematics in grades 2 and 5.

Girls represent 50% of total primary students (2011) (Baseline 44.1% in 2005–06).

Basis has changed based on the census with higher population growth from 2.6 to 3.6% annual population growth rate.

Indicator on track. Gross primary education enrollment rate in 2009/2010 is 76% (girls at 67% and boys at 81%). Primary completion rate at 51% in 2009. New target for 2012: 70% primary completion rate and girls at 49% and boys at 51%.

Indicator on track. 58% of primary students reached average score in language, reading, and mathematics in grades 2 and 5 in 2009/2010 period.

Indicator on track. Girls represent 45% of total primary students in 2009/2011. 2012 target: 49%.

GoM; 100 % of community schools fully subsidized to reduce out of pocket expenses for poor families; National strategy for girls‟ education prepared and currently being implemented; Study completed to identify skill requirements to support economic growth. Only 74.1% Grade 1 admission rate in 2009 (target: 85%)

to Graphique Industries which produces approximately 48% of the textbooks and 100% of the notebooks for the PRODEC program

Planned lending:

Higher Education Project

PRSC 6

EFA/FTI Grant Development Policy Support

AAA and TFs:

Skills development study – completed

TA youth initiative – completed

TA non formal education – completed

Education country status report – ongoing

Partners:

AfDB, France, Canada, Germany, Netherlands, USAID, Denmark

Improve access to and quality of HIV/AIDS-related services as

measured by:

At least 60% of adult people know 2 ways of HIV/AIDS transmission by 2011 (Baseline: 36.5 % in 2002).

Condom use among men who have had sex with more than 1 partner in last 12 months has increased from 33% to 45% by

Indicator dropped. Project results matrix revised following restructuring of project in May 2009 to align indicators with the new WB HIV/AIDS scorecard.

Indicator dropped. Same as above.

More than 4,000 people living with HIV/AIDS have access to treatment and care; 2225 non public testing facilities were operational as of end 2008.

Ongoing lending:

HIV/AIDS MAP

PRSC 5 Planned lending:

Reproductive Health Project

PRSC 6 AAA and TFs:

- 22 -

Original CAS Outcomes and Indictors

Revised CAS Outcomes and Indicators

(If applicable)

Progress Towards CAS Outcomes

Progress Towards CAS Milestones

WBG and Development Partners’ Support

2011.

Testing services offered in at least 40 nonpublic facilities (up from 2) and all reference hospitals comply with national standards.

At least 10,000 persons living with HIV/AIDS eligible for treatment are under antiretroviral drugs and monitoring by 2010 (from 3,000 in 2005).

Indicator revised: number of non public health centers to be 25 by end 2011. Original target overambitious given available funds

Indicator revised: At least 9,000 persons living with HIV/AIDS eligible for treatment are under antiretroviral drugs and monitoring by end 2011.

New indicator: 55,000 persons aged 55+ receiving counseling and testing for HIV and received their test results.

Demography and economics – completed

TA Social safety nets – completed

TA Follow-up social safety nets – ongoing

Health country status report – ongoing

IFC – Health in Africa initiative

Partners:

AfDB, EU, Belgium, Canada, France, Global Fund, Netherlands, Unicef, USAID

Use of health services increased

as measured by:

70% of births assisted by qualified health personnel (Baseline: 51%, 2006).

4% of population covered by a health mutual (Baseline: 1.4%, 2005).

90% immunization rates for DTCP3 (Baseline: 68% in 2006).

Use of modern contraception increased to 500,000 couple-years of protection (Baseline: 256,000 in 2006).

Currently 57% of births assisted by qualified health personnel

2.1% of population covered by a health mutual in 2009 and 2.9% in 2010.

Indicator met. Immunization rates for DTCP3 at 101% currently.

Indicator on track. Use of modern contraception currently at 490,542 couple-years of protection.

Road map for reducing maternal mortality approved in 2009; Contracting of NGOs to increase coverage was implemented by 2009. Work ongoing to establish a system for rewarding performance of health district.

Aid harmonization increased

and transaction costs reduced:

Joint framework for general budget support in place and followed.

Indicator met.

GoM Harmonization Secretariat strengthened; Joint framework for general budget support prepared and MoU to apply framework signed; Program based

TA and ESW/AAA from WB, EC, and other budget support donors

- 23 -

Original CAS Outcomes and Indictors

Revised CAS Outcomes and Indicators

(If applicable)

Progress Towards CAS Outcomes

Progress Towards CAS Milestones

WBG and Development Partners’ Support

Reduced number of parallel PIUs in Bank operations: maximum 4.

Program-based approaches: at least 66% of Bank portfolio.

Coordinated ESW/AAA: at least 66% of all Bank ESW/AAA.

Collaborative sections of next Country Assistance Strategy drafted and MoU signed by GOM and its main donors (including WB).

Only PAPAM and PRSC series with no parallel PIU.

Indicator met. 65% based on disbursements.

Indicator on track. Good coordination with the Govt.

Indicator on track. Joint CAS prepared in 2009 and signed by main donors; new CAS preparation not yet started.

approaches represented at least 42% of WB portfolio end 2009 and 50% of ESW/AAA with strengthened coordination during preparation. GoM H&A action plan not executed as planned; Reducing parallel PIUs to 8 was not achieved.

- 24 -

APPENDIX 2. IDA LENDING AND ANALYTICAL PROGRAM

A. Planned Lending Program and Actual Deliveries (FY08-12)

CAS Planned Lending US$ m Actual Lending US$ m

FY08

PRSC II 42 PRSC II 42

Total 42 Total 42

GEF WA Biosafety Project 25 WA Biosafety Project 3.9

FY09

PRSC III 40 PRSC III 65

Energy Support Project 75 Energy support Project 120

TA for Service Delivery 15 Postponed to FY11 -

Regional operation 8

HEURA Additional Financing 35

HIV/AIDS Additional Financing 6

Total 138 Total 226

GEF Sustainable Land Mgmt. * 6.3 FY10 with IDA operation

PRSC II Additional Financing (Global Food

Crisis Response Program)

5

FY10

PRSC IV 50-60 PRSC IV (including $15.5 m from Global

Food Crisis Response Program)

70.5

Agriculture Productivity Project 70 Agricultural Productivity Project 70

Regional Operation 8-18 Felou Additional Financing 14.2

Total 138 Total 154.7

GEF Agricultural Productivity 6.2

FY11

PRSC V 50-60 PRSC V 70

Urban Operation 70 Urban Local Governments Support Project 70

Regional Operation 8-18

Governance and Budget Decentralization TA 12

Transport Sector 2 Additional Financing 23

Total 138 Total 175

Rural Community Devt. Additional

Financing (Global Food Crisis Response

Program)

11.2

FY12

No indicative lending for FY12

PRSC VI 70 **

Higher Education and Skills Devt. 50 **

Strengthening Reproductive Health 30 **

Total 150**

*: Fully blended with IDA Agricultural Productivity Project.

**: These estimates for FY12 are indicative only and can change. Actual allocation in FY12 will depend on: (i) total IDA

resources available, (ii) the country‟s performance rating; (iii) the performance and assistance terms of other IDA borrowers ;

(iv) the terms of IDA's assistance to Mali (grants or credits); and (v) the number of IDA-eligible countries. IDA allocations

are made in SDRs based on performance, and the US$ equivalent is dependent upon the prevailing exchange rate.

