## _cr1069

## Source details

**Canonical URL:** [_cr1069](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2010/_cr1069.pdf)

## Other formats

- [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2010/_cr1069.pdf.md)
- [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2010/_cr1069.pdf.json)

---

### Purpose and scope
- Aim: take stock of progress with the PRS after the first year of PRSP implementation (first year spans the period from April 2008 to March 2009, straddling two fiscal years).
- Prepared using a participatory process based on contributions from sectoral ministries.
- Because of the extremely short period under review and the inadequacy of the statistical apparatus, measurement of progress for most indicators was impossible; a “status report” approach was adopted.
- Report structure elements summarized: context of PRSP preparation; Status of progress (April 2008–March 2009); Constraints and prospects; Corrective actions proposed.

### Institutional arrangements and participatory mechanisms
- National coordination:
  - National Poverty Reduction Committee (CNLP) created October 2001; chaired by the Minister of State, Minister of Planning and Territorial Development (MPAT); vice chaired by the Minister of Economy, Finance, and Budget (MEFB).
  - CNLP coordinates, monitors, and evaluates PRSP implementation; composed of ministry representatives, development partners, and civil society organizations.
- Technical coordination and decentralization:
  - Permanent Technical Secretariat (STP) coordinates formulation, implementation, monitoring, and evaluation; supported by thematic and sectoral groups (GTSs), Departmental Poverty Reduction Committees (CDLPs), and Local Poverty Reduction Committees (CLLPs).
  - Directorates of Research and Planning (DEPs) in each ministry act as focal points.
  - Participatory consultations held in the country’s 12 departments (village and local neighborhood workshops, district/commune validation workshops, and a national workshop).
- Alignment:
  - PRSP aligned with the Millennium Development Goals (MDGs), the President’s New Hope Program [La Nouvelle Espérance], and the national territorial development plan.
  - Five PRS pillars: Pillar 1 governance/peace/security; Pillar 2 economic growth/macrostability; Pillar 3 access to basic social services; Pillar 4 social environment/vulnerable groups; Pillar 5 combating HIV/AIDS.

### Status of progress (April 2008–March 2009): governance and institutional reforms
- Decentralization and legal framework:
  - Law No. 5-2005 of May 11, 2005 on territorial civil services promulgated in 2005; joint commission developing implementing regulations; of 12 draft decrees planned for transfer of responsibilities to local communities, nine prepared by early 2009.
  - Early 2009: contract on the State-Departments Plan signed to make budget allocations available to departmental councils in line with SNAT.
- Political governance and Parliament:
  - Participation in the 2008 legislative and local elections increased 17 percent compared with 2002.
  - Electoral Law No. 9-2001 and Law No. 5-2007 require 15 percent of candidates be women.
- Peace and security: PNDDR and demobilization achievements
  - 85 percent of illegal weapons collected and destroyed.
  - 90 percent of ex-combatants from Pool demobilized and rejoined civil society.
  - 80 percent of ex-combatants received technical income-generating training.
  - 90 percent of former child soldiers received a family allowance or social benefit.
  - Police and security infrastructure projects and training: National Police Academy trained 170 police officers and 152 superintendents in 2008; external trainings (e.g., 32 officers in Cameroon).
- Administrative and judicial governance
  - Civil service reforms: Law No. 14-2007 of July 25, 2007; IT HR Payroll software project 80 percent implemented.
  - Justice legislation and infrastructure: Organic Law No. 22-2008 of July 26, 2008; Laws No. 12-2008 to No. 15-2008 establishing new courts; multiple prison and courthouse construction/rehabilitation projects underway.
- National statistical system
  - Weak capacity; new statistics law drafted and validated; SNDS covering 2010–2014 being prepared; CNSEE to become National Institute of Statistics (INS) upon law approval.
  - Surveys planned/underway: general population and housing census (results to be published in third quarter of 2009); CWIQ 2 (household consumption) data collection planned for fourth quarter 2009; second EDS in 2010; agricultural sector survey fieldwork planned for June 2009.

### Status of progress: macroeconomic performance and diversification
- Growth and sector performance (2005–2009):
  - Growth averaged nearly 6 percent a year from 2005 to 2009.
  - 2008 growth: 6.4 percent.
  - Economy shrank by 1.6 percent in the preceding year (2007).
  - Non-oil GDP growth: 6.6 percent in 2007 and 5.4 percent in 2008.
  - Sectoral non-oil growth contributions in 2008: agricultural production 6.2 percent; forestry 3.2 percent; manufacturing 7.0 percent; transport and communications 6.8 percent; construction and public works 7.6 percent.
- Oil and resource sectors:
  - Oil production: 11.2 million metric tons in 2007 and 12 million metric tons in 2008.
  - Oil exports: 10.5 million metric tons in 2007 and 11.4 million metric tons in 2008.
  - Exports of refined petroleum products: 436,500 metric tons in 2007 and 306,000 metric tons in 2008.
  - Oil revenues amounted to 85 percent of GDP in 2008.
  - Forestry: productive forest area and protected areas noted; certified UFAs total 2,011,000 hectares; production of raw logs 1,212,118 m3 in 2008 versus 1,331,951 m3 in 2007; overall exports by volume increased from 1,009,034 m3 in 2007 to 1,067,985 m3 in 2008 (change of 5.85 percent).
- Public finance management reforms and tax/customs
  - Government Financial Management Improvement Plan (PAGGFP) and Action Plan for Improving Public Investment Management (PAAGIP) adopted.
  - Payroll program revision: 90 percent of the work of the Oracle-handled payroll program has been completed; migration to a more powerful system planned.
  - UIN operational since 2005 nationwide.
  - ASYCUDA extended to Pointe-Noire, Ouesso, Impfondo, and Dolisie.
  - 2009 budget law measures include establishing a single window at Pointe-Noire, STAR risk analysis, laser systems for containers, and elimination/computerization of exemptions.

### Status of progress: social sectors and service delivery
- Education (elementary and secondary)
  - Recruitment: 1,800 teachers recruited (effort began in 2006, accelerated in 2008).
  - Infrastructure and equipment: 654 classrooms renovated; 111 administrative blocks built; 25 administrative housing units built; 66 latrines built; 12,813 school desks purchased; 706 desks, 861 chairs, and 562 cupboards provided to school offices.
  - Textbooks and materials: 12,400 primary school textbooks; 24,836 secondary school textbooks (18,973 for collèges; 5,863 for lycées); INRAP received 246,077 books (194,466 primary readers; 28,993 collège-level French books; 11,378 physical sciences books); PRAEBASE distributed 273,960 textbooks; teachers provided 19,715 primary teaching guides and 268,828 first-cycle secondary guides.
  - Outcomes and indicators (comparisons with 2005):
    - Gross primary school admission rate: 71.9 percent in 2005 and 104 percent in 2008.
    - Gross primary schooling rate: 111 percent in 2005 and 114 percent in 2008.
    - Gross enrollment first cycle secondary: 61 percent in 2005 and 65 percent in 2008.
    - Completion of primary: 73 percent in 2005 and 77 percent in 2008.
    - Transition from primary to first cycle secondary: 68 percent in 2005 and 82 percent in 2008.
- Technical and vocational training and higher education
  - Numerous construction and rehabilitation projects (OCH, ENI, March 8 vocational school 80 percent completed; CEFA projects).
  - Higher education: recruitment of 61 teachers and 13 other staff; LMD standards introduced at some establishments in 2007/2008.
  - Gender in higher education: 5,447 male and 2,388 female scholarship recipients in 2007/2008 (30.45 percent female, of which 18.69 percent in the sciences).
- Health
  - Maternal/child and malaria measures: malaria treatment free for children up to age 15 and expectant mothers; training of 360 health care officers; 81.9 percent of operational CSIs provide basic malaria treatment free of charge; distribution of more than one million treated mosquito nets to expectant mothers.
  - Vaccination: more than 90 percent of children under one year immunized under PEV.
  - ARVs and care: 37 centers provide medical care for people living with HIV/AIDS; active cases number 11,526 with 8,856 (76.8 percent) taking ARVs.
- Water, sanitation, and housing
  - Water: installation planned of four desalination units in Brazzaville; three boreholes completed at Pointe-Noire; call for tenders for 500 rural water points (HIPC funds); WASH program financed by UNICEF; tender for water quality laboratory to be launched in 2009.
  - Housing: ongoing priority program to build 10,000 social housing units since 2005; 20,000 new units programmed (social housing construction continued in 2009 at Mpila, Camp 15 août, and Kintélé).

### Pillar 4 and Pillar 5 highlights (social inclusion and HIV/AIDS)
- Social protection and employment
  - Civil service recruited roughly 25,000 new staff since 2005.
  - Private sector job creation: 10,000 jobs in industrial timber processing; 2,000 new jobs in various industrial subsectors; 5,000 jobs from accelerated municipalization; 17,000 employment offers enabled through private sector revitalization.
  - Minimum wage raised in 2008 from CFAF 40,370 to CFAF 50,400 (Decree No. 2008-942 of December 31, 2008).
- Children, youth, indigenous peoples, and special education
  - Over 40,000 birth certificates distributed free; 2,133 school kits distributed to orphans and vulnerable children in 2008; project care to orphans and vulnerable children scaled to 15,000 beneficiaries.
  - National plan for indigenous peoples prepared for 2009–2013 and implementation began in 2009.
  - Special education: Owando functional rehabilitation center reopened April 6, 2008; tricycle manufacturing workshop reopened October 22, 2008.
- HIV/AIDS prevention and treatment data (2008)
  - Condoms distributed or sold: 6,582,119 total (644,518 for men; 137,001 for women).
  - Counseling and testing: 103 centers; 72,191 visitors; 63,460 provided preventive counseling (88 percent); 62,063 tested (98 percent acceptance rate); 8,213 tested positive.
  - Orphans and vulnerable children: 15,895 benefited from care in 2008; 859 guardians received support for income-generating activities.
  - ARV financing: Global Fund allocated US$45 million for 2006–2011; World Bank project US$19 million initiated in 2004.

### Constraints identified (summary)
- Statistical system and M&E: incomplete statistical data; CNSEE capacity weak; SNDS draft blueprint ready; law on statistics and implementing provisions forthcoming to transform CNSEE into INS.
- Human resource weaknesses: difficult to resolve within one year; national capacity-building program in economic and financial areas under implementation with partners.
- Public investment management: prior poor management due to post-conflict/emergency situations; PAAGIP and institutional architecture adopted but implementation and project-level studies remain limited.
- Infrastructure deficits: underdeveloped road system; CFCO delays; constraints on electricity and telecommunications expansion.
- External shocks: financial crisis effects (late 2008) hit timber exports; multiple erosion events in late 2008 disrupted expenditure execution.

