## _cr0801 ## Source details **Canonical URL:** [_cr0801](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2008/_cr0801.pdf) ## Other formats - [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2008/_cr0801.pdf.md) - [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2008/_cr0801.pdf.json) --- ### Executive summary — overview and follow-up - Report covers the period January to December 2006; PRSP adopted in April 2003. - Regular quarterly, weekly, and annual implementation reports produced; most recent annual report prior to this covered calendar year 2005 and was issued in February 2006. - Participatory follow-up methodology prepared in 2006 with two remedial measures: - Refocus measurement on results. - Base measurement at the communal level. - Working group for experimental pilot communes composed of ST/CTSE-PRSP, INS, PADDL, SNV, UNDP, and PNDP to: - Define tools for exchanging and collecting data. - Define criteria for choice of pilot communes. - Prepare the budget of the pilot operation. - Participatory evaluation reviews organized in all provinces in August 2006. ### Macroeconomic situation — key outcomes and fiscal indicators - Real growth rate: 3.9 percent in 2006, compared with 2 percent in 2005. - Consumer price index rise: 5.1 percent in 2006, as against 2 percent in 2005. - Oil sector real growth rate: 8.7 percent in 2006. - Overall trade balance: surplus of CFAF 220.34 billion in 2006. - Nonoil trade balance: CFAF 225.36 billion in 2006 (2005: deficit of CFAF 251.98 billion). - Coverage of sight liabilities by external assets: nearly 80 percent. - Net foreign assets: CFAF 499.7 billion in December 2005; CFAF 1,034 billion in December 2006 (increase of 106.9 percent). - Net foreign credits: CFAF 1,174.3 billion in December 2005 to CFAF 869.3 billion in December 2006 (reduction of 26.5 percent). - Revenue and grants: CFAF 2,089.5 billion in 2006, i.e. CFAF 324.5 billion more than projections in the Budget Law. - Grants: CFAF 248.2 billion (Budget Law projection: CFAF 39 billion). - Oil revenues: CFAF 618.1 billion (Budget Law projection: CFAF 515 billion). - Nonoil revenues: CFAF 1,223.2 billion (CFAF 12.2 billion higher than Budget Law projections). - Expenditure: CFAF 1,704.8 billion in 2006 (Budget Law projection: CFAF 1,790 billion). - Actual investment expenditure: CFAF 282.5 billion (CFAF 155.5 billion less than Budget Law forecast). - Externally financed capital expenditure: CFAF 61.5 billion (Budget Law projection: CFAF 110 billion). - Money supply: grew by 9 percent to reach CFAF 1,713.4 billion at end-December 2006. - Credit to the economy: CFAF 865.2 billion in December 2006, as against CFAF 836.7 billion in 2005. - Credit to private sector (table/section conflict preserved): CFAF 859 billion in December 2006 compared with CFAF 832.3 billion in December 2005 (increase of 3.2 percent) — source text notes an inconsistency. - Private sector deposits with banks: CFAF 1,296 billion in December 2006 compared with CFAF 1,162 billion in December 2005 (increase of 11.5 percent). - Policy responses: - Government reduced import taxes on certain staple goods to protect purchasing power. - Nigeria became Cameroon’s leading supplier of imported goods, supplanting European Union countries. ### Strategic area No. 1 — Promotion of macroeconomic stability - A joint IMF and World Bank mission assessed progress at end-fiscal 2006; majority of fiscal and financial objectives met but extra-budgetary spending reappeared. - Major public spending control effort: civil servant survey conducted most of 2006 to clean up payroll and identify bogus salaries and allowances. - Inflation increase from 2 percent to 5.1 percent driven mainly by rise in fuel prices at the pump affecting transport and food prices. ### Strategic area No. 2 — Economic diversification (rural, financial intermediation, industrial) - Rural sector outcomes (2006): - Agriculture growth rate: 3.3 percent in 2006, compared with 2.7 percent in 2005. - Food agriculture: 4.3 percent in 2006. - Forestry and logging: 4.0 percent in 2006. - Livestock farming: 3 percent in 2006. - Fisheries: 2 percent in 2006. - Industrial and commercial agriculture: -2.3 percent in 2006, compared with 1.7 percent in 2005. - Robusta production estimated to have fallen by approximately 8 percent in 2006. - Arabica production grew by 4 percent in 2006. - Cocoa production expected to have grown by 7 percent in 2006. - Fee payable to ONCC increased from CFAF 3 to CFAF 5 per kilogram. - PSFE implementation raised around CFAF 27.5 billion from aid donors. - Agricultural support and institutions: - Legislation implementing the Law on sowing activities and on fertilizers adopted. - Seven department confederations formed, bringing together 230 SIGs of 3000 livestock farmers. - Twelve health protection and health alert groups set up to protect 14,000 pigs. - Financial intermediation: - Credit to the economy: CFAF 865.2 billion in December 2006 versus CFAF 836.7 billion in 2005. - Private sector credit: reported movement from CFAF 832.3 billion to CFAF 859 billion (increase of 3.2 percent) — inconsistency in source text noted. - Private sector deposits in banks: CFAF 1,294.9 billion in December 2006, compared with CFAF 1,454.7 billion in December 2005 (source sections report differing deposit series; preserve figures as supplied). - Money supply: CFAF 1,713.4 billion at end-December 2006 (grew by 9 percent). - Douala Stock Exchange: first quotations launched in June 2006. - Proposal adopted to create the “Agricultural Bank of Cameroon” (rural bank) — National Credit Council approval dated January 25, 2006. - CFAF 400 million from external debt forgiveness made available to 19 COOPEC as subsidy. - Industrial sector: - Industrial sector growth: 5.5 percent in 2006. - Extractive industry growth: 8.7 percent in 2006 (after prior negative years, including -6.9 percent in 2005). - Limbé oil shipyard project: 60 percent complete for planned investment of CFAF 90 billion for the first installment. - Alucam extension: anticipated overall investment US$1.5 billion compared with initial estimate of US$900 million. - AES-Sonel: signing of a direct loan of CFAF 1 billion by international finance and banking institutions. - Draft decree on National Standards and Quality Agency approved on June 28, 2006; 250 national standards prepared, 13 mandatory; eight standards adopted in beverages sector. ### Infrastructure development and natural resource management (2006 results) - Roads: - Repair and ongoing/periodic maintenance of 4,568 km of asphalt roads. - Ongoing/periodic maintenance of 13,366 km of dirt roads classed as priority or nonpriority. - Maintenance and rehabilitation of 3,070 km of rural routes. - Construction of approximately 66.3 km of asphalt roads. - Opening of approximately 10 km of dirt roads. - Construction of approximately 22 ml (linear meters) of bridges. - Progress rates on key projects: - Ayos-Abong Mbang road: 35 percent complete. - Yaoundé-Soa road: 27 percent complete. - Bridge over the Moungo: 39 percent complete. - Bridge over the Wouri: nearly complete (90 percent). - Wouri bridge rehabilitation: 97 percent complete (other section cited as 18% in specific rehabilitation line — both figures preserved as in source). - Posts and telecommunications: - Installation of national fiber optic backbone and bit stream access infrastructures; CAMTEL Douala-Kribi fiber optic link completed and operational. - Mobile operators (Orange and MTM) each have more than a million subscribers. - Community telecenters: some 30 completed; one third operational. - Mining and energy: - Geological maps and sectoral strategy finalizing; CAPAM small-scale mining actions financed with CFAF 4.5 billion HIPC funds for 2005-2007. - Energy projects: Kribi gas-fired plant, Lom Pangar dam, Nachtigal and Memve’elé hydroelectric projects in planning/implementation stages. - Average of 4,000 tons of gas marketed nationwide in first six months of 2006: 2,200 tons produced locally by SONARA and 1,800 metric tons imported. ### Regional integration - Seventh regular session of CEMAC held March 14–15, 2006 in Bata. - Obstacles: operational effectiveness of institutions, development of intracommunity trade flows, construction of common market. - Adoption in July 2006 of domestic regulation establishing operating procedures of the committee for coordination and monitoring of sugar policies. - Decision to create a strategic committee to draw up and carry out a regional reform program by March 2008. - Economic Partnership Agreements (EPA) negotiations: - Transition to a free-trade area in 2008 under negotiation with CAEMC partners and Sao-Tomé and Principe. - Negotiations due to end on December 31, 2007; disagreements on capacity building and upgrading regional economies. - Agreement to establish a fund to support ACP countries during the transition period. ### Strengthening human resources — education and health (2006 highlights) - Education: - Global strategy approved June 6, 2006; eligible for G8 Fast Track Initiative in September 2006. - Basic education: contractualization involving 13,300 primary school teachers; Decision No. 315/B1/1464/MINEDUB of 02/21/06 enacted; capital and operating budgets executed (operating budget used: 90 percent; capital budget used: 89.8 percent). - Secondary education: recruitment/assignment of 2,000 new teachers; budget execution rate: 95 percent. - Higher education: student intake total of 133,916 students in state universities in the 2006/2007 academic year compared with 105,297 in 2005/2006. - Education funding in 2006: 15.1 percent of government budget, or CFAF 280.2 billion; HIPC resources: CFAF 17.5 billion. - Health: - Malaria: distribution of insecticide-treated nets integrated into prenatal consultations; 10,082 community health workers trained in impregnation techniques. - HIV/AIDS: universal access goal attained by holding down ARV prices (between CFAF 3,000 and CFAF 4,000); 25,500 PLWAs on ARV, including 1,001 children. - Onchocerciasis: geographical coverage rate 75 percent and treatment coverage rate 95.5 percent. - Expanded Immunization Program (EIP): routine coverage rate for DTP3 around 80 percent; viral hepatitis B vaccine introduced in 2005. - Infrastructure/staffing: program to build 1,000 integrated health centers (CSI) in five years continued; recruitment process launched for 570 members of staff. ### Institutional framework and governance — reforms and transparency - Democracy-strengthening: - Establishment of Elections Cameroon (ELECAM) as independent electoral body. - Computerization of electoral roll underway. - Public financial management and audits: - Court of Auditors now operational; provisional judgments delivered. - Publication of Treasury account balances regular. - SIGIPES installed in four pilot ministries; extension underway. - Anti-corruption: - National Anticorruption Commission (CONCAC/CONAC) established in 2006; President and Members appointed. - Government complied with EITI; action plan drawn up and adopted; EITI administrator's report for 2001-2004 published in 2006. - Law on the disclosure of assets adopted. - Judicial reform: - Priority action plan implemented; Code of Criminal Procedure to come into force on January 1, 2007. - Audit Bench operational; provisional audit decisions issued. ### Resource allocation, HIPC and budget coherence - Government budget for fiscal year 2006: CFAF 1,861 billion, of which CFAF 110 billion was externally financed. - Sector allocations (2006, excluding FINEX): - Education: CFAF 284.7 billion (28.7 percent). - Health: CFAF 84.1 billion (8.5 percent). - Productive sectors: CFAF 61.6 billion. - Productive infrastructure: CFAF 167.1 billion. - Proceeds from debt relief (HIPC funds) allocated: CFAF 102 billion (2006); main allocations include Public works: CFAF 25 billion; Water and energy: CFAF 8 billion; Agriculture and rural development: CFAF 12.5 billion. - Central MTEF constructed and interfaced with the SIPAE macroeconomic model; MTEFs prepared for multiple ministries and used as basis for 2007 budget. ### Poverty assessment, urban poverty and living conditions (coverage for 2006) - Analysis limited by absence of a new poverty profile; uses growth, wages and rural incomes as proxies. - Findings on access and durables (selected changes 2001 → 2005): - Home ownership: 63.0 → 59.2 - Safe drinking water: 50.5 → 52.7 - Mobile telephone: 7.6 → 30.2 - Television: 18.7 → 26.0 - Radio: 54.7 → 62.3 - Urban poverty: - Urban poor approximately 2 million persons concentrated in large towns. - In Yaoundé and Douala: close to half households not directly connected to electricity; three quarters lack individual access to safe water; over 60 percent of urbanized areas flood-prone. - Employment and informal sector: - ILO unemployment rate 2005: 4.4 percent overall; 10.7 percent urban; 1.7 percent rural. - Broader unemployment rate: 6.2 percent overall; 14.1 percent urban; 2.7 percent rural. - EESI 2005 broader unemployment: 17.9 percent in Yaoundé; 16.0 percent in Douala. - Informal sector: 50 percent of operators earned monthly income ≤ CFAF 22,000. ### Participatory review findings and beneficiary perceptions (July 2006) - Awareness and information: - 47 percent know about the BIP project log; 35 percent state they are well informed of ongoing projects in their area. - Project knowledge and execution: - 171 beneficiary representatives knew of 918 projects; 34 percent considered very well executed; 27 percent deemed merely passable. - 48.5 percent of projects expected to have a vital impact on poverty reduction if executed. - Sectoral perceptions: - 70 percent think school infrastructures improved. - 56 percent believe road infrastructure has deteriorated. - 62 percent find health infrastructure improved. - 59 percent thought access to electricity worsened. - 58 percent thought access to safe water improved. - Common complaints and recommendations: - Complaints: 23 percent local authorities do not take part in project monitoring; 17 percent execution deadlines not observed; 8 percent question relevance of projects. - Recommendations include: involve local elected officials in monitoring, strengthen procurement controls, improve PRSP communication, intensify fight against corruption, and accelerate decentralization and computerization of local authorities. ### Constraints, sectoral gaps and envisaged solutions (selected) - Common constraints across sectors: - Funding shortfalls and delays in disbursement, weak coordination, insufficient statistics, procurement and contract performance weaknesses, and insufficient human and logistical resources. - Rural sector solutions: - Clarify stakeholder roles, improve funds release procedures, strengthen statistical systems, and tailor use of debt relief to agricultural calendar. - Energy sector solutions: - Resume recruitment, revise retirement age, retraining, and increase budget appropriations. - Urban development and construction sector solutions: - Increase MINDUH budget based on amenities-to-inhabitant ratio, improve civil engineering equipment stock, and promote SME support and training. - Justice sector recommendations: - Increase Ministry of Justice allocation to at least 1 percent of national budget; remove capital budget quotas; pay entrepreneurs’ bills promptly. ### PRSP review, second-generation PRSP and analytical work - Review conceived as a two-stage process: interim compendium (June 2005) and second stage to deepen strategic analysis and produce second-generation PRSP. - Objectives for second-generation PRSP include: - Strengthen PRSP as Reference Framework for CSDLP and to structure development partner support. - Refine strategic framework and align sectoral strategies with PRSP and MDGs. - Strengthen business framework and accelerate structural reforms. - Extend results-based strategic planning and MTEF adoption across sectors. - Major analytical work under way: - New household living conditions surveys. - Studies on sector competitiveness and sources of growth. - Strengthening macroeconomic simulation model and central MTEF. *Source: DSRP/Cameroun — Rapport au 31 décembre 2006 (selected excerpts from PROGRESS REPORT ON THE IMPLEMENTATION OF THE POVERTY REDUCTION STRATEGY PAPER January–December 2006).* ### EXECUTIVE SUMMARY....................................................................................................... ### EXECUTIVE SUMMARY ### Overview - Report covers the period January to December 2006 and highlights developments, main constraints, and prospects in implementing the Poverty Reduction Strategy Paper (PRSP) since adoption in April 2003. - Quarterly, weekly, and annual implementation reports have been produced regularly; most recent annual report prior to this covered calendar year 2005 and was issued in February 2006. ### Strengthening the mechanism for follow-up/evaluation of the strategy - A formal participatory follow-up methodology was prepared in 2006 proposing two remedial measures: - Refocus measurement on results. - Base measurement at the communal level. - An action plan to implement these measures was prepared. - For an experimental stage a working group was set up composed of representatives of the ST/CTSE-PRSP, the INS, the PADDL, the SNV, the UNDP, and the PNDP with mandate to: - Define tools for exchanging and collecting data. - Define criteria for choice of pilot communes. - Prepare the budget of the pilot operation. - Participatory evaluation reviews were organized in all provinces in August 2006 to raise awareness of the proposed methodological changes. ### Macroeconomic situation (key outcomes and fiscal indicators) - Real growth rate: 3.9 percent in 2006, compared with 2 percent in 2005. - Consumer price index rise: 5.1 percent in 2006, as against 2 percent in 2005. - Overall trade balance: surplus of CFAF 220.34 billion in 2006. - Nonoil trade balance: CFAF 225.4 billion in 2006. - Coverage of sight liabilities by external assets: nearly 80 percent. - Revenue and grants: CFAF 2,089.5 billion in 2006, i.e. CFAF 324.5 billion more than projections in the Budget Law. - Expenditure: CFAF 1,704.8 billion in 2006, compared with CFAF 1,790 billion envisaged in the Budget Law. - Policy responses noted: - Government reduced import taxes on certain staple goods to protect purchasing power. - Nigeria became Cameroon’s leading supplier of imported goods, supplanting European Union countries. ### Strategic area No. 1: Promotion of macroeconomic stability - A joint IMF and World Bank mission assessed progress at end-fiscal 2006 and noted majority of fiscal and financial objectives had been met, while highlighting the appearance of certain extra-budgetary spending. - Major effort to control public spending included a survey of civil servants carried out for most of 2006 to clean up payroll and identify bogus salaries and allowances. - Inflation analysis: rise in CPI from 2 percent to 5.1 percent driven mainly by rise in fuel prices at the pump, affecting transport costs and food prices under subregional demand pressures. ### Strategic area No. 2: Economic diversification — main advances - Main advances concern rural development, financial intermediation, and industrial development. Rural sector (detailed outcomes) - Agriculture growth rate: estimated 3.3 percent in 2006, compared with 2.7 percent in 2005. - Food agriculture growth: 4.3 percent in 2006. - Forestry and logging growth: 4.0 percent in 2006. - Livestock farming growth: 3 percent in 2006. - Fisheries growth: 2 percent in 2006. - Industrial and commercial agriculture growth: -2.3 percent in 2006, compared with 1.7 percent in 2005. - Notes on subsectors: - Food agriculture: main products (manioc, plantains, maize, macabo, etc.) have grown consistently due to government programs such as roots and tubers development and plantain sector development. - Export agriculture: - Robusta production estimated to have fallen by approximately 8 percent in 2006. - Arabica production grew by 4 percent in 2006. - Cocoa production expected to have grown by 7 percent in 2006. - A coffee development fund established; fee payable to ONCC increased from CFAF 3 to CFAF 5 per kilogram. - Periodic markets reestablished to prevent farmers being paid less than minimum producer price [coxage]. - Logging: of 300 tree species identified as commercially potential, about sixty were exploited in 2006; implementation of the PSFE raised around CFAF 27.5 billion from aid donors (United Kingdom, GTZ, CIDA, IDA, and GEF) to finance activities and markets have been launched. Agricultural support and institutions - Legislation implementing the Law on sowing activities and on fertilizers has been adopted. - Seven department confederations formed, bringing together 230 SIGs of 3000 livestock farmers, and received health protection equipment. - Twelve health protection and health alert groups set up to protect 14,000 pigs. Financial intermediation - Credit to the economy: CFAF 865.2 billion in December 2006, as against CFAF 836.7 billion in 2005. - Reported private sector credit figures contain an inconsistency in the source text: private sector credit reported as moving from CFAF 859 billion to CFAF 832.3 billion during the same period, described as an increase of only 3.2 percent. - Private sector deposits in banks: CFAF 1,294.9 billion in December 2006, compared with CFAF 1,454.7 billion in December 2005, representing an increase of 12.3 percent (as reported in the source text). - Money supply: grew by 9 percent to reach CFAF 1,713.4 billion at end-December 2006. - Financial market activity: - Launch of first quotations on the Douala Stock Exchange (DSX) in June 2006. - Government disposed of part of shares held by the SNI in certain companies, notably Société des Eaux Minérales du Cameroun (SEMC). - Proposal to create a rural bank adopted in January 2006: “Agricultural Bank of Cameroon.” - A sum of CFAF 400 million from external debt forgiveness made available to 19 COOPEC as a subsidy to boost their credit funds; coordination frameworks established to promote cooperative development. Industrial sector - Growth in the industrial sector estimated at 5.5 percent in 2006 due to buoyant activity in extractive industries from additional wells. - Extractive industry growth: 8.7 percent in 2006, compared with five years of negative growth rates, including -6.9 percent in 2005. - Manufacturing industry noted as exhibiting strong performance (text ends mid-sentence in source). *Source: DSRP/Cameroun Rapport au 31décembre 2006 — EXECUTIVE SUMMARY* ### 6.8 percent in 2006 compared with much poorer performances in recent years, and in ### _cr0801 - 6.8 percent in 2006 compared with much poorer performances in recent years, and in ### Industrial and private sector development - Industrial sector performance in 2006 described as encouraging; government launched development programs expected to "considerable improve the sector’s infrastructure." - Limbé oil shipyard project: - accelerated in 2006, reaching an overall completion rate of 60 percent for planned investment of CFAF 90 billion for the first installment. - Alucam extension project: - continued development with an anticipated overall investment of US$1.5 billion compared with the initial estimate of US$900 million. - AES-Sonel five-year business plan: - conditions met with signing of a direct loan of CFAF 1 billion by international finance and banking institutions. - Industry and service sector governance: - steering committee created; enactments establishing the Subcontracting and Cameroon Industrial Partnership Exchange (BSTP) finalized. - Additional 2006 initiatives: - identification and training of rural craftsmen producing agricultural equipment in the provinces of the south, north, and extreme north. - inauguration of first pilot plant for milk packaging in Bamenda in the first half of 2006; second pilot plant for processing ginger under construction. - drafting of 250 national quality standards, of which 13 are mandatory. - adoption of eight other standards in the beverages sector. - Private Sector Revitalization: - vocational training program for agricultural, livestock, and fisheries sector being framed with support of Coopération Française. - energy sector regulatory framework progressed with a Prime Ministerial decree clarifying financing of security stocks of oil products (managed by SCDP) entrusted to SNH; licensing conditions for service stations clarified via Ministerial circular. - construction sector: Law on public sector/private sector partnership adopted enabling "Build Operate Transfer" (BOT) arrangements; calls for expressions of interest launched for design consultants (BET) for private sector development studies; framework for generation