- 25 -

B. Planned AAA Program and Actual Deliveries

CAS Planned AAA Actual AAA

FY08

Rural Finance Study Delivered to client postponed to FY08

Demography and Economics Delivery to client postponed to FY08

PEMFAR Delivery to client postponed to FY10

Governance Diagnostic Study Delivery to client postponed to FY08

Poverty and PRSP brief (TA) Delivery to client postponed to FY09

ICT Policy Dialogue - Programmatic TA

FY09

Growth note on mining Converted to policy notes on growth

Skills Development Study Delivery to client postponed to FY10

Country Environmental Assessment Delivery to client postponed to FY11

ICA Update Converted to a pilot of a new generation of investment and

private sector growth diagnostic

SLM Advisory Services Work started in 2008

Rural Finance Study

Population and Development

Governance Diagnostic Study

Poverty and PRSP brief (TA)

ICT Policy Dialogue - Programmatic TA

FY10

Growth note on tourism Converted to policy notes on growth

Social Protection Converted to Social Safety Nets TA

PEFA Update Slipped to FY11

Poverty and PRSP brief (TA)

Mali FSAP

Skills Development Study

PEMFAR

ROSC Accounting

ICT Policy Dialogue - Programmatic TA

FY11

Growth note on light manufacturing

Governance Follow-up

TBD Follow-up on Social Safety Nets TA

TBD Youth Initiative TA

Non formal Education TA

SME Growth and Diversification ICA

Urban Environmental Analysis

Policy notes on growth

PEFA Update

Education Country Status Report Update

Health Country Status Report

Poverty Monitoring TA

Dialogue on SLM (TA)

Deepening Telecom Policy Dialogue - Programmatic TA

Action plan for ROSC (TA)

- 26 -

APPENDIX 3. STATUS OF MDGs

Three MDGs are likely to be achieved: (a) combating HIV/AIDS prevalence at 1.3 percent in 2008 is

projected to decline further; (b) reaching universal primary education: gross enrollment rates in 2009

reached 80 percent but the girls/boys parity index remained at 79.4 percent; (c) cutting by half by 2015

the proportion of people without sustainable access to safe drinking water: population with access to

drinking water increased from 63.4 percent in 2007 to 73 percent in 2009. However, progress in

sanitation is lagging. While progress was made towards health related targets, Mali is unlikely to

achieve the goals of reducing child mortality and improving maternal health. Actions to eliminate

gender disparities show progress but results are far from the MDGs: women in parliament level stands

at 10.2 percent.

Mali – Progress toward the Millennium Development Goals

Goal Current Status GoM Actions to Accelerate Progress

Eradicate

extreme

poverty and

hunger

Unlikely The GoM is implementing inclusive policy actions to increase

productivity and reduce vulnerability in the agricultural sector, from

which most of the poor derive their incomes. Actions are also ongoing

to improve basic infrastructure and the overall business environment.

Achieve

universal

primary

education

Possible to

achieve if some

changes are

made

The GoM plans to improve access, quality and equity by focusing on

improved HR management, improved systems for the distribution of

textbooks, enhanced monitoring of investments and through effective

decentralization and greater participation at local level.

Promote

gender equality

and empower

women

Possible to

achieve if some

changes are

made

The GoM has defined priority areas of intervention to promote gender

equity but specific actions still need to be defined. Areas selected

include equal access to education and employment, framework to

protect women from domestic and other forms of violence, and steps to

ensure that women participate in decision making.

Reduce child

mortality

Off track The GoM plans to increase the availability of skilled health personnel,

extend access to immunization, improve sanitation and livelihoods of

households, increase access to information on health care issues and

reduce costs of child health care services.

Improve

maternal health

Off track

The GoM action plan which includes free access to cesarean sections

for poor women, inclusion of sexual education in the education

curriculum, increase access to family planning, enhance decentralized

provision of health services and community participation.

Combat

HIV/AIDS,

malaria and

other diseases

Possible to

achieve if some

changes are

made

The GoM plans to enhance monitoring and evaluation efforts, intensify

actions to change behavior, continue research activities to better

provide health care to those affected by the virus. A program is in

place to improve diagnostic and effectiveness of tuberculosis

treatment. Actions to combat malaria focus on prevention measures,

including through sanitation and wide distribution of mosquito nets.

Ensure

environmental

sustainability

(including

sustainable

access to safe

drinking water

& sanitation)

Insufficient

information

Actions will be undertaken to improve the collection and treatment of

data on environmental issues, strengthen the role of institutions in

charge of environmental issues, take into account environmental issues

in the design of strategies and actions plans, disseminate information

on international agreements ratified by Mali and ensure adequate

resources for decentralized environmental management.

Develop a

global

partnership for

development

Insufficient

information

Actions planned by the GoM include improved aid management

though the adoption of computerized systems, enhanced monitoring of

the PRSP and tightened linkages with the budget, to facilitate donor

support aligned with PRSP priorities, and improved governance. Source: Gouvernement of Mali (2009), Deuxième Rapport de Mise en œuvre des Objectifs du Millénaire pour le Développement au Mali.

- 27 -

APPENDIX 4. IFC AND MIGA PROGRAM

1. IFC‟s investment portfolio in Mali stands at US$53.3 million. Over the period under review,

IFC invested in the financial sector, agribusiness, services and infrastructure.

Company Sector Amount

($m)

GRIMAS Agribusiness 19.0

Grand Moulin du Mali Agribusiness 9.8

Graphique Industries Services 9.2

Ecobank Mali Financial Markets 8.5

BoA Mali Financial Markets 5.2

Hotel Salam Tourism 1.3

SIECO Services 0.3

Total 53.3

2. Fostering private sector access to finance: IFC, jointly with the WB, implemented the

IDA/IFC MSME program that aims to boost finance for the development of this underserved market

segment. The assistance consists of a risk sharing facility on a new portfolio of loans to SMEs to 2

selected banks, Bank of Africa (BoA) and Ecobank, and an SME banking TA program to support their

activity in a secure and profitable manner. Assistance to BoA led to an increase in the bank‟s total

lending to SMEs from about US$4 million in October 2007 to US$37 million in March 2011 with 231

SMEs reached, while Ecobank SMEs loans portfolio is expected to reach $12.5 million.

3. IFC provided to Ecobank a trade guarantee under its Global Trade Finance Program, and is

discussing with several other banks to boost Mali‟s international trade activity.

4. IFC, through its Capitalization Fund and African, Latin American & Caribbean Fund, in June

2010, provided Ecobank Transnational Incorporated (ETI) with a capitalization package of up to

US$150.14 million, including US$7.2 million to Mali‟s subsidiary.

5. Following IFC benchmark bond issue in FCFA in 2006, IFC has plans for new issuances

(possibly in the form of a program) in the short term in order to boost on lending to projects in local

currency. Other products are also at work in order to lend in FCFA to projects otherwise exposed to

currency risk.

6. Agribusiness: In October 2008, a €8 million (approximately US$11 million) loan was

committed for Groupe AMI, the largest private agribusiness group in Mali which produces flour,

animal feed and bottled water. The purpose of the loan is to help finance the company‟s US$25

million expansion and product diversification plans. SMEs reached were 102 in 2010, versus a target

of 40. Other development impact targets reached local suppliers and $3.5 million tax receipts increases

by 2012.

7. In June 2010, IFC committed a €14 million (approximately US$19 million) loan to Groupe

Industriel Madiou Simpara (GRIMAS) which produces carbonated soft drinks, bottled water, performs

and caps for plastic bottles, and carbon dioxide for beverages. The purpose of the loan is to help

finance the company‟s €33 million expansion program in Mali, Senegal and Cote d‟Ivoire.

- 28 -

Development impact targets include the creation of 100 new jobs, 30 percent female employment, and

creating linkages with local SMEs by 2014.

8. Global Manufacturing and Services: In June 2009, a €7.5 million (approximately US$9

million) loan was committed for Graphique Industries, the largest printed products company in Mali

supplying textbooks and notebooks to the education sector. The loan is being used to upgrade the

company‟s machines and increase its overall capacity, quality and efficiency, which will allow it to

expand its market to surrounding countries.