### Macroeconomic outlook and projections (2008–2009)
- Growth and composition
  - 2008 GDP growth: 6.4 percent.
  - 2009 projected GDP growth: about 7.2 percent (real terms).
  - Oil sector activity projected to rise by 14.9 percent in 2009 due to new fields and return to normal production in Nkossa.
  - Nonoil sector projected growth in 2009: 4 percent.
  - Sector-specific 2009 projections:
    - Construction and public works: 8.7 percent (vs 8.5 percent in 2008).
    - Retail trade, restaurants and hotels: 7.5 percent (vs 6.0 percent in 2008).
    - Agriculture, livestock, hunting, fisheries: 6.8 percent (vs 6.2 percent in 2008).
    - Transportation and telecommunications: 6.1 percent (vs 6.8 percent in 2008).
    - Energy and water supply: 1.3 percent (vs 3.5 percent in 2008).
- Nominal aggregates and prices
  - GDP valued at CFAF 3,614.3 billion in 2009 versus CFAF 4,435.7 billion in 2008 (decline of 22.7 percent in nominal terms).
  - Average annual inflation: 4.0 percent in 2009 and 6.0 percent in 2008.
  - April 2009 WEO export price averages cited: crude oil US$63.92/bbl; raw logs US$256/m3; cut wood US$772.67/m3; sugar US 13.33 cents/lb.
- External sector and public finances
  - Current account balance deteriorates from -1.7 percent of GDP in 2008 to -17.8 percent of GDP in 2009.
  - Exports by value fall from CFAF 3,541.2 billion in 2008 to CFAF 2,244.7 billion in 2009.
  - Fiscal revenue estimates:
    - Total fiscal revenue (estimate): CFAF 1,203 billion in 2009 versus CFAF 2,462 billion in 2008.
    - Oil revenue: CFAF 804 billion in 2009 versus CFAF 2,118 billion in 2008.
    - Non-oil revenue: CFAF 399 billion in 2009 versus CFAF 344.4 billion in 2008.
  - Fiscal expenditure:
    - CFAF 1,238 billion at end-2009 versus CFAF 1,239 billion in 2008.
    - Current expenditure down 17.2 percent; investment expenditure up 15.9 percent.
  - Public debt and solvency indicators:
    - Ratio of debt stock to GDP: 76.8 percent in 2009 versus 62.7 percent in 2008.
    - Ratio of debt service to fiscal revenue: 5.7 percent in 2009 versus 12.7 percent in 2008 (with expected debt restructuring).
    - Overall surplus (commitments basis, excluding grants): CFAF 454.5 billion (5.8 percent of GDP) in 2009 versus CFAF 1,038.2 billion (4.3 percent of GDP) in 2008.

### Corrective actions proposed (government recognition)
- Strengthen monitoring and evaluation of the PRS.
- Rigorously apply the Statistical Development Plan (PDS) per the national strategy.
- Promote a participatory approach.
- Develop and improve sectoral poverty reduction strategies.
- Accelerate establishment of economic development corridors consistent with Congo’s subregional transportation hub status.
- Diversify the economy to reduce dependence on oil.
- Promote a dynamic private sector.
- Improve quality and transparency in public finance management.
- Accelerate decentralization and local development.
- Strengthen Public Administration operational capacities.
- Enhance coordination among development partners.

### Prospects and reform implementation priorities (selected actions and timelines)
- Macroeconomic framing and MTEF:
  - Major effort in 2009 to establish macroeconomic framing and central MTEF process; team to be set up and operating as of June 2009.
  - Pilot sectors for sectoral MTEFs in 2009: health, education, transportation; seven ministries to receive substantial support to prepare sectoral strategies, priority action plans, and sectoral MTEFs for 2010–2012.
- Public financial management and PIP:
  - Implement PAGGFP and PAAGIP; new public procurement code and regulations to take effect in 2009.
  - Begin implementation of a computerized expenditure chain in 2009 to track expenditures at stages: committed, verified, authorized, and paid.
  - Study fund and management unit to be set up in 2009: government credit CFAF 1 billion and US$300,000 from Transparency and Governance Capacity-Building Project; AFD also set up a fund for studies.
- Oil sector governance:
  - Ensure audit of 2007 accounts under improved conditions; implement cost accounting before end of first half of 2009; complete action plan to improve SNPC crude oil marketing practices in early 2009.
- Statistics and monitoring:
  - Restructure national statistical system; census results and surveys from end-2009 will refine poverty profile.
  - Implement a monitoring indicators database including core PRSP, action, and result/impact indicators.

### Budget, PIP and priority allocations (selected figures preserved verbatim)
- PIP and budget summary (selected totals and domestic resource allocations for 2009):
  - 2009 budget forecasts — Domestic resources 472,450; Loans 11,445; Grants 30,680; TOTAL 514,575.
  - 2010 budget forecasts — Domestic resources 524,087; Loans 14,031; Grants 57,412; TOTAL 595,530.
  - 2011 budget forecasts — Domestic resources 549,704; Loans 14,031; Grants 47,854; TOTAL 611,589? (table lists Domestic 549,704; Loans 14,031; Grants 47,854).
- 2009 domestic resource allocations (selected):
  - Improving governance, and consolidating peace and security: 131,954 (27.93%).
  - Promoting growth – Stability of the macroeconomic framework: 213,063 (45.10%).
  - Improving access to high quality basic social services by the population: 120,943 (25.60%).
  - Improving the social environment and mainstreaming of vulnerable groups: 5,835 (1.24%).
  - Combating HIV/AIDS: 655 (0.14%).
  - Transportation: 138,630 (29.34% of the growth promotion category).
  - Health care: 25,316 (5.36%).
  - Water: 26,692 (5.65%).
  - Housing: 20,105 (4.26%).
  - Education (elementary and secondary): 18,390 (3.89%).
  - Agriculture, livestock, and fisheries: 17,850 (3.78%).
  - Electrical power: 21,339 (4.52%).
- Investment Budget (summary lines):
  - TOTAL 400,000; Loans 10,000; Grants 45,000; TOTAL 455,000; 100.00.
  - 2009: 472,450 (Domestic resources) 11,445 (Loans) 30,680 (Grants) TOTAL 514,575 100.00.

### Key PRSP indicators (selected reference and target values preserved)
- Poverty (ECOM, 5 years, 2005 reference)
  - Poverty line: CFAF 839/day (2005).
  - Incidence of poverty: 50.7% (2005).
  - Depth of poverty: 19.2% (2005).
  - Proportion living on less than one dollar PPP per day: 26.2% (2005) 30.0% 28.3% 26.7% 18,.0%.
  - Poverty gap index: 15.3% (2005) 13.4% 12.8% 12.2% 9%.
  - Share of poorest quintile in national consumption: 19.5% (2005).
  - Gini index: 41.6% (2005).
- Economic and financial governance
  - Inflation rate (CNSEE, monthly): 4.7% (2006).
  - Per capita GDP (MEFB/DGE, annual): 945.3 (2005).
  - Real GDP growth rate (MEFB/DGE, annual): 6.1% (2006).
- Growth-supporting sectors (examples)
  - Length of paved roads (METP/DEP, annual): 1,300 km (2007); targets 1,330 km 1,480 km 1,816 km.
  - Number of passengers carried by the CFCO (CFCO management, annual): 727,300 (2007); targets 800,000 900,000 1,200,000.
- Education and health targets (selected)
  - Net enrollment ratio in primary school (MEPSA/DEP/ECOM): 72% (2005); targets 82% 85% 87% 100%.
  - Primary school completion rate (MEPSA/DEP/ECOM): 77% (2005); targets 79% 81% 83% 100%.
  - Infant mortality ratio (EDS, 5 years): 75% (2005); targets 63.75% 60% 56.25% 37.50%.
  - Maternal mortality ratio (EDS, 5 years): 781 (2005); targets 663.7 624.6 585.5 390.
  - Proportion of childbirths assisted by trained health care personnel (MSASF/DEP EDS): 86,1% (2005); targets 90.20% 91.60% 93.00% 100%.

### Fiscal and government financial operations (selected tables and levels preserved)
- 1. REVENUE AND GRANTS (levels)
  - Total: 1,564.3 2,462.0 1,203.0 1,662.2 1,981.3 1,921.6 1,855.0
  - Oil revenue: 1,284.5 2,117.6 804.0 1,220.1 1,485.7 1,391.2 1,365.6
  - Non-oil revenue: 279.7 344.4 399.0 442.1 495.6 530.4 489.4
- 2. EXPENDITURE AND NET LENDING (levels)
  - Total: 1,171.4 1,238.0 1,239.0 1,269.2 1,341.0 1,439.1 1,349.8
  - Capital expenditure: 387.7 454.0 590.0 637.2 700.9 771.0 703.0
  - Capital expenditure against domestic resources: 372.0 390.0 469.0 570.0 616.5 680.1 622.2
- Fiscal balances and financing (selected)
  - Primary basic balance, own resources: 276.3 1,010.0 -230.0 254.7 478.9 313.6 349.1
  - Overall balance (commitments basis, excluding grants): 392.9 1,224.0 -36.0 392.9 640.3 482.5 505.3
  - Overall balance (cash basis): 123.1 -185.0 -160.0 339.9 593.3 464.5 465.9
  - Total financing: -123.0 185.0 161.0 -339.9 -593.3 -464.5 -465.9

### Summary assessment and conclusion (core messages)
- Adoption of the PRS in March 2008 reaffirmed government priority to combat poverty.
- Sectoral policies and poverty reduction programs are under way and confirm stated intentions.
- Interim evaluation: macroeconomic framework strengthened; main indicators moving in the right direction; major reforms initiated or near initiation.
- Persistent key challenges: strengthen national statistical system and M&E; complete public finance management reforms (payroll, expenditure chain); sustain sectoral program implementation across governance, economic diversification, social services, and social protection.

*Source: EXECUTIVE SUMMARY and sections extracted from _cr1069 (first-year PRSP status report, April 2008–March 2009).*

### EXECUTIVE SUMMARY ......................................................................................................