and analysis of economic data in construction sector designed and implemented; legislation on liberalization of cement production signed. - public–private dialogue: meeting of CIESP held in October 2006 chaired by the Prime Minister on "How can Cameroon leave underdevelopment behind and enter the modern world?" ### Infrastructure development and natural resource management - Roads (2006 results): - repair and ongoing and/or periodic maintenance of 4568 km of asphalt roads. - ongoing and/or periodic maintenance of 13,366 km of dirt roads classed as priority or nonpriority. - maintenance and rehabilitation of 3,070 km of rural routes. - construction of approximately 66.3 km of asphalt roads. - opening of approximately 10 km of dirt roads. - construction of approximately 22 ml (linear meters) of bridges. - Progress on key projects in 2006: - Ayos-Abong Mbang road: 35 percent complete. - Yaoundé-Soa road: 27 percent complete. - Bridge over the Moungo: 39 percent complete. - Bridge over the Wouri: work nearly complete (90 percent). - Completion progress enabled major road program under C2D (EUR 115 million over five years); calls for tender launched in 2006. - Completed projects in 2006: - Ngaounderé Touboro-Moundou road. - Melong-Tschang road. - Ambam-Eking road (completion of Ambam-Kye-ossi highway linking Cameroon to Gabon and Equatorial Guinea; Kye-ossi elevated to status of an arrondissement). - Posts and telecommunications: - development of support infrastructures including installation of a national fiber optic backbone and bit stream access infrastructures and provision of access to rural areas to reduce the digital divide. - Mining and energy: - finalizing sectoral strategy and geological maps for risk and disaster management. - focus on improving access to drinking water, development and extension of electrification program in rural areas, and development/provision of other forms of energy to eliminate power shortages. ### Regional integration - CAEMC (seventh regular session) held in Bata, Equatorial Guinea on March 14 and 15, 2006: - audit reports highlighted obstacles to regional integration: operational effectiveness of institutions, development of intracommunity trade flows, and construction of a common market. - notable advance: adoption in July 2006 of domestic regulation establishing operating procedures of the committee for coordination and monitoring of sugar policies (common market in sugar). - Integration challenges: - lack of acceptance of integration process by member countries reflected in nonapplication of community rules adopted by consensus. - decision to create a strategic committee to draw up and carry out a regional reform program by March 2008. - Economic Partnership Agreements (EU): - Cameroon engaged in negotiation process with CAEMC partners and Sao-Tomé and Principe for transition to a free-trade area in 2008. - negotiations due to end on December 31, 2007; differences encountered on capacity building and upgrading regional economies. - agreement to establish a fund to support ACP countries during the transition period, taking into account the development dimension of the Cotonou Agreement. ### Strengthening human resources - Education: - adoption of a global strategy for the education sector linking levels from nursery to higher education; enabled eligibility for the G8 Fast Tack Initiative to accelerate Education for All implementation. - Basic education 2006 highlights: - contractualization exercise involving 13,300 primary school teachers. - adoption and implementation of Decision No. 315/B1/1464/MINEDUB of 02/21/06 laying down procedures for advancement of primary school pupils. - preparation and adoption of a medium-term expenditure framework to improve transparency in ministerial budget preparation and monitoring/assessment. - Secondary education 2006 highlights: - recruitment and assignment of 2000 new teachers. - increased education supply capacity via building and rehabilitating classrooms. - clear improvement in examination results in the Baccalauréat and GCE A levels. - Higher education 2006 highlights: - reinforcement of infrastructures with new lecture halls; improved student living conditions via new mini-halls of residence and education grants. - establishment of faculties of medicine and industrial engineering at the Universities of Douala and Buéa at start of 2006/2007 academic year. - establishment of an Ecole Normale Supérieure in Maroua and rehabilitation of the one at Yaoundé. - student intake: total of 133,916 students in state universities in the 2006/2007 academic year compared with 105,297 in 2005/2006. - Health: - Ministry of Public Health implemented sectoral strategy based on priority disease control programs and health system support. - Malaria campaign: distribution of mosquito nets to vulnerable groups and improved care for infected persons. - HIV/AIDS: goal of providing universal access to treatment attained by holding down ARV prices (between CFAF 3,000 and CFAF 4,000). - Anti-tuberculosis campaign: continued with rehabilitation of diagnostic and treatment centers. - Onchocerciasis activities: geographical coverage rate 75 percent and treatment coverage rate 95.5 percent. - Campaigns against schistosomiasis and intestinal parasitoses intensified in schools. - Expanded Immunization Program (EIP) initiated to develop immunization and disease monitoring system. - Nontransmissible diseases: focus on correct treatment and intensification of information, education, and communication (IEC) campaigns. - Infrastructure and staffing: - program to build 1,000 integrated health centers (CSI) in five years continued with launch of new CSI projects and reception of completed projects. - recruitment process launched for 570 members of staff. - Partnerships and eligibility: - strategy activated in 2006; projects developed with certain United Nations organizations. - Cameroon declared eligible for the Global Fund, the "Global Alliance for Vaccination and Immunization" (GAVI) Fund, and the French C2D. - Urban poverty: - coordination discussions produced report on housing and social housing and launched a pilot program for creation of 1,000 units of public housing and 5,000 developed plots. - institutional studies launched under "urban development and water supply" World Bank financed project. - urban road and sewer rehabilitation program stepped up with financing from C2D and the HIPC. ### Institutional framework and governance - Democracy-strengthening measures: - establishment of "Elections Cameroon (ELECAM)", an independent body for organizing elections. - tidying up laws on election of parliamentary deputies and municipal councilors; computerization of the electoral roll. - Court of Auditors: - now operational; delivered two provisional judgments relating to ministerial departments. - public bodies and enterprises requested to submit accounts to the Court. - government procurement audit report for 2005 being finalized; training for chairmen and members of procurement boards continues. - Judicial reform: - priority action plan to reform the judicial system being implemented with three main elements: - (i) consolidation of judicial independence; - (ii) stronger anti-corruption measures in the field of justice; - (iii) better application of laws, court decisions and penalties. - Code of Criminal Procedure to come into force in January 2007 to better safeguard rights of individuals during proceedings. - Anti-corruption and transparency: - judicial investigations launched into certain senior government officials and public enterprises or enterprises subject to government supervision. - National Anticorruption Commission (CONCAC) established in 2006; President and Members appointed. - government complied with the Extractive Industries Transparency Initiative (EITI); action plan drawn up and adopted. - EITI administrator's report for 2001-2004 published in 2006. - Law on the disclosure of assets adopted. - Decentralization: - reform of the Special Intercommunal Equipment and Loan Fund (FEICOM) completed; decree restructuring the fund adopted. - Law on the election of regional councilors adopted by the National Assembly at its June 2006 session. ### Constraints and outlook - Budgeting and alignment: - government aware of shortcomings in budgeting of sectoral strategies; draft circular prepared jointly by specialist staff of MINEFI and MINPLAPDAT to align government budget preparation with the PRSP. - Public investment monitoring: - discussions started to strengthen methodological frameworks for monitoring and implementation of the physical and financial execution of the PIB; aim to better develop projects included in the PIB and increase involvement of decentralized services. - Institutional collaboration: - government intends to remedy shortcomings in collaboration and functional linkage between operational agencies for programs/projects and permanent ministry units to clarify implementation mechanisms and achieve greater complementarity. - Budget resource constraints and strategy: - government aware of inadequacy of budget resources; expects to strengthen social initiatives through budget savings on multilateral debt as a result of achievement of the completion point under the HIPC Initiative. - PRSP review process under way; review will emphasize seeking strong growth and quality by reliance on a dynamic private sector to play its full role in wealth generation, job creation, and income distribution. ### PRSP objectives and monitoring/evaluation process - Implementation context: - PRSP implementation ongoing since April 2003 to bring real and lasting improvement in living conditions using the MDGs as benchmark. - Reporting: - government prepares regular quarterly, half-yearly, and annual reports; most recent annual report published in February 2006 covering the 2005 calendar year and included in the completion point dossier. - a mid-term report for 2006 produced; the present report serves as a progress report covering 2006. - Review and participatory evaluation: - report prepared while PRSP review process launched; material to inform pre-completion point policies assessment (first stage of PRSP review). - based on participatory evaluation reviews held in all provinces during August 2006 and on sectoral data produced centrally. - report complies with plan adopted by government with agreement of development partners and takes account of observations and recommendations from first CTSE-PRSP meetings. - Report structure: - document comprises five sections: (1) introduction presenting objectives and monitoring/evaluation mechanism; (2) stock of macroeconomic and budget execution situations; (3) main developments linked to PRSP strategic areas; (4) outline poverty assessment; (5) constraints and envisaged solutions. *Source: DSRP/Cameroun Rapport au 31décembre 2006 (excerpt).* ### 1.2 OBJECTIVES AND MAIN THRUSTS OF THE STRATEGY ### _cr0801 - 1.2 OBJECTIVES AND MAIN THRUSTS OF THE STRATEGY ### Strategic objective and MDG target - The PRSP seeks to reconcile demands for economic performance with social development in a context of poverty reduction. - The Millennium Development Goals (MDGs) constitute the initial target principles of the PRSP in the run-up to 2015. - Aim: to cut poverty by half between 2001 and 2015. ### Box 1: The Millennium Development Goals (MDGs) - 1. Eliminate extreme poverty and hunger by cutting in half the number of Cameroonians living below the poverty line and suffering from hunger. - 2. Ensure primary education for all by giving every child the means to complete primary education. - 3. Promote equality of the sexes and the independence of women by eliminating differences between the sexes in primary and secondary education, and if possible at all levels of education. - 4. Reduce by two-thirds the mortality rate of children under 5 years of age. - 5. Improve maternal health but cutting maternal mortality by three-quarters. - 6. Halt and begin to reverse the spread of HIV/AIDS, halt and begin to reverse the incidence of malaria and other major diseases. - 7. Ensure a sustainable environment by reducing by half the proportion of people without sustainable access to safe drinking water; achieve a significant improvement in housing by integrating the principles of sustainable development into country policies and reverse the current loss of environmental resources. - 8. Create a partnership for the development of information and communication technologies and strategies to allow young people to find decent and productive work. ### Seven strategic areas of the PRSP - Area No. 1: Promotion of a stable macroeconomic framework; - Area No. 2: Consolidation of growth through economic diversification; - Area No. 3: Promotion of the private sector as the engine of growth and partner in the provision of social services; - Area No. 4: Development of basic infrastructure, natural resources, and environmental protection; - Area No. 5: Acceleration of regional integration through the CAEMC; - Area No. 6: Strengthening human resources, the social sector and the integration of disadvantaged groups into the economy; - Area No. 7: Improvement of the institutional framework, administrative management, and governance. ### Monitoring and evaluation framework — overview - Three main instruments for monitoring/evaluating the PRSP: - (i) the institutional steering framework; - (ii) the statistical tool; - (iii) the participatory monitoring tool. - Implementation supported by capacity building for coordinating agencies and sectoral ministries. ### Institutional mechanism (1.3.1) - Existing agencies reinforced: Technical Committee for the Monitoring of Economic Programs (CTS) and Advisory Committee on the Management of HIPC Resources. - An interministerial committee on supervision of PRSP implementation was set up; chaired by the Secretary-General of the Prime Minister’s Office; supervises PRSP implementation and commitments under the three-year medium-term economic and financial program. - Technical Committee for the Monitoring and Evaluation of PRSP Implementation under the Ministry of Economic Planning, Development Planning, and Regional Planning: - Chaired by the Secretary-General of the ministry. - Composed of representatives of public authorities and public bodies (PNG and INS) and representatives of chambers, the private sector, local government, religious organizations, NGOs and associations, donors and lenders. - Produced quarterly internal monitoring reports and three annual reports; CTSE-PRSP produced a methodology on participatory monitoring; CTSE to conduct PRSP review in 2007. - Technical secretariat: central coordination unit and five thematic groups (governance, infrastructures, social, production, indicators, and macroeconomic guidelines). - Provincial commissions on participatory monitoring: - Chaired by provincial Governors. - Members include provincial agents of MINPLAPDAT, rapporteur, provincial financial controller, a representative of civil society (vice-chair), the INS, the private sector, NGOs, religious groups, and associations. - Have sectoral groups and produce quarterly reports feeding national reports. ### Statistical monitoring/evaluation tool (1.3.2) - Main objective: boost capacity of the national statistics system to generate structured and coherent data to produce pertinent indicators for monitoring/evaluation of policies and programs. - Indicators enable: (i) monitoring the raising and use of resources; (ii) assessing physical implementation of projects and programs; (iii) measuring results and impact on living conditions and poverty reduction. - 2006 completion of National Statistics Institute management structure (Executive Board, Directorate-General, Financial Control, and Accounts Department) provided fresh impetus. - Government initiated transformation of current system into a National Strategy for Developing the Statistics System (SNDS), including medium-term expenditure frameworks (MTEFs). - SNDS characteristics: - Designed to supplement and perpetuate the current system for monitoring and evaluation the PRSP and MDGs; - Adopts a priority-based management-by-results approach; - Seeks to be the framework of reference for the development of statistical activity; - Aims at strengthening programming of activities and coordinating search for financing using an MTEF. - Operational achievements in 2006: - Processing of the third General Population and Housing Census (3rd GPHC), in particular the post-censual survey (PCS in December 2006); - Publication of results of the national survey of employment and the informal sector (EESI); - Carrying out of the third multiple indicator survey on the situation of women and children (MICS 2006); - Production of reports on progress towards attaining the MDGs in the 10 provinces and a national report; - Publication of results of the follow-up survey on young children in Adamaoua (ESA); - Establishment of an index of construction costs to appear quarterly from 2007. - Sectoral support activities in 2006: - National survey on penetration of ICTs (SCAN-ICT) for Minpostel; - Support for Ministries of Basic Education and Secondary Education with the 2005 school-zone map; - Support for Minsanté with mid-term review of the sectoral strategy (2001-2010) and the immunization coverage survey, phase 2. - New series of annual national accounts under SCN 93 integrated into economic models and programs; regular production of statistics on household final consumption expenditure, trade, and other current statistics; ongoing work on the International Comparison Program (ICP) for PPPs. - Regular updating of the National Statistics Institute website (www.statistics-cameroon.org) improved dissemination of statistical information. - Use of study results: publication and dissemination of the public expenditures tracking survey enabled government to start implementing recommendations, including: - creation of local committees to monitor implementation of the BIP in the 58 départements; - publication of the projects log book in the press and posting it in public services; - requirement for budget appropriation managers to provide recipients with information on investments to be made and to produce a budget execution report at least at the end of each year; - work begun on archiving information on management of public funds to constitute financial and accounting documentation for the Court of Auditors. ### Participatory Monitoring System (1.3.3) - Objectives: foster ownership of the PRSP process; improve transparency and accountability; improve quality and relevance of services (especially public services); ensure control of the PRSP process and the National Development Plan. - Participatory evaluation reviews conducted in 2004, 2005, and August 2006; initiated by a Ministry directive dating from March 2004 and updated in July 2005. - Reviews take place in the ten provinces within a broad consultation framework to assess implementation of poverty reduction actions with emphasis on beneficiaries’ assessment of performance quality. - Review process based on provincial commissions’ preliminary reports; presented to representative local assemblies to evaluate projects, confirm execution rates, assess quality and relevance, and highlight beneficiaries’ assessments and remedial proposals. - Four commissions in the review work: manufacturing sector commission, infrastructure sector commission, social sector commission, governance sector commission. - Participatory monitoring methodology prepared in 2006 to be piloted in a number of communes; working group set up comprising representatives of the ST/CTSE-PRSP, the INS, the PADDL, the SNV, the UNDP, and the PNDP to define information exchange/gathering tools, criteria for choosing pilot communes, and prepare pilot project budget. ### Macroeconomic and budgetary situation — key figures and findings (Section II) - Real growth rate: - Nearly 3.9 percent in 2006, compared with 2 percent in 2005. - Oil sector real growth rate: 8.7 percent. - Inflation (consumer prices): - 5.1 percent in 2006 compared with 2 percent in 2005. - Increase attributable mainly to rise in price per barrel of oil affecting transport costs and food prices. - Table 1: Growth Estimates (%) - Primary sector: 2005 = 2.7; 2006 = 3.3; PRSP 2006 = 3.8 - Secondary sector: 2005 = -1.1; 2006 = 5.5; PRSP 2006 = 5.7 - Tertiary sector: 2005 = 3.0; 2006 = 3.1; PRSP 2006 = 7.3 - GDP: 2005 = 2.0; 2006 = 3.9; PRSP 2006 = 5.8 - Source : DAE/MINEFI, PRSP - External assets and net foreign assets: - Coverage of sight liabilities by external assets at nearly 80 percent. - Net foreign assets: CFAF 499.7 billion in December 2005; CFAF 1,034 billion in December 2006 (increase of 106.9 percent). - Net foreign credits: - CFAF 1,174.3 billion in December 2005 to CFAF 869.3 billion in December 2006 (reduction of 26.5 percent). - Domestic credit to public sector: - CFAF 337.8 billion in December 2005 and CFAF -2.0 billion in December 2006. - Credit to private sector: - CFAF 859 billion in December 2006 compared with CFAF 832.3 billion in December 2005 (increase of 3.2 percent). - Private sector deposits with banks: - CFAF 1,296 billion in December 2006 compared with CFAF 1,162 billion in December 2005 (increase of 11.5 percent). - Structure of bank credit by term: - Only 3 percent of credits extended are long-term (for financing investment). - Government finance and fiscal performance: - Revenues and grants amounted to CFAF 2089.5 in 2006, CFAF 324.5 billion higher than Budget Law projections. - Grants: CFAF 248.2 billion (Budget Law projection: CFAF 39 billion). - Oil revenues: CFAF 618.1 billion (Budget Law projection: CFAF 515 billion). - Nonoil revenues: CFAF 1,223.2 billion (CFAF 12.2 billion higher than Budget Law projections). - Actual expenditure: CFAF 1,704.8 billion in 2006 (Budget Law projection: CFAF 1,790 billion). - Actual investment expenditure: CFAF 282.5 billion (CFAF 155.5 billion less than Budget Law forecast). - Externally financed capital expenditure: CFAF 61.5 billion (Budget Law projection: CFAF 110 billion). - Government actual investment expenditure of CFAF 522.3 billion for total revenues and grants of CFAF 2,089 billion. - Policy implication: government should devote at least 25 percent of its revenues to investment to reduce poverty effectively. - Trade balances: - Nonoil trade balance: CFAF 225.36 billion (2006) compared with a deficit of CFAF 251.98 billion in 2005. - Overall trade balance: surplus of CFAF 220.34 billion in 2006 (2005 overall trade balance: deficit of CFAF 15.2 billion). - Export composition: - Oil and oil products account for 61.76 percent of export revenues. - Timber and wooden constructions: 14.77 percent of revenues. - Cocoa beans: 0.18 percent. - Including primary aluminum, cotton, coffee, and bananas, exports composed of around 10 products with low volumes. - Import expenditure composition: - 32 percent attributable to oil and oil products (CFAF 526.5 billion). - 7.33 percent to cereals. - 11.22 percent to chemical industry products. - 5.8 percent to vehicles. - Major export markets (2006 export revenue shares and CFAF values): - Spain: 19.1 percent (CFAF 357.6 billion). - Italy: 13.2 percent (CFAF 246.3 billion). - France: 9.8 percent (CFAF 183 billion). *Source: _cr0801 - 1.2 OBJECTIVES AND MAIN THRUSTS OF THE STRATEGY* ### 6.02 percent from the Netherlands (CFAF 112.5 billion). Moreover, 24.1 percent of ### DSRP/Cameroun Rapport au 31décembre 2006 ### Trade patterns and balances (2006) - Cameroonian imports: 24.1 percent came from Nigeria in 2006 (CFAF 396.7 billion) and 16.4 percent from France (CFAF 269.6 billion). - Specific partner shares noted: 6.02 percent from the Netherlands (CFAF 112.5 billion). - Total trade balances in 2006: - Trade deficit with Nigeria: CFAF 388.3 billion. - Trade deficit with France: CFAF 86.6 billion. - Trade surplus with Spain: CFAF 338.2 billion. - Trade surplus with Italy: CFAF 205.1 billion. - Trade surplus with the Netherlands: CFAF 87.9 billion. - Trade with CAEMC (2006): - Exports to CAEMC: CFAF 55.4 billion, i.e. 2.96 percent of total exports. - Imports from CAEMC: CFAF 47.6 billion, or 2.88 percent of total imports. ### Macroeconomic stability and program implementation - HIPC and PRGF status: - Cameroon reached the HIPC completion point in April 2006. - Cameroon is proceeding with the economic and financial program negotiated under the PRGF with the IMF for the period July 2005-June 2008. - Midpoint and end-of-fiscal-year assessments: - A joint IMF-World Bank Mission reviewed progress at the midpoint of fiscal year 2006. - A subsequent mission assessed progress to the end of that fiscal year and found main fiscal and financial objectives