9. Infrastructure: A US$25.0 million loan was committed in March 2010 to the Aga Khan Fund

for Economic Development (AKFED), for on-lending to its three African airlines including i.e. Air

Mali, Air Burkina and Air Uganda. The purpose of the loan is to support the turnaround and expansion

of the airlines, and help strengthen their competitive position especially in West Africa.

10. IFC is also unleashing key sectors‟ potential with advisory services and expanding private sector

base with investment products. Advisory services include:

Improving investment climate: IFC, through FIAS and PEP Africa, has been engaged, along

with the Bank, in providing support to improve the investment climate. Phase 2 of the

Investment Climate Reform program was launched in January 2010. The aim of the 3-year

program is to improve the Doing Business ranking, encouraging agribusiness investment, and

improving the regulatory framework for industrial zone development. Phase 2 focuses on: (i)

the investment code, tax regimes, and investment promotion; (ii) special economic zones; and

(iii) areas covered by Doing Business - dealing with construction permits, trading across

borders, and enforcing contracts. A regional investment climate team (FIAS/PEP Africa) was

hired in Dakar and one Operating Officer in Bamako to ensure support to the day-to-day

implementation of the program, including in Mali (Phase 2, FY09 and beyond). IFC is

supporting regional integration through the regional OHADA-level reforms, implementation

of new collateral registries in the OHADA region, and implementation of a regional credit

bureau within the UEMOA zone.

Capacity building program: IFC has completed during the current CAS period several

advisory programs targeting SMEs, including the Support and Training Entrepreneurship

Program (STEP) focusing on micro enterprises, TUP (Trickle Up Program-IFC funded), and

IFC-GBI (Grassroots Business Initiative. These programs were not renewed as a result of the

refocus of IFC‟s advisory services (focus is now to provide standardized products such as

Business Edge, via intermediaries, such as trainers, financial institutions or corporates with

reach to SMEs).

IFC, through its Africa Leasing Program (ALF), is promoting leasing as an innovative

alternative financial mechanism to SMEs. Since June 2009, ALF in partnership with 10

professional associations trained more than 250 entrepreneurs on the advantages of leasing.

Further training/advisory services will target firms (leasing companies, commercial and

development banks, microfinance, equipment providers), business professionals (lawyers and

accountants) as well as local authorities. ALF will assist the tax authorities to implement tax

breaks. IFC is also contemplating making investments in leasing providers.

Health in Africa initiative: IFC supports the private delivery of health services through the

Health in Africa initiative, in collaboration with the Gates Foundation, which aims to increase

the capacity of private sector health providers and improve the quality of their services

through investment and technical assistance. A country assessment of the private health care

sector in Mali was carried out during the CAS period. IFC committed to providing technical

- 29 -

assistance in three major reform areas: (1) establishing a Public Private Dialogue Committee

and structuring the private health sector through the creation of a Private Health Sector

Alliance, (2) improving the regulatory framework governing the private health sector; and (3)

increasing access to financing for the private sector. Work has started in all three areas and a

market study of the private health sector will be carried out soon.

11. Future Support: IFC plans to continue its focus on (i) improving the investment climate, (ii)

providing enhanced support to SMEs and micro-enterprises through financial intermediaries; (iii)

proactive project development, especially in infrastructure and agribusiness. In particular, IFC is

looking at investments in banks, agribusiness and clean energy projects, through direct investments

and the SREP facility in conjunction with IDA and AfDB.

12. MIGA remains open in Mali, and is very keen to support new projects. Currently, MIGA‟s

portfolio consists of one contract in the telecommunications sector, with a gross exposure of US$16.2

million and a net exposure of US$14.6 million. MIGA‟s political risk product may alleviate concerns

for private sector investors who are keen to invest in Mali, but who remain apprehensive because of

political risks or governance issues. With regard to MIGA‟s product offerings, while MIGA supports

projects of all sizes, its more streamlined Small Investment Product has proven useful for smaller sized

investors into a country. MIGA has recently extended its product line, and is now offering insurance

cover for the Non-Honoring of a Sovereign Guarantee, as well as its traditional Transfer Restriction,

Expropriation, Breach of Contract and War and Civil Disturbance covers.

- 30 -

APPENDIX 5. PARTNERSHIP AND AID EFFECTIVENESS

Evolution in context

1. The government and donors have made some progress on harmonization and alignment, but

room for progress remains. A first joint donor assistance strategy (JAS) for the 2009-2011 period

was signed by 14 donors and focuses on results and the link to the GPRSF to improve

complementarities and joint policy matrices, funding mechanisms and reviews. Some results have

been achieved, such as improved disbursement predictability, reduction in the total number of budget

support triggers, increase in number of donors using direct budget support, and move towards more

programmatic approach in some sectors (especially water, decentralization and transport, to some

extent agriculture). The Bank has played a key role in achieving these results, although other donors

(the EU) have been more active in the decentralization and water sectors.

2. GoM’s technical capacities to work on aid effectiveness have increased. The government‟s Aid

Harmonization Secretariat is gradually becoming operational, and is co-chairing the GoM-donor

working group to update the JAS. It has led studies on the evaluation of Phase 2 of the Paris

Declaration. It is also operationalizing the calendar to harmonize sector reviews with the annual

GPRSF review and leading work on aid predictability. The government‟s 2007-2009 Harmonization

and Alignment Action Plan will be updated when the JASII is more clearly defined. A National Aid

Policy is being considered to provide increased visibility and traction to aid effectiveness issues.

3. Some evolution is seen in donor positioning and priority sectors, especially in macroeconomic

management, the social sectors, and water. The donor positioning table below was updated in 2010

based on 2009 commitments and positioning in 2010. As the table 1 shows, the EU, Canada, Denmark,

and Germany have all increased their engagement in macroeconomic management. The education

sector has seen increased participation of USAID, France, and Canada, while the African

Development Bank and Germany have reduced their engagement. In health, EU, USAID, Canada, and

the Netherlands have increased focus but the AfDB, France and Germany have accorded lesser priority

to this sector. The prioritization of the water sector has increased for the AfDB, EU, Denmark, and

Germany, while the rest of the donor group has maintained their engagement in the sector. Civil

society has received increased attention from France, Denmark, Canada and USAID.

Actual sector and harmonization strategies

4. Challenges remain in strengthening the capacity of permanent country institutions and the

country’s financial management mechanisms. The CAS period has seen the creation of new PIUs for

the agriculture (not completely parallel), energy and urban operations in spite of the effort to move

away from PIUs and specific procedures. There is a need for the GoM to incentivize civil servants to

manage donor-funded projects, mainstreamed into existing structures. There is also no progress on

integrating of the transport PIU into the Ministry of Transport as foreseen in the CAS. This outcome

indicator has proven to be too optimistic. The Bank is carrying out a PIU study in collaboration with

the Ministry of Economy and Finance to better understand the incentives driving the use of PIUs and

the impact of PIUs on portfolio quality. The Bank is also supporting strengthened country systems

with gradual use of country systems for financial management, with a treasury accountant being

assigned specifically to each new Bank-funded operation. This should contribute to reduce the need

for external fiduciary support through PIU-type arrangements. Over the remaining CAS period, the

Bank will promote a coordinated donor approach to reduce PIUs, including through increased use of

programmatic sector approaches.

1 The table does not necessarily reflect changes in levels of funding to a given sector, but rather priorities

reported in the context of the 2010 sector mapping exercise.

- 31 -

5. Fragmented donor assistance is still a problem, in spite of progress on joint funding

mechanisms. Three sectors are covered by sector budget support (education, health, and

decentralization) and two other sectors are in the process (irrigation and water). During the CAS

period, two new donors have started using budget support, but the share of budget support to tota l

disbursements has gone down from 33 percent in 2006 to 23 percent in 2010, while it has increased for

the Bank from 31 to 46 percent. The Bank chairs the donor sector working group (SWG) on macro-

economic issues and progress has been made in terms of quality of the joint budget review. Efforts are

undertaken to harmonize the conditionality framework with the indicators developed by the

government, and overall donors have reduced the joint trigger matrix to 39 triggers, under Bank

leadership, with a target of 30 triggers by end 2011. Use of national systems by donors remains fairly

low (32 percent for financial management, 37 percent for procurement), reflecting the remaining

challenges related to strengthening country systems.