### EXECUTIVE SUMMARY

### Structure and main sections
- The document comprises the following primary sections (with page references as in the source):
  - INTRODUCTION (page 1)
  - CONTEXT, AND PRINCIPLES GUIDING PRSP PREPARATION (page 1)
  - 1. PREPARATION AND IMPLEMENTATION OF THE PRSP (page 2)
    - 1.1. Preparation of the PRSP (page 2)
      - 1.1.1. Institutional framework (page 2)
      - 1.1.2. Participatory approach (page 3)
    - 1.2. PRS implementation process (page 3)
      - 1.2.1. Recap of objectives (page 3)
      - 1.2.2. Implementation mechanisms (page 3)
      - 1.2.3. Operational Action Plan for implementation of the PRSP (page 4)
      - 1.2.4. “Ownership” of PRSP implementation (page 4)
      - 1.2.5. Apparatus for the monitoring and evaluation of PRSP implementation (page 4)
  - 2. STATUS OF PRS IMPLEMENTATION (page 5)
    - 2.1. PILLAR 1—Improving governance and consolidating peace and security (page 6)
      - 2.1.1. Political governance (page 6)
      - 2.1.2. Peace and security (page 7)
      - 2.1.3. Decentralization, and departmental and local development (page 8)
      - 2.1.4. Administrative and judicial governance (page 9)
      - 2.1.5. Economic and financial governance (page 12)
      - 2.1.6. Transparency, corruption, and fraud (page 15)
      - 2.1.7. The environment (page 16)
      - 2.1.8. Gender (page 17)
    - 2.2. PILLAR—Promoting macroeconomic growth and stability (page 18)
      - 2.2.1. Oil (page 20)
      - 2.2.2. Forestry (page 22)
      - 2.2.3. Agriculture, livestock, and fisheries (page 23)
      - 2.2.4. Mining (page 26)
      - 2.2.5. Promotion of the private sector (page 27)
      - 2.2.6. Craft industries (page 29)
      - 2.2.7. Tourism (page 29)
      - 2.2.8. Transportation (page 30)
      - 2.2.9. Electrical power (page 33)
      - 2.2.10. Communications (page 34)
      - 2.2.11. Meteorology (page 35)
      - 2.2.12. Subregional integration (page 35)
    - 2.3. PILLAR 3—Improving access to basic social services (page 36)
      - 2.3.1. Elementary and secondary education (page 36)
      - 2.3.2. Technical and vocational training (page 37)
      - 2.3.3. Higher education (page 38)
      - 2.3.4. Health (page 39)
      - 2.3.5. Water and sanitation (page 41)
      - 2.3.6. Housing (page 42)
      - 2.3.7. Scientific research and technological innovation (page 42)
      - 2.3.8. Culture and the arts (page 43)
      - 2.3.9. Sports (page 43)
    - 2.4. PILLAR 4—Social environment and the integration of vulnerable groups (page 44)
      - 2.4.1. Social protection (page 44)
      - 2.4.2. Employment and working conditions (page 44)
      - 2.4.3. Children (page 45)
      - 2.4.4. Youth (page 46)
      - 2.4.5. Indigenous peoples (page 47)
      - 2.4.6. Special education (page 47)
    - 2.5. PILLAR 5—Combating HIV/AIDS (page 48)
  - 3. CONSTRAINTS AND OUTLOOK (page 50)
    - 3.1. Constraints (page 50)
    - 3.2. Macroeconomic performance (2008–2009) (page 52)
    - 3.3. Outlook for more effective implementation (page 55)
  - 4. CONCLUSION (page 59)
  - ANNEXES (page 60)

### Content focus signaled by the table of contents
- Preparation and implementation: institutional framework, participatory approach, operational action plan, monitoring and evaluation, and ownership of PRSP implementation.
- Status and detailed sectoral review organized under five pillars:
  - Pillar 1: governance, peace and security, decentralization, administrative and judicial governance, economic and financial governance, transparency, environment, gender.
  - Pillar 2: macroeconomic growth and stability across natural resources (oil, forestry, mining), agriculture, private sector promotion, infrastructure (transportation, electrical power, communications), meteorology, and subregional integration.
  - Pillar 3: access to basic social services including education (elementary to higher), technical and vocational training, health, water and sanitation, housing, research and innovation, culture, and sports.
  - Pillar 4: social protection and integration of vulnerable groups (employment, children, youth, indigenous peoples, special education).
  - Pillar 5: combating HIV/AIDS.
- Constraints and outlook include a dedicated macroeconomic performance section for 2008–2009 and an outlook for improving implementation.

### Acronyms and abbreviations included (selection reflecting the document’s technical vocabulary)
- Examples of acronyms listed in the document:
  - AFD, AfDB, ANAC, ANER, ARSEL, ARVs, ASYCUDA, AWF, BDEAC, BEEC, BF, CDLP, CEMAC, CFCO, CFRAD, CLLP, CNLP, CNLS, CNMRG, CNSEE, CNSS, COMEG, COMIFAC, CORAF, COSAME, CREPA, CRF, CRIDF, CRLP, CSO, DCEI, DEP, DOJETIC, ECCAS, ECOM, EDF, EDS, EGD, EIB, EITI, EU, EVP, FESPAM, GAR, GASP, GDP, GER, GUMAR, HIPC, HIV, HLI, ICT, IFAD, IHC, ILO, IMB, IMF, IPCP, I-PRSP, IWRM, LMD, MDG, MEFB, MPAT, MTEF, MUCODEC, NEPAD, NGO, NICTs, OAP, OCER, OHADA, ONPT, PAAGIP, PACDIP, PADER, PAME, PAPN, PASCOB, PDARP, PDDR, PDSS, PED, PESS, PMRU, PNAE, PNC, PNDS, PNSA, PNT, PPDS, PRAEBASE, PRCTG, PRODER, PRS, PRSP, PSSA, RESEN, RGPH, SAEP, SDES, SGG, SIGE, SME-SMI, SMIG, SNAT, SNDE, SNDS, SNE, SNIS, SNPC, SOPROGI, SOTELCO, STIs, STP, SYSTAF/UGE, TIPAC, TU, TVT, UDEAC, UFA, UIN, UN, UNDP, UNFPA, VAT, WB, WFP.

- The acronym list preserves original labels and parenthetical English translations where provided (e.g., AFD Agence Française de Développement [French Development Agency]; MEFB Ministry of Economy, Finance, and Budget; PRSP Poverty Reduction Strategy Paper).

*Document: EXECUTIVE SUMMARY (table of contents and acronyms as provided).*

### EXECUTIVE SUMMARY

### EXECUTIVE SUMMARY

### Purpose and scope
- Aim: take stock of progress with the PRS after the first year of PRSP implementation (first year spans the period from April 2008 to March 2009, straddling two fiscal years).
- Prepared using a participatory process based on contributions from sectoral ministries.
- Because of the extremely short period under review and the inadequacy of the statistical apparatus, measurement of progress for most indicators was impossible; a “status report” approach was adopted.
- Report structure: Review of the context of PRSP preparation; Status of the progress made over the April 2008–March 2009 period; Constraints and prospects; Corrective actions proposed.

### Review of context
- Background:
  - Recurrent armed conflicts of the 1990s reduced living standards and destroyed the country’s economic fabric; government focused initially on restoring peace and economic recovery.
  - PRSP adopted in March 2008; Operational Action Plan (OAP) for PRSP implementation approved by Decree No. 2008 -944 of December 31, 2008, defining priorities for the 2008–2010 period.
- Institutional framework and participation:
  - National Poverty Reduction Committee (CNLP) created in October 2001; chaired by the Minister of State, Minister of Planning and Territorial Development (MPAT), vice chaired by the Minister of Economy, Finance, and Budget (MEFB).
  - CNLP: coordinates, monitors, and evaluates PRSP implementation; composed of representatives of all ministries, development partners, and civil society organizations.
  - Permanent Technical Secretariat (STP): coordinates formulation, implementation, monitoring, and evaluation of priority PRSP actions; supported by thematic and sectoral groups (GTSs) and by Departmental Poverty Reduction Committees (CDLPs) and Local Poverty Reduction Committees (CLLPs).
  - Participatory consultations held in the country’s 12 departments (villages and local neighborhoods), validated in district/commune workshops and a national workshop including government, Parliament, and development partners.
  - Focal points: Directorates of Research and Planning (DEPs) in each ministry ensure sectoral policy consistency with PRSP and liaise with the STP.
- Alignment and objectives:
  - PRSP aligned with the Millennium Development Goals (MDGs), the President’s New Hope Program [La Nouvelle Espérance], and the national territorial development plan.
  - Five pillars of the PRS:
    - Pillar 1: Improving governance and consolidating peace and security;
    - Pillar 2: Promoting economic growth and macroeconomic stability;
    - Pillar 3: Improving people’s access to basic social services;
    - Pillar 4: Improving the social environment;
    - Pillar 5: Stepping up the fight against HIV/AIDS.
- Communication and decentralization:
  - CNLP working toward establishing a PRS website to disseminate information and promote public ownership.
  - Monitoring decentralized through departmental and local PRSP structures with support from community development organizations.

### Status of progress during the March 2008–April 2009 period
- Governance and institutional reforms:
  - Implementation of decentralization pursued via establishment of institutional and legal mechanisms and setting up municipal and departmental councils.
  - Law No. 5-2005 of May 11, 2005 on the territorial civil services promulgated in 2005; a joint commission is developing implementing regulations.
  - Government committed to civil service reform, legal and judicial reform, strengthening administrative and penitentiary personnel capacities, infrastructure rehabilitation, and strengthening the national statistical system.
  - Parliament ratified legislation aimed at building economic and political management capacities and consolidating peace and security, including enshrining the free circulation of persons and goods.
- Macroeconomic performance and diversification:
  - Despite the international economic and financial crisis, favorable conditions (rising oil prices through most of 2008, increased oil production, strong non-oil sector) enabled Congo to maintain high economic growth averaging nearly 6 percent a year from 2005 to 2009.
  - Growth figures:
    - 6.4 percent in 2008;
    - decline of 1.6 percent in the preceding year (attributable largely to the decline in oil production).
  - Government commitment to diversification: primary sector to strengthen, with 7.2 percent growth over the 2010–2012 period driven by forestry and agriculture.
- Prices, infrastructure, and trade:
  - Tax easing measures aimed at improving the household food basket are beginning to have effect.
  - Rehabilitation of the Congo-Ocean railroad (CFCO) expected to alleviate trade bottlenecks and contribute to deflation.
- Public finance management reforms:
  - Two plans adopted: Government Financial Management Improvement Plan (PAGGFP) and Action Plan for Improving the Management of Public Investment (PAAGIP).
  - Budget execution reforms targeting the expenditure chain, budget monitoring and evaluation, and payroll and pension administration.
  - Expenditure chain reform: agreement to engage an internationally recognized consulting firm after initial study not validated; presidential decree published defining Administration intervention modalities in expenditure management.
  - AFRITAC mission (February 2009) made recommendations; African Development Bank proposed assistance under the Project to Support the Improvement of the Expenditure System and the Monitoring of Poverty Indicators (PACDIP).
  - Payroll reforms: revision of payroll and pension program formerly administered using Oracle (90 percent of the work on this payroll program has been completed); migration efforts to a more powerful system underway.
- Education, health, water, housing, and culture:
  - Education: actions focused on institutional, infrastructural, and human capacity-building; World Bank financial support to continue succeeding PRAEBASE.
  - Training and higher education: rehabilitation and new construction for agricultural, forestry, and NICT training; reconfiguration, diversification, and modernization of higher education.
  - Health: improved access for mothers, newborns, and children via enhanced skills of health personnel, reproductive health standards, basic equipment, medicines, and obstetric kits for CSIs at PMAEs; malaria treatment provided free of charge to children up to the age of 15 and to expectant mothers.
  - Water: installation of four desalination units in Brazzaville; construction of new boreholes in Pointe-Noire; addition of 500 water supply points in rural areas.
  - WASH program financed by UNICEF and implemented by NGOs under Directorate-General of Waterworks oversight to disseminate low-cost adapted techniques.
  - Housing: social housing construction program continued in 2009 at Mpila, Camp 15 août in Brazzaville, and Kintélé, with 20,000 new units programmed.
  - Culture: law setting direction for cultural policy adopted by Parliament in December 2008, focusing on protecting historical and cultural heritage and promoting cultural activities.
- Social inclusion and protection:
  - Indigenous peoples: national plan for indigenous peoples covering 2009–2013 drawn up in 2008; implementation began in 2009.
  - Children: program for protecting children developed with UNICEF support; undergoing technical and financial evaluation by public authorities.
  - HIV/AIDS: commitments include comprehensive care for infected and affected persons, improved ARV supply and distribution, strengthened epidemiological monitoring and surveillance, and strengthened partnerships; focus on stepped-up prevention at community level, workplace, and health care situations.