achieved, but noted reappearance of some off-budget expenditures. - Structural reform progress (high-level items): - Public finances: - Continued preparation of data for better monitoring of budget execution, with regular production of statements tracking the expenditure chain. - Steps to strengthen the control system for execution and physical/financial monitoring of government expenditure. - Authorities adjusted retail prices for oil products, and transfers were made to SONARA. - Inventory of civil servants and government workers compiled to delete fictitious bonuses and allowances in payroll processing. - CAMAIR privatization: - Provisional partner and liquidator recruited based on strategy adopted in December 2005. - Significant progress with privatization: new company CAMAIR CO created by presidential decree; will not assume CAMAIR's liabilities and gives hiring priority to former enterprise personnel. - Areas with slippage against benchmarks: - Privatization of CAMTEL. - Implementation of a corporate plan for CAMTEL. - Publication of court decisions and penalties for corruption at the website. - Recruiting a management team for CAMPOST. - Finalizing preparations to establish a subsidiary for CAMPOST. - Negotiating a public-private management partnership contract for the SNEC. ### Resource allocation and use of appropriations (2006 budget) - Government budget for fiscal year 2006: CFAF 1,861 billion, of which CFAF 110 billion was externally financed. - Ministerial portfolios allocation (excluding external financing, FINEX): CFAF 993,261,000. - Sector allocations (2006, excluding FINEX): - Education: CFAF 284.7 billion (or 28.7 percent). - Health: CFAF 84.1 billion (8.5 percent). - Productive sectors: CFAF 61.6 billion. - Productive infrastructure: CFAF 167.1 billion. - Table 2 (sectoral breakdown of the 2006 budget, excl FINEX) — sector shares shown (percent): - Education: 28.7 - Of which: Basic education 10.3, Secondary education 15.2 - Health: 8.5 - Social development and employment: 1.6 - Production and commerce: 6.2 - Of which: Agriculture and rural development 3.3 - Productive infrastructure: 16.8 - Of which public works 9.8 - Total Ministries: 100.0 - Proceeds from debt relief (HIPC funds): Budget allocations amounted to CFAF 102 billion, primarily to: - Public works: CFAF 25 billion. - Health: more than 10 percent. - Basic education: more than 10 percent. - Water and energy: CFAF 8 billion. - Agriculture and rural development: CFAF 12.5 billion. - Government subsidies (primarily to civil society organizations): CFAF 3 billion. ### Reinforcement of planning and programming capacities - MTEF generalization: - With development partner support, sectoral Medium Term Expenditure Frameworks (MTEF) being generalized. - Ministries preparing or revising MTEFs: MINEDUB, MINESEC, MINESUP, MINSANTE, MINTP, MINADER, MINFOF and MINEP; similar work in Ministry of Justice, Supreme Court, and MINPOSTEL. - Central MTEF and macro model: - Central MTEF constructed and interfaced with the SIPAE macroeconomic model (reinforced to make growth more endogenous). - Ministerial budget envelope projections from the central MTEF communicated to sector ministries; adjustments made when 2007 envelopes were communicated. - Draft circular prepared jointly by MINPLAPDAT and MINEFI to synchronize review of strategies and MTEFs with budget preparation; requires sectoral ministries to produce reports on implementation of strategies relative to fund use (to be integral to PRSP monitoring and evaluation). ### Diversification of the economy — overview - Authorities aim for sustainable growth based on endogenous factors through economic diversification. - Principal achievements during the period relate to rural development, financial intermediation, and industrial development. ### Rural development — objectives and strategic actions - Four government challenges for rural economy: - (i) ensure food security and self-sufficiency for families and country; - (ii) contribute to economic growth, employment and foreign trade; - (iii) increase farm incomes and improve rural livelihoods; - (iv) make better and more sustainable use of natural capital. - Rural Development Strategy (RDS) structured into six strategic areas; many activities pursued across these areas. Sustainable development of farming, livestock, fishing, wildlife and forestry - Crop production emphasis: - (i) production and use of improved plant materials; - (ii) improved farming techniques and systems; - (iii) better conservation techniques; - (iv) protection of crops and products. - Inputs and regulatory measures: - Production and acquisition of seeds and plant material for maize, potatoes, plantains, groundnuts, sorghum, fruit trees, mushrooms and coffee. - Regulations to Law 2001/014 of July 23, 2001 on seeding activity signed, as well as those dealing with fertilizers. - Phytosanitary actions: - Pesticides and treatment equipment distributed to "village brigades"; fields treated under pest control project and cocoa/coffee protection project. - Programs and projects underway: - Village Palm Grove Development Program; Plantain Revival Program (PRBP); rice growing revival project in the Logone Valley; Upper Noun Valley Development Authority (UNVDA); National Roots and Tubers Development Program (PNDRT). - Livestock targets and projects: - Target: raise per capita meat consumption from current level of 13 kg a year to 25 kg per year by 2015. - Swine development project (PDFP) launched on March 7, 2006: establishment of 30 modern piggeries, training of 1,100 production leaders, support for 600 producers’ associations, improvement of 30 breeding farms. - Cane rat husbandry project: training of 15 trainers and 200 young breeders, purchase of breeding stock. - Smallholder Dairy Development Project pilot phase launched on 28 March 2006 to increase milk production. - Traditional marine fishery project: built and equipped two fishery training centers at BONAMATOUMBE (Douala) and at DEBUNDCHA (Limbé); fishing equipment worth CFAF 45 million supplied to young trainees. - Fisheries center at Kribi: construction completed and keys turned over to Cameroonian authorities; project to reduce post-catch losses started. - Project to control livestock trypanosomoses and their vectors: supported establishment of 230 breeders' associations (covering 3000 livestock farmers) grouped in seven departmental unions (Vina, Faro and Déo, Mayo-Banyo, Mbéré, Djerem, Faro and Mayo-Rey); trained breeders in alternative control methods; distributed products, materials and equipment; supported control efforts. - Forestry sector measures: - Suspension of "small-scale forestry permits" lifted to allow legal local supply and recover tax revenue. - Implementation challenges: - Short, medium and long-term objectives not sufficiently defined; statistical database for sector weak. - Further efforts needed on input availability, distribution channels, seed production, and financing. - Slow procedures for releasing funds causing project bottlenecks. Promoting local and community development - Main programs: - Cooperatives Development Program (PADC) covering Center and Extreme North, financed by IFAD. - National Participatory Development Program (PNDP) financed by the World Bank covering Extreme North, South and Center. - PADC achievements: - 125 micro-projects financed via cautions tournantes for total CFAF 45 million in income-generating activities. - Infrastructure: 55 classrooms and two playgrounds built; 44 classrooms rehabilitated; 48 latrines improved. - Health/community infrastructure: 11 health centers, 13 "community houses", two community markets, six stores built. - Water: 54 wells dug and equipped with power pumps; 12 water springs improved; 16 boreholes made and four rehabilitated. - PNDP activities: - Studies and actions to improve community management, including reforms to local taxation and capacity building for municipalities in procurement procedures with ARMP support. - Other integrated programs and projects: PARI (MINADER), Behavioral Change (MINADER), GRASSFIELD (MINADER), RUMPI (MINADER), Mungo-Nkam (MINADER), support for animal husbandry organizations (MINEPIA), program for sustainable fishery livelihoods (MINEPIA), swine production program (MINEPIA). - Observations: - PNDP and PADC play important roles but geographic coverage remains inadequate. - Coordination in implementing this strategic area is insufficient. Sustainable management of natural resources - Key problems to address: allocation of land to uses, maintenance of soil fertility, water controls, conservation and restoration of biodiversity. - Financing and program approvals: - World Bank Executive Board approved support program for PSFE (Forest/Environment Sector Program) with IDA and GEF contributions of US$25 million and US$10 million respectively, triggering financing from other partners (e.g., DFDID, £4 million). - Achievements: - Forest zone maps of the national territory prepared and available. - Sustainable management survey of non-timber forest products in Cameroon completed. - Map of ZICs (hunting zones) and ZIGCs (community-managed hunting zones) completed for the southern portion of the country. - MINEP action: - April 2006: MINEP launched subprogram for protection and regeneration of the environment and natural resources to promote rural development (APREN). - Constraints: - Implementation held back by weak coordination and limited mastery of multi-donor simultaneous intervention mechanisms. Developing suitable financing mechanisms - Rural finance policy aspects: - (i) creation of the Agricultural Bank; (ii) credits to rural development programs and projects; (iii) activities of private micro-finance institutions. - Agricultural Bank of Cameroon: - January 25, 2006: National Credit Board approved project to create the Agricultural Bank of Cameroon as a corporation with a majority of private shareholders and a partner of reference; purpose to finance production, processing, marketing and export of farming, livestock and fishery products. - Microfinance and program credits (examples): - PADC financed 125 loans totaling CFAF 45 million (cautions tournantes). - PNDP approved nine community and municipal micro-projects for total CFAF 151,394,800. - Livestock and fisheries development project in the southwest granted 519 credits for total CFAF 123,942,000. - Institutional innovations: - Execution Unit for PREPAFEN and Government/AfDB Working Group decided to create the Provincial Refinancing Fund (FPR) for component II, "Economic Activity Support Fund". - MFI support: - CFAF 400 million in proceeds from external debt relief made available to 19 savings and loan cooperatives (COOPECs) as subsidy to bolster lending funds; MINADER and MFIs signed contract on June 13, 2006 governing use of these resources (resources remain government property). - Observations: - Limited impact of micro-finance to date; high expectations for Agricultural Bank of Cameroon though maturity likely to take time. Employment and vocational training - Objective: rejuvenate aging agricultural workforce to increase productivity, incomes and reduce rural unemployment. - Training providers and projects: UNVDA, agricultural training centers, PNVRA, PADC. - MINFOPRA recruitment initiative: - Open competition to recruit water and forestry experts including 145 technical agents, 145 technicians, 100 senior technicians, and 75 engineers. - Coordination need: - Many initiatives underway in training and employment but require better coordination to produce synergy. *DSRP/Cameroun Rapport au 31décembre 2006* ### 80. Improving the institutional environment is intended to bring greater efficiency to the work ### _cr0801 - 80. Improving the institutional environment is intended to bring greater efficiency to the work ### Institutional environment and rural development - First steps taken to make operational the Steering Committee to support and monitor implementation of the rural development strategy; expected to improve management of resources earmarked for the sector. - MINADER refined the Rural Development Strategy Paper with a subsectoral strategy and finalized its Medium-Term Expenditure Framework (MTEF); these were presented to development partners on January 31, 2006. - PARI project established a platform for coordination between the government and rural organizations. - MINEPIA: the rural development undertaking is still in gestation. - General assessment: initiatives across ministerial departments to improve the institutional framework still suffer from a lack of synergy in planned activities. - Main issues for 2007: - Improve statistics to develop better monitoring indicators. - Reinforce coordination among government agencies, development partners and civil society. ### Promotion of financial intermediation (Box 4 and related developments) - CFAF 400 million in proceeds from external debt relief made available to 19 savings and loan cooperatives (COOPECs) as a subsidy to bolster their lending funds; on June 13, 2006, MINADER and the MFIs signed a contract governing the use of these resources (resources remain the property of the government). - Three financing structures within MINEPIA for the rural economy (in addition to HIPC projects); two are operational: Project for Livestock and Fisheries Development in the Southwest (PDEP/SO) and PSSA (Special Project on Food Security) diversification project. - Under the PADC: - CFAF 33 million in revolving guarantee funds placed with MFIs for the account of CDVs (village development committees). - CDVs have accumulated savings totaling CFAF 30,250,000, and have financed 125 micro-projects for a total of CFAF 45 million. - Decentralized Rural Credit Project, PCRD III: - Two regional networks comprising 110 S&Ls with 37,243 members. - Savings deposits average CFAF 504,043,855. - Outstanding loans average CFAF 738,067,041. - Consolidation of the S&Ls is continuing. - FIMAC project: - CFAF 20 million recovered. - Loans totaling CFAF 130 million granted to 290 rural associations. ### Financial intermediation — macro figures and projects - Credit to the economy: CFAF 865.2 billion in December 2006 versus 836.7 billion in 2005. - Credit to the private sector: went from CFAF 859 billion to 832.3 billion over the same period; increase of only 3.2 percent. - Private-sector deposits in banks: CFAF 1,294.1 billion in December 2006 compared to 1,454.7 billion in December 2005; increase of 12.3 percent. - Money supply: grew by 9 percent and stood at CFAF 1,713.4 billion at the end of December 2006. - Douala Stock Exchange: first stocks have been listed. - COOPECs rationalization: 232 micro-finance establishments licensed; CAMCCUL network approved by COBAC; licensing authorization signed by MINEFI. - MC2/MUFFA project (support micro-finance establishments for rural development): - Planned duration: five years with HIPC and IFAD (PPMF) financing. - Overall cost: CFAF 3,814,544,650. - Executing agency: Appropriate Development for Africa Foundation (ADAF); principal financial partners: Afriland First Bank and MINADER. - Jan 25, 2006: National Credit Board approved creation of the Agricultural Bank of Cameroon (rural bank) as a corporation with a majority of private shareholders. - CANADEL: operating plan to raise equity capital for each of the 38 Village Development Committees (CDVs). ### Industrial development — performance, projects and standards - Industrial sector growth rate in 2006: 5.5 percent. - Key projects and status: - Limbé oil yard: project 60 percent complete; investment for the first phase planned at CFAF 90 billion. - Alucam expansion: total investment cost now expected to be US$1.5 billion versus the initial estimate of $900 million. - AES-Sonel: met conditions for its five-year business plan; signature of a direct loan of CFAF 1 billion from international financial and banking institutions. - Institutional and strategic actions: - Prime Minister established a steering committee to prepare industry and services sector strategy. - Competitiveness Committee identified priority sectors: textiles, wood, energy and hydrocarbons, sectors undergoing change (plantains, maize, oilseeds), “configuration” sectors (cocoa, coffee, rubber), high-tech sectors (ship building and repairs, ICT, pharmaceuticals). - Sector-specific initiatives: - Textiles: strategic audit on CICAM; recommendations being implemented including ad hoc committee and provincial units to combat fraud, counterfeiting and contraband. - Palm oil: regional project under formulation with UNIDO and CFC covering Nigeria, Equatorial Guinea and Cameroon; feasibility studies prepared with UNIDO assistance. - Integrated Project for Industrial Development (with UNIDO): pilot centers for agri-food processing; first milk-processing center inaugurated in Bamenda (second half of 2006); second center for processing ginger built at Bafoussam with equipment supplied by UNIDO. - Industrial Subcontracting and Partnership Exchange (BSTP): corporate charter and business plan finalized following CCIMA study. - Standards and quality: - Draft decree on organization and functioning of the National Standards and Quality Agency approved on June 28, 2006. - 250 national standards prepared, 13 mandatory; eight standards adopted in beverages industry. - Standards on concrete reinforcing rods, welded wire mesh and binding yarn approved and to be made mandatory by order of MINIMIDT. - PASAPE (program to support economic partnership agreement Central Africa–EU): - Pilot phase cost: €7,235,946. - Financed by the European Union with technical assistance from UNIDO. - SME support and regulatory work: - Inventory of consulting firms specializing in SME development and a study on SME definition prepared. - Draft law on creation and organization of one-stop business service centers submitted for ministerial approval. - Study on regulatory and administrative framework for MSMEs and crafts finalized with UNIDO support. - Studies for pilot enterprise nurseries (Douala CUD, Mairie II in Yaoundé, Extreme North) finalized. ### Boosting the private sector — measures, infrastructure and legal framework - Activities continued to promote enterprises and eliminate bottlenecks; large-scale infrastructure works in support of the private sector advanced. - Generic drugs industry: project launched in 2004 to overhaul a unit producing essential generic drugs and equip it electronically; new packaging machines and materials planned for fiscal year 2005 to make the malaria kit available; laboratory stocks awaiting industrial-scale production. - Energy sector regulatory improvements: - Decree entrusting SNH financing of security stocks of oil products. - Minister of Energy and Water issued a circular clarifying licensing conditions for service stations. - New entrants: TRADEX and PETROLEX. - Major infrastructure works and status: - Wouri bridge rehabilitation: 97 percent complete; only dike and bayou works remain. - Second Wouri bridge: construction study under a public-private partnership (BOT) contract in process of signature. - Ngaoundéré-Touboro-Moundou trunk road (border with Chad): 89 percent complete, 237 km in length. - Ambam-Eking: route works completed (27 km), representing 84 percent of total works; related works 35 percent completed as of December 31, 2006. - Ambam–Kye Ossi Road (to border with Equatorial Guinea): studies underway for a bridge over the Kye; road works acceptance-tested; studies 100 percent complete. - Other road projects in study/negotiation (study completion rates as of December 31, 2006): - Foumban-Tibati-Ngaoundéré and Garoua-Boulai-Ngaoundéré: studies 90 percent complete. - Ekok-Mamfé asphalting: study 85 percent complete. - Sangmélima Djoum-Congo Frontier: studies 83 percent complete. - Maroua-Bogo: studies 56 percent complete. - Urban roads: - Douala Infrastructure Project (PID) financed by IDA: of 23 km to be rehabilitated, first lot 12 km (CFAF 9 billion) acceptance-tested; second lot 10 km (CFAF 11 billion) about 70 percent complete as of December 31, 2006; works scheduled to finish in July 2007. - Post-HIPC C2D financing: - Douala and Yaoundé granted project financing amount of €115 million under the Debt Settlement and Development Contract (C2D); tenders called in 2006; works to begin in 2007. - Enterprise-Cameroun project: capacity building results — training for 18 people in strategic management, coaching for 13 SMEs, three entrepreneurship training seminars for 17 business managers, and training for 15 entrepreneurs in design of management programs. - CIESP (Inter-Ministerial Committee Enlarged to the Private Sector) met in October in Yaoundé; identified obstacles and proposed concrete measures in basic infrastructure, sectors with high growth potential, and financing. - Legal framework: - Law on partnership contracts promulgated on December 29, 2006, enabling public–private partnerships for large-scale infrastructure and public services (e.g., second Wouri bridge, Yaoundé-Douala-Bafoussam-Yaoundé freeway loop, various power generating stations). - Persistent difficulties: - Implementation of the Investment Charter held up by work on regulations and structures; Investment Promotion Agency and Export Promotion Agency still not operational nearly 5 years after law promulgation. - Private sector complaints: tax system not adapted to competitive economy needs, limited access to financing, inadequacy of human capital. ### Investment trends and assessment (GFCF) - Table 3: Gross Fixed Capital Formation (GFCF) — selected values by year - GFCF: 1999 14.7, 2000 16.0, 2001 20.3, 2002 19.8, 2003 18.0, 2004 18.3, 2005 19.2, 2006 19.7, 2007 19.6, 2008 22.5, 2009 23.6, 2010 24.1 - Private: 1999 12.3, 2000 13.9, 2001 18.1, 2002 17.5, 2003 15.7, 2004 15.7, 2005 16.5, 2006 15.4, 2007 14.9, 2008 17.5, 2009 18.9, 2010 19.5 - Public: 1999 2.4, 2000 2.1, 2001 2.2, 2002 2.3, 2003 2.3, 2004 2.6, 2005 2.7, 2006 4.3, 2007 4.7, 2008 5.0, 2009 4.7, 2010 4.6 - Source: SIPAE - Analysis: - Investment rate rises from 14.7 percent in 1999 to nearly 25 percent in 2010, but shows stagnation over 2002-2007. - Private investment component stagnated and slightly retreated between 2003 and 2007. - Increase in public investment over the same period suggests a crowding-out effect. - Conclusion: measures to revive the private sector have yet to significantly increase private investment capacity; pace of reform in this strategic PRSP area needs to be accelerated. ### Basic infrastructure — roads and maintenance - BTP sector strategy adopted June 15, 2005; 2006-2008 MTEF confirmed December 2005; documents updated in 2006 leading to 2007-2009 MTEF; 2007 budget based on MTEF and all sector programs budgeted. - Roads Master Plan (PDR) study completed in 2006 and adopted at first session of the National Roads Board; 2007-2009 MTEF adopted consistent with high scenario of the Master Plan. - Roads sector 2006 results: - Cantonnage, current and/or periodic maintenance of 4,568 km of paved roads. - Current and/or periodic maintenance of 13,366 km of "priority" and "nonpriority" dirt roads. - Maintenance and rehabilitation of 3,070 km of rural roads. - Construction of 66.3 km of paved roads. - Opening of about 10 km of dirt roads. - Construction of some 22 linear meters of bridges. - Completion rates: - Current maintenance work on paved roads: 74 percent (around 4,568 km). - Current maintenance on 13,366 km of dirt roads: 82 percent completion. - Road protection and management measures: - Awareness and education seminars for truckers organized in Yaoundé, Douala, Ngaoundéré, Maroua, Garoua, Bafoussam. - Campaign to weigh tanker trucks and impose fines, with a three-ton leeway. - Development of a national strategy to manage rain gates; three open tenders issued for construction, rehabilitation and management of rain gates. *Source: DSRP/Cameroun — Rapport au 31 décembre 2006* ### 117. Environmental preservation along roadways. Inspection visits to work sites were ### _cr0801 - 117. Environmental preservation along roadways. Inspection visits to work sites were ### Environmental preservation and inspections - Inspection visits to work sites were continued to enforce environmental regulations. - A call for expressions of interest was issued for renewing the environmental audit of the Yaoundé-Douala Road. - Recommendations of the World Bank Mission on the environmental impact study for the Douala-Ndjamena corridor were taken into account. ### Road projects — progress and status (period under review) - Seven projects showed a positive rate of progress: - construction of the reinforced concrete bridge over the Lokoundjé: 7 percent - construction of the Ayos-Abong-Mbang road Lot 1: 35 percent or 18 km - construction of the Yaoundé-Kribi