6. In order to continue to strengthen the capacity of permanent country institutions and the

country's financial management mechanisms, the Bank will continue to support sector ministries to

develop program-based approaches. In spite of the creation of PIUs, the Bank has stimulated

program-based approaches in the agriculture and urban development sectors, both being sectors where

the Bank has comparative advantages in terms of staffing and level of funding. Fragmentation remains

visible in the agriculture sector, for example, with 33 donors, implementing over 248 projects through

63 PIUs to deliver a total portfolio of US$2.3 billion. The specific challenge for the agriculture sector

is to gradually transfer implementation responsibility to the public and private actors in the sector, and

to the newly created investment fund. The Fostering Agricultural Productivity Project (US$70 million

IDA credit) has leveraged substantial co-financing from the Borrower, local farmer organizations, the

EU Food Crisis Rapid Response Facility Trust Fund and GEF Grant, in addition to parallel financing

from IFAD and UNDP-GEF.

7. Operations in education, transport, agriculture, and water are relying increasingly on joint

sector reviews and paving the way for increased harmonization where it is less advanced (energy,

urban development). The transport sector has accomplished some harmonization, through the signing

of a MoU between the key development partners (EU, KFW, AfDB, IBD and BOAD) and the GoM

defining the harmonization framework in terms of: (a) joint supervision missions, (b) use of same

coordination unit, (c) use of same procurement procedures, and (d) use of a single M&E framework.

The Bank has been involved in the energy sector, which together with the water sector, has supported

the process of moving the electricity and water utility company (EDM) towards more efficient private

sector management. The Bank has also signed a MoU in the health sector (International health

Partnership+ Compact), defining collaboration modalities for donor alignment and aid coordination, in

line with the Paris Declaration. The education sector MoU was renewed in 2010 to provide a

framework for a multi-donor approach to support in the education sector. The last joint donor mission

took place in June 2010 and resulted in the endorsement of the third phase of the government

education sector program, on which to base the programs supported by the participating institutions.

The roadmap for the water sector continues to constitute a key tool in the sector harmonization

process, creating conditions for the gradual implementation of a true program approach in the sector.

Donor coordination on the Kabala water project and the urban water sector reform is being

coordinated with the dozen of partners involved in the program.

Challenges for the remaining CAS period

8. The JAS expires in 2011 and the process to update the strategy was launched in February

2011 in order to align donor support with the GPRSFIII. At this stage, the GoM has not yet decided

on which approach it will follow. Based on the lack of substantial evidence of the benefits of JAS

processes (division of labor and joint programming), the Bank is advocating for an incremental

approach with up-front focus on measurable results of the chosen process. In parallel, the UN is in the

process of moving towards “delivering as one” and Mali is a focus country for the EU fast track

- 32 -

initiative for division of labor among member states. All donors are more or less inclined to

harmonize, but the JAS II process will shed more light on the direction, with a determining factor

being the level of leadership of the government in the process going forward. The Bank is poised to

play a central role in this process, bringing to the table the experiences learned elsewhere from similar

experiences and a strong focus on results management. The CAS extension period will allow to better

align with the JAS and PRSP updates.

9. The Bank will continue to play a leading role in aid effectiveness issues. The remaining CAS

period will provide the opportunity to analyze internal and external constraints to deepening aid

effectiveness reforms and coordination in key sectors. The Bank is well positioned to participate in

potential division of labor exercise with the CAS focus on agricultural production and basic

infrastructure services (in energy, water, transport, agriculture, and urban development) being aligned

with the Bank‟s sectors of comparative advantage. Going forward, it will be necessary to find ways to

deepen donor coordination with strong focus on process contribution to actual results achieved in term

of contribution to the GPRSP III objectives. The CAS is fully in line with the new Africa Strategy‟s

principle to focus on a limited number of sectors. Extension of the CAS by one year will allow the

Bank to approach the JAS II process with more flexibility and to contribute to setting new objectives

for aid effectiveness in the context of the JAS II, GPRSP III, and the 4th

High Level Forum on Aid

Effectiveness scheduled for November 2011.

DONOR FUNDING REPORTED FOR 2010

Rank Donor Amount

(US$ million)

Rank Donor Amount

(US$ million)

1 USA (USAID + MCC) 213.0 11 Japan 29.5

2 World Bank 153.3 12 Sweden 26.6

3 United Nations, total 103.0 13 Belgium 16.5

4 European Union 98.5 14 Switzerland 13.8

5 AfDB 95.8 15 Spain 13.2

6 Canada 87.3 16 Global Fund 10.8

7 Germany 67.3 17 Luxembourg 9.4

8 Netherlands 56.7 18 IFAD 7.9

9 France 53.4 19 GAVI 5.4

10 Denmark 29.7 20 Italy 1.9

Total: 1,092.9

Source: 2011 Paris Declaration Survey, Mali Aid Harmonization Secretariat, March 2011

- 33 -

EVOLUTION OF DONOR PROGRAMS IN MALI AND OF BANK POSITIONING

Sector/ Donors The World

Bank

The World Bank as of end of CAS

African Development

Bank

European Union

MCC USAID France Canada Denmark Germany Netherlands

(a) (b) (a) (b) (a) (b) (a) (b) (a) (b) (a) (b) (a) (b) (a) (b) (a) (b) (a) (b) (a) (b)

GPRSP Pillar 1: Infrastructure Development and Strengthening the Productive Sector

Rural Development

Energy

Transport Environment

SME/MSME

Communications

GPRSP Pillar 2: Strengthening the Structural Reform Agenda

Public Adm. Reform

Macroecon. Mgmt.

Decentralization

Governance

Financial Sector

Civil Society

GPRSP Pillar 3: Improve Delivery of Social Service

Education Health/Social Dev. HIV/AIDS Water & Sanitation Employment Urban (c)

Cross Cutting Themes

Gender Culture Regional Integration

Sector priority: : High : Medium : Low (a) As in the CAS; (b) Situation as of CASPR; (c) Urban Project in CAS lending program, but not included in CAS Annex 7 table. Highlighted cells signify change from 2007 to 2011. Note: The donors in the original CAS Annex 7 constitute the largest donors in 2010. Together, they account for about 88 percent of official ODA. The table reflects

donor priority to a given sector, as per the 2010 division of labor exercise in Mali and not levels of funding to a given sector.

- 34 -

APPENDIX 6. CLIMATE CHANGE EFECTS ON MALIAN MAIN DEVELOPMENT

SECTORS

1. The persistent drought has led to fairly significant rainfall deficits, so that the migration of

people and animals became a main strategy to tackle these new precarious environmental and climate

conditions. The decrease in rainfall is going to entail land conflicts because of the reduction in arable

lands and rangelands, the migration of populations towards urban centers, with as consequences the

increase in unemployment, insecurity, and in communities‟ life, livelihoods and health.

2. Agriculture and water resources: The increase in temperatures, combined with a decrease in

precipitations and in the length of the rainy season, impacts on the agriculture production and

consequently on food security. By the year 2050, it could become difficult to contemplate rice farming

through controlled water submersion as currently in the Rice Offices of Ségou and Mopti as well as in

San, without hydraulic structures. Concerning the full control of parameters, the available volumes of

water for off-season farming could become limited given the weakness of the inputs of rivers, mainly

during the period of low water in rivers (report on the Adaptation Strategy, 2007).