### Constraints and prospects
- Statistical system and monitoring:
  - Monitoring and evaluation depend on deconcentrated sectoral ministry structures for sectoral information coordinated by the National Center for Statistics and Economic Research (CNSEE).
  - Actions planned for 2009: institutional reorganization and strengthened exchanges with sectoral statistical systems through the National Strategy for Statistical Development (SNDS); draft blueprint ready and adoption is in progress to establish a steering committee and sectoral committees to promote consistency and coordinate the national statistical system.
  - CNSEE needs to strengthen its institutional role in statistical production and dissemination; forthcoming approval of the law on statistics and related implementing provisions is expected to transform CNSEE into the National Statistical Institute (INS).
  - Draft law defines the national statistical system, sets out missions and organization, and establishes guiding principles regarding the High Commission on Statistics, the INS, sectoral statistical units, and the BEAC.
  - Several surveys programmed for the 2008-2010 period to improve and update poverty data.
- Participatory monitoring:
  - Participatory monitoring aims to develop ownership of the PRS process, improve transparency, increase stakeholder accountability, improve quality and relevance of service providers (particularly public), and enable stakeholder oversight of PRS implementation.

### Summary assessment
- By adopting the PRS in March 2008, the Government reaffirmed its intention to combat poverty and made it the priority of its economic and social development policy.
- Sectoral policies and poverty reduction programs prepared in the context of PRSP implementation confirm the government’s stated intentions.
- Key ongoing challenges include strengthening the national statistical system for monitoring and evaluation, completing public finance management reforms (including payroll and expenditure chain fixes), and sustaining implementation of sectoral programs across governance, economic diversification, social services, and social protection.

*Source: EXECUTIVE SUMMARY (first-year PRSP status report, April 2008–March 2009).*

### 4.  Corrective actions proposed

### 4.  Corrective actions proposed

### Interim evaluation findings
- The national macroeconomic framework has been strengthened.
- The main indicators are moving in the right direction.
- Major reforms have either been or are in the process of being initiated.
- To meet the objectives set under the PRS and to achieve the Millennium Development Goals (MDGs), Congo must take additional steps to meet the many challenges ahead.

### Corrective actions proposed (government recognition)
- Strengthening the monitoring and evaluation of the PRS;
- Rigorously applying the Statistical Development Plan (PDS), in keeping with the national strategy in this area;
- Promoting a participatory approach;
- Developing and improving sectoral poverty reduction strategies;
- Accelerating the establishment of economic development corridors consistent with Congo’s status as a subregional transportation hub;
- Diversifying the economy to lessen the country’s dependence on oil resources alone;
- Promoting a dynamic private sector;
- Improving quality and transparency in public finance management;
- Accelerating the decentralization and local development process;
- Strengthening the Public Administration’s operational capacities; and
- Enhancing coordination among development partners.

### Context and implementation timeline
- The Operational Action Plan (OAP) for implementation of the Poverty Reduction Strategy Paper (PRSP) was approved by the government in 2008 and serves as the guide for the 2008-2010 period.
- This report assesses progress after the first year of PRSP implementation (April 2008 to March 2009).
- The PRSP was adopted in March 2008 and validated by the Bretton Woods institutions toward the end of 2008.
- The OAP was approved by the government and announced in a presidential decree dated December 31, 2008.
- The first year of PRSP implementation ran from April 2008 to March 2009, straddling two fiscal years.
- Economic context: rising oil prices through most of 2008, increased oil production, and a strong non-oil sector supported growth averaging nearly 6 percent a year from 2005 to 2009.

### Institutional arrangements and participatory mechanisms
- National coordination: National Poverty Reduction Committee (CNLP), chaired by the Minister of State, Minister of Planning and Territorial Development (MPAT), with the Minister of Economy, Finance, and Budget (MEFB) as vice chair.
- Technical coordination: Permanent Technical Secretariat (STP) responsible for technical and practical coordination, overseeing and evaluating high-priority PRS actions.
- Support structures: thematic and sectoral groups (GTSs) with Research and Planning Directorates (DEPs) as focal points; Departmental Poverty Reduction Committees (CDLPs); Local Poverty Reduction Committees (CLLPs).
- Participatory consultations were organized in the country’s 12 departments to gather qualitative information on poverty from grassroots populations.
- Consultations included village and neighborhood workshops, district and commune validation workshops, and a national workshop that brought together government, Parliament, and development partners.
- Communication and “ownership” measures: a publicity campaign (terms of reference covering context, objectives, languages, methodology, expected results, organization, target audience, location and time frame, timetable) and the STP’s work to establish a PRSP website.

### Monitoring, evaluation, and statistical capacity shortcomings and actions
- Monitoring and evaluation responsibility: CNLP coordinates, monitors, and evaluates PRSP implementation with representatives from ministries, development partners, and civil society.
- Decentralized monitoring: departmental and local structures supported by local community development organizations.
- Sectoral data support: deconcentrated units in sectoral ministries provide sectoral information and statistical data under coordination of the National Center for Statistics and Economic Research (CNSEE).
- Statistical constraints:
  - Incomplete availability of statistical data persists.
  - Planned 2009 actions relate to institutional reorganization and strengthening exchanges with sectoral statistical systems through the National Strategy for Statistical Development (SNDS); the draft blueprint is ready.
  - Forthcoming approval of the SNDS will enable setting up a steering committee and sectoral committees to promote consistency in statistics production, coordinate and harmonize the national statistical system, and organize sectors to produce statistics.
  - The CNSEE needs to strengthen its institutional role in producing and disseminating national statistics.
  - With forthcoming approval of the law on statistics and implementing provisions, the national statistical system format will be defined and organized around the High Commission on Statistics, the CNSEE (which will become the National Institute of Statistics (INS)), sectoral statistical units, and the BEAC.
  - Several surveys are planned for the 2008-2010 period to improve and update data on changes in poverty.

### Participatory monitoring objectives and functions
- Objectives:
  - Develop ownership of the poverty reduction strategy process;
  - Improve transparency and accountability of stakeholders;
  - Improve quality and relevance of services, particularly public services;
  - Participate in oversight of PRS implementation.
- Functions:
  - Enable local players to confirm monitoring and evaluation data produced by sectoral ministries and to provide assessments of actions carried out under the poverty reduction program;
  - Ensure that all projects are evaluated, confirm degree of completion of each activity, evaluate quality and relevance of work vis-à-vis poverty-reduction objectives, and set out proposals for corrective action.

*Source: _cr1069 - 4.  Corrective actions proposed*

### 2. STATUS OF PRS IMPLEMENTATION

### _cr1069 - 2. STATUS OF PRS IMPLEMENTATION

### Pillar 1 — Improving governance and consolidating peace and security
- Objective: capacity-building in the Public Administration and public institutions to run institutions smoothly, with cohesive sectoral policies; improve political, administrative, judicial, economic, and financial governance; strengthen peace and security; combat corruption; include gender and environmental aspects.

### Political governance
- Institutional and administrative reforms to improve political governance: capacity-building for institutions under the Constitution; strengthening democracy and peace culture; governance of political parties and associations; quota policy for women for nominations and elections; guarantee freedom and independence of communications media.
- Parliament: ratified legislation across sectors, undertaken its own management capacity-building, established partnerships with international institutions, and questioned the government on major issues (oil, fuel shortages, price increases for basic commodities and building materials), demonstrating emerging democratic debate.
- Participation in elections: participation in the 2008 legislative and local elections increased 17 percent in comparison with 2002.
- Legislation for political party support (financing) prepared and to be implemented.
- Electoral Law requirements: Electoral Law No. 9-2001 of December 10, 2001 and Law No. 5-2007 of May 25, 2007 require that political parties and groups ensure that 15 percent of their candidates are women.

### Peace and security
- Strategy summarized as “strengthening of security to prevent conflicts and build a lasting peace.”
- Weapons and demobilization (PNDDR progress with World Bank and European Union support):
  - 85 percent of illegal weapons have been collected and destroyed;
  - 90 percent of ex-combatants who were once active in Pool have been demobilized and have rejoined civil society;
  - 80 percent of ex-combatants have received technical training in fields in which they can earn income or in trades;
  - 90 percent of former child soldiers have received a family allowance or social benefit.
- Infrastructure and units:
  - Gun racks and munitions depots built; territorial headquarters for police units completed in Niari, Likouala, Cuvette, and Brazzaville;
  - Special unit targeting bandits (GRB) set up in 2008;
  - Police stations projects in Ouesso, Souanké, Pikounda, Ngbala, and Ntam in Sangha;
  - National identity cards and biometric passports implementation proceeding.
- Capacity-building and equipment:
  - New barracks and housing built in Dolisie, Impfondo, and Owando; renovation of old barracks; various vehicles and equipment purchased;
  - Technical and scientific police centers set up in Brazzaville and Pointe-Noire;
  - Completion of barracks of the Police Intervention Group (GIP) in Moukondo (Brazzaville) and the police station in Ouesso (building R+1);
  - Other construction and rehabilitation: secondary assistance center for firefighters in Brazzaville, police health unit, departmental territorial monitoring bureaus in Brazzaville and Ewo, Mikalou police station rehabilitation, barracks for the Police Special Action Group (GASP).
- Training (National Police Academy and external):
  - 170 police officers and 152 superintendents trained at the National Police Academy in Brazzaville in 2008;
  - 32 police officers and 28 superintendents took a training course in Cameroon;
  - 20 officers trained in controlling migratory flows and the borders.
- Ministry of Defense and National Police initiatives:
  - Seminars/round-tables to combat drug trafficking and drug abuse within the Armed Forces and to foster respect for human rights (women and girls);
  - Voluntary HIV/AIDS screening campaign in 2008 and National Police active in awareness-raising.

### Decentralization, and departmental and local development
- Legal and institutional framework:
  - Implementation of decentralization via institutional and legal apparatus; setting up departmental and municipal councils;
  - Law No. 5-2005 of May 11, 2005 on the territorial civil service promulgated in 2005; joint committee developing implementing regulations.
  - Early 2009: joint committee set up to draft legal texts for transferring responsibilities to local communities; of 12 draft decrees planned, nine have been prepared.
  - Committee since 2006 drafting texts on local communities’ budgetary and tax mechanisms; of 25 draft texts planned, nine have been prepared.
- Urban and village-level infrastructure:
  - Accelerated municipalization program: construction/rehabilitation in Kouilou, Pointe-Noire, Niari, Likouala, and Cuvette; program under way in Brazzaville; projects include urban roads, sanitation, hotels and staff residences, water supply and electrification grids, construction of schools and CSIs.
  - May 2009: contract on the State-Departments Plan signed to make budget allocations available to departmental councils for projects consistent with the National Territorial Development Plan (SNAT).
- Governance training and local planning:
  - Governance and decentralization training program developed; first training sessions in early 2009 on governance and decentralization, territorial administration, and local communities; further sessions planned (governance and administration of justice, project management, local community resources).
  - Awareness-raising campaigns for citizen participation mechanisms.
  - 2008 trial local development plans in Plateaux and Pool with UNDP and World Bank support; plan to extend exercise to other departments and workshop planned for May 2009.
  - Plans to transfer positions in teaching and health care sectors to departmental level to address recruitment and retention.