road Section 1 + Makak ramp: 5 percent ort 4 km - construction of the Moungo bridge: 39 percent - construction of the Yaoundé-Soa road: 27 percent or 2.84 km - construction of the Garoua-Gashiga Bridge road: 3 percent - opening of the Mosse-Ndogbassaben road: 17 percent or 9.69 km - Three projects contributed to completion of major works (positive rate of progress): - rehabilitation of the Wouri bridge - improvements to the Ngaoundéré-Touboro-Moundou road - paving of the road from Ambam to Eking (Gabon border) - paving of the Melong-Dschang road - Five projects are still getting started (contracts awarded; administrative arrangements being completed): - construction of the Ayos-Abong Mbang road Lot 2 - reinforcement of the Loum-Nkam Bridge road - rehabilitation of the KFW bridges, the Ebebda, Noun and other bridges (phase 1) - improvement of the Mutengéné-Muea-Kumba road ### Construction sector upgrades and quality control - Upgrades proceeded as follows: - implementation of a workable regulatory system - strengthening management capabilities for civil engineering operations - intermediation, management and operation of works - studies to increase the number of structured and efficient firms - To avoid defects, cost overruns and accidents: - works supervision was further reinforced - construction quality improved through better design and the use of local materials - more than 700 worksites and contractors' offices were inspected during the year, including: - Construction of the Palais des sports (sports center) - Construction of the headquarters for the Economic and Social Council - Construction of the courthouses at Batouri, Eseka, Mora, Kumbo and Ngaoundéré (continuing despite payment problems) - Studies for construction of the Sangmelima hospital (site has changed) - Construction of a building for the National Assembly (bids now being analyzed) - Construction of the headquarters building for the CSPH (Oil Price Stabilization Fund) (proceeding normally) - Maintenance works on the Maga dike (firm selected for rehabilitation studies now on site) ### Urban infrastructure and housing - Urban development strategy preparatory work: - development and validation of an interim strategy paper for the donors' roundtable initially scheduled for 2006 - programming workshops for the strategy, in May 2006 - preparation of a first draft of the strategy paper - Studies on future of urban affairs agencies (SIC, MAETUR, CFC) planned for 2007; final strategy paper to be available before end-2007. After validation, MINPLAPDAT to prepare the 2007 MTEF with World Bank trust fund financing. - National housing policy preparation and adoption: - ministries (MINDUH, MINDAF, MINPLAPDAT, MINEFI) and sector agencies (CFC, MAETUR, SIC, MIPROMALO) produced a report now available - report includes annex: program for 10,000 dwellings and 50,000 serviced lots - specific report on social housing produced - Pilot social housing project: - build 1,000 social housing units and improve 5,000 lots in Yaoundé and Douala at five identified sites (Olembé and Ngoulemakong in Yaoundé; Logbessou TV, Mbanga Bakoko and Japoma Bakoko in Douala) - project cost estimated at CFAF 53 billion, of which CFAF 6.908 billion is earmarked for: (i) release of sites, (ii) topographic, urban planning, external works, geotechnical, geological, architectural and technical studies, (iii) procurement, and (iv) preparatory work for lot servicing and construction - MAETUR achievements and program: - first half of 2006: improved 1,030 lots; began preparations for a small unit to handle experimental project for 300 dwellings in Nyom II (Yaoundé) - second half 2006 program: complete work in older housing tracts (Logbessou 1 in Douala; Limbé Extension- section 1 in Limbé; Buea tranche 2; North Residential Lands in Buea) - Table 4: MAETUR results in 2006 (Number of lots) - Yaoundé — Mendong Lycée III: 200 - Yaoundé — Nyom II: 200 - Douala — Mbanga Bakoko I: 490 - Bafoussam — Koptchou 3: 140 - Total: 1030 - Crédit Foncier du Cameroun (CFC) lending (first half of 2006): - total loans: CFAF 6.5 billion - to private developers: 2.4 billion - to MAETUR: 1.8 billion - to BASIC: 1.8 billion - to individuals: 500 million - September 2006: CFC launched “Foncier Solidarité” product (associations sign contracts with CFC to enable members to obtain loans to purchase land and construct or upgrade dwellings on basis of association's endorsement) - SIC (Société Immobilière du Cameroun) continued project to build 160 units in Mfandena; housing projects in Yaoundé Hippodrome, MANGUIER/Bastos and NKOLONDOM under study - MIPROMALO activities (first half of 2006): - material and construction pathology survey in the 10 provinces - campaign to promote use of clay tile bricks - quantitative and qualitative improvement of products in experimentation workshops - geological identification of clay deposits, prospecting, analysis and characterization of products - research and development on local construction materials, alternative cement equipment and processing ### Urban sanitation and streets - Yaoundé: - cleaning of drains flowing into the Mingoua River (site: Messe des Officiers) - Yaoundé Sanitation Project (PADY) with AfDB financing: construction of the 25 km Mfoundi canal - CFAF 350 million budgeted for 2006 to rehabilitate pumping station at SIC’s Grand Messa housing tract; estimated cost CFAF 600 million (work delayed by redimensioning but has begun) - Douala: - call for tenders to build 20 km of drains with C2D financing - World Bank financing program to rehabilitate 23 km of primary roads in Douala (work under way); credit passed on by government as grant to Urban Community of Douala - Secondary towns: - Sanitation Master Plan (SDA) of Maroua prepared in 2004 but not launched due to lack of financing - Kousseri seeking funding to prepare its SDA - Urban streets rehabilitation: - MINDUH planned to rehabilitate and maintain some 120 km of streets in 17 cities (including Yaoundé and Douala) financed from government budget, HIPC, C2D and the Roads Fund - As of December 31, 2006, all contracts awarded and most underway, with completion scheduled for 2007 - Works aimed to improve accessibility for underserved neighborhoods and restructure squatter settlements ### Information and communication technologies (ICT) - PRSP strategic guidelines for posts and telecommunications sector: - finalize P&T sector strategy - promote community telecenters - strengthen legal and regulatory framework for ICTs - improve capacity and quality of telecommunications infrastructure - Status of sector strategy and MTEF: - telecommunications and ICT strategy paper prepared, validated and adopted by government - MTEF for the strategy prepared - latest postal services strategy version submitted to MINPLAPDAT for comment before adoption (MTEF copy submitted for information) - Community telecenters: - some 30 multipurpose community telecenters (TCP) completed; one third already operational - other TCP being equipped and readied for operation with CAMTEL support - construction work on 16 other centers programmed in 2006 is under way - "Postel community digital centers" programmed for 2007 with financing from the Special Telecommunications Fund (FST) - Fiber optic and backbone works: - eight of the 14 fiber optic-linked output points along the Kribi-Doba pipeline activated; the other six scheduled for 2007 - CAMTEL’s Douala-Kribi fiber optic link (via Edéa) completed and operational - feasibility studies for Yaoundé-Bafoussam FO link with branch to Bamenda and Ngangui-Ngaoundere link to be updated in 2007 - project to establish Central Africa Trunk Network and the transatlantic network proceeding; AXIOM awarded technical and financial feasibility study by World Bank; feedback session scheduled for early March 2007 at N’djamena in Chad - MINPOSTEL validated results of survey on ICT user and penetration rates in Cameroon - Regulatory and institutional developments: - draft law on cyber-security and cybercrime under discussion among ministries and agencies - three draft regulations prepared and submitted for signature relating to Decree 2005/441 of November 1, 2005 on conditions for installation and use of telecommunications facilities in government offices - interministerial committee established to control telecom consumption by government employees; will facilitate establishment of interministerial network and realize savings - government issued call for expressions of interest for technical and economic feasibility study to establish a broadband interministerial network for 2007 - Network deployment and services: - CAMTEL deploying local wireless loop using CDMA technology; all provincial capitals now served - "CT phone" system being extended to all towns - work continuing on digitalizing certain central offices and trunk lines - Mobile operators (Orange and MTM) deploying networks to provide nationwide coverage; each operator has more than a million subscribers - Mobile telephony covers all provincial and departmental capitals, urban districts, larger villages, and major interurban roads - available telephone numbers for mobile telephony nearly exhausted; studies nearing completion for moving national numbering plan from seven to eight digits - December 2006: framework agreement signed on operation of telecommunications infrastructure in Cameroon, aiming to speed process and reduce costs; agreement covers existing facilities and opens possibility of pooling future infrastructure - Special Fund for Telecommunications has begun activities and selected priority projects (backbone, telecenters, promotion and popularization of ICTs) - Law governing postal services adopted in December 2006 ### Natural resource management — water, mining, geological risks, energy - Drinking water: - national water sector strategy work continued in 2006 with validation of the diagnosis - 60 water points constructed or rehabilitated in 2006 under PADC and FIMEX projects - Mining research and exploitation: - regulations prepared and information seminars scheduled to support mining legislation reform - inventory of mining licenses compiled: 8 small-scale mining licenses, 1 prospecting permit, 25 pre-mining research licenses, and 4 operating licenses - CAPAM / small-scale mining (HIPC financing): - CFAF 4.5 billion in HIPC financing for 2005-2007 to make CAPAM operational - 20 small-scale mining cooperatives (GICAMINES) created and registered, providing sustained self-employment for 1,000 miners - cooperative distribution: 5 in Bindiba, 9 in Bétaré-Oya, 6 in Béke - equipment provided: 6 motorbikes, 80 power pumps, 100 washing tables and other materials - extension services and site managers provide day-to-day coaching; two "local site managers" now working at each of the first three sites - miners received training in mineral prospecting, exploitation, product treatment, revenue management and promotion of cooperatives - Geological risk management: - geological mapping of Mount Cameroon nearing completion - geological observation mission conducted in context of reinforcing natural dam at Lake Nyos (report available) - degassing systems at Lake Nyos and Lake Monoum remain in operation and present no danger - two new small-diameter pipe columns constructed in Lake Nyos in July 2005 and operational; those inserted in Lake Monoum in April 2006 are operational - Energy access and rural electrification: - PRSP energy and water sector objectives (first six months of 2006): develop and expand rural electrification program; develop other forms of energy (solar, wind etc.); increase access to modern energy sources for domestic cooking; take steps to overcome energy deficit - as of May 30, 2006: 2006 rural electrification program (government budget) at consultation stage; HIPC-financed program at definition study stage with draft execution plan being prepared and pre-qualification of firms begun - PANERP (Energy Plan of Action for Poverty Reduction) report ratified by government during second half of 2006 and considered satisfactory by World Bank; efforts underway to secure financing and implement components; draft law on PANERP proposed by AER under study - electrification programs ready for imminent launch: - electrification of 26 sites along border with Nigeria financed by Spain - electrification of 33 rural localities financed by Islamic Development Bank (loan contract signed) - Cooking fuel and supply stabilization: - during first six months of 2006, average of 4,000 tons of gas marketed nationwide: - 2,200 tons produced locally by SONARA - 1,800 metric tons imported - new gas storage facility at Maroua stabilized supply in that region - Projects to overcome energy deficit: - gas-fired power station at Kribi - dam and reservoir at Lom Pangar - hydroelectric stations at Nachtigal, Memve’elé, and Colomines on the Kakey - Mining joint ventures: - October 14, 2003: joint venture agreement between CAPAM and South African and Danish investors created Cameroon Mining Company (CAMINCO SA) - January 13, 2006: CAPAM signed joint venture agreement with Korean investors creating Cameroon and Korea Mining Corporation (C&K Mining Inc.) with diamond exploration permit in Mobilong area near Yokadouma ### Regional integration - Seventh regular session of Conference of Heads of State of CEMAC Member Countries held on March 14 and 15, 2006 at Bata, Equatorial Guinea: - audit reports from special summit of June 2005 in Malabo highlighted obstacles to regional integration related to institutional operation and trade growth within the Community and construction of the common market - leaders recognized lack of sufficient ownership over integration process and failure to apply Community standards adopted by consensus - decision made to create promptly a strategic committee to prepare and carry out a regional program of reforms by March 2008 *Source: DSRP/Cameroun Rapport au 31décembre 2006* ### Box 5. Negotiation of the Economic Partnership Agreements (EPA) ### _cr0801 - Box 5. Negotiation of the Economic Partnership Agreements (EPA) ### Negotiation of the Economic Partnership Agreements (EPA) - First phase (2005): issues identified and debated: - (i) sanitary and phytosanitary standards (SPS) - (ii) customs facilitation and border measures affecting trade - (iii) competition policy and other trade-related matters - (iv) trade in services and the investment framework - (v) strengthening productive capacities - Second phase (through 2006): dealt with the structure of the agreement and the development and strengthening of productive capacities in Central Africa. - A draft outline of the EPA is under discussion. - Fundamental differences persist: - EU view: capacity building confined to market access and trade assistance issues. - Central Africa view: no EPA without strengthening capacities and upgrading regional economies. - State of progress to be assessed at end of 2006. - Third phase (to December 2007): will deal with market access, the schedule of tariff cuts, and the sectors to be liberalized. ### Regional training, institutions, and fiscal arrangements - Training and health center support: - High-level training activities started at the regional training center for financial administrators in Libreville. - Conference decided to provide matching funds for rebuilding and rehabilitating the inter-state public health center of Central Africa in Brazzaville. - Community Integration Tax (TCI): - Heads of State recognized weak performance of the TCI and instructed ministers of finance to enforce provisions strictly. - Recommendation to address customs exemptions promptly to reach an equitable basis for contributions fair to all countries. - Finance ministers to clear up current TCI arrears owed by national treasuries to the Central Bank. - Other economic sector actions: - Creation of a subregional committee on cotton; reaffirmed cooperation in multilateral negotiations. - Creation of a common organization to regulate the sugar market and prevent fraudulent imports. - Special budgetary allocation to CEBVIRHA to establish an epidemiological surveillance network in the CEMAC zone. ### Harmonization of agricultural and phytosanitary policies - Draft legislation and action plans prepared for harmonization within CMAC. - Negotiations begun to establish reference laboratories: - One laboratory to analyze quality of pesticides. - One laboratory to analyze pesticide residues in agricultural products. - MINEFI to seek EU funding for feasibility study of these laboratories. - EU support to Inter-African Phytosanitary Council (CPI) for expert meeting to amend approval regulations. - Meeting of ministers held in Douala in September 2005; no significant forward movement since beginning of 2006. ### Common market for sugar - Important progress: adoption in July 2006 of an internal regulation governing the coordination committee and monitoring of sugar policies. - With pending move to a free trade zone in 2008, Cameroon joined negotiations with CMAC partners. - Government objective: ensure liberalization preserves the national productive apparatus and that firms are strengthened and made more competitive. ### Human resources — Education: funding and implementation - Global education strategy approved on June 6, 2006; Cameroon eligible in September 2006 for G-8 "Fast-Track Initiative" financing for Education for All (EFA). - 2007-2009 MTEF adopted by education ministries (except MINEFOP). - Funding for education in 2006: - 15.1 percent of the government budget, or CFAF 280.2 billion - HIPC resources: CFAF 17.5 billion - Distribution: - Basic education: CFAF 103.2 billion - Secondary: CFAF 150.4 billion - Higher education: CFAF 24.6 billion - Grants: - Private education (nursery, primary, secondary): CFAF 4.5 billion - State universities: CFAF 17.9 billion - Primary education policy and execution: - Decree 315/B1/1464/MINEDUB of February 21, 2006 established procedures to reduce repetition rate from 30 percent to below 10 percent. - Ministry of Basic Education budget execution (on commitments basis): - Operating budget used: 90 percent - Capital budget used: 89.8 percent - Operating budget expenditures included: - Pay salaries of temporary teachers until permanent contracts: CFAF 7,154,174,000 - Subsidize private primary education: CFAF 3 billion - Supply "basic kit" to public primary schools: CFAF 1,845,573,000 - Organize and conduct examinations and competitions: CFAF 700 million - Cover payroll for MINEDUB staff: CFAF 54,201,930,000 - Support professional development for teachers: CFAF 300 million - Capital expenditure (2006) major projects: - Construction/renewal of 546 classrooms, 10 nursery schools, 5 regional offices, 10 local inspection units, 11 accommodation units for teachers, 6 normal schools, and purchase of vehicles. - Additional HIPC financing used to construct 429 classrooms and equip them with desks and seats. - Studies funded totaling CFAF 185 million. - Counterpart funds from 2006 government budget: CFAF 714,670,000 for projects with international funding. - Japanese grant used for: - Construction of 17 latrine blocks in 12 schools - Construction, furnishing and supplies for 150 new classrooms, cost of some CFAF 4.5 billion - Recent achievements: decentralized management, finalization and use of MTEF for 2007 budget, strengthened teacher training, investments in school infrastructure. - Measures addressing teacher shortages: personnel file updates, decentralization, many interim teachers given permanent contracts; work on updating school map ongoing. - Secondary education — MINESEC budget execution and uses: - Budget execution rate to end-2006: 95 percent - Uses of budget: - Human resource development and pedagogical activities: - Recruitment/coaching/assignment of 2,000 teachers graduating from normal schools - Hiring by competition of 99 interim teachers in technical education - Refresher training for 3,000 teachers; training courses and assignments for 2,500 classroom assistants and 6,000 teachers - Training for 60 monitors, principals and inspectors in Multimedia Resource Centers - Supply of tamper-proof diplomas (BEPC, CAP and CAPIET): CFAF 783,080,000 - Start restructuring of secondary and normal school cycles - Professional development activities for teachers - Development of ICTs: construction of three new multimedia resource centers in high schools, bringing number to 17, with 999 workstations - Expand supply of education: CFAF 119 billion devoted, including: - Construction of 270 classrooms, 7 specialized rooms, 20 teacher housing units, 16 sani-stations, 20 administrative units, 2 complete structures in areas ceded by Nigeria, 9 connections to AES-SONEL, 1 borehole, 3 connections to SNEC network - 62 vocational workshops built in secondary technical schools - Rehabilitation of three specialized rooms, 300 regular classrooms, and 13 obsolete establishments, 29 offices at headquarters - Workshops equipped with teaching materials for CFAF 1.1 billion; 60 classrooms with computer materials; provincial and departmental offices outfitted for CFAF 303 million; desks and seats acquired for CFAF 300 million - Strengthen institutional framework: - Spending: CFAF 30.392 billion used to implement organization chart, step up campaign against corruption in schools, promote good governance, strengthen planning and programming - Higher education: - Infrastructure and facilities: - University of Ngaoundéré: two "mini-university cities", a student center, an information technologies center, a social-medical center built - Yaoundé II: amphitheaters seating 1,000 and 1,500 built; digital law campus and UNESCO channel for distance education created - New establishments at start of 2006/2007 year: - Faculties of medicine and industrial engineering established in universities of Douala and Buéa - Advanced Teacher Training College at Maroua established; one in Yaoundé rehabilitated - Measures to reduce graduate unemployment: partnerships between universities and vocational circles; curriculum adaptation started in 2006 - Student aid: - 268 bursaries totaling CFAF 402 million - Payment of arrears: CFAF 240 million - World Bank and French cooperation support (PASE and COMETES projects): CFAF 600 million ### Health strategy implementation and disease control - General implementation: - Improved budget execution capacity after reorganization of technical unit for HIPC program programming and monitoring. - Increased mobilization of external financing in 2006. - Malaria program: - 10,082 community health workers trained in impregnation of mosquito nets and received a manual. - 800,000 leaflets printed and distributed during house visits. - Distribution of insecticide-treated mosquito nets to pregnant women integrated into prenatal consultations. - More than 238 members of health district teams trained in new anti-malaria strategies. - 2,102 health workers received 2,300 care manuals. - Monotherapies withdrawn; contracts signed to subsidize new therapeutic combinations. - Health facilities equipped with antimalarial drugs for free distribution to pregnant women. - Community and civil society partnerships for malaria and health awareness: - Partnerships with 10 NGOs/associations at provincial level. - 160 NGOs/associations in health districts. - 1,549 NGOs/associations in health areas for raising community awareness. - STD/AIDS: - Objective: provide universal access to treatment for persons living with HIV/AIDS (PLWA). - Decentralization to health district level in 2006. - Drugs distributed free to infected pregnant women and newborns. - 65 care units operating. - Activities for prevention of mother-to-child transmission planned. - ARV drug costs kept to CFAF 3,000 and 7,000 a month; children and indigents treated free. - 25,500 PLWAs on ARV, including 1,001 children. - 12,937,394 condoms distributed. - Quick test cost lowered to CFAF 500; biological monitoring examinations subsidized. - Tuberculosis: - Rehabilitation completed on 29 diagnosis and treatment centers, bringing total to 197. - 77 physicians, 96 nurses and 40 laboratory technicians trained. - National communication plan available. - Onchocerciasis (river blindness): - Treatment activities stepped up in hotspots (Fontem, Campo and Mamfé) with Mectizan distribution. - Geographic coverage rate: 75 percent - Therapeutic coverage rate: 95.5 percent - 1,365 health workers trained. - APOC partners meeting held in Yaoundé; program could be extended to 2015. - Schistosomiasis and intestinal parasites: - Nearly 20,000 nursery and primary school children treated. - 150,000 older students treated. - Parasitology survey in 40 schools. - 10,000 information leaflets on schistosomiasis distributed. - 10,000 disinfestation guides distributed. - 1,000 measuring tapes distributed. - 2,000 posters produced for helminthiasis awareness. - Other communicable diseases: - Screening, awareness campaigns and drug distribution nationwide for Buruli ulcers and sleeping sickness. - WHO team certified eradication of Guinea worm. - Non-communicable diseases: - Operational research, epidemiological surveillance, screening, treatment, IEC and training for cancer, hypertension, diabetes, epilepsy, drepanocytosis, rheumatic afflictions and deafness. ### Reproductive health, immunization, and health system financing - Expanded Program on Immunization (EPI): - Restructured centrally and provincially to improve visibility, self-management and efficiency. - Viral hepatitis B vaccine introduced in 2005. - Refrigerated storage and transport facilities reinforced. - Combined "measles/impregnated mosquito nets" campaigns organized in northern provinces. - Routine coverage rate for DTP3 is around 80 percent. - Review of EPI program for 2001-2005 organized; GAVI contracts signed with health districts. - Full multiyear plan prepared for 2007-2011. - Clear improvement in vaccination coverage reported. - Maternal and child health: - Training modules prepared and adapted for family planning and prenatal consultation. - Local communicator model developed for obstetrical care. - Comprehensive program for childhood diseases (PCIME) operational in four more health districts, total now 17. - 16 physicians and 72 managers of comprehensive health centers trained. - Emergency obstetrical and neonatal activities conducted in four provinces. - Essential drugs and supply: - Prices of essential drugs, reagents and medical devices reduced by some 65 percent. - CENAME (National Center for the Supply of Essential Drugs) now an independent agency with HIPC funding (300 million) and has made drugs more affordable and available. - Health sector financing and partnerships: - Health insurance: forum held in February 2006; strategic plan prepared to introduce health insurance; field experiments monitored. - Partnership strategy activated in 2006; projects pursued with UN agencies. - Cameroon eligible for World Fund, GAVI funding, and C2D funds from AFD. - Financial support received for AIDS, malaria, tuberculosis treatment, immunization and health system strengthening. - Support for maternal and child health from WHO, UNICEF, UNFPA, PLAN Cameroun, GTZ, European Union, Coopération Française, OPEC, Islamic Development Bank ( IDB), AfDB, CTB, Canadian fund, JICA, and local NGOs. ### Improving supply of health services, hospital reform, and human resources - Program for construction of 1,000 comprehensive health centers (2004-2009): - HIPC-funded construction of 91 CSIs continued. - Eight centers received provisional acceptance; the other 83 underway. - Rehabilitation: 51,23 CMAs rebuilt (text as supplied), and 95 CSIs rehabilitated. - Construction of accommodation for on-duty doctors (phase I): of 25 units planned initially (2003), 20 completed and accepted between 2005 and 2006. - 108 official housing units built or under construction; nine already accepted. - Hospital reform: - Preliminary work on establishment of "centers of excellence". - Audits of some health facilities (Yaoundé General Hospital). - Draft organization scheme proposed for health facilities in categories 2, 3 and 4. - Human resources: - Ministry of Public Health in process of recruiting 570 health workers. - A human resource development plan is being prepared. *Source: _cr0801 - Box 5. Negotiation of the Economic Partnership Agreements (EPA).