3. Through the fostering agricultural productivity project, several Sustainable Land and Water

Management (SLWM) technologies for the agricultural sector that are more resistant to the impact of

climate shocks will be introduced. The project will help end users to adopt SLWM practices which

mitigate CC and sequester atmospheric carbon (inter alia conservation tillage or conservation

agriculture, agro-forestry, sustainable grazing management, sylvo-pastoral systems and improved

forest management). It will also support SLWM practices that improve the ecosystem services

provided by the soil – leading to increased biomass production and more reliable crop yields – and

strengthen resilience in agricultural livelihoods.

4. Water resources: Water constitutes the engine for the socio-economic development of the

country. Though theoretically abundant, surface and underground water resources are seriously

threatened by wastage and non-rational management of networks, sedimentation and sand silting of

water-courses, lakes, and ponds, various pollutions, etc. This situation will be exacerbated by the

effects of CC. The frequency of floods, following an increase in rainfalls, will cause economic losses

with current occupancy of its main water courses. Owing to the decrease in rainfall, the safe drinking

water supply for the population and livestock will be very difficult following the drying up of some

wells or increase in their in-depth. Due to the decrease in rainfall, the supplying of deep aquifers

through infiltration has become very weak. In some regions, as in the Bani-Niger sub-basin, aquifers

have experienced the lowest level since 1987 (National Directorate for Energy, 2006).

5. The Bank is preparing the Bamako water supply project. Several studies addressing the impact

of CC on the sector will be achieved. The project should ensure the resilience of water and sanitation

infrastructure to CC as a major CC adaptation measure. The creation of safe water sources and

effective sanitation systems should guarantee protection from contamination and destruction from

natural disasters. Synergy with the Global Facility for Disaster Reduction and Recovery throughout

the national flood early warning system should be encouraged.

6. Forest resources: The forest sector plays a decisive role in the socio-economic and cultural life

of Malian populations. It provides capital goods that no other sector can provide (93 percent of energy

requirements, food products, and pharmaceuticals, ecotourism, biodiversity conservation, improving

the living environment, etc. Natural formations underwent great changes, due especially to the aridity

of the climate, successive droughts, and anthropic activities. In case of shortages or disruption of rural

production systems, some activities traditionally considered secondary will become very important.

For example, for some small basins such as Diola, Bougouni, and Selingué, wood-cutting will be

favored and will temporarily be a source of income but only for a short period because the forest

- 35 -

plateau of these zones will not withstand for long. The degradation of land cover will increase soil

erosion and favor a blocking up of the water courses of water retention lakes.

7. The Bank supported the elaboration of a Country Strategic Framework for Sustainable Land

Management (CSIF). Also a grant for DRM was approved to strengthen the DRM institutional

framework, reinforce key institutions‟ technical capacities and implement a pilot project for vulnerable

communities‟ protection. Mali also benefits from the Integrated Land and Water Management for

Adaptation to Climate Variability and Change Trust Fund to set up an operational information system

for DRM, CC and SLM. Going forward, the Bank will help Mali strengthen the resilience of its

agricultural and natural resources sectors.

8. Biodiversity: The loss of biodiversity is mainly attributable to the loss and degradation of natural

habitats and, for some species, direct over-exploitation. The loss and degradation of natural habitats

through activities such as wood cutting, over-grazing, and cultivation of marginal lands are further

exacerbated by recurrent droughts.

9. Through the Gourma project, the Bank supported the elaboration of several community

development action plan taking into account the CC and biodiversity issues. The project is supporting

protection of natural habitats in key conservation areas in and around the Gourma Elephant Reserve.

10. Energy sector: CC affects mainly two very vulnerable sectors, namely: the hydro-electricity sub-

sector and woody fuels. The growth rate of electricity amounts, on average by year is 12 percent, of

which 15 percent for localities supplied by the interconnected network and 10 percent for isolated

centers. This demand is essentially met for more than 80 percent from hydro-electricity which are

water retention structures depending mainly on rainfall. Decrease in rainfall entails production

shortages that influence negatively the continuity of electric energy supply service.

11. Mali is a pilot country of the SREP, a targeted program under the Strategic Climate Fund (SCF).

The aim of the SREP in Mali is to pilot and demonstrate, as a response to the challenges of CC, the

economic, social and environmental viability of low carbon development pathways in the energy

sector by creating new economic opportunities and increasing energy access through the use of

renewable energy. Multilateral development banks will assist the GoM in initiating a process leading

towards transformational change to low carbon energy pathways by exploiting the national renewable

energy potential in place of fossil-based energy supply and inefficient use of biomass. The specific

objective of the Malian investment plan is to develop an integrated approach to development policies,

strategies and investment programs based on a coherent and efficient public-private dynamic.

12. Health: The relationships between health and the environment dealt with two diseases: malaria

and meningitis. For malaria, an increase in temperatures will reduce the time of development of the

parasite in its vector, which will increase the virtual capacity of the anopheles mosquito. As for

meningitis, its expansion could be amplified in the future, following the modification of the extent of

eco-climatic zones. Although, in situations of flooding, due to poor hygiene and sanitation and lack of

clean drinking water, there are far more cases of cholera. It is also worth noting that the outdoor air

pollution associated with greenhouse gas emissions from smokestacks, vehicles, and burning of waste

can cause respiratory diseases, especially in urban centers.

13. Through its new Reproductive Health Project (under preparation), the Bank is considering CC

issues and efforts are targeted at increasing the demand for and use of reproductive health services

with a clear focus on family planning and other high impact interventions contributing to the reduction

of maternal, neonatal and child mortality, and at reinforcing of community health service delivery

capacity.

- 36 -

14. Infrastructures: In transport, the national road network comprises 89,024 km of roads of which

only 3,387 km are paved. This makes roads very vulnerable to meteorological and hydrological

phenomena such as wind, flooding, and surface water runoff resulting in erosion and siltation

processes. The national river network will be seriously handicapped by an overall reduction in rainfall,

disturbance in the distribution of precipitation, and the siltation of river courses. The lowering of the

average rainfall led to poor planning such as construction of houses and infrastructure in the beds of

rivers and weaknesses in the dimensioning of some hydraulic structures such as bridges, dams, drains

and dykes. This situation results in increasing human and material losses in relation with flooding,

often attributed to CC.

15. Through its ongoing projects and also the urban operation under preparation, CC issues should

be considered and tackled. These projects should help the GoM revise its infrastructure norms and

help make them resilient to climate variability and change.

16. Crosscutting considerations: With regards to each sector‟s high influence on others, adapting to

CC would require strong coordination mechanisms, with an integrated systemic vision and approach.

In this regards, Mali is highly committed towards the development of its Climate Change National

Policy and Strategy, with inputs from numerous international stakeholders, including the Bank.

17. In addition, CC combined with the demographic growth and little planning capacities are

altogether contributing to increase disaster risks. A number of activities are being supported by the

Global Facility for Disaster Reduction and Recovery (managed by the Bank) to support coordination

(institutional, political, legal and technical capacities) with regards to CC adaptation and disaster risk

management. These activities will, among other objectives, assist Mali in the development of a multi-

hazard early warning system (food security, flooding, drought and locust), preparedness and crisis

management capacities as well as multi-sectoral planning capacities overall.

- 37 -

APPENDIX 7

Mali at a glance 4/5/11

Sub-

Key D evelo pment Indicato rs Saharan Low

M ali Africa income

(2009)

Population, mid-year (millions) 14.5 819 828

Surface area (thousand sq. km) 1,240 24,242 17,838

Population growth (%) 3.6 2.5 2.2

Urban population (% of to tal population) 33 36 28

GNI (Atlas method, US$ billions) 8.9 887 379

GNI per capita (Atlas method, US$) 680 1,082 457

GNI per capita (PPP, international $) 1,190 1,973 1,137

GDP growth (%) 4.5 5.2 6.2

GDP per capita growth (%) 0.9 2.7 3.9

(mo st recent est imate, 2003–2009)

Poverty headcount ratio at $1.25 a day (PPP, %) 51 51 ..