### Administrative and judicial governance
- Civil service overhaul and IT:
  - Reforms to revise provisions governing civil servants and contractual employees, State reform, and tracking of civil-service work histories (Law No. 14-2007 of July 25, 2007).
  - Draft decree establishing terms for admission of special, contractual, and other employees to the civil service submitted to the General Secretariat (SGG) in 2008.
  - IT HR Payroll software project 80 percent implemented (includes work histories tracking).
  - Rehabilitation of a building in Brazzaville to relieve ministry congestion; departmental civil service offices being built in Pool and Cuvette scheduled for completion in 2009.
- Justice legislation and infrastructure:
  - Organic Law No. 22-2008 of July 26, 2008 on the Higher Council of the Court System promulgated.
  - Laws enacted in 2008 creating new courts:
    - Law No. 12-2008 establishing the Ouesso court of appeal;
    - Law No. 13-2008 establishing the Kindamba court of first instance;
    - Law No. 14-2008 establishing the Oyo court of first instance;
    - Law No. 15-2008 establishing the Mossaka court of first instance.
  - Draft legislation under way: Congolese Citizenship Code, draft law on indigenous peoples, draft law on modernization of justice.
  - Seminars held: “Support for the Rule of Law” (2008); “Justice, Quality, and Performance”; “Introduction to OHADA accounting” (2009).
  - Construction/rehabilitation highlights:
    - Completed: Impfondo court of first instance; renovation of Dolisie court of appeal.
    - Continued construction: Impfondo, Kinkala, Ouesso, Madingou, Sibiti, and Pointe-Noire prisons; Mossaka and Kinkala courts of first instance; Ounsé-Talangaï, Ignié, and Ngabé courts.
    - Continued renovation: Pointe-Noire courthouse and Dolisie court of first instance.
- National statistical system constraints:
  - Weak capacity for gathering, processing, analyzing, and disseminating data (financial, physical, and human resource constraints).
  - CNSEE’s statistical output does not yet meet all user needs.
- Actions to strengthen statistics:
  - New statistics law drafted, validated, endorsed by the Supreme Court, approved by the Cabinet Council and the Council of Ministers on May 7, 2009; to be taken up by the National Assembly at its next regular session.
  - National Strategy for Statistics Development (SNDS) covering 2010 to 2014 being prepared; draft blueprint submitted to government; short-term plan for a steering committee to guide SNDS formulation.
  - Capacity-building (RESPEC): seasoned statisticians recruited to support CNSEE; CNSEE officials trained in survey techniques, information systems, data archiving, data analysis and use; agreements with statistics schools for professional development and training of new statisticians.
  - CNSEE purchased IT equipment (computers, printers, photocopier, statistical software).
- Recent and planned CNSEE surveys and activities:
  - basic survey on the use of integrated health centers, conducted in 2008;
  - survey of HIV seroprevalence and AIDS indicators (data collection phase currently under way);
  - general population and housing census (results to be published in the third quarter of 2009);
  - survey on integration into the workforce of graduates of technical and vocational training (data collection planned for June 2009);
  - survey on employment and the informal sector in urban areas (data-collection phase planned for June 2009);
  - survey of the agricultural sector (fieldwork phases to begin in June 2009);
  - CWIQ 2 survey, including household consumption (data-collection phase planned for the fourth quarter of 2009);
  - preparation for the second Population and Health Survey (EDS), to be conducted in 2010.

### Economic and financial governance
- Reform frameworks adopted: Government Financial Management Improvement Plan (PAGGFP) and Action Plan for Improving Public Investment Management (PAAGIP).
- Key reform focuses:
  - Budget nomenclature updated with addition of a functional module to align with international standards and analyze public policy and poverty combat policies.
  - Government procurement code: draft law submitted for review; interim measures implemented:
    - requirement that contracts exceeding CFAF 200 million be put to tender;
    - restrictions on advance payments;
    - strengthened physical and financial oversight of public investments;
    - capacity-building for the Investment Project Research Center and Research and Planning Directorates.
  - Medium-term expenditure framework (MTEF) preparation:
    - Preparing central and sectoral MTEFs; training MTEF team in World Bank’s RMSM-X model; strengthening Research and Planning Directorates; creating “focal point” groups in priority ministries (health, education, transport).
    - Enhanced technical assistance requested: one international expert assisted by five junior experts to establish a macroeconomic frame of reference and develop MTEFs.
  - Budget execution reforms: focus on the expenditure chain, budget monitoring and evaluation, and payroll and pension administration.
    - Expenditure chain: engage internationally recognized consulting firm to simplify the expenditure system, redefine expenditure file nomenclature, reduce processing time, and establish transparent monitoring by ministry.
    - Monitoring and evaluation: AFRITAC mission in February 2009 provided recommendations; African Development Bank planning assistance under PACDIP.
    - Payroll and pension administration: reform toward a single database maintained by civil service ministry and budget ministry; revision of Oracle-handled payroll and pension program (90 percent of the work of this payroll program has been completed); migration to a more powerful system planned (migration project).
  - Tax and customs reform:
    - Unique Identification Number (UIN) operational since 2005 nationwide to register taxpayers and create a single reference file.
    - ASYCUDA customs system extended to Pointe-Noire, Ouesso, Impfondo, and Dolisie, improving control and increasing customs receipts though revenue growth pace remains modest.
    - 2009 budget law measures with AFRITAC support include:
      - establishing a single window at Pointe-Noire border checkpoints;
      - optimizing and simplifying customs clearance procedures;
      - extending ASYCUDA;
      - managing electronic customs manifests rigorously;
      - introducing laser systems for checking containers;
      - implementing the STAR risk analysis system;
      - using ASYCUDA for goods in transit;
      - reviewing customs privileges in procurement contracts, agreements, conventions, and other texts;
      - implementing Decision 2-98 of CAEMC concerning concession agreements in the petroleum industry, including subcontractors;
      - eliminating special exemptions and computerizing exemption procedures.
  - Capacity-building for financial and planning agencies:
    - Program to train nearly 400 personnel in MTEF preparation, budget and accounting management, and control systems;
    - Support to train DEPs and budget units in ministries; draft decree being circulated to clarify DEPs’ organizational structure and responsibilities.
  - Computerization of financial administration offices:
    - Master plan adopted; planned networking over next few years to improve control over tax base and expenditure, increase and secure government revenue.
- Budgetary resource allocation projections (OAP for the PRSP public investments) for 2009 and forecast for 2010-2011:
  - Transparency and combating corruption and fraud: increases in own resources of 0.09 percent in 2008, 0.16 percent in 2009, 0.21 percent in 2010, and 0.36 percent in 2011.
  - Growth sectors:
    - transport sector appropriations stable at approximately 29 percent;
    - electrical power relative share increases from 4.52 percent to 5.46 percent and then to 7.01 percent;
    - agriculture, livestock, and fisheries allocation against own resources: 3.24 percent in 2008, 3.78 percent in 2009, 3.81 percent in 2010, and 3.96 percent in 2011.
  - Social sectors:
    - health care sector grows from 4.75 percent in 2008 to

*Source: _cr1069 - 2. STATUS OF PRS IMPLEMENTATION*

### 5.36 percent in 2009, 6.06 percent in 2010, and  then to 6.27 percent in 2011, with the

### _cr1069 - 5.36 percent in 2009, 6.06 percent in 2010, and  then to 6.27 percent in 2011, with the

### Public Investment Program (PIP) allocations and sector shares (2008–2011)
- Transport infrastructures: effort stabilized under the PIP for 2009-2011, largely maintaining trends for 2009.
- Education sector share:
  - 5.68 percent in 2008
  - 6.54 percent in 2009
  - 6.;80 percent in 2010
  - 7.29 percent in 2011
- Agricultural sector: comment made in respect of the agricultural sector applies similarly to other social sectors (no separate numeric series provided beyond referenced trend).
- Water and sanitation total appropriation shares:
  - 7.29 percent in 2008
  - 7.29 percent in 2009
  - 7.65 percent in 2010
  - 7.74 percent in 2011
- Summary finding: The PIP for 2009-2011 largely maintains 2009 trends by stabilizing transport infrastructure effort and increasing shares for major social sectors.

### Transparency, corruption, and anti-fraud institutional measures
- Bodies established:
  - National Commission to Combat Corruption, Fraud, and Misappropriation
  - Anticorruption Observatory
  - National Bureau of Financial Investigation (established in 2008)
- Audit and oversight:
  - Audit Board carries out financial-area activities with donor-supported capacity-building.
  - Audits by international consulting firms conducted for the National Petroleum Company of Congo (SNPC) and the Congolese Refining Company (CORAF).
  - Oil production and revenue data published regularly on the Ministry of Economy, Finance, and Budget (MEFB) website.
- Legislative and governance process:
  - Anticorruption Law to be adopted by Parliament at its session in July 2009.
  - Analytical study of governance completed; action plan being finalized.
- Outstanding issues and action plan items (planned by June 2009):
  - Submitting and publishing the audit report, with the opinion of the Observatory.
  - Finalizing the action plan and submitting it to the Observatory and the Government Anticorruption Commission for review.
  - Submitting a report on implementation of the oil marketing plan to the World Bank and IMF.
- Operational reforms in oil sector:
  - Marketing plan still under discussion with the World Bank and the IMF.
  - Project submitted to World Bank mission to convert SNPC from an applied accounting system to a modern cost accounting system.

### Environment: policy, protected areas, and regional engagement
- Cross-cutting recognition: Environment affects oil industry, forestry, agriculture, water supply and sanitation, urban development, and transport.
- Regional program development:
  - Feasibility study team set up in 2007 for a sectoral program encompassing forestry and environment under the Central African Forests Commission Convergence Plan.
  - Financing interest expressed by African Development Bank, World Bank, French Development Agency, and European Union.
- Legal and institutional developments:
  - Law No. 37-2008 establishing wildlife protection and land reserve system promulgated on November 28, 2008 (replacing 1983 law).
  - Proposed National Agency for Wildlife Protection and Land Reserves established pursuant to Article 118 of the new law; project supported by the European Development Fund (EDF).
- Protected area statistics:
  - Surface area protected as a land reserve increased from 1,699,336 hectares in 1998 to 3,655,402 hectares (covers 11.6 percent of the national territory).
  - 2 million hectares of productive forest used for the timber industry.
- Network of protected areas includes:
  - Three national parks: Odzala-Kokoua, Nouabalé-Ndoki, Conkouati-Douli
  - Four wildlife reserves: Léfini, Mont Fouari, Nyanga Nord, Tsoulou
  - One community reserve: Lake Télé
  - One biosphere reserve: Dimonika
  - Four sanctuaries: Lésio-Louna, Lossi, Tchimpounga, Koubou
  - Two hunting areas: Mont Mavoumbou, Nyanga Sud
- Biodiversity financing and ecotourism:
  - Concessions being granted for parts of national parks to attract private investment in ecotourism.
  - Project started in late June 2008 to develop Patte d’Oie Forest Reserve in Brazzaville as a zoo and botanical garden in partnership with FAi2D.
- International forum and declarations:
  - Sixth Global Forum on Sustainable Development held October 27 to 30, 2008; produced Brazzaville Declaration with recommendations including support to Congo Basin Forests Partnership (CBFP), contributions to a carbon fund for renewable forest and agriculture management, and establishment of an African Executive Secretariat for Sustainable Development and an African Sustainable Development Fund.
- Short-term and capacity actions:
  - Public information campaigns and inclusion of environmental issues in school curricula planned.
  - Seminar for departmental delegation officials held to encourage dissemination of information in the field.
  - 2008 preparatory studies for establishing an analytical laboratory and a scientific watchdog unit.