* ### 200. Other aspects of improving the supply of health services. Two new health districts have ### _cr0801 - 200. Other aspects of improving the supply of health services. Two new health districts have ### Health services supply and infrastructure - Two new health districts created, and a provincial hospital established. - 129 CSIs have been built. - 90 percent of on-duty physician housing units have been built. - 96 percent of boreholes drilled. - Inspections conducted in private health facilities. - Rehabilitation works completed for: - 51 district hospitals, - 23 CMAs, - 95 CSIs. ### Employment and social security: coverage, programs, and outcomes - Social Security system reform focuses on: - extension of the social protection system to other occupational groups, - improvement in existing services, - establishment of new facilities. - National Employment Policy Paper under preparation; employment program for youth, women and other disadvantaged groups being prepared. - Integrated Project of Support for Workers in the Informal Economy (PIAASI) provided support for 1,000 promoters in 2006. - The FNE (National Employment Fund) outcomes: - 6,480 jobseekers placed, - 866 projects financed, - 1,364 people found independent employment. - Institutional framework and social support actions: - Code of Individuals and the Family being finalized and harmonized with the Child Protection Code and the Nationality Code. - Strengthening of mentoring capacities, specialized services, non-formal education for women and girls (particularly on HIV/AIDS), and income-generating activities. - 35 projects financed with funding from UNFPA to support local self-help and family initiatives. ### Child protection and social assistance - Campaigns conducted against stigmatization of socially disadvantaged children. - 150 orphans and at-risk children received birth certificates. - 300 additional children accepted in health and education facilities. - Nearly 1,500 “street children” are being cared for in specialized institutions. - 500 girls have benefited from life-skills coaching. - Various forms of assistance offered to indigents, including medical and financial aid to the handicapped, to people living with AIDS, and to the elderly. ### Gender and family support: programs and inputs - CFAF 900 million granted to women in the Extreme North province through the PREPAFEN program. - "Project in support of poor women in centers for promotion of women and the family" provided: - 36 computers, - 43 sewing machines, - 36 knitting machines, - 18 embroidery machines, - 1 typewriter. - PARFAR (Program to Improve Rural Household Incomes) has granted loans totalling CFAF 6,726,000. - Under the "gender equity and equality" program: - 571 men and women have been enlisted, - 64 trainers and 24 association leaders have been trained. - 100 families trained in parental education in Adamaoua Province to foster social cohesion. ### Urban poverty, housing and pilot projects - Preparatory work for a national housing strategy and a new housing policy with an annex program for 10,000 dwellings and 50,000 serviced lots. - Pilot project undertaken to build 1,000 social housing units and to service 5,000 lots in Yaoundé and Douala. - Cost of the pilot housing project estimated at CFAF 53 billion, to be spread over three years. - Study for an urban poverty strategy prepared for the donors' roundtable. - World Bank financing of studies begun in 2006 under the Urban Development and Water Supply Project. - State-built Social Reintegration Center for at-risk urban youth in Yaoundé Nkomkana; supplementary fencing financed from the 2005 budget; 2006 budget funds equipping the Center. - Site located in Foumban for exhibiting artworks by young artists. ### Improving the institutional framework and governance: overview - Progress made by end-2006 in governance, with persistent weaknesses in: - consolidation of democracy, - transparency and rigor in fiscal management, - participation by nongovernmental stakeholders, - improving institutional framework for business climate, - reinforcing decentralization and local development, - combating corruption. ### Consolidating the democratic system and electoral management - Five laws adopted and promulgated to modernize the electoral system and State structures, including laws of July 14, 2006 and December 29, 2006. - Law creating Election Cameroon (ELECAM) established an independent institution to oversee the entire electoral system. - Computerization of the electoral system progressed with a national computerized election management center and satellite centers at provincial and departmental levels to manage the voter registration list. - Delays noted in establishing structures called for in the 1996 Constitution; actions planned include accelerating studies, preparing legislation, upgrading computer facilities, and training election management personnel with international support. ### Transparency, public expenditure management and statistics - Actions taken: - Rationalization of the public expenditure cycle, - Strengthened management in social sectors, - Production and publication of statistical data, - Information to citizens on management of public affairs. - Survey tracking public expenditures and measuring user satisfaction in education and health sectors produced an action plan requiring: - budget managers to communicate planned investments to beneficiary groups, - budget execution reports at least annually. - Work continued to establish information archives on fiscal management to constitute documentation for the Cour des Comptes (Audit Court). - Training continued for members of public procurement commissions; 2006 budget law limited fragmentation of procurement orders. - Series of indicators adopted, in cooperation with the World Bank, to assess national procurement system reliability and performance; 2006 budget exercise to be evaluated using those indicators. ### Public sector staffing and payroll management - Physical inventory of staffing and payroll purge/update produced initial results as of December 31, 2006: - 102,756 civil servants, - 6,034 contract workers, - 7,135 decision-making agents, - total of 115,925 government employees. - SIGIPES (Integrated State Employee and Payroll Management System) installed in four pilot ministers; extension of the stabilized version to 11 other ministerial departments has begun and new functionalities are being developed. ### Main activities for improving the institutional framework and governance (key steps) - Promulgation, dissemination and publication of the Code of Criminal Procedure. - Creation of the National Anticorruption Commission (CONAC). - Regular publication of the Treasury account balances. - Regular publication of information on oil production, prices and revenues to the public coffers. - Systematic publication of sanctions imposed on unscrupulous public officials. - Making the National Financial Intelligence Agency (ANIF) operational. - Adoption of a law governing the elections of regional councilors. - Adoption of a law creating Election Cameroon. - Computerization of the voter registry. ### Extractive sector transparency and audits - Government subscribed to the Extractive Industries Transparency Initiative (EITI). - Technical Secretariat for the Monitoring Committee set up; plan of action adopted via a participatory process, calling for reconciliation of data on oil production and publication of periodic reports. - Responsible officer collected information and produced an interim report. - Audits and regular monitoring conducted of public sector and quasi-public enterprises, public administrative establishments, accounting offices, and subsidized entities. - Forestry sector measures: allocation of forest operating licenses, combating illegal logging, forestry development; lists of valid operating licenses and companies facing legal/judicial action published periodically. - Study on public access to information on government affairs conducted; provisional report available. ### Rule of law, judicial reform and justice sector strengthening - Priority action plan to reform the judicial system implemented with focus on: - reinforcing independence of the judiciary, - stepping up drive against corruption in the justice system, - improving enforcement of laws, court orders and penalties. - Code of Criminal Procedure promulgated and came into force on January 1, 2007. - Intensive publicity campaign on the Code conducted in all 10 provinces and carried to departmental level between August 28 and September 22, 2006. - Judicial and quasi-judicial personnel trained in OHADA law; court registrars trained in computer use. - Laws of December 29, 2006 on judicial organization, on organization and functioning of the Supreme Court, and on organization, powers and functioning of the regional audit tribunals reinforced the legal arsenal for judicial modernization. - African Development Bank provided 95 workstations for computerizing the judicial system. - Justice sector budget increased for fiscal year 2006 to speed implementation of judicial reform action plan. - Audit Bench operational; two provisional decisions handed down on 2004 accounts of two ministerial departments; court review of accounts of Ministries of Public Health, Basic Education, Public Works, and Economy and Finance under way. - Principle of collegiality adopted in appeals courts for commercial cases and being extended to high courts of Yaoundé and Douala to strengthen property security. - Law enforcement conducted swift and targeted interventions to suppress violent crime. ### Anticorruption measures and institutional tools - Intensified anti-corruption drive since April 2003; institutional overhaul with creation of CONAC on March 11, 2006, replacing the Corruption Observatory. - Public morals, citizenship and the evils of corruption course included in school and university curricula for academic year 2006-2007. - National Financial Intelligence Agency (ANIF) established as a financially autonomous public body tasked, among other mandates, to receive and process information and evidence in cases of suspected money laundering or financing of terrorism and to pass it to competent legal authorities. - "Operation Dragnet" led to legal proceedings against certain senior officials and public enterprises for management issues; named institutions and officials have been pursued and several managers stripped of functions for unscrupulous or illegal behavior across multiple sectors. - Administrative reforms: reinforcement of inspectors general, creation of reception/mail/liaison offices to reduce points of contact between officials and public service users, new administrative procedures manuals and user guides to improve effectiveness and inform public on procedures. ### Decentralization and local development - Decentralization pursued following July 2004 laws; training provided for stakeholders. - Reform of FEICOM completed; decree reorganizing structure signed; employee reassignment carried out. - Law on election of regional councilors adopted by National Assembly in June 2006 session. - Urban governance program achievements: - strengthened capacities of central and local officials in formulating/implementing municipal poverty reduction strategies in 23 municipalities, - developed local capacities to control urban crime in Yaoundé and Douala, - assisted municipal councilors and officials in eight provinces to perform roles in decentralization/democratization more effectively. - “City contracts” signed in March 2006 between central government and cities of Douala and Yaoundé to speed reconstruction and strengthen economic role. - Yaoundé funding expectations for renovation work between 2006 and 2009: - CFAF 24.7 billion expected from the C2D agreement with France, - 50 billion from the HIPC arrangement, - 20 billion from the ADP-financed Yaoundé sanitation project, - total of 94.7 billion. - Douala envelope amounts to CFAF 170.5 billion, of which: - 60 billion is expected from the HIPC arrangement for 2006-2009, - 58.5 billion from C2D, - 52 billion from the Douala infrastructure project. - The "city contract" introduces a contractual approach to decentralization of urban management to empower local governments. ### Poverty assessment and income trends (coverage for 2006) - Assessment covers 2006, focusing on results of far-reaching actions likely to influence living conditions and on trends from new statistical surveys; constrained by lack of a new poverty profile. - Difficulty in analyzing monetary poverty trends due to lack of household income data; analysis uses economic growth profile, civil service wages, and some rural income sources as proxies. - Macroeconomic growth and per capita income relationships presented: - Growth rate of 3.7 percent in 2004 would mean an increase of about 1 percent in per capita income, population pressure having absorbed 2.7 percent of that growth. - Growth rate of 2 percent in 2005 would correspond to negative growth in per capita income. - Expected real growth rate of 3.5 percent in 2006 is attributable to the oil sector and will allow for a slight increase in per capita income over the 2005 level. - Conclusion: recent economic growth has not directly or significantly contributed to monetary poverty reduction; recommendation that a second-generation PRSP consider measures for equitably sharing growth so that it makes a better, albeit small, contribution to poverty reduction objectives. *Source: DSRP/Cameroun Rapport au 31décembre 2006 (selected excerpts).* ### 237. In the civil service sector, trends in the wage bill and pensions have an effect on household ### _cr0801 - 237. In the civil service sector, trends in the wage bill and pensions have an effect on household ### Civil service wage bill and pensions — effects on household consumption - In 2004, the civil service paid CFAF 541.1 billion overall in emoluments, pensions, and the like. - In 2005, these payments increased to CFAF 534.6 billion, namely a decrease of 1.2 percent attributable in particular to new hires, which were far fewer in 2005 than in 2004 (the year in which recruitment took place in the police force, education, and health). - At December 31, 2006, these same payments (wages, other personnel expenses, emoluments (titres salariaux), and salary adjustments) are estimated at CFAF 504.4 billion, which represents a 5.6 percent decrease. - The 2006 figures reflect the termination of a compensation payout operation that had lasted four years and reaffirms the downward trend of domestic demand. ### Rural incomes, cash crops, and agricultural production - Cotton: production of cottonseed and cotton fiber declined in 2005 and should continue to do so in 2006 given the downward trend of producer prices in the 2004-2006 period, in tandem with world prices. Producers that do not use enough fertilizer and abandon their crops have lower incomes. - Cacao: as new plantations went into production, cacao output increased by 9.7 percent in 2005 and may increase by a further 7.6 percent in 2006. Operators remaining in the sector should see their earnings increase since output is expanding at a time when international prices are rising. - Palm oil: traditional palm oil producers recorded a 6-percent increase in production, which should continue in 2006 with the expansion of areas under crop that have begun to yield output. Stable domestic prices have enabled sector operators to increase their incomes. - Coffee: continued decline in production of both Arabica and Robusta. Outside the southwest, where yields exceed 400 kg per hectare, coffee producers find it difficult to earn ample incomes despite the steady rise in international prices since 2004. ### Food production, regional food security, and emergency needs - National food production estimates for 2005 were up 3.2 percent over 2004. This upward trend in quantities should continue in 2006. - Increased output in 2005 and 2006 for corn, rice, cassava, potatoes, plantains, tomatoes, onions, and groundnuts maintained a stable supply to local and subregional markets. - Millet/sorghum production decreased by about 14 percent in 2005, exposing the northern region to famine and forcing the government to resort to emergency food aid from PAM. ### Poverty and living conditions — overview - The analysis assumes access to certain commodities is a reasonable reflection of household standard of living; changes in access are indicators of changes in living standards. #### Access to housing (Table 5: changes in percent) - Home ownership: 63.0 (2001) → 59.2 (2005) - Flushing toilets: 7.3 (2001) → 6.9 (2005) - Permanent flooring: 49.2 (2001) → 54.2 (2005) - Permanent walls: 24.4 (2001) → 33.8 (2005) - Permanent roofing: 77.9 (2001) → 79.6 (2005) - Air conditioning: 0.8 (2001) → 0.7 (2005) - Findings: - Decline in home ownership linked to rapid urban sprawl. - Improvement in materials for floors, walls, and roofs, but slightly fewer flushing toilets and air conditioners in 2005 versus 2001. - Despite expansion of large construction projects, amenities have not expanded proportionally, likely due to rising electricity and water rates. #### Access to water, power, gas and telephone service (Table 6: trends in percent) - Safe drinking water: 50.5 (2001) → 52.7 (2005) - Electric lighting: 46.1 (2001) → 49.8 (2005) - Telephone - land lines: 1.7 (2001) → 1.5 (2005) - Telephone – mobile: 7.6 (2001) → 30.2 (2005) - Cooking gas: 13.4 (2001) → 15.6 (2005) - Findings: - Safe drinking water access rose from 50 percent in 2001 to 53 percent in 2005; to reach the government’s target of 71 percent access by 2015, the rate must rise to 1.8 percent per year. - Electric lighting use increased; in 2005, just under 5 households out of 10 used electric lighting in urban areas versus 3.5 out of 10 in rural areas. Improvement continued in 2006 with expanded network coverage. - Use of LPG for cooking increased despite price hikes; expansion in Extrème-Nord province due to a new gas bottling company. - Mobile telephone access rose from 7.6 percent in 2001 to 30.2 percent in 2005; CAMTEL’s 2006 City Phone product further boosted demand. #### Consumer durables (Table 7: changes in percent) - Bicycle: 12.7 (2001) → 16.6 (2005) - Motorcycle: 4.0 (2001) → 6.5 (2005) - Car/truck/other automobile: 3.6 (2001) → 4.6 (2005) - Television: 18.7 (2001) → 26.0 (2005) - Radio: 54.7 (2001) → 62.3 (2005) - Refrigerator: 9.5 (2001) → 9.4 (2005) - Freezer: 4.0 (2001) → 3.8* (2005) - Fan: 16.8 (2001) → 20.9* (2005) - Hi-fi system: 7.2 (2001) → 7.8* (2005) - Gas heater: 12.9 (2001) → 15.9 (2005) - Gas cooker: 7.2 (2001) → 6.4 (2005) - Findings: - Increased ownership of bicycles, motorcycles, and vehicles reflects transport priorities. - Ownership of radios, television sets, fans, and gas heaters increased between 2001 and 2005. - Greater increase in television ownership than radios; 2006 World Cup and lower digital cable prices influenced this. - Declining access to gas cookers, refrigerators, and freezers; shift toward gas heaters as substitutes and smaller household sizes reducing demand for refrigerators/freezers. ### Urban poverty — characteristics and impacts - Urban poverty affects some 2 million persons, concentrated mainly in large towns. - In Yaoundé and Douala: - Close to half the households are not directly connected to electricity. - Three quarters do not have individual access to safe water. - Over 60 percent of urbanized areas of these two cities is flood-prone. - Three-quarters of districts in Yaoundé comprise unplanned housing. - Health and sanitation: - Absence of collective sanitation leads to spread of malaria, intestinal diseases, and cholera outbreaks in 2004 and 2005. - Food insecurity affects close to 92 percent of the poor in urban areas. - Urban sprawl over past 20 years averaged growth of between 6 and 7 percent, accompanied by decline in urban public investment. - Unemployment (2005): - ILO unemployment rate: 4.4 percent overall; 10.7 percent urban; 1.7 percent rural. - Broader unemployment rate (including discouraged job seekers): 6.2 percent overall; 14.1 percent urban; 2.7 percent rural. - EESI 2005 broader unemployment: 17.9 percent in Yaoundé; 16.0 percent in Douala. - Informal sector (2005): - 50 percent of operators earned monthly income ≤ CFAF 22,000 (less than SMIG), creating hazardous survival conditions for youth and graduates. ### Beneficiary evaluation (PRSP participatory review findings, July 2006) - Awareness and information: - 47 percent know about the BIP project log; 67 percent are familiar with development and poverty reduction projects in their area not under the BIP. - 35 percent state they are well informed of ongoing projects in their area. - Project knowledge and perceived execution: - 171 beneficiary representatives in July 2006 have knowledge of 918 projects; municipal judges are familiar with more than 60 percent of them. - Among the 918 projects, 34 percent are considered very well executed while 27 percent are deemed merely passable. - If executed, 48.5 percent of projects are expected to have a vital impact on poverty reduction, versus 20 percent that would