Poverty headcount ratio at $2.00 a day (PPP, %) 77 73 ..

Life expectancy at birth (years) 48 52 57

Infant mortality (per 1,000 live births) 101 83 77

Child malnutrition (% of children under 5) 28 25 28

Adult literacy, male (% of ages 15 and o lder) 35 72 73

Adult literacy, female (% of ages 15 and o lder) 18 54 59

Gross primary enro llment, male (% of age group) 100 105 107

Gross primary enro llment, female (% of age group) 83 95 100

Access to an improved water source (% of population) 56 60 64

Access to improved sanitation facilities (% of population) 36 31 35

N et A id F lo ws 1980 1990 2000 2009 a

(US$ millions)

Net ODA and official aid 262 479 288 964

Top 3 donors (in 2008):

European Commission 42 42 10 149

Canada 13 21 13 99

France 45 129 98 82

Aid (% of GNI) 14.8 19.9 12.0 11.0

Aid per capita (US$) 37 55 27 76

Lo ng-T erm Eco no mic T rends

Consumer prices (annual % change) .. 0.6 -0.7 2.2

GDP implicit deflator (annual % change) 16.3 4.9 5.6 3.6

Exchange rate (annual average, local per US$) 211.3 272.3 712.0 472.2

Terms of trade index (2000 = 100) 102 144 100 114

1980–90 1990–2000 2000–09

Population, mid-year (millions) 7.2 8.7 10.5 14.5 1.9 2.0 2.4

GDP (US$ millions) 1,787 2,421 2,422 8,996 0.8 4.1 5.3

Agriculture 48.3 45.5 41.6 36.5 3.3 2.6 4.8

Industry 13.2 15.9 20.6 24.2 4.3 6.4 4.5

M anufacturing 6.5 8.5 3.8 3.1 6.8 -1.4 5.1

Services 38.5 38.6 37.9 39.1 1.9 3.0 6.5

Household final consumption expenditure 87.4 79.8 79.4 76.8 0.6 3.2 0.7

General gov't final consumption expenditure 11.6 13.8 8.6 10.3 7.9 3.2 22.2

Gross capital formation 15.5 23.0 24.6 22.4 3.6 0.4 6.2

Exports of goods and services 14.7 17.1 26.8 26.2 4.8 9.9 6.3

Imports o f goods and services 29.1 33.7 39.4 33.8 6.6 3.5 3.9

Gross savings .. .. .. ..

Note: Figures in italics are for years other than those specified. 2009 data are preliminary. .. indicates data are not available.

a. A id data are for 2008.

Development Economics, Development Data Group (DECDG).

(average annual growth %)

(% of GDP)

10 5 0 5 10

0-4

15-19

30-34

45-49

60-64

75-79

percent of total population

Age distribution, 2008

Male Female

0

50

100

150

200

250

300

1990 1995 2000 2007

Mali Sub-Saharan Africa

Under-5 mortality rate (per 1,000)

-6

-4

-2

0

2

4

6

8

10

12

14

95 05

GDP GDP per capita

Growth of GDP and GDP per capita (%)

- 38 -

Mali

B alance o f P ayments and T rade 2000 2009

(US$ millions)

Total merchandise exports (fob) 547 2,082

Total merchandise imports (fob) 595 2,295

Net trade in goods and services -324 -711

Current account balance -227 -876

as a % of GDP -9.4 -9.3

Workers' remittances and

compensation of employees (receipts) 73 308.2

Reserves, including gold 381 1,528

C entral Go vernment F inance

(% of GDP)

Current revenue (including grants) 15.7 21.7

Tax revenue 13.1 14.7

Current expenditure 11.6 13.0

T echno lo gy and Infrastructure 2000 2008

Overall surplus/deficit -6.6 -4.2

Paved roads (% of to tal) 12.1 18.0

Highest marginal tax rate (%) Fixed line and mobile phone

Individual .. .. subscribers (per 100 people) 0 28

Corporate .. .. High technology exports

(% of manufactured exports) 14.8 2.7

External D ebt and R eso urce F lo ws

Enviro nment

(US$ millions)

Total debt outstanding and disbursed 2,960 1,904 Agricultural land (% of land area) 32 32

Total debt service 93 97.5 Forest area (% of land area) 10.7 10.1

Debt relief (HIPC, M DRI) 797 27.6 Terrestrial protected areas (% of surface area) .. 2.1

Total debt (% of GDP) 122.2 21.2 Freshwater resources per capita (cu. meters) 5,449 4,722

Total debt service (% of exports) 12.9 2.5 Freshwater withdrawal (billion cubic meters) 6.5 ..

Foreign direct investment (net inflows) 82 427.6 CO2 emissions per capita (mt) 0.05 0.05

Portfo lio equity (net inflows) 0 9.3

GDP per unit o f energy use

(2005 PPP $ per kg of o il equivalent) .. ..

Energy use per capita (kg of o il equivalent) .. ..

Wo rld B ank Gro up po rtfo lio 2000 2009

(US$ millions)

IBRD

Total debt outstanding and disbursed – –

Disbursements – –

Principal repayments – –

Interest payments – –

IDA

Total debt outstanding and disbursed 957 698

Disbursements 49 160

P rivate Secto r D evelo pment 2000 2009 Total debt service 14 5

Time required to start a business (days) – 15 IFC (fiscal year)

Cost to start a business (% of GNI per capita) – 89.2 Total disbursed and outstanding portfo lio 78 9

Time required to register property (days) – 29 o f which IFC own account 57 9

Disbursements for IFC own account 0 0

Ranked as a major constraint to business 2000 2009 Portfo lio sales, prepayments and

(% of managers surveyed who agreed) repayments for IFC own account 9 0

Access to /cost o f financing .. 63.6

Corruption .. 48.7 M IGA

Gross exposure 0 16

Stock market capitalization (% of GDP) .. .. New guarantees 0 0

Bank capital to asset ratio (%) .. ..

Note: Figures in italics are for years other than those specified. 2009 data are preliminary. 4/5/11

.. indicates data are not available. – indicates observation is not applicable.

Development Economics, Development Data Group (DECDG).

0 25 50 75 100

Control of corruption

Rule of law

Regulatory quality

Political stability

Voice and accountability

Country's percentile rank (0-100)higher values imply better ratings

2009

2000

Governance indicators, 2000 and 2009

Source: Kaufmann-Kraay-Mastruzzi, World Bank

IBRD, 0IDA, 534

IMF, 40

Other multi-lateral, 556

Bilateral, 983

Private, 5

Short-term, 7

Composition of total external debt, 2008

US$ millions

- 39 -

Indicator 2008 2009 2010 2011

Portfolio Assessment

Number of Projects Under Implementation a 11 13 12 10

Average Implementation Period (years) b 4.0 3.9 4.0 5.2

Percent of Problem Projects by Number a, c 18.2 15.4 8.3 0.0

Percent of Problem Projects by Amount a, c 11.8 1.1 0.8 0.0

Percent of Projects at Risk by Number a, d 18.2 15.4 16.7 10.0

Percent of Projects at Risk by Amount a, d 11.8 1.1 1.2 0.4

Disbursement Ratio (%) e 22.9 20.7 21.3 14.4

Portfolio Management

CPPR during the year (yes/no) yes yes yes yes

Memorandum Item Since FY 80 Last Five FYs

Proj Eval by OED by Number 64 8

Proj Eval by OED by Amt (US$ millions) 1,741.0 429.9

% of OED Projects Rated U or HU by Number 40.6 50.0

% of OED Projects Rated U or HU by Amt 32.5 40.6

a. As shown in the Annual Report on Portfolio Performance (except for current FY).

b. Average age of projects in the Bank's country portfolio.

c. Percent of projects rated U or HU on development objectives (DO) and/or implementation progress (IP).

d. As defined under the Portfolio Improvement Program.

e. Ratio of disbursements during the year to the undisbursed balance of the Bank's portfolio at the

beginning of the year: Investment projects only.