### Gender policies and programs
- Policy and legislation timeline:
  - National policy on gender adopted in January 2008.
  - Related action plan adopted in January 2009.
  - Draft legislation for equal access of women to political, elective, and administrative positions before Parliament awaiting adoption.
  - Protocol on the Rights of Women to the African Charter on Human and Peoples’ Rights ratified.
  - Law No. 01-2008 of January 22, 2008, formalizes accession to the Optional Protocol to CEDAW (adopted in 2008).
- Parliamentary and political empowerment measures:
  - Information guide prepared for women candidates in 2008 elections.
  - Material and financial support provided for women candidates in 2008 elections.
  - Training for parliamentarians on gender issues and bureau responsible for women’s issues.
  - Women Ministers and Parliamentarians Network strengthened to provide training and guidance.
- Awareness, health, and anti-discrimination initiatives:
  - Leadership training for women and production of a documentary on cultural, legal, and economic status of women.
  - Activities to combat HIV/AIDS and sexually transmitted infections.
  - Surveillance apparatus at ministry level established to identify, record, and work to eliminate violence against women and children.
  - Study conducted to review school textbooks for sexual stereotyping to eliminate inequalities between girls and boys in education.
- Support for women’s economic autonomy:
  - Revitalization of Women’s Research, Information, and Documentation Center (CRIDF, “Women’s House”).
  - Support for 27 women’s savings and loan associations.
  - Opening of 10 training centers for girls in welding, ironworking, dressmaking, information technology and the Internet.
  - Training for girls in craft trades (baked goods, fruit juice preparation, soapmaking, knitting).

### Macroeconomic performance and stability (2007–2008)
- GDP and growth:
  - 2008 growth rate: 6.4 percent.
  - 2007 growth rate: economy shrank 1.6 percent.
  - Non-oil GDP growth:
    - 6.6 percent in 2007
    - 5.4 percent in 2008
  - Sectoral non-oil growth contributions in 2008:
    - Agricultural production: 6.2 percent
    - Forestry: 3.2 percent
    - Manufacturing: 7.0 percent
    - Transport and communications: 6.8 percent
    - Construction and public works: 7.6 percent
- Fiscal aggregates:
  - Government revenue:
    - 50 percent of GDP in 2007
    - 35 percent of GDP (estimate) in 2008
  - Government expenditure:
    - 35.5 percent of GDP in 2007
    - Expenditure commitments for 2008: just over 24.5 percent of GDP
  - Capital investment using government own resources:
    - about 10 percent of GDP in 2008
    - 8.7 percent of GDP in 2007
- Fiscal balances:
  - Primary balance (excluding grants) remained positive since 2004.
  - Primary balance in 2008: 10.5 percent of GDP.
  - Overall balance on a commitment basis (excluding grants) in 2008: 10.5 percent of GDP.
- External trade and inflation:
  - Exports volume change:
    - Decline of 18.7 percent in 2007
    - Increase of 12.7 percent in volume in 2008
  - Imports change: 8.5 percent in 2008 (compared with 6.9 percent in 2007)
  - Inflation rate estimated at 4.5 percent in 2008.
- Public debt stock and sustainability (as of December 31, 2007 and expected 2008 level):
  - Total public debt as of December 31, 2007: CFAF 3,542.9 billion
    - External debt: CFAF 3,238.9 billion (91.4 percent)
    - Domestic debt: CFAF 304.0 billion (8.6 percent)
  - Expected total debt in 2008 after rescheduling agreements: less than CFAF 2,614.6 billion (24.3 percent below the 2007 level)
  - Debt sustainability ratios:
    - Public debt to GDP improved from 160.5 percent in 2004 to 44.9 percent in 2008
    - Public debt to budget revenue improved from 534 percent in 2004 to 89.9 percent in 2008
    - Public debt to exports of goods and services improved from 205.5 percent in 2004 to 49.8 percent in 2008

### Growth sectors — Oil
- Production and exports (2007–2008):
  - Oil production:
    - 11.2 million metric tons in 2007
    - 12 million metric tons in 2008
  - Oil exports:
    - 10.5 million metric tons in 2007
    - 11.4 million metric tons in 2008
  - Exports of refined petroleum products:
    - 436,500 metric tons in 2007
    - 306,000 metric tons in 2008
- Oil revenues and macro role:
  - Oil revenues amounted to 85 percent of GDP in 2008.
  - Oil sector intended to spur revival of national economy and raise living standards by providing basic social services.
- Oversight, audits, and transparency initiatives:
  - KPMG audit of how SNPC markets the State’s share of crude oil used to develop an action plan with SNPC, World Bank, and IMF to improve operations and increase government revenues.
  - Decree No. 2008-15 establishing procedures for issuing oil and gas exploitation licenses issued on December 11, 2008.
  - Petroleum operators contractually required to provide daily, weekly, and monthly petroleum reports for continuous production monitoring.
  - Independent inspection firm Bureau Veritas monitors all shipments from the country’s oil terminals and provides detailed shipment reports to administrative authorities.
  - Capacity-building budgets under production-sharing agreements with PRCTG support training; work beginning on setting up a petroleum database with PRCTG support.
  - Republic of Congo joined EITI in June 2004; EITI Executive Committee action plan accepted and validated in February 2008 by the EITI International Board in Accra, granting status of “country implementing the EITI.”
  - Independent conciliator named in December 2008 to reconcile payments by private operators during 2004–2006 with revenues recorded by the Public Treasury.
  - Objective: complete first EITI report by June 2009 and validate “country implementing the EITI” status by March 2010.
- Subcontracting and local expertise:
  - Decree on management of subcontracting in the petroleum industry published in the Official Gazette.
  - Ministry of Economy, Finance, and Budget conducted an audit on taxation of petroleum industry subcontracting.

*Source: _cr1069 - 5.36 percent in 2009, 6.06 percent in 2010, and  then to 6.27 percent in 2011, with the*

### conclusions  and  recommendations  that  the  Directorate-General  of  Taxes  can  use  as  a

### conclusions and recommendations that the Directorate-General of Taxes can use as a

### Petroleum sector — availability, refining, pollution control
- Objective: ensure adequate supplies of petroleum products nationwide and rehabilitate distribution points; strategy established as part of privatizing the petroleum products distribution sector aimed at:
  - providing full nationwide coverage
  - ensuring continuous supplies
  - regulating prices
  - maintaining equilibrium in the domestic oil market
- Increasing refining capacity:
  - KPMG carried out an analytical and operational study of the Congolese Refining Company (CORAF).
  - Conclusions and recommendations from the KPMG study, combined with information from financial audits of CORAF senior management operations, were used to draw up an action plan to strengthen internal management and technical and operational management.
  - Implementing that action plan is expected to increase refining capacity and enable use of better-quality crude such as Nkossa to improve the overall quantity and quality of the plant’s output of petroleum products.
- Pollution control and waste management:
  - Oil companies operating in the Republic of Congo are required to comply with the legislation in force and to provide reports on health, safety, and environmental aspects; these reports are examined by the Pollution Control Unit of the Ministry of Oil and Gas and other appropriate government authorities.
  - Drills are conducted for containing major releases of pollutants in preparation for possible emergencies.
  - Local communities are involved in sanitation and waste management policy.
  - Government agencies require capacity-building so they can better monitor and deal with pollution control and waste management.

### Forestry — resource management, conservation, and processing
- Resource scope and economic role:
  - Congo basin rainforest covers over 2 million square kilometers; 240,000 square kilometers lie within Congo’s borders (65 percent of the country’s land area).
  - After oil, forestry is the country’s second most important growth sector but accounts for 4-5 percent of GDP.
- Regional coordination and conservation:
  - Actions incorporate a regional perspective via the Central African Forests Commission (COMIFAC), covering 10 countries.
  - Numerous protected areas established with support from NGOs and donors.
  - Economic benefits to local communities pursued through alternative activities to poaching and promotion of ecotourism; however, ecotourism alone cannot offset the cost of managing protected areas.
- Actions and programs:
  - Forestry and Environment Sectoral Program is being developed; data collection phase complete.
  - Two programs under way with support from the FAP and the French Development Agency (AFD) to evaluate forest resources and improve forest concession management.
  - Certification of Forest Management Units (UFAs): Kabo UFA certified in 2006; Pokola and Gombe UFAs certified in 2008 and 2009 respectively, bringing total certified area to 2,011,000 hectares.
  - Negotiations with the European Union for a partnership agreement to ensure sustainable management and transparency in the lumber trade; agreement expected to be signed in May 2009.
  - Capacity-building: ministry staffing level increased by 150 in 2008; two courses held (cartography, botany, inventory; and forest economics) with support from PURAC.
- Processing and production statistics:
  - Proportion of products processed locally improved from 35 percent in 1998 to 60 percent in 2008, due to restructuring and the “85/15” output processing policy.
  - Production of tropical woods (raw logs) estimated at 1,212,118 m3 in 2008 as compared to 1,331,951 m3 in 2007.
  - Overall exports by volume increased from 1,009,034 m3 in 2007 to 1,067,985 m3 in 2008, an increase of 58,951 m3 in absolute value and a change of 5.85 percent.
- Crisis response:
  - Forestry companies in the northern part of the country requested tax relief and other measures in response to the crisis since end-2008; the government granted special exemptions to support the sector.