contribute only marginally. - Sectoral perceptions: - 70 percent of beneficiary representatives think school infrastructures have improved. - 56 percent believe road infrastructure has deteriorated. - 62 percent find that health infrastructure has improved. - 59 percent thought that conditions of access to electricity had worsened. - 58 percent thought that conditions of access to safe water had improved. - Overall, a little more than 50 percent think living conditions have deteriorated; 31 percent consider them improved. - Complaints from 171 interviewed: - 23 percent: local authorities do not take part in project monitoring. - 17 percent: execution deadlines are not observed. - 8 percent: question the relevance of projects chosen. - Interviewee recommendations (summarized): - Improve quality of project execution by: (i) involving local elected officials in monitoring and implementation, (ii) strengthening controls over procurement contracts, and (iii) including local elected officials and members of parliament in procurement committees. - Continue social dialogue and improve governance and living conditions by: (i) improving dialogue with local partners in the participatory process, (ii) better communication on the PRSP, (iii) intensifying the fight against corruption, (iv) prior public information on projects to be carried out locally, and (v) better communication on ongoing projects. - Promote public access to means of production by: (i) developing agriculture, (ii) stepping up actions to create income generating activities, and (iii) establishing frameworks for SMEs and microenterprises. - Accelerate computerization of local authorities by: (i) implementing decentralization through actual transfer of skills to the communes, (ii) establishing measures to make local authorities effectively autonomous, particularly with respect to finance, and (iii) supporting local authorities to prepare sectoral development plans. *Source: DSRP/Cameroun Rapport au 31décembre 2006* ### 264. Measures to be implemented to improve the living conditions of the public have also been ### _cr0801 - 264. Measures to be implemented to improve the living conditions of the public have also been ### Assessment of PRSP measures and remaining implementation gaps - Participants in the third PRSP review acknowledge major advances but identify persistent problems with funding and sustaining actions, particularly in the productive, infrastructure and governance sectors. - Constraints limiting gains in the productive sector: - (i) problems of access to factors of production (credit, suitable agricultural equipment, access to land) - (ii) problems with the functioning of the process of disseminating agricultural research products - (iii) agro-pastoral conflicts - (iv) deterioration of pasture land - (v) insufficient and unsuitable microfinance institutions - (vi) high cost of agricultural inputs and energy - Infrastructure sector concerns: negative effects of delays in performance on government contracts due in particular to lack of professionalism of contract awardees. - Governance sector constraints: - (i) laxism sometimes observed in the application of procurement regulations - (ii) problems from centrally managed provincial projects leading to ineffective programming and guesswork in monitoring - (iii) procurement committees failing to master data in technical proposals - (iv) lack of mastery at local level of the HIPC funds management manual - Social sector: inadequate resource allocation relative to growing needs. ### Progress since April 2003 and gaps in sectoral strategies - PRSP implementation since April 2003 has produced important gains: more coherent government action and inclusion of strategic programming/planning tools such as sectoral medium term expenditure frameworks (MTEFs). - Sectoral strategy drafting context: - Based on (i) methodological blueprint prepared in 2002 and revised in October 2006, (ii) a participatory approach through steering committees, and (ii) guidelines in the PRSP and the MDGs. - Status of sectoral strategies: - 2005: completion of Rural Sector Development Strategy Paper (DSDSR) and Social Development Sectoral Strategy (SSDS). - 2006: Education Sector Strategy Paper (SSE) encompassing MINEDUB, MINESEC, MINESUP, and MINEFOP. - Three key sectors still lacking sectoral strategies: (i) infrastructure, (ii) industry and services, and (iii) general, economic and financial administration. - Ministerial strategies: few ministries completed their processes; progress in 2006 by MINJUSTICE, MINATD, MINDUH, MINPOSTEL, and MINRESI. Energy ministry: partial results since 2005 limited mainly to the master plan for electrical production/transmission and PANERP (National Energy Action Plan for Poverty Reduction). - Priority: drafting/updating missing sectoral strategies to feed the second-generation PRSP. ### Objectives for revisiting strategy documents - General objective: make each strategy document available to contribute to improvement of the PRSP being revised into a second-generation PRSP grounded in a Results-based Management (RBM) approach. - Specific objectives: - revisit each available strategy to make it more suitable as an input for improving relevant areas of the PRSP; - make sectoral/ministerial strategies coherent with the national vision for development set out in the PRSP and the MDGs; - facilitate operationalization of strategies and provide a list of priority programs/projects for the sector, including scheduling, executing entities, donors and lenders, and indicators for monitoring results. - Note: programs and projects in current strategy documents are usually ideas not subject to pre-feasibility or feasibility studies and therefore need revisiting to improve readability and select the most pertinent aspects for the second-generation PRSP. ### MTEFs and budget coherence - Since 2005, government efforts to develop MTEFs for sectors with available ministerial strategies; extension planned to other sectors once strategies are prepared. - 2006: discussions on a central MTEF to control fiscal resources over three years and allocate to ministerial departments; a joint MINEFI-MINPLAPDAT draft circular to improve coherence between PRSP and government budget was prepared but not yet validated, thus little reflected in the 2007 budget. ### Constraints and envisaged solutions by sector - Rural sector constraints - Institutional: weak functional link and poor complementarity between projects/programs and traditional MINADER units; unclear implementation instrument; insufficient financial/technical resources for private support organizations; conflicting intervention approaches; cumbersome selection procedures for support structures; limited PRSP/SDSR awareness among stakeholders. - Financing: fund release procedures unsuited to agricultural calendar; delays between loan/credit agreements and first disbursement (approximately one year); insufficient appropriations for counterpart funds; low utilization of external resources due to cumbersome procedures and long delivery times; inappropriate procurement procedures for perishable agricultural inputs. - Envisaged solutions (funded in context of finalizing SDSR at MINADER): - (i) analysis of involvement capacities of players - (ii) clarification of stakeholder roles in procedural/implementation manuals - (iii) contribution to implementing Paris Declaration (March 2005) recommendations on improving efficiency of development assistance - (iv) improvement of public capital budget structure and level of allocation for counterpart funds and structural investment - (v) greater ownership of SDSR by main players - Other measures: resumption of negotiations to tailor utilization of debt relief resources more closely to agricultural circumstances. - Energy sector constraints and solutions - Difficulties: poor human competences and limited resources for administration, monitoring, and completion of MINEE dossiers/projects. - Human competence causes: freeze on civil service recruitments, departure/retirement of professional staff, retirement age kept at 50 and 55 for the majority of staff causing gradual depletion without renewal. - Resource shortages: lack of modern equipment (low-level of computerization, lack of Internet, software applications, and vehicles), low operating appropriations for MINEE. - Solutions: upward revision of the retirement age; resumption of recruitment and training programs for new recruits; special retraining courses for existing staff; increase in budget appropriations to support improved performance. - Urban development constraints and solutions - Constraints: (i) low-level of budget resources preventing high-impact projects; (ii) slow works due to limited civil engineering equipment; (iii) contractors' poor mastery of procurement procedures; (iv) labor shortages as workers leave sites for field work (low-skilled workers); (v) chaotic concessionaire networks (PTT, SNEC, SONEL) and poor collaboration causing work stoppages; (vi) slow road maintenance start, abandonment by insolvent entrepreneurs, cancellation of programmed projects. - Data constraint: lack of statistical data on urban and housing sectors; available data are highly aggregated and insufficient for assessing quality of life—main reason for delays in carrying out the study. - Proposed responses: gradual increase of Ministry of Urban Development and Housing budget based on amenities-to-inhabitant ratio; measures to improve civil engineering equipment stock and promote SME support through training. - Government determination to redouble efforts to further reduce urban poverty. - Construction and public works constraints and measures - Constraints: (i) lack of logistical resources for monitoring projects; (ii) persistent lack of civil engineering equipment on local market, exacerbated by MATGENIE difficulties; (iii) delays in payment of bills, particularly for BIP financing; (iv) delays in awarding contracts; (v) late start on road works tied to “new measures”; (vi) early heavy rains in the south; (vii) payment problems for BIP-financed studies delaying works start. - Measures being taken: - (i) rigorous management of the dry season by field players - (ii) strict monitoring of SMEs and companies for major road works with directives and implementation schedules - (iii) adoption/implementation of recommendations of specific audits and of the Road Maintenance Internal Audit Mission (MAIER), financed by the European Union - (iv) validation of jointly financed projects and the Yaoundé-Soa road by the Advisory Committee on Monitoring and Management of HIPC resources at its meeting of June 9, 2006 to speed projects and performance - (v) cancellation of certain works contracts and conclusion of works supervision contracts relating to year 3 of the HIPC on rural roads to award contracts directly to efficient companies - Health sector constraints and planned actions - Constraints: difficulty finding financial and technical resources for program operating expenses; personnel shortages including in specialties; inadequately equipped infrastructure; poor coordination between programs. - Planned actions: strengthen monitoring/evaluation at all health system levels; improve work environment for program managers; step up public information campaigns about EPI, STIs/AIDS; make medicine supply more regular; open new health facilities. - Financing: external financing under SWAP-health will supplement national resources; improved availability of financing remains key. - Justice sector constraints and recommendations - Constraints: modest resources for the Ministry of Justice; establishment of quarterly quotas slowing budget execution; difficulties in executing the budget; difficulties in settling companies’ bills. - Recommended steps: - (i) increase Ministry of Justice budget allocation to at least 1 percent of the national budget and emphasize capital budget for rehabilitation/construction of courts and prisons - (ii) remove implementation quotas at least for capital budget execution - (iii) pay entrepreneurs’ bills - (iv) facilitate disbursement of appropriations for supervisory missions and functioning of committees/commissions using cash advances ### Outlook and macroeconomic implications for PRSP review - Overall execution since April 2003: PRSP executed in a satisfactory manner with effective implementation of the majority of actions in the action matrix, but with uneven progress across sectors—social sectors (education and health) progressed more rapidly where sectoral strategies were available; infrastructure and production sectors took longer to establish planning and programming instruments. - Growth performance and implications: - PRSP projected average annual growth rate of 5 percent between 2003 and 2006. - Actual average annual growth rate over this period was around 3.5 percent. - This represents a 1.5 percentage point loss each year, for four years, of average per capita income. - That trend could compromise attainment of the main objectives of the strategy and must be reversed by proactive action to revive growth; choice of methods requires a fresh look at all aspects of the strategy. *DSRP/Cameroun Rapport au 31décembre 2006* ### 294. That is main reason for the review of the PRSP. The review has been conceived as a two- ### PROGRESS REPORT ON THE IMPLEMENTATION OF THE POVERTY REDUCTION STRATEGY PAPER January-December 2006 ### Review of the PRSP: purpose and structure - The review has been conceived as a two-stage process; the first stage produced, in June 2005, an interim document: a compendium of the strategic guidelines in the various sectors with or without a formally validated strategy. - The second stage will deepen strategic analysis and programming of actions and should lead to a second generation PRSP that addresses the following concerns: - the need to strengthen the PRSP as a Reference Framework for the Development and Poverty Reduction Strategy (CSDLP) of Cameroon, and as an operational framework for the implementation of the President’s Great Ambitions, Cameroon’s progress toward the MDGs, and for structuring the support of the development partners; - the need to refine/enrich the strategic framework and to make it more coherent with the sectoral strategies (including the incorporation of the sectoral strategies that have been prepared since the adoption of the first edition of the PRSP) so as to maximize complementarity and hence the effect of growth and poverty reduction of all the policies of the strategic framework; - the imperative to strengthen the business framework and accelerate structural reforms in order to speed up diversification and growth: improved governance, upgrading of companies to make them more competitive, etc.; - the imperative for the government to extend its new result-based strategic planning/management approach (GAR) to all sectors by: - (i) preparing strategies with well defined objectives, programs, and projects and reviewing them annually; - (ii) extending the medium-term expenditure framework (MTEF) to guide the allocation of budgets among ministries and within ministries in line with the priorities of the strategies; and - (iii) strengthening the statistical and institutional monitoring/evaluation system within ministries and at the central level, including the preparation of an annual progress report on the implementation of the sectoral strategies. ### Major analytical work to support the second generation PRSP - Analytical work under way or completed to facilitate preparation: - (i) new surveys on living conditions of households; - (ii) numerous studies on the competitiveness of sectors and sources of growth; and development of macroeconomic and budget guideline tools (strengthening of the macroeconomic simulation model, development of the central MTEF and the sectoral MTEFs for education (MINEDUB, MINESEC, MINESUP), health, construction, and the rural sector (MINADER, MINERPIA, MINEFOR)); - (iii) new discussions on regional planning and on regional and local development. ### PRSP Implementation Matrix — Core area 1: Promotion of a stable macroeconomic framework - 1.1 Macroeconomic and budgetary framework - Measures/actions and monitoring indicators: - 1.1.1 Maintaining a stable macroeconomic framework - Targets/indicators listed: Inflation rate < 3%, Money rate of coverage > 20%, Rising or stable growth - Reported outcomes: Inflation rate = 5.1 % (annual average); Growth rate = 3.9% (December 2006 estimates) - Assigned institutions: MINEFI, MINPLAPDAT, CCS/PPTE - 1.1.2 Using budget savings from the debt relief process in conformity with criteria set out in the decision point document (control and monitoring mechanism) - Indicators: Increased disbursement rate of HIPC funds; Satisfactory execution of eligible projects - Schedule: 2004-2005 - Assigned institutions: MINEFI, MINPLAPDAT, CCS/PPTE - Reported outcome: HIPC funds: About CFAF 102 billion were allocated in 2006. These funds went mostly to the health, education, energy and water sectors, the rural sector and civil society. Execution of HIPC projects - Additional note: The final audit report of HIPC projects financed in 2004 is available; a monitoring matrix of recommendations of the audit has been prepared; the relevant services now own the tool. - 1.2 Continue implementing the action plan for improving public expenditure management - 1.2.1 Press ahead with the setting up of the SIGEFI system - Monitoring: Activities laid down in the MINEFI circular were carried out. Summary statements regarding State budget execution were regularly produced - Schedule: Permanent - Assigned institutions: MINEFI, MINPLAPDAT - Execution notes: - Information System Division (DSI) established; - The entire SIGEFI technical mechanism is in place; Summary statements on State budget execution; - Regular production of statements tracing the budget chain; - Publication of State budget execution data on the Internet started in August 2005 and continues. - 1.2.2 Improving the quality of public investment spending - Monitoring: Sector strategies and Medium-Term Expenditure Frameworks (MTEF) were finalized; Quality spending criteria established; Periodic reports on the physical and financial execution of public investment budget (PIB) prepared. - Schedule: Permanent - Assigned institutions: MINPLAPDAT, Sector ministries - Execution notes: - The central MTEF was constructed and interfaced with sector MTEFs. The macroeconomic model and the MTEF were interfaced. The central MTEF served as a basis for preparing the 2007 State budget. - Several ministries designed or reviewed their MTEFs, including: (i) in the educational sector MINEDUB, MINESEC and MINESUP, (ii) MINSANTE, (iii) in the infrastructure sector, MINTP, and (iv) in the rural sector, MINADER, MINFOF and MINEP. This exercise is also underway in the Ministry of Justice, at the Supreme Court and at MINPOSTEL. - 1.2.3 Ensuring the production of a complete and reliable Treasury account balance - Monitoring: Regular production of complete balances. - Schedule: Permanent - Assigned institution: MINEFI - Execution notes: The draft version of the Treasury account balance is available. Most government accounts in commercial banks have been closed and their balances transferred to the Treasury account at BEAC. - 1.2.4 Systematizing public spending auditing - Monitoring: Regular production and publication of audit reports. - Schedule: Permanent - Assigned institutions: MINEFI, MINPLAPDAT - Execution notes: - Audit reports: The provisional audit report for 2003 public contracts is available. - An invitation to tender was published to recruit an independent auditor for 2004 public contracts. - Budget execution-related dates are now available on the Internet. - 1.2.5 Continuing the preparation of an objective-based budget - Monitoring: Methodology adopted; Objective-based budget estimates prepared and submitted to MPs in the National Assembly. - Schedule: From 2005 - Assigned institutions: MINEFI, MINPLAPDAT - Execution notes: A budget preparation reference matrix is available and the budget is henceforth prepared on the basis of this matrix. - 1.2.6 Pursuing a prudent borrowing policy which gives priority to concessional loans - Monitoring: Level of concessionality of loans approved by the Government; Sector ministries informed and sensitized - Schedule: Permanent - Assigned institutions: MINEFI, MINPLAPDAT, CAA - Reported outcome: Level of debt concessionality: The non concessional borrowing ceiling is 0 - 1.2.7 Regularly preparing periodic physical and financial budget execution reports of ministries given priority in poverty alleviation (Education, Technical Education, Health, Public Works, Agriculture, Finance and the Budget, Economic Affairs, Mines, Power and Water Resources, Transport, Social Affairs, Justice and Women’s Affairs) - Monitoring: Preparation and publication of quarterly reports on the execution of the budget of the ministries concerned - Schedule: Permanent - Assigned institutions: Sector ministries - Execution notes: Ministries produce periodic financial execution reports; PIB physical and financial execution report - 1.2.8 Building institutional capacities of spending ministries in programming, monitoring and execution of operations, and in the quality and efficiency of public spending - Monitoring: Program on institutional capacity building drawn up and implemented; Organization of budgetary conferences; Organization of seminars and training sessions. - Schedule: Permanent - Assigned institutions: MINEFI, MINPLAPDAT - Execution notes: - A capacity building program is under preparation at MINEFI - Budgetary conferences were held during the preparation of the 2007 budget - 1.2.9 Implementing Medium-Term Expenditure Frameworks (MTEF) in social ministries (Education and Health) - Monitoring: (MTEF) updated (Education and Health); Extension to three new MTEFs; Annual budgets prepared and executed on the basis of MTEFs. - Schedule: 2004-2005 - Assigned institutions: MINEFI, MINPLAPDAT - Execution notes: Several ministries prepared their MTEFs, including MINEDUB, MINESEC, MINESUP, MINSANTE, MINTP, MINADER, MINFOF and MINEP. Exercise underway in the Ministry of Justice, at the Supreme Court and at MINPOSTEL. - Additional actions: Extension to other MTEFs; Adoption of Public Contracts Code - Schedule: 2004-2005 - Assigned institution for Public Contracts Code: SPM/ARMP - Reported outcome: The public contracts Code was adopted in September 2004 - 1.2.10 Completing the groundwork of public contract reforms and ensuring that they are properly implemented - Monitoring: Tender Boards and specialized control boards are functional in conformity with the regulations in force - Schedule: Permanent - Assigned institution: SPM/ARMP - Execution notes: - Tender Boards are in place and functioning. - Independent observers recruited and they participate in tender board activities. Permanent (SPM/ARMP) *Source: PROGRESS REPORT ON THE IMPLEMENTATION OF THE POVERTY REDUCTION STRATEGY PAPER — January-December 2006 (Annexes: Updated matrix of the implementation of the PRSP).* ### 1.3 Pursue structural reforms ### 1.3 Pursue structural reforms ### Privatizations and public enterprise restructuring (1.3.1) - Actions and legal instruments: - CAMTEL privatization strategy adopted during the IMC session of 27 December 2005. - Call for expression of interest for public and private sector partnership for SNEC launched. - Decree No. 2005/493 of 31 December 2005: modalities for delegation of potable water utility and sanitation services in urban areas. - Decree No. 2005/494 of 31 December 2005: set up the Cameroon Water Utilities Corporation (public corporation responsible for management of assets and entitlements of the potable water utility in urban and semi-urban areas). - CAMAIR: specific action plan for privatization adopted during the Inter-ministerial Committee meeting of 23 December 2005; a temporary awardee and a liquidator were selected; new company CAMAIR Co created by presidential decree. - CDC: privatization of the rubber and oil palm sectors is underway; an investors’ forum will be held to present the operational privatization strategy adopted. - Implementation status and constraints: - CAMTEL: preparation for sale underway but "there were delays in the implementation of the CAMTEL privatization schedule." - SNEC: modalities for public-private partnership laid down. - CDC: process ongoing with investor outreach planned. - CAMAIR: selection steps completed and corporate restructuring (CAMAIR Co) effected. ### Port transit time reduction (1.3.2) - Objective: Reduction of port transit time for container goods (2004-2005; MINTRANS, GUCE). - Findings: - Liberalization of activities led to a significant reduction in transit costs of container goods at the Douala port. - Delays attributable to government services are around 6 days and now fall short of the set objectives. ### Mobilize non-oil domestic resources (Section 1.4) #### Strengthening establishment of the general income tax (1.4.1) - Actions (2004-2005; MINEFI): - Training of the staff of the taxation Department. - Information and training seminars for taxpayers, notably socio-professional groups. - Corrective measures to be introduced into the 2005 Finance law. - Implementation details and outputs: - A sample of 110 enterprises was prepared with IMF technical support to measure the impact of the 2004 personal income tax reform. - A study based on this sample was conducted; findings are available. - A Taxation-Customs joint unit was set up. - The Ministry of the Economy and Finance launched a sensitization campaign in conjunction with social partners. #### Securing customs revenue and limiting exemptions (1.4.2) - Actions (2004-2005; MINEFI): - Increased security. - Publication of restricted list of exemptions. - Conformity with the list of exceptional exemptions. - Implementation details: - The Ministry of the Economy and Finance took measures to suspend all exemptions. - "The suspension is in force." ### Rural sector and economic diversification (Core area 2 — selected highlights) Note: the source contains extensive measures under Core area 2. Below are the primary themes and key numerical outputs preserved exactly as presented. #### Research, technology transfer and seed production (2.1.1) - Research and contracting: - 24 contracts signed within the context of the competitive research fund. - Technological innovation transfer and outputs: - Consolidation of 196 technical and economic fact sheets produced and disseminated to 13,877 producer organizations in 2005 (compendium underway). - Low Lands Project: 551 ha developed for close to 1,000 beneficiaries; 1,200 power-driven pumps distributed. - PNVRA: 124 reaches constructed and 6,370 ha developed. - ESA: 300 ha developed and 280 reaches constructed. - Seed and input distribution (selected figures): - Mushroom: 750 basic seedling jars (white) produced and disseminated; 86,350 production jars produced (6,350 by the project and 80,000 by farmers). National production estimated at 37.5 tons. - PSCC: 43,211 hybrid pods and 881 grafted young cocoa plants distributed for close to 800 ha; 96,952 rooted cuttings of robusta coffee distributed for 54 ha; 17 kg of arabica coffee seeds for 24 ha. - PVCC: 126,674 liters of pesticides and 960 sprays distributed to >300 Producers’ Organizations and >4,500 village brigades for treatment of >70,000 ha cocoa plants and 30,000 coffee plants; 360 brigades trained. - Village palm plantations: 1,074 ha effectively created. - UCCAO: 1,500 young cocoa plants distributed; 1,000 young robusta coffee plants; 372,000 young arabica coffee plants to be planted on >210 ha. - PNDRT: 75 tons of Irish potato seeds and 509,000 improved cassava varieties (for 200 ha) made available. - Plantain Project: projection of 4 millions plantain suckers; 1,666,301 suckers effectively received and distributed to be planted on 1,260 ha. - Maize Program: 5 tons of basic seed distributed to 565 trained seed multipliers who produced 1,000 tons of quality seeds; 4,460 ha planted and 15,000 tons produced. - PARFAR: 6,720 tons of certified seeds produced including 5,800 tons of maize, 320 tons of groundnuts, 600 tons of sorghum; 7,052 propagation fruit stock produced. - Financial support and youth programs: - 8 of the 60 tractors received from the Indian government dispatched to pilot sites; beneficiaries received CFAF 100 million in financial assistance. - Financial support for 300 youth micro projects in 58 divisions for CFAF 174 million. - Constraints and solutions envisaged: - Constraints include depletion of funds, contract non-monitoring, instability of staff, procurement plan non-respect, lack of implementation instrument for seed law, accumulation of arrears, and delays in external fund disbursement (IFAD). - Solutions envisaged include seeking funds for PNVCA (cost estimated at CFAF 16,275 billion), continue research strategy implementation, and facilitate extension and consolidation of projects such as PNVRA. #### Training and capacity building (2.1.1 continuations) - Training outputs (selected): - Maize Program: 565 maize seed multipliers trained. - Plantain Program: 137 nursery farmers’ organizations trained. - Cocoa and coffee protection: 360 village phytosanitary brigades formed. - Major Pest Project: 250 village Brigade leaders trained. - CFR and CFJA: 3,500 producers trained. - Training and specialization schools: 402 young graduates. - Mushroom Project: 1,227 persons trained in seed production technology (280 at project HQ Obala; 947 by provincial correspondents). - PNVRA: 879 seed multipliers trained; 1,986 extension workers and 128 researchers trained. - PARI: creation of 30 CIG unions and 15 cooperatives underway; 50 FO representatives trained. - PDPV: 1,864 producers trained in 5 provinces. - Constraints: inadequate work logistics, suppression of budget lines, late disbursement of resources; solutions include programming suppressed budget lines and speeding fund disbursement. #### Seed maintenance and production (2.1.1) - Type and quantity of pre-base seed maintained: - 6 farms on 19 pre-base seeds were maintained. - Type and quantity of pre-base seed produced: - Nursing of 19 basic seed farms in the 10 provinces. - Start of harvest of pre-base seeds of 19 farms in the 10 provinces; production stored in adapted granaries. - Second disbursement of funds effective for the second phase involving multiplication of basic and pre-base seeds in the 10 provinces. - Constraint: late and insufficient disbursement of funds for first phase; recommendation to disburse at least 50% of funds for project kick-off. #### Community development and microprojects (2.1.2) - Outputs and financing: - PADC and FIMAC: 125 micro projects funded with rotating guarantees totaling CFAF 45,000,000; 50 village development plans designed; CFAF 130,000,000 of credit distributed to 290 rural groups. - PADC: 300 km of rural roads maintained/rehabilitated; 89 classrooms constructed/rehabilitated; 48 latrines improved; 11 health centers constructed; 29 community constructions; 54 wells constructed and equipped with power-driven pumps; 16 boreholes constructed and 4 rehabilitated. - PARFAR: 5 warehouses, 3 vaccination pools, 4 points of sale and 48 latrines constructed; 9 wells dug. - Constraints: financing functioning of committees, refusal of MFEs to fund micro projects, logistical and funding shortfalls; solutions include review of rotating guarantee mechanism, increase SDOPAC budget allocation, and public awareness. #### Farmer organizations, cooperatives and professionalization (2.1.3) - Outputs: - 79,725 organizations registered; 2,118 organizations legalized as at 30 June 2006. - 2,000 FO fact sheets available at national level and in the 10 provinces. - 474 contracts signed, including 386 for supply of inputs, 50 for farming season loans, 21 production contracts and 17 for marketing. - PADC/FIMAC/PCRD III credit and savings statistics: total credit disbursed by MFEs for producers CFAF 45,175,775 for 323 micro projects (PADC); FIMAC CFAF 20,000,000 recovered; PCRD III average outstanding savings CFAF 504 million; average outstanding loans to producers CFAF 738 million. - Constraints: FO representation and mobilization issues, delays from AFD transfer modalities, inadequate SDOPAC funds, complexity of guarantee procedures. - Solutions envisaged: stakeholder sensitization, review of procedures, increased funding and consultation. #### Priority sector support and buoyant sectors (2.1.4) - Identified sectors supported (6 promising sectors): - milk, aviculture, pig, great can rats rearing, fish farming, small-scale maritime and continental fishing. - Specific program outputs and constraints (selected): - Plantain: distribution of 4 million suckers planned; 1,666,301 suckers distributed; 129 tons of nematicides; PREBAP technical unit installed. - Cocoa and Coffee: 126,674 liters of pesticides and 960 atomizers distributed; PSCC distribution figures as in seed section. - Banana: agreements on common stance (price 176 euros per ton) and FTA funds disbursement delayed (arrears for 2003, 2004 and 2005 pending). - Oil Palm (Village plantations): selection of 2,114 producers; 1,864 producers trained; ~155,000 seedlings distributed enabling 1,074 ha planted. - Market gardening (Lowlands): 1,200 groups selected; 1,200 power-driven pumps allocated; 511 ha summarily developed. - Rice: fertilizer trading capital CFAF 200 million envisaged; UNVDA: 39.01 tons of paddy rice treated and stored; 7.98 tons transformed yielding 2.7 tons white rice, 1.88 tons parboiled rice and 0.93 tons residues. - Constraints: late disbursement of funds (HIPC credits, EU FTA funds), procurement delays, insufficient logistics; solutions include negotiation of simplification of procedures and mobilizing funds. #### Rural water supply master plan (2.1.5) - Timeline and status (2004-2006): - Invitation to tender published for PDHA study in 2004; study not conducted due to insufficient funds; re-programmed for second half of 2005. - Secretariat General of the Presidency letter of 19/08/2005 (Ref. No. B782/SG/PR) instructed ministries to accelerate preparation of the rural water supply master plan as provided in the PRSP. - Two inter-ministerial consultation meetings held; technical committee to support ToR drawing-up established. - Constraint: technical committee representatives from MINEE, MINFOF, and MINPLAPDAT not known; lack of operating means. - Solution: mobilize resources for 2006 and revive consultation for harmonization and start of the study. #### Forest and environment program (PSFE) and community forests (2.1.6–2.1.7) - PSFE implementation and financing: - Joint MINFOF and MINEFIB mission to Washington; World Bank agreed to finance the program. - About USD 25 million granted by IDA and 10 million by GEF. - About 10 billion francs mobilized by donor community (United, GTZ, and CIDA). - SIGICOF software developed and validated; national strategy on forest and wildlife control available. - Community forests: - Inventory: 83 community forests. - Pre-emption right respected during committee on award of sales of standing volumes. - Committee validating simple community forest management plans set up; 21 simple management plans validated out of 30; later note indicates 14 simple management plans validated (sequence preserved as in source). - Proofreading of procedures manual programmed. #### Fisheries and aquaculture (2.1.10) - Techniques studied for breeding and pre-grow out of young species. - Production and distribution outputs: - 14,800 young fish produced and distributed as part of livestock and fisheries project in South-West province. - Interim fish cultivation station of 8 pools (total area 1,000 m2) constructed. - 26,510 young fish produced and distributed, including 17,210 Clarias and 9,300 Tilapia. - Ongoing works: construction of fish cultivation station to increase volume of young fish produced. ### Industrial, SME, ICT, standards and tourism measures (selected items from 2.2 and 2.3) - Industrial competitiveness and sector selection (2.2.2): - Competitiveness Committee report available; sectors identified include Textile, Timber, Energy and Hydrocarbons, Changing sectors (plantain, maize, oil crops), configuration sectors (cocoa, coffee, rubber), high tech sectors (naval construction and repair, ICTs, pharmaceuticals). - ALUCAM extension program with Canadian group ALCAN: investment estimated at more than USD 900 million with 30% reserved for local SME/SMI subcontracting. - Local outsourcing and BSTP (2.2.3): - Survey on industrial outsourcing conducted by CCIMA; constituent instruments and business plan for BSTP-CAM finalized; major obstacle is financial difficulties faced by CCIMA. - Research–industry dialogue and dissemination (2.2.4): - Collection and centralization of research findings completed; findings captured on CD-ROM and hard copy. - A databank is available; Partnership Competence Pole (PCP) in Great South brings together ~one hundred researchers, lecturers and civil society representatives. - Standards and quality control (2.2.7): - 250 national standards established, 8 compulsory (wheaten flour, labeling of pre-packaged food items, gunny sacks, gas bottles, corrugated steel sheet-metals, corrugated aluminum sheet-metals, semolina flour paste and bread). - 34 enterprises certified for conformity to these standards; 13 enterprises certified by international bodies. - Application of standards on wheaten flour generated savings of about CFAF 6 billion per year and creation of 7 new flour mills (600 new jobs). - Sanctions and seizures: 15,000 imported sheet metals seized; fines about CFAF 60 million paid to the Treasury in 2004. - SME/SMI policy and ICT sector (2.2.8, 2.2.6): - Draft SME policy statement forwarded to Prime Minister’s office; emphasis recommended on sector development strategy. - ICT sector projects: NOVATECH, Technonet Africa network, contract of 1st December 2006 for distribution of Thomson Netg’s E-learning products. - Constraint: enterprises of the ICT sector face very high taxes; proposed solutions include sector-specific SME policy measures, public-private platform, and customs duty relief for ICT SMEs. - Tourism (2.3): - Tourism sector strategy Phases I and II completed; Phase III being finalized. - Draft MTEF available. - Data collection system: effective start of data collection by maritime and air border posts; annual inventory of number of tourists envisaged; tourism directory to be validated in 2007. - Standardization of tourism establishments underway; nomenclature and monthly National technical committee meetings in place. *Source: _cr0801 - 1.3 Pursue structural reforms (excerpts and related sections as provided in the source content)* ### 2.4 Promotion of financial intermediation ### 2.4 Promotion of financial intermediation ### 2.4.1 Rendering Cameroon’s capital market (Douala Stock Exchange) operational - Measures taken to launch quotation operations. - Compilation of quotation files is underway by ISPs, with regard to the first six enterprises. - Monitoring indicators: - Quotation operations begun - Number of enterprise on the stock exchange - Amount of transactions - Schedule: 2004-2005 - Assigned institution: MINEFI ### 2.4.2 Pursuing the streamlining of the savings and loans cooperatives (COOPEC) - Number of COOPECs restructured: 232 micro finance establishments approved. These MFEs of the CAMCCUL network approved by COBAC. - Schedule: Permanent - Assigned institutions: MINEFI, PPMF, COBAC ### 2.4.3 Encouraging relations between micro finance institutions (MFIs) and commercial banks - Project: Project to Support Rural Development Micro Finance Establishments - MC2/MUFFA. - Finalized: Implementation planned for 5 year under HIPC and IFAD funding (PPMF). - Overall estimated cost CFAF 3,814,544,650. - Project to be executed by ADAF (Appropriate Development for Africa Foundation), with Afriland First Bank and MINADER as major financial partners. - The Project execution manual was prepared. - Measures/outputs: - A sum of CFAF 400 million from foreign debt relief savings (HIPC funds) was made available to 19 Savings and Loans Cooperatives (COOPEC) in the form of government subsidies to boost their credit capital. - A convention for the proper use of the resources (which remain State property) was signed on 13/06/06 between MINADER and MFEs. - Constraints: - Action subject to availability of HIPC funds. - Project take-off postponed to 2006. - Monitoring indicators: - Discussions with stakeholders of the sector held - Sector action plan adopted - Action plan measures executed - Number of sponsored agreements between MFIs and commercial banks - Amount of micro-credits granted - Schedule: 2004-2006 - Assigned institutions: MINEFI, MINADER, Project to Support Rural Development Micro Finance Establishments - MC2/MUFFA ### 2.4.4 Taking incentive measures to reinforce banking coverage in the country - Monitoring indicators: - Consultation with stakeholders conducted - Action plan adopted - Action plan measures executed (to be specified) - Banking rate - Schedule: 2004-2006 - Assigned institution: MINEFI - (No execution details provided in source text.) ### 2.4.5 Promoting the development of appropriate rural sector financing structures and mechanisms - Creation of a rural bank: - The Cameroon National Credit Council meeting on 25 January 2006 adopted the project to set up the “Agricultural bank of Cameroon". - Form: majority private shareholding company, with a reference partner. - Specific objective: funding of production, processing, marketing and export of produce from Cameroon’s agro pastoral and fisheries sectors. - MINEFI to forward the duly amended endorsed file to government and trigger implementation procedure. - The project is currently being finalized. - Other measures and outputs: - Three structures (excluding HIPC projects) were set for appropriate financing of the rural sector at MINEPIA, including two that are functional. - At PDEP/SO, 519 micro-credits for a total amount of CFAF 123,942,000 were granted. - Some micro-credits were overdue; total amount of CFAF 51,251,447 as at 30/06/2006 was recovered by micro finance establishments with a recovery rate of 53 to 9%. - For the diversification project, the maximum credit per beneficiary in the first structure does not exceed CFAF 300,000, whereas in the second structure, the amounts per community project vary from CFAF 10 million to 17 million. - Difficulty: - Difficulties in getting statistics on the rural production sectors. - Solution envisaged: - Resume agricultural surveys. - Monitoring indicators: - Consultation with stakeholders conducted - Sector action plan adopted - Action plan measures executed - Number of structures and mechanisms established - Amount of funds granted - Schedule: 2004-2006 - Assigned institutions: MINEFI, MINADER, MINEPIA, MINFOF, MINPLAPDAT ### 2.4.6 Pursuing the promotion of decentralized financial systems - Measures implemented: - PADC: 849 groups of close to 15,000 farmers have to date benefited from AGR assistance. - Total credit disbursed by MFEs for the benefit of producers stands at CFAF 45,175,775 for the funding of 323 micro projects thanks to the existence of guarantees. - In 2006, CFAF 33 million of guarantees were domiciled in MFEs. MINADER/MIFED Convention. - Selective support to the functioning of 7 existing networks for a sum of CFAF 109 million. The 7 networks total 142 funds for 44,184 members. - In 2004, the volume of savings raised stood at CFAF 1,261,715,898, including about 25% from women; 5,362 loans were granted for a total amount of CFAF 708,785,690, representing an average sum of CFAF 132,200. - Preparation of the creation of 35 new funds. - Financing a credit line of 125 million. - Monitoring the management of FIMAC 2nd generation loans. - FIMAC: CFAF 20,000,000 recovered; 4 MFE alignment contracts signed; 100 groups enlisted. - MFEs are ready to finance rural community projects. - Difficulties: - Delays in the setting-up of commissions for the recovery of 1st generation loans. - Solutions envisaged: - Subsidize the income-generating activities of communities. - Accelerate the setting-up of recovery commissions by amending the decision to set up divisional commissions. - Monitoring indicators: - Action plan measures executed - Number of structures established - Schedule: Permanent - Assigned institutions: MINEFI, MINADER ### 2.4.7 Promoting mobilization of savings - Outputs and measures: - VDCs saved an amount of CFAF 13,535,390. - Civil society organizations: An operational action plan for the mobilization of self-generated resources of each village development community (VDC) was worked out with the aim to gradually reduce the financial dependency of the VDCs of 37 villages vis-à-vis external funding. - Difficulty: - Poor cocoa season. - Monitoring indicators: - Consultation with stakeholders of the sector conducted - Action plan established - Action plan measures designed - Number of structures and mechanisms put in place - Amount of savings mobilized - Schedule: From 2004 - Assigned institutions: MINEFI, MINADER, MINPOSTEL *Source: _cr0801 - 2.4 Promotion of financial intermediation* ### 2006. Two meetings bringing together sector departments and private enterprises concerned were held. Procee ### _cr0801 - 2006. Two meetings bringing together sector departments and private enterprises concerned were held. Procee ### Core area 4: Developing basic infrastructure and natural resources, and environmental protection #### 4.1 Basic infrastructure development — overview - Two meetings bringing together sector departments and private enterprises were held in 2006. Proceedings of the meetings were forwarded to the PM’s Office to serve the purpose for which they are required. - The projects were not included in the 2006 budget. - The ToRs are being drafted. Their validation will make it possible to seek funds from donors and include same in the 2007 State budget. #### 4.1.1 Designing a strategy for the building and public works (BTP) sector - Monitoring indicator: Sector strategy paper completed, approved and published. - Schedule: 2004-2005. - Assigned institution: MINTP, MINPLAPDAT. - Level of execution: The public works and construction Strategy and its related MTEF are available since end 2005. Since 2006, they are serving as reference to MINTP actions. - Difficulties/Constraints: Its internationalisation and ownership by all the actors of the sub-sector is still be effective due to lack of resources. - Solutions envisaged: In 2007, subsequent budgetary allocations planned for that purpose. #### 4.1.2 Drawing up a strategy for MINDUH - Monitoring indicator: Sector strategy paper completed, approved and published. - Schedule: 2004-2005. - Assigned institution: MINDUH. - Level of execution: See action 6.4.1 concerning the finalization of the urban development strategy. #### 4.1.3 Classifying towns of less than 100,000 inhabitants and selecting priority infrastructure projects - Monitoring indicators: Terms of reference drafted; Studies conducted; Priority infrastructure projects identified. - Schedule: 2004-2005. - Assigned institution: MINDUH. - Level of execution: - Under HIPC funds: ToR for the classification of towns of less than 100,000 inhabitants prepared. - Under PIB and Road Fund: Studies partly completed, including the specification of identification criteria of priority projects. - 550 million earmarked in the road fund for works in 60 secondary towns. #### 4.1.4 Increasing resources allocated for the rehabilitation of the priority road network - Monitoring indicators: - The budget allocated to the road sector. - Share of MIBTP budget and share of national annual budget allocated for road rehabilitation. - Share of MIBTP budget and share of national annual budget allocated for maintenance. - Number of kilometers of roads rehabilitated. - Number of kilometers of roads maintained. - Schedule: Permanent. - Assigned institutions: MINTP, MINPLAPDAT, MINEFI. - Note: the evaluation of road maintenance done per season and the rates of execution can not be cumulated. - 2006 execution and key statistics: - Budget allocated to the road sector: CFAF 145 billion, including HIPC resources. - Share of MINTP budget allocated to the rehabilitation of the priority network: 32.98 billion out of CFAF 145 billion, i.e. 22.7%. - Share of national annual budget allocated to the rehabilitation of the priority network: 32.98 billion out of CFAF 1,861 billion, i.e. 1.77%. - Share of MINTP budget allocated for maintenance: 47 billion out of CFAF 145 billion for road works, i.e. 32.4%. - Share of national annual budget allocated to maintenance: 47 billion out of CFAF 1,861 billion, i.e. 2.53%. - Km of priority network rehabilitated: 2,206 Km distributed as follows: - Tarred road: Loum-Nkam bridge, Mutengeune-Kumba already allocated will start around October 2006. - 1,548 km of rural road. - 1 bridge under rehabilitation (bridge over River Wouri) with an execution rate for the period under review at18%. - Km of priority network road maintained: - 1,416 km of tarred roads out of a programmed 6,173 km. - 1,864 km of manual road maintenance out of 10,915 km. - 4,996 km of earth road out of 16,300 km. - Difficulties/Constraints observed: - Non respect for the terms of contract by some companies and consultancy firms; defects observed on structures and traffic congestions reduced available resources. - Bidders’ declaration contained in tender files relating to technical capacities (human and material resources) are inconsistent with actual situation on construction sites; contracts awarded to incompetent enterprises. - Difficulties to pay works financed on the PIB. - The budget allocated to rehabilitation works is insufficient. - Inadequate civil engineering equipment exacerbated by difficulties faced by MATGENIE. - Delay in the disbursement of credits makes such credits even more difficult to be consumed, and even not consumed at all. - Late start of works due to the slowness of the public contracts award procedure. - The disbursement of credits allocated for road works is done in different phase, depending on the state budget execution process; this brings down the rates of project execution which can only be well executed during the seven months of the dry season. - Solutions envisaged and actions taken: - The government embarked on a reform of the Road Fund with a view to securing road revenue, so as to increase recourses of the Fund. The reforms include a pay point for rehabilitation works. - Firm instructions were given to MINTP officials in charge of control, so that the companies found guilty of false declarations whatsoever, should be sanctioned, notably those that have changed the composition of project teams initially declared in their bids. - There is project to restructure and privatize MATGENIE. - It is also been envisaged to contact authorities in charge of the budget, so that the share of MINTP budget allocated to road works should be assigned once, and where possible, long before the rainy season. #### 4.1.5 Extending the road network and making it dense - Monitoring indicator: Number of kilometres of road constructed annually on the network. - Schedule: Permanent. - Assigned institutions: MINTP, MINPLAPDAT, MINEFI. - Level of execution: Number of km constructed: (content truncated in source). *Source: _cr0801 - 2006. Two meetings bringing together sector departments and private enterprises concerned were held. Procee* ### 24.10 km of tarred roads ### _cr0801 - 24.10 km of tarred roads ### Transport and Roads (MINTP, MINT) - Infrastructure targets and status: - 24.10 km of tarred roads; 10 km of earth roads (title data). - Works on the Road Master Plan complete and programs fed into the MTEF. - Effective set-up of the Studies, Standards and Planning Division. - Continuation of training of 25 MINTP cadres in the higher management cycle of ENSTP. - Labor-intensive techniques for rural/secondary roads (HIMO): - Contracts awarded for 82 earth road sections divided into 11 batches; no contract executed as of reporting. - CFAF 70 million mobilized in 2005 budget for pilot projects. - Two consultancy firms and an operator selected for control and technical/logistic assistance; partnership agreement signed between MINTP and ILO. - Actions pending: recruitment of international HIMO expert, signing of operator contract, approval of the HIMO declaration paper. - Solutions envisaged: carry out commitments once the 2006 budget is operational; accelerate expert recruitment; remind authorities to approve and sign required instruments. - CEMAC transport master plan (road component): - 2,160 km of tarred roads out of 3,725 km, representing a 60% asphalting rate. - Segments of Douala-Ndjamena and Douala-Bangui corridors programmed for study or works (Ayos-Bonis construction; Maroua-Kousseri rehabilitation study). ### Communication, Information and Communication Technologies (MINPOSTEL, MINCOM, CAMTEL) - Sector strategies and institutions: - Telecommunication and ICT strategy paper adopted; postal strategy awaiting adoption. - National Agency for Information and Communication Technologies (ANTIC) organization objective. - Infrastructure and projects: - Optic fiber installed along the pipeline but not yet activated; optic fibre being laid between Yaounde and Douala. - Optic fibre activation and exit points require considerable means CAMTEL cannot afford alone; link will enable connection with Douala SAT3 landing point and Chad-Cameroon pipeline fibre. - CAMTEL’s CT Phone project launched October 2005 continues deployment; digitalization of exchanges and transmission arteries ongoing. - Each of the two mobile telephone operators currently has about 1,000,000 subscribers. - Specific initiatives and status: - Cryptology system: experimental platform at MINPOSTEL completed December 2005; secure message service installed and tested; need to extend/air-condition room and set up certification authority and regulatory/legal framework. - Inter-ministerial communications network: presidential decree of 1st November 2005 signed; 3 draft instruments prepared; insufficient sensitization and uncoordinated PABX acquisitions hinder progress. - Telemedicine: draft instrument to set up National Telemedicine Committee being finalized; questionnaire to assess health establishment infrastructure prepared. - Community telecommunications centers: pilot centers at Ambam, Bengbis and Makenene inaugurated and functional; access difficulties in some areas retard functioning of PTCs. - Objective: extend optic fibre to Douala and Bafoussam; optic fibre hoop Douala-Yaounde-Bafoussam-Douala in progress. - Regulatory and legal framework: - Draft law on cyber safety and cyber crime prepared and to be tabled before Parliament during the November 2006 session. - Setting up of instruments to update institutional, legal and regulatory framework planned; financing constraints noted. ### Water, Energy and Natural Resources (MINEE, MINEE/MINMEE, MINEF) - Water sector: - Water diagnostic document validated; MINEE water strategy work ongoing. - Inventory of water points underway; 2005 program under execution. - PADC achievements: 54 wells constructed and fitted with power-driven pumps; 12 springs developed; 16 boreholes drilled; 4 boreholes rehabilitated; 26 villages eligible per year. - FIMEX: 4 water points developed in the center (Ntui area). - CSO: thematic maps on water drawn and digitalized for Bamenda. - Energy access and production: - “Energy and poverty reduction” program adopted; implementation underway. - LPG market study completed; average of 4,000 tons of gas put on the national market during first six months of the year: 2,200 tons produced locally by SONARA and 1,800 tons imported. Maroua gas depot commissioned. - Major generation projects and status: - Memve’ele dam: studies on final design complete; selection of private developer underway (CPET chain). - Lom-Pangar dam: updated final design report available; construction expected to end in 2009; studies started March 2006. - Colomines power plant: Framework Agreement signed December 2005 with MECAMIDI Group; engineering studies and draft Energy Purchase Contract proposed. - Kribi power plant: PERENCO production sharing contract signed 7 March 2006 for ‘Sanaga-South’ gas field; electricity component includes a 150 MW plant and 100 km 225 KV line; environmental and social impact analyses carried out; plant planned operational by last quarter of 2007. - Nachtigal power plant: final design study started; ESIAs terms prepared. - Warak power plant: aimed at northern supply reinforcement; inauguration planned for 2010. - Natural resources management and mining (MINIMIDT, MINEE): - Mining plan and databanks: - Creation of databank on mineral substances, metal price trends, inventory of useful substances; lack of funds slowed actions. - Small-scale mining (CAPAM): - CAPAM identified 28 pilot sites in 28 sub-divisions and 6 provinces for a total funding of CFAF 11 billion. - Phase I: 8 sites eligible for HIPC funds of CFAF 4.5 billion over three years; in 2006, 5 sites. - CAPAM organized craftsmen into GICAMINES; a GICAMINES is made up of 50 persons. In 2006, 60 GICAMINES mobilized, including 3,000 self-employment opportunities. - Equipment distributed as at 31 December 2006: 200 power-driven pumps, 210 washing tables, 3000 shovels; depreciation mechanism (7 % pithead value) for renewal. - Guarantee funds channeled more than 36 kg of gold and 250 carats of diamond; ad valorem tax allocation: Treasury 50%, relevant councils 15%, neighboring populations 10%. - Support actions include two roads (one at Colomine 30 km) and one at Beke with a bridge; security measures; welfare actions. - Constraints: lack of materials/equipment for restoration; difficulty formalizing clandestine collectors; CAPAM naming limits perception for industrial promotion. - Solutions envisaged: increase number of GICAMINES; create a Federation of Small-scale miners; purchase mechanical excavator; modify CAPAM name. - Mining permits inventory: - 8 small-scale mining permits, 3 reconnaissance permits, 30 research permits and 4 mining permits identified. - Geological mapping and lab modernization: - Surveys resumed for Edea and Ndikinimiki maps; Poli cartographic map at 1:200,000 available but unpublished; continue surveys on 48 maps planned. - Modernization and computerization of Geological and Mining Documentation center: equipment acquired; staff trained; digitalization of geological maps; actions slowed due to lack of funds. - Enforcement of new mining, oil and gas investment codes: implementation instruments to be prepared, signed and published. ### Environment, Risks and Disasters (MINEE, MINRESI, MINFOF) - Geological and industrial risk management: - Mount Cameroon cartography: data collection begun; hazard and geological maps completed. - Degassing of lakes Nyos and Monoun in progress: - Degassing level of Lake Nyos is permanent and presents no danger. - Installation of 2 new columns of small diameter in Lake Monoun in 2006; one installation postponed to first quarter 2006 in reporting; degassing system permanent. - Data collection for future impact evaluation complete; report being drafted. - Project to collect gas not yet successfully negotiated with South African partners; search for new partners and facilitation of fund disbursement for Monoun columns envisaged. - Civil protection: - Start of designing ORSEC plans for Yaounde, Limbe and Noun; pilot ORSEC plans planned; kick-off of National Risk Observatory activities. - Inspections of hazardous industries: - Plan to step up inspections drawn and implemented. - Target: 700 inspections out of 2,500 to be carried out per year; estimated income for 2005: CFAF 700,000, 000. - Constraint: very low inspection frequency due to inadequate funds. ### Regional Integration (CEMAC, MINEFI, MINPLAPDAT) - Macroeconomic convergence (MINEFI/CAA): - Overall budget balance positive: 341.6 billion, representing 3.9% of GDP. - Total public debt: 53% of GDP. - No Treasury arrears in 2005. - Annual inflation rate: 1.5%. - Trade, finance and markets: - Common external tariff applied with goods categorized from 1 to 4; community integration tax rate: 1%. - Community Development Fund (CDF): Community integration tax collected and allocated to CDF to the tune of 6.5 billion in 2004; CDF to go operational in 2005. - Regional payment system reforms underway; instruments for large amounts system, regional inter-bank compensation, electronic inter-banking being adopted. - Infrastructure and integration: - CEMAC Transport Master Plan road component: 60% asphalting rate (2,160 km of 3,725 km). - Development corridors (Douala-Ndjamena, Douala-Bangui) segments programmed for study/works. ### Education and Human Resource Development (MINEDUB, MINESEC, MINESUP, MINEFOP) - General education actions and status: - Information and awareness pilot units established in priority education zones; units established in the Greater North. - Deconcentration of staff management: 140 persons appointed to run decentralized services (14 per province) by Order No. 5936/A/302 of 4 August 2004; Decree No. 2005/14 of 25 April 2005 devolves significant authority to provincial delegations. - Final report of 2nd phase audit of debts owed by private Islamic and lay education to NSIF produced. - School curricula on computer sciences for general secondary education developed and implemented; computers almost inexistent in schools. - Higher education and ICT in schools: - 11 high schools have functional multimedia centers serving about 26,100 pupils using 660 computers (average of 39 to 40 pupils per computer). - Objective: equip 127 high schools with multimedia resource centers by 2007. - Interconnection network of universities and Masters degree cycle in Distance Education at University of Douala in progress. - Teachers and staffing: - Absorption in 2006 of 10,311 part-time teachers and 2,989 PTA teachers. - New teacher status enforceable; retirement age 60; technical, teaching and assessment allowances paid regularly. - Private education subsidies: - CFAF 3 billion of subsidies allocated to private education (basic education component) for 2005-2006 school year; subsidy committed and pending payment. - Mapping and statistics: - 2003-2004 statistical education directory produced; school census campaign to relate to 2006-2007 academic year pending PM authorization of negotiated contract. ### Health Sector (MINSANTE) - Malaria control: - Modules revised; 238 district management team members trained; 2,102 health training service providers trained; 2,300 malaria care management guides distributed. - 30 health districts pre-selected for tests; CENAME to provide drugs. - 1,082 community relay workers trained in mosquito net treatment. - Draft National Communication Plan available; 800,000 malaria leaflets produced. - Mosquito nets: 825,495 nets to be distributed to children <5; 632,851 treated nets distributed to children <5 since January 2006; total 693,165 since start of initiative. 446,250 mosquito nets to be procured for expectant mothers. - Operational constraint on procurement resolved with Global Fund funding; activity to be executed in 2006. - Emergency medical services: - SAMU operational since May 2004 in Yaounde and Douala; units increased and activities intensified. - STI/HIV/AIDS: - 250,000,000 condoms purchased and transferred to provinces; 37,000,000 condoms distributed (20,000,000 through PPSC; 17,000,000 through CSMP). - 19 Voluntary Prevention and Screening Centers (VPSC) operational; 53,538 persons screened. - 23 Approved Treatment Centers (ATC); 63 Management Units (MU) based in district hospitals. - Tuberculosis: - All 197 DTCs have a technical guide. - 163 DTCs have a functional microscope; 41 new microscopes ordered delivered and distributed. - Training sessions conducted: total trained doctors 77, nurses 96, laboratory technicians 40. - Architectural surveys for screening and treatment centers: 30 surveys conducted; 8 contracts awarded; completion of rehabilitation of 29 DTCs bringing total to 197. - Immunization and logistics: - Five rounds of poliomyelitis vaccination in 2005; annual DTC3 vaccination coverage increased to 80%. Hepatitis B vaccine introduced in 2005. - 1,011 health centers have a refrigerator; 530 other new equipment purchased (100 with HIPC funds). - 180 new motorcycles purchased; 100 distributed to provinces; 541 vaccination teams have a motorcycle. - Drugs and clinical guidance: - Drafting committee for therapeutic guide set up with 25 sub-committees; budget allocated CFAF 50,000,000 for 2006 for production of National Diagnostic Treatment Guide and National Essential drugs Order Form (budget considered inadequate). - 100% of healthcare centers have the national drug order form. - Maternal and child health: - All pregnant women consulted received VAT II for tetanus prevention. - 58% of deliveries assisted by qualified staff. - IMCI implemented in 17 health districts; 16 chief district medical officers and 72 heads of integrated health centers trained in IMCI. - Health infrastructure and staffing: - Rehabilitation: 51 district hospitals rehabilitated (46 by State budget, 3 by KFW phase I, 2 by ADB); 23 CMA (20 by State budget, 3 by KFW phase I); 95 IHC (89 by State budget, 6 by KFW phase I). - Construction of staff houses: reception continued in first semester 2006 for 89 work sites underway. - Financing and governance: - Forum on mutualization of sickness risk organized early February 2006; Task Force set up; strategic plan for mutual health insurance companies finalized. ### Social Development, Urban Poverty and Employment (MINPLAPDAT, MINAS, MINPROFF, MINDUH) - Social strategy and family policy: - Social Development Sector Strategy drawn up with action plan of 11 priority programs; steering committee set up by Order No. 89/PM of 28 July 2006. - Women’s empowerment strategy being finalized; draft sent to MINPLAPDAT for appraisal. - Draft bill on violence against women drawn up and forwarded to Prime Minister’s Office; under revision. - Code of Individuals and the Family: draft sent back to Prime Minister’s office after internal review workshop June 2006. - Bill on child protection drawn up; multi-sector validation workshop organized 17–18 August 2006 in Yaounde. - Social welfare: - Seventy-five social centers rehabilitated and equipped; 90 social workers recruited and deployed. - Strategic plan for rehabilitation of disabled persons drawn up and adopted; training and small-scale integration figures provided (e.g., 40 disabled women trained in sewing). - About 1,183 minors in need of social protection identified and taken care of; 525 placed in homes; 311 trained and given support. - Urban development and poverty alleviation: - Urban development strategy workshop held May 2006; interim Medium-term Expenditure Framework being drawn up. - National housing policy: pilot project comprising 1,000 houses and 5,000 developed plots for low/limited income categories. - Wastewater treatment: Yaounde SIC quarter station at Grand Messa project reassessed; CFAF 350 million budgeted for 2006; estimated cost CFAF 600 million; CFAF 280 million allocated in 2007 to complete financing. - Drainage projects: PADY ADB financing to build a 2.5 km canal on Mfoundi river; Douala launched works for a 20 km drain with C2D financing. - Road maintenance and street lighting: intention in 2006 to rehabilitate and maintain urban roads in 70 towns (network ~120 km); World Bank financing for 23 km in Douala. - Town development contracts for Yaounde and Douala signed April 2006 and being implemented under C2D. - Employment and labor market: - Draft National Employment Policy Statement formulated and forwarded; statement being validated. - Surveys on employment and informal sector available; labor market information system being set up within ACBF framework. - Youth employment programs and Integrated Support Project to Informal Sector launched. ### Governance, Public Administration and Justice (MINFOPRA, MINPLAPDAT, MINJUSTICE) - Public financial and administrative reforms: - Publication and audits: Road Fund audit for first half 2004 drawn up; financial and technical audit of HIPC-financed projects in 2004 conducted. - Periodic budget monitoring and sector audits published; health sector PETS action plan being implemented; education sector report published in 2005. - Public procurement: 2004 auditor contract signed August 2005; audit mission started October 2005. - Human resources management and administrative procedures: - SIGIPES implemented in four ministries and being extended to twelve others; external audit of SIGIPES carried out; HR management procedures of SIGIPES formulated. - Administrative Procedure Manuals: methodological guide published; project in progress in ten ministries; APM/HRM being finalized at MINFOPRA. - New system of State employee management: instruments organizing 29 ministries signed per Decree No. 2004/320 of 8 December 2004. - Judiciary reform and constitutional structures: - Judiciary reform strategy under implementation: prison construction/rehabilitation, equipment of jurisdictions, computerization master plan, training modules, habeas corpus included in Criminal Procedure Code, collegiality instituted in Appeal Courts of Mfoundi and Wouri. - Audit Bench operational and began deliberations examining MINEFI accounts for fiscal year 2004. - Instruments relating to Constitutional Council enacted; appointment of members pending. - Anti-corruption and transparency: - ToRs for performance standards available in MINFOPRA; project seeking funding. - Public awareness strategy and coalition work on anti-corruption under preparation. *Source: _cr0801 - 24.10 km of tarred roads (IMF source PDF)._ ### 7.6 Strengthening local development ### 7.6 Strengthening local development ### 7.6.1 Selecting and executing twenty community projects - Target/activity: 20 projects selected and executed - Schedule: 2004 – 2005 - Assigned institutions: MINATD; MINPLAPDAT - Inputs/outcome: 300 projects were received from councils; 50 projects pre-selected by a committee; 5 eligible files accepted. --- ### 7.7 Improving the production and dissemination of statistical information ### 7.7.1 Rendering the National Institute of Statistics operational - Output: Social organs set up - Schedule: 2004-2005 - Assigned institutions: PR; MINPLAPDAT; Social organs - Implementation detail: The management organs of the National Institute of Statistics (NIS) are gradually being set up: the Director General and assistant Director General of this structure were appointed on 31 December 2005 by decree of the President of the Republic. ### 7.7.2 Validating and setting up a statistical mechanism for monitoring and evaluating the PRSP and MDGs - Output: Mechanism set up - Schedule: 2004-2005 - Assigned institution: MINPLAPDAT - Implementation detail: International consultant recruited (DIAL); The final report of the consultant was submitted. - Next step: Implementation of results of the study. --- ### 7.8 Developing the partnership and participatory process for executing the Strategy ### 7.8.1 Setting-up of an information system for the various stakeholders on poverty reduction activities - Output: Information system set up - Schedule: 2004-2005 - Assigned institution: MINPLAPDAT - Implementation detail: Participatory monitoring: the study on the methodology for participatory monitoring of the implementation of the PRSP was completed; A seminar for the validation of the draft report was organized in March 2006; Reflection is underway with a view to implementing the recommendations of this study. ### 7.8.2 Building the capacities of the civil society, the private sector and government staff involved in poverty reduction activities - Output indicator: Number of persons trained - Schedule: Permanent - Assigned institution: MINPLAPDAT - Implementation detail: Envisaged within the framework of the implementation of the participatory monitoring methodology. Programs are envisaged with the support of development partners. --- ### 7.9 Strengthening the rule of law and the security of persons and property ### 7.9.1 Reinforcing security in towns - Measures/actions: Action plan drawn up and implemented; Better protection of towns; Proximity police effective - Schedule: Permanent - Assigned institutions: MINATD; DGSN SED - Implementation detail and progress: - The “Safer Towns” project is being formulated. - Local action plans adopted by administrative authorities within the framework of Mixed security Teams. - Better redeployment of Police and Gendarmerie officers on the field. - The National Gendarmerie has been busy: intensifying the road safety campaign by organizing seminars on the drafting of statements on road accidents for its staff; Setting up 18 temporary gendarmerie stations on 29 October 2004 and transferring staff to these stations in order to improve the gendarmerie of proximity dear to the population; Drafting of diagnostic reports for the establishment of a Council police model in Yaounde. - Bi-annual conference of provincial governors. - Adoption of the project to set up a council police by the Executive of the Yaounde city council. - Recruitment and training of 175 council police officers. ### 7.9.2 Reinforcing the fight against criminality and organized crime - Measures/actions: Action plan drawn up and implemented; Statistics on crime collected and available. - Schedule: Permanent - Assigned institutions: MINATD; DGSN SED - Implementation detail and progress: - Local action plans adopted by administrative authorities within the framework of Mixed Security teams. - In October 2004, the National Gendarmerie received 50 Toyota Hilux DC all-weather vehicles to enable it to participate in the fight against organized crime, including the security of persons and property. - Local action plans adopted by administrative authorities within the framework of Mixed security Teams. *Source: _cr0801 - 7.6 Strengthening local development* --- _Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2008/_cr0801.pdf_