* All indicators are for projects active in the Portfolio, with the exception of Disbursement Ratio,

which includes all active projects as well as projects which exited during the fiscal year.

Selected Indicators* of Bank Portfolio Performance and Management

CAS Annex B2 - Mali

As Of Date 4/6/2011

- 40 -

2008 2009 2010 2011*

Commitments (US$m)

Gross 0 33.8 17.0 5.3

Net** 0 33.8 17.0 5.3

Net Commitments by Sector (%)

Food & Beverages 0 34.5 33.5 0.0

Finance & Insurance 0 34.2 66.5 100.0

Pulp & Paper 0 31.3 0 0

Net Commitments by Investment Instrument (%)

Guarantee 0 34.2 66.5 100.0

Loan 0 65.8 33.5 0

* As of March 31, 2011

** IFC's Own Account only

CAS Annex B3 (IFC) for Mali

IFC Program, FY2008-2011

- 41 -

CAS Appendix B6

Mali – Key Economic Indicators

Indicator 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

National accounts (as % of GDP)

Gross domestic producta

100 100 100 100 100 100 100 100 100 100

Agriculture 37 37 36 40 39 40 39 39 40 40

Industry 24 24 23 20 21 21 23 23 23 23

Services 39 39 41 40 40 39 38 38 37 37

Total Consumption 89 85 87 97 91 92 88 87 85 85

Gross domestic fixed investment 23 23 22 19 20 18 21 21 21 22

Government investment 8 9 8 8 11 8 9 8 8 8

Private investment 15 14 14 12 10 11 12 13 14 15

Exports (GNFS)b

26 32 26 29 26 25 27 27 27 26

Imports (GNFS) 37 40 36 43 34 33 35 33 31 31

Gross domestic savings 11 15 13 5 13 11 12 14 16 17

Gross national savingsc

11 13 13 6 13 11 14 15 15 16

Memorandum items

Gross domestic product 5305 5866 7146 8722 8996 .. .. .. .. ..

(US$ million at current prices)

GNI per capita (US$, Atlas method) 440 460 530 610 680 .. .. .. .. ..

Real annual growth rates (%, calculated

from 87 prices)

Gross domestic product at market prices 6.1 5.3 4.3 5.0 4.5 5.8 5.3 5.5 5.5 5.1

Real annual per capita growth rates (%,

calculated from 87 prices)

Balance of Payments (as % of GDP)

Exports (GNFS)b

26 32 26 29 26 25 27 27 27 26

Merchandise FOB 21 24 22 21 23 24 24 23

Imports (GNFS)b

37 40 36 43 34 33 35 33 31 31

Merchandise FOB 25 31 24 24 25 24 23 22

Net current transfers 6 5 5 5 4 4 4 4

Official (net) 3 2 2 2 1 1 1 1

Private (net) 2 6 3 3 3 3 2 2

Current account balance (including

official transfers) -8 -12.7 -9.3 -9.0 -9.7 -8.3 -6.5 -6.7

Overall balance 0 0.0 5.0 -1.9 -1.7 -0.4 1.1 0.9

(Continued)

Actual Estimate Projected

- 42 -

CAS Appendix B6

Mali – Key Economic Indicators

(continued)

Actual

Indicator 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Public finance (as % of GDP at market

prices)d

Current revenues 17.9 51.8 16.9 16.0 17.1 17.4 16.3 16.5 16.9 17.1

Current expenditures 13.5 13.4 13.6 12.9 13.0 13.0 14.2 13.4 13.4 13.5

Current account surplus (+) or deficit (-) 4.5 38.4 3.3 3.1 4.1 4.4 2.1 3.1 3.5 3.6

Capital expenditure 10.4 9.2 9.7 9.8 10.8 7.9 9.2 8.3 7.5 8

Foreign financing 6.6 -26.6 6.6 5.5 7.2 4.0 4.7 4.5 4.3 4.3

Monetary indicators

M2/GDP 30.0 30.4 29.4 27.9 28.1 27.9 27.7 29.0 29.9 30.8

Growth of M2 (%) 9.5 10.9 8.0 8.4 16.0 8.9 9.3 11.8 11.5 10.8

Private sector credit growth (%) 4.6 5.2 7.2 8.4 8.3 9.0 8.3 8.7

Government credit growth (net, %) 0.5 -3.2 -13.9 2.5 8.5 4.5 -1.0 -1.2

Price indices( YR87 =100)

Merchandise export price index .. .. 3.4 .. .. .. .. .. .. ..

Merchandise import price index .. .. 3.4 .. .. .. .. .. .. ..

Merchandise terms of trade annual %

change (deterioration - ) .. .. 0.0 36.7 27.7 -1.3 12.8 -8.1 4.9 0.8

Real exchange rate .. .. 0.5 8.0 0.3 -6.3 .. .. .. ..

Consumer price index (% change) 6.4 1.5 2.0 9.1 2.2 1.4 2.0 2.1 2.3 2.8

GDP deflator (% change) 2.4 4.1 7.1 8.7 3.6 3.6 4.4 1.3 2.4 2.4

a. GDP at factor cost

b. "GNFS" denotes "goods and nonfactor

services."

c. Includes net unrequited transfers

excluding official capital grants.

d. Consolidated central government.

ProjectedEstimate

- 43 -

CAS Appendix B7

Actual Estimated

Indicator 2005 2006 2007 2008 2009 2010 2011 2012 2013

Total debt outstanding and 3260 1656 1992 2125 2667 2803 2989 3094 3130

disbursed (TDO) (US$m)a

Net disbursements (US$m)a

.. .. 101 -9 234 428 88 64 68

Total debt service (TDS) .. .. 20 25 26 29 31 31 31

(US$m)a

Debt and debt service indicators

(%)

TDO/XGSb

241.8 90.2 104.8 84.5 108.0 121.3 108.7 104.5 101.1

TDO/GDP 59.3 27.0 27.8 24.2 28.3 30.0 29.1 28.1 27.7

TDS/XGS .. .. 1.0 1.0 1.0 1.2 1.1 1.1 1.0

Concessional/TDO 93.7 95.1 96.8 95.9 94.1 93.9 94.1 94.5 94.8

IBRD exposure indicators (%)

IBRD DS/public DS .. .. .. .. .. .. .. .. ..

Preferred creditor DS/public .. .. 48.5 55.2 57.6 48.6 49.9 49.1 50.2

DS (%)c

IBRD DS/XGS .. .. .. .. .. .. .. .. ..

IBRD TDO (US$m)d

.. .. .. .. .. .. .. .. ..

Of which present value of

guarantees (US$m)

Share of IBRD portfolio (%) .. .. .. .. .. .. .. .. ..

IDA TDO (US$m)d

1424 297 452 534 698 775 839 888 920

IFC (US$m)

Loans

Equity and quasi-equity /c

MIGA

MIGA guarantees (US$m) 16.2 16.2 16.2 16.2 16.2 16.2 16.2 16.2 16.2

a. Includes public and publicly guaranteed debt, private nonguaranteed, use of IMF credits and net short-

term capital.

b. "XGS" denotes exports of goods and services, including workers' remittances.

c. Preferred creditors are defined as IBRD, IDA, the regional multilateral development banks, the IMF, and the

Bank for International Settlements.

d. Includes present value of guarantees.

e. Includes equity and quasi-equity types of both loan and equity instruments.

Projected

- 44 -

CAS Annex B8 (IFC) - Mali

Committed and Disbursed Outstanding Investment Portfolio

As of 3/31/2011

(In USD Millions)

Committed Disbursed Outstanding

FY Approval Company Loan Equity Quasi Equity* GT/RM** Participant Loan Equity

Quasi Equity GT/RM Participant

2009 BoA Mali 0 0 0 6.0 0 0 0 0 2.8 0

2009/ 2010/ 2011 Ecobank Mali 0 0 0 12.2 0 0 0 0 5.4 0

2009 GMM 10.8 0 0 0 0 10.8 0 0 0 0

2010 GRIMAS 6.5 0 0 0 0 4.7 0 0 0 0

1994/ 1998/ 2003 Hotel Bamako 1.5 0 0 0 0 1.5 0 0 0 0

2001/ 2002/ 2009 PAL-Graphique Id

10.7 0 0 0 0 8.5 0 0 0 0

1999/ 2004 SEF SIECO 0.3 0 0 0 0 0.3 0 0 0 0

1982/ 1983/ 1990/ 1993 SIKA 0 0 0 0 0 0.0 0 0 0 0

Total Portfolio 29.8 0 0 18.2 0 25.8 0 0 8.2 0

* Quasi Equity includes both loan and equity types.

** Denotes Guarantee and Risk Management Products.

- 45 -

Closed Projects 76

IBRD/IDA *

Total Disbursed (Active) 239.97

of w hich has been repaid 0.00

Total Disbursed (Closed) 762.07

of w hich has been repaid 79.35

Total Disbursed (Active + Closed) 1,002.04

of w hich has been repaid 79.35

Total Undisbursed (Active) 328.05

Total Undisbursed (Closed) 10.63

Total Undisbursed (Active + Closed) 338.68

Active Projects

Project ID Project NameDevelopment

Objectives

Implementation

ProgressFiscal Year IBRD IDA GRANT Cancel. Undisb. Orig.

Frm

Rev'd

P052402 GEF Gourma Biodiv Conserv SIL (FY05) S MS 2005 5.5 0.80 0.80

P082187 Dev Learning Ct LIL (FY04) - (PCFD) MS MS 2004 2.5 0.36 0.27

P080935 Growth Support SIL (FY05) MS MS 2005 55 33.90 27.30 16.77

P082957 HIV/AIDS MAP (FY04) S MS 2004 31.5 1.34 -6.26 -0.76

P073036 Household Energy & Univ Access (FY04) S S 2004 70.65 16.09 -19.91 8.50

P040653 Rural Com. Dev. (PACR) S S 2006 71.2 25.05 10.57

P090075 Transp Sec SIL 2 (FY07) S MS 2007 90 38.42 29.14

P081704 Agr Compet & Diversif (FY06) - (PCDA) S S 2006 46.4 18.58 17.21

P095091 Agricultural Productivity (IDA) S MS 2010 70 68.72 8.09

P108440 Energy Support Project SIL (FY09) S S 2009 120 125.59 49.39

P099709 Agricultural Productivity GEF (SIP) S MS 2010 6.2 6.20 0.50

Overall Result 557.25 11.7 335.05 117.09 24.51

a/. Intended disbursements to date minus actual disbursements to date as projected at appraisal

As Of Date 4/6/2011

CAS Annex B8 - Mali

Operations Portfolio (IBRD/IDA and Grants)

Original Amount in US$ Millions Disbursements a/

Difference Between

Expected and Actual

Supervision Rating

Last PSR

HomboriHomboriTondoTondo

(1,155 m)(1,155 m)

S a h a r a D e s e r t

M O P T IM O P T I

S É G O US É G O U

S I K A S S O S I K A S S O

T O M B O U C T O UT O M B O U C T O U

K I D A LK I D A L

G A OG A O

K AY E SK AY E S

KOU

L IK

OR

O

Baoulé

Niger

Niger

LacLacDéboDébo

Lac NiangayLac Niangay

Vallé

e du

Tile

msi

Vallé

e de

L’Aza

ouak

KoulikoroKoulikoro

SikassoSikasso

SégouSégou

MoptiMopti

GaoGao

KayesKayes

TombouctouTombouctou(Timbuktu)(Timbuktu)

KidalKidal

BAMAKOBAMAKO

BougouniBougouni

SanSan

NionoNiono

NampalaNampala

KolokaniKolokani

NioroNiorodu Saheldu Sahel

KitaKita

NaraNara

Kéniniébaba

KoutialaKoutiala

BandiagaraBandiagara

NiafounkeNiafounke

AraouaneAraouane

DouentzaDouentza

GourmaGourmaRharousRharous

AnsongoAnsongo

MenakaMenaka

BouremBourem

TessalitTessalit

TaoudenniTaoudenni

M A U R I T A N I AM A U R I T A N I A

A L G E R I AA L G E R I A

B U R K I N AB U R K I N AF A S OF A S O

N I G E RN I G E R

G H A N AG H A N A

B E N I NB E N I N

TO

GO

TO

GO

G U I N E AG U I N E A

S I E R R AS I E R R AL E O N EL E O N E

To To El MreîtiEl Mreîti

To To ChenachaneChenachane

To To Poste MauricePoste Maurice

CortierCortier

To To AbalessaAbalessa

To To AbalaAbala

To To OuahigouyaOuahigouya

To To NounaNouna

To To BoboBobo

DioulassoDioulasso

To To KorhogoKorhogo

To To KankanKankan

To To SiguiriSiguiri

To To KédougouKédougou

To To GoudiryGoudiry

To To KifaKifa

To To Ayun Ayun

el ’Atrousel ’AtrousTo NémaTo Néma

To NiameyTo Niamey

To To El MreîtiEl Mreîti

C Ô T E D ’ I V O I R EC Ô T E D ’ I V O I R E

DISTRICTDISTRICTDE BAMAKODE BAMAKO

Bougouni

San

Niono

Nampala

Kolokani

Niorodu Sahel

Kita

Nara

Kéniéba

Koutiala

Bandiagara

Niafounke

Araouane

Douentza

GourmaRharous

Ansongo

Menaka

Bourem

Tessalit

Taoudenni

Koulikoro

Sikasso

Ségou

Mopti

Gao

Kayes

Tombouctou(Timbuktu)

Kidal

BAMAKO

M O P T I

S É G O U

S I K A S S O DISTRICTDE BAMAKO

T O M B O U C T O U

K I D A L

G A O

K AY E S

KOU

L IK

OR

O

M A U R I T A N I A

A L G E R I A

B U R K I N AF A S O

N I G E R

G H A N A

B E N I N

TO

GO

C Ô T E D ’ I V O I R E

G U I N E A

S I E R R AL E O N E

Baoulé

Niger

Niger

LacDébo

Lac Niangay

Vallé

e du

Tile

msi

Vallé

e de

L’Aza

ouak

Bani

Bafing

To El Mreîti

To Chenachane

To Poste Maurice

Cortier

To Abalessa

To Abala

To Ouahigouya

To Nouna

To Bobo

Dioulasso

To Korhogo

To Kankan

To Siguiri

To Kédougou

To Goudiry

To Kifa

To Ayun

el ’AtrousTo Néma

To Niamey

To El Mreîti

S a h a r a D e s e r t

HomboriTondo

(1,155 m)

5°W 0°

10°W 5°W 0°

10°N

15°N

20°N

10°N

15°N

20°N

25°N

MALI

IBRD 33443R

MAY 2009

MALISELECTED CITIES AND TOWNS

PROVINCE CAPITALS

NATIONAL CAPITAL

RIVERS

MAIN ROADS

RAILROADS

REGION BOUNDARIES

INTERNATIONAL BOUNDARIES

This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of The World Bank Group, any judgment on the legal status of any territory, o r any endo r s emen t o r a c c e p t a n c e o f s u c h boundaries.

0 100 200

0 50 100 150 300 Miles

300 Kilometers