### Agriculture, livestock, and fisheries — development, programs, and regulations
- Agriculture and livestock potential and trends:
  - Congo area: 342,000 square kilometers offering roughly 10 million hectares of arable land.
  - Population: 3.5 million people.
  - Historical sector decline: agriculture’s share of GDP fell from nearly 20 percent in 1965 to 6.2 percent in 2005.
  - Oil’s share of GDP rose from 50 percent of GDP in 2003 to 62 percent in 2007.
  - Rural poverty: according to the 2005 ECOM survey, 65.2 percent of rural households live below the poverty line, compared with 40 percent of urban households.
- National Food Security Program (PNSA) objectives:
  - increase output and productivity quickly
  - improve and diversify food production
  - ensure local communities have access to food of sufficient quality and in sufficient quantities
- Government actions and inputs:
  - Ministry of Agriculture and Livestock reorganized the Agricultural Support Fund in 2008.
  - Development activities in technical centers for improved seeds at Etsouali, Mayoumina, and Néméyong; cattle at Boundji and Dihesse technical support centers.
  - Extension activities in Kombé, Brazzaville (Agricongo), Dolisie, Pointe-Noire, and Ouesso.
  - Research at Loudima Agronomic Research Center and under the National Extension, Research, and Adaptation Program.
  - Farm machinery acquired: 36 Landini tractors with full complements of accessories using government funds, plus eight fully equipped tractors donated by the Libyan government.
  - Heifers acquired and distributed; métayage system promoted.
  - A mechanized services center set up to assist farmers.
  - Seminars and training workshops held for capacity-building.
  - Storehouses for farm products built by the National Seed Improvement Center.
- Development partner programs:
  - Agricultural Development and Rural Road Rehabilitation Project (PDARP), programmed for 2007 to 2012, valued at US$40 million: up to US$20 million funded by the World Bank, remaining US$20 million as government counterpart funding. Objective: strengthen capacities of rural producers, improve productivity and income via improved agricultural techniques, market infrastructure, and farm policies/programs to reduce poverty.
  - A € 4 million food security project sponsored by the European Commission expected to commence at the beginning of 2009 to promote mixed farming, livestock-raising, fish-farming, and tree cultivation in the South Pool region.
  - IFAD funding for two rural development projects coming to an end (PRODER North and PRODER South); PRODER 3 in pre-evaluation stage.
  - FAO as a major technical assistance partner.
- Fisheries and aquaculture objectives and regulatory framework:
  - Objective: expand aquaculture and increase fisheries harvests sustainably to contribute to food security and growth.
  - Decrees issued to organize the fisheries sector:
    - Decree No. 2008-312 of August 5, 2008, establishing the organizational structure of the Ministry of Maritime and Inland Fisheries.
    - Decree No. 2008-313 of August 5, 2008, establishing the organizational structure and duties of the Directorate-General of Maritime Fisheries.
    - Decree No. 2008-314 of August 5, 2008, establishing the organizational structure and duties of the Directorate-General of Inland Fisheries.
    - Decree No. 2008-315 of August 5, 2008, establishing the organizational structure and duties of the Directorate-General of Aquaculture.
    - Decree No. 2008-316 of August 5, 2008, establishing the organizational structure and duties of the Office of the Inspector-General of Maritime Fisheries, Inland Fisheries, and Aquaculture.
    - Establishment of departmental directorates of fisheries and aquaculture in every department.
    - Decision No. 0003/MPCA/CAB/DGPAM of February 14, 2008, barring transshipment of fish, other fisheries products, and derivatives at sea.
    - Order No. 2009-33 of February 6, 2009, laying down provisions relating to meshing of nets and equipment used in maritime fisheries.
  - Draft legislation to organize inland fisheries and aquaculture passed by the National Assembly and now before the Senate.
- Fisheries capacity-building and infrastructure:
  - 2008: preparation of a sustainable development strategy for fisheries and aquaculture began.
  - Two capacity-building projects completed in fishing communities; materials and equipment distributed to roughly 100 cooperatives with training (Plateaux, la Cuvette, Pool, and Brazzaville); activity continuing in other departments.
  - Studies completed on:
    - construction of the modern market in Yoro, Brazzaville;
    - construction of the fisheries products landing stage at Mpouya in the Plateaux department;
    - production and marketing of Niari shrimp.
  - To curtail piracy of fisheries resources:
    - two launches acquired for surveillance of fisheries activities in the Congolese Exclusive Economic Zone (ZEE);
    - illuminated marker buoys installed for controlling fisheries operations.

### Mining — planning, legal framework, and capacity-building
- Strategic planning and geological studies:
  - Government committed to developing the mining sector to complement other growth sectors; preparing a master plan for the mining sector and plans for special funding to conduct geological studies throughout the country.
- Kimberley Process and institutional setup:
  - Congo joined the Kimberley Process; legal texts issued include:
    - Decree No. 2008-336 of September 22, 2008, establishing the permanent secretariat of the Kimberley Process and designating its members.
    - Decree No. 2008-337 of September 22, 2008, establishing procedures for implementing the Kimberley Process certification system.
    - A directive supplementing certain provisions contained in Decree 2007-247 of May 21, 2007, for implementing the Kimberley Process certification system.
  - Decree No. 2008-338 of September 22, 2008, issued establishing the organizational structure and duties of the Bureau for Assay, Evaluation, and Certification of Precious Minerals (BEEC).
- Draft decrees and laws under review:
  - Draft decrees include:
    - a decree establishing the statutes of the National Geological and Mining Research Center (CNRGM);
    - a decree establishing standards for protecting against dangers of ionizing radiation;
    - a decree setting out ethical, financial, and technical conditions for opening a kiosk or office that buys precious minerals.
  - Seven draft laws under review before the Supreme Court: law setting rates and collection rules for mining royalties; law setting rates and collection rules for equipment fees and periodic requalification of pressurized equipment; law on sources of radioactivity; law on industrial security; law creating the mining fund; law creating the CNRGM.
- Institutional capacity and licensing:
  - Work under way on setting up the BEEC and the CNRGM.
  - In preparation for a geological database, 17 staff received information technology and Internet training.
  - 2008 mining licenses issued to private operators:
    - 57 prospecting license, issued to 28 companies;
    - 24 exploration licenses, issued to 14 companies;
    - Three development licenses, issued two companies: to Magminéral for potassium in Kouilou, and to SOREMI for iron in Boko Songho and Yanga-Koubanza.
  - Three exploration agreements signed in 2008:
    - with Motaba Mining for rough diamonds in Likouala;
    - with Zengwei Congo for potassium salts in Kouilou;
    - with DMC for base metals (copper, zinc, and lead) at Mayoko in Niari.
  - Missions to identify peat deposits conducted in Kouilou in 2008.
  - Mission to identify and determine extent of small-scale diamond workings conducted in Niari to set up miners’ cooperative associations; technical material distributed to miners; similar work planned for 2009 in Cuvette, Sangha, and Likouala.

### Promotion of the private sector — industry, commerce, and finance
- Objectives for private sector development:
  - Promote and develop industrial fabric, domestic and external trade, small and medium-sized enterprises (SMEs), and financial institutions focused on savings deposits and lending so private sector can finance economic activity.
- Institutional and programmatic measures:
  - Second National Exhibition of Industrial and Craft Products held in Brazzaville.
  - A Charter for Small and Medium-Sized Enterprises drafted; draft legal texts establishing the organizational structure and duties of the Small and Medium-Sized Enterprises Observatory to be submitted to government shortly.
  - Studies conducted on setting up a subcontracting clearinghouse and on business partnerships.
  - Incubators of new enterprises set up; feasibility studies done on funding for seed capital, development capital, and guarantees; necessary decrees readied for signature.
- Industry actions:
  - Implementing master plan for industrial development.
  - Developing a comprehensive program for the lumber industry.
  - Feasibility studies for a Standards and Quality Management Center.
  - Carrying out a corn processing project.
  - Designing a comprehensive program to develop the agri-food industry.
  - Feasibility study for development of a construction materials industry.
  - Identifying sites for industrial development.
- Commerce and market regulation:
  - Updated Decree No. 86-1015 of November 3, 1986, establishing distribution regulations.
  - Memorandum No. 0147/MCCA-CAB of July 14, 2008, setting up a national commission to review price regimes.
  - Additional legal provisions published:
    - Decree No. 2000/483 of November 21, 2008, regulating display vending;
    - Decree No. 2008/445 of November 15, 2008, introducing the nomenclature for commercial activities;
    - Decree No. 2008/446 of November 15, 2008, establishing modalities for obtaining a professional merchant’s license;
    - Decree No. 2008/447 of November 15, 2008, establishing conditions for modifying, extending, and transferring commercial activities and setting the amount of regulatory fees.
  - To address the food crisis and sharp price increases for certain basic commodities, substantial easing of taxes has been advocated to improve the cost of the household food basket.
  - Draft competition law and draft consumer protection law finalized; work under way on preparing a draft decree establishing commercial oversight regulations.
- Market infrastructure and capacity-building:
  - Opening of the modern market in Oyo on November 3, 2008; ongoing market construction in Dolisie and Owando.
  - Training sessions and awareness-raising seminars for retail and neighborhood merchants.
  - Multifaceted support provided to improve project formulation and strengthen vendors’ associations.
  - A fund established to finance project feasibility studies.
  - Capacity-building for commerce professionals via training sessions and seminars covering formulation, negotiation, and implementation of business policies.
- Banking sector developments:
  - Banking sector restructured as part of liberalization policy.
  - Establishment of a national housing bank (Banque de l’Habitat) and creation of new banking and insurance organizations (Ecobank, Africa Bank, etc.).
  - The ratio of bank deposits to non-oil GDP has grown from 29.6 percent in 2006 to

*Source: _cr1069 - conclusions  and  recommendations  that  the  Directorate-General  of  Taxes  can  use  as  a; canonical IMF PDF content provided.*

### 31.8  percent  in  2007  and  to  37.4  percent  in  2008.  Lending  as  a  proportion  of  GDP  has

### _cr1069 - 31.8  percent  in  2007  and  to  37.4  percent  in  2008.  Lending  as  a  proportion  of  GDP  has

### Financial sector and lending
- Banking and lending indicators:
  - 31.8 percent in 2007 and to 37.4 percent in 2008.
  - Lending as a proportion of GDP has risen fivefold, from 12.0 percent in 2006 to 18.2 percent in 2007 and to 66.1 percent in 2008.
- Institutional strengthening:
  - Establishment of the National Bureau of Financial Investigation to combat corruption, fraud, and misappropriation.
- Microfinance:
  - Microlending institutions are blossoming.

### Craft industries
- Role and strategy:
  - Craft industries employ a large share of the population, particularly in the informal sector, and have an important role to play in fighting poverty in Congo.
  - Government developing a master plan for craft industries; National Plan for the Development of Small and Medium-Sized Enterprises and Craft Industries submitted to the government.
  - National Assembly adopted the Law on Craft Industries in March 2009.
- Census and capacity-building:
  - A census in 2008 identified 1,341 small and medium-sized enterprises and 3,841 craft workers and craft enterprises.
  - Capacity-building: training on protection of craft products and training for Public Administration personnel at national and departmental levels.
  - Support missions by French craft workers under the Craft Worker and Microenterprise Cooperation and Support Program (COSAME).
- Promotion:
  - Plans call for a craft industry village to be set up in 2009.

### Tourism
- Sector status and regulation:
  - Tourism is in its infancy but has potential in wild plant and animal life, craft industries, culture, and history.
  - Decree No. 04/078 of January 19, 2004, governs establishments providing lodging and food.
  - Directive No. 2710/MCAT-CAB of March 26, 2007, establishes hotel rating standards; classification process underway.
  - A tourist guidebook was published in 2008.
- Infrastructure and studies:
  - Renovation of Le Kouyou Hotel in Owando completed in 2008.
  - Construction of a large hotel in Dolisie completed at the beginning of 2009.
  - Construction of a large hotel in Oyo under way and expected to be completed toward the end of 2011.
  - Renovation of the luxury Mbamou Palace hotel (over 200 rooms) in Brazzaville under way, expected to be completed in 2010.
  - Study on developing the Mah village tourist site done in 2008; study on developing the Cataractes tourist site under way and to be completed in 2009.
- Capacity-building:
  - For the second year in a row, five students were sent to the Ngaoundéré school of hotel management in Cameroon.

### Transportation — overview and road works
- National Transportation Plan (PNT) in place; policy focuses on new infrastructure, mobilizing financial resources, opening interior access, and developing all transport modes.
- Overland transport measures:
  - Road counting and signaling equipment acquired; two bus terminals under construction at Dolisie and Owando.
  - Inspection and surveillance missions for Obouya-Boundji-Okoyo, Pointe-Noire-Dolisie and Owando-Makoua-Yengo stretches.
  - Study under way for Brazzaville-Pointe-Noire oil pipeline.
- Major road upgrading and paving (approximately 250 km) performed on:
  - Bouansa Mouyondzi-Moukoukoulou dam, Pointe-Noire-Dolisie, Obouya-Boundji-Okoyo, Obouya-Owando;
  - Rehabilitation of the Brazzaville-Kinkala section;
  - Modernization of Brazzaville urban road system (Brazzaville second exit north; Avenue de la Paix between Poto-Poto and Moungali roundabouts), Avenue de l’OUA and Avenue des trois martyrs in Brazzaville, access road to the Nkombo national television center;
  - Makoua, Owando, Oyo, Dolisie, Mosséndjo, and Nkayi urban highways, and Mbounda secondary school access roads.
- Road Fund:
  - Since 2005, the Road Fund has functioned as an annexed budget for road maintenance; resourcing in line with the second generation road fund profile is necessary.

### Transportation — rail, river, air, and maritime
- Rail (CFCO) emergency program:
  - Peak historical traffic: 1,650,000 metric tons and 4.5 million passengers (1976 and 1986, respectively).
  - In 2008, the CFAF 18 billion envelope provided (CFAF 17 billion executed) enabled large-scale operations for tracks and equipment.
  - Achievements: completion of contouring work in the flood zone, rehabilitation of the Pointe-Noire maintenance station; acquisition of five locomotives; overhaul of CC500 type locomotives; upgrading of 6/13 routing devices; procurement of communication system equipment.
  - Expert study conducted on rehabilitation of the long tunnel.
  - In 2009, sizable appropriations allowed orders to be placed (awaiting delivery) for:
    - Acquisition of two or three line locomotives, used passenger cars, and a VSAT satellite communication system;
    - Rehabilitation of 200 cars;
    - Continued track upgrading and rehabilitation of the long tunnel.
  - The CFCO minimum emergency program planned for 2007-2009 has experienced some slippage and could be extended as far out as 2012 if the amount of CFAF 30.4 billion programmed for 2009 is not disbursed in time.
- River transport:
  - Dredging of the Brazzaville port area; two additional dredging machines being acquired.
  - Rehabilitation work on a container terminal and warehouses begun.
  - Fleet upgrades: two cargo barges (the Ngobila, with 2 x 400 metric horsepower, and the Odouka with 2 x 140 metric horsepower).
  - Purchases: radio communication equipment, computers, river unit surveillance equipment, a patrol boat, and five motorized floating units.
  - Dredging and dike construction in Mossaka unfolding normally into 2009; similar project planned for Makotipoko.
- Air transport:
  - Regulatory texts on accreditation updated.
  - Airport infrastructure: extension of the second runway at Maya-Maya and construction of the new airport terminal; work at Ollombo, Impfondo and d’Owando; rehabilitation of Nkayi and Makoua runways.
  - Air traffic control equipment purchased for new terminals.
- Ocean and merchant marine transport:
  - Goal to make Pointe-Noire Autonomous Port (PAPN) a subregional maritime power.
  - PAPN priority investment program financed with donor funding from AFD, EIB, and BDEAC under agreement signed in March 2009.
  - PAPN management and expansion agreement with the Bollore Group signed in January 2009.
  - Marine transport virtual portal prototype presented by Bureau International Maritime (BIMV); membership campaign launched November 27, 2008.
  - Merchant marine code financing agreement signed on December 23, 2008 and being enforced.
- Capacity-building and seminars:
  - Subregional workshop on ocean search and rescue in Brazzaville; seminar on ISPS Code implementation and a training session on women’s role in the sector from March 9 to 11, 2009 in Pointe-Noire.

### Development partner participation in transportation
- Ninth EDF (European Commission) financed work on highway RN1 (the Djoué Bridge at Matoumbou and the Gambari Bridge at Loutete), dredging of the Brazzaville port and institutional support for the Road Fund.
- Tenth EDF supports enhancing navigability at Brazzaville port, rehabilitation with State cofinancing of highway RN1 along 60 km (Gambari-Mindouli), rehabilitation with State cofinancing of the Brazzaville port, rehabilitation of CFCO with State cofinancing, and institutional support for the Road Fund.
- World Bank involvement through the Agricultural Development and Rural Roads Rehabilitation Project (PDARP).
- African Development Bank planning a study for the Brazzaville-Kinshasa highway/rail bridge to prepare a bankable project.
- French cooperation agency supports the Joint Maintenance Service for Navigable Routes (SCEVN) via partnership with the Rouen Autonomous Port and a subregional river transport project.

### Electrical power
- Institutional steps:
  - Electricity Sector Regulatory Agency (ARSEL) set up on December 5, 2008.
  - National Rural Electrification Agency (ANER) set up on December 30, 2008.
- Access and targets:
  - At end-2008, 45 percent of urban dwellers and 5 percent of rural dwellers had access to electricity.
  - Works under way should raise rates to 60 percent and 15 percent, respectively, by 2011.
  - Demand in Brazzaville and Pointe-Noire could be met by 2010.
- Generation projects and capacities:
  - Doubling capacity of the Djéno power plant in Pointe-Noire to 50 MW (operations launched in 2008).
  - Continued work on the Imboulou dam to increase electricity production by 120MW.
  - Construction of the 300MW gas power plant at Pointe-Noire.
  - Brazzaville thermal station (32 MW) coming on stream but limited to 12 MW owing to low distribution grid capacity; operations may cease once Imboulou dam comes on stream due to high cost per unit produced.
- Transmission and distribution:
  - 2009 activities: commencement of construction of the energy highway (Pointe-Noire-Owando), rehabilitation of the Pointe-Noire – Brazzaville line with repair of the Loudima, Mindouli, Mont Kamba, and Tchiélampo stations, and construction of the Ngo-Brazzaville and Ngo-Owando lines to transport current from Imboulou.
  - Early 2009: two tender calls for rehabilitation and expansion of Brazzaville and Pointe-Noire grids.
  - Implementation begun on the CEEAC energy project financed in part by the European Union, which provides for 9,000 low-cost connections in Brazzaville and Pointe-Noire.
- Rural electrification:
  - Three projects set up in Ntokou, Ngoko, and Loukolela.
  - Plans call for electrifying 100 rural localities in 2009 and building 10 one to three MW micro-plants.
- Project risks:
  - Project performance in the interior often jeopardized by delays in receipt of shipments owing to poor rail system performance.

### Communications (telecommunications and NICTs)
- Policy and regulation:
  - Regulatory texts being prepared on postal services, the electronic communications sector, and establishment of a Postal and Electronic Communications Regulatory Agency.
  - National cyber-strategy policy paper awaiting government validation.
- Physical targets and infrastructure:
  - 15 post offices in Brazzaville, Pointe-Noire and the interior renovated, equipped, and staffed.
  - Brazzaville postal checking system computerized; electronic tracking system set up for international mail at Brazzaville main post office.
  - Two telephone exchanges purchased by SOTELCO for Brazzaville and Pointe-Noire.
  - Radio frequency surveillance and management equipment purchased by the regulatory authority.
  - Studies for repair of telephone systems in Mossendjo, Mbinda, Makabana, Mayoko, Owando, Boundji, Oyo and Mossaka; interconnection with undersea fiber optic cable study well advanced.
- Market structure and media:
  - Three private mobile telephone operators (Zain, MTN, and Warid) covering more than 90 percent of the country.
  - Main Internet service providers in Brazzaville, Pointe-Noire, and Dolisie: Zain, ALINK Télécom, AMC telecom, and DRTV net.
  - Approximately 200 Internet cafes.
  - National media coverage expanded with installation of satellite receivers and TV/FM broadcasting equipment in Dolisie, Ouesso, Owando, and Oyo.
  - Nkombo National Radio and Television Center in Brazzaville now operating; training provided to technical staff.
  - Construction of the Oyo radio and television services building ongoing.
  - Agreement signed with the French National Audiovisual Institute (INA) to train information and communications professionals and to transfer, restore, and preserve public audiovisual archives.

### Meteorology
- Objectives and partnerships:
  - Facilitate development of applied research in meteorology and hydrography to improve population quality of life and security.
  - Partnership with UN specialized agencies strengthened in 2008 through participation in World Meteorological Organization activities.
- Infrastructure and capacity-building:
  - Research and application center in process of being set up; feasibility study performed and terms of reference for construction finalized in 2008.
  - Capacity-building for National Civil Aviation Agency (ANAC) staff via specialized training over a two- to three-month period in 2008.

### Subregional integration
- Goals:
  - Contribute to regional integration and economic opening; promote development of infrastructure for transport and communications and open inaccessible areas.
  - Promote diversification of productive subsectors, private-sector development, improved business climate within CEMAC, and accelerated tax and customs reform.
- Institutional activities:
  - Ministry of Economic Integration involved Congo in building a common economic space, including review and adoption of CEMAC’s charter and by-laws, budget and work plan, institutional framework and organization chart of CEEAC Secretariat.
  - Congo’s participation in African and regional integration assured.

### Pillar 3 — Improving access to basic social services (education start)
- Objective:
  - Improving access to basic social services is the Government’s second priority in implementing the poverty reduction strategy; policy intended to allow equitable access to quality education for all and to improve living conditions.
- Education staffing:
  - Human capacity strengthened through the recruitment of 1,800 teachers.

*Source: _cr1069 - 31.8  percent  in  2007  and  to  37.4  percent  in  2008.  Lending  as  a  proportion  of  GDP  has*

### 2008. This effort, which began in 2006, accelerated in 2008 with the recruitment of new

### _cr1069 - 2008. This effort, which began in 2006, accelerated in 2008 with the recruitment of new

### Recruitment, staffing, and personnel actions
- Recruitment of new teachers and hiring of volunteers with adequate qualifications to teach (effort began in 2006 and accelerated in 2008).
- Sham positions were eliminated, with further action to be taken if needed.

### Equipment, infrastructure, and school facilities
- 654 classrooms have been renovated.
- 111 administrative blocks have been built.
- 25 administrative housing units have been built.
- 66 latrines have been built.
- 12,813 school desks have been purchased.
- 706 desks, 861 chairs, and 562 cupboards have been made available to school offices.

### Textbooks, instructional materials, and distributions
- Directorates-general of elementary education and secondary education purchased:
  - 12,400 primary school textbooks.
  - 24,836 secondary school textbooks (including 18,973 for collèges and 5,863 for lycées).
- National Institute for Teaching Research and Action (INRAP) received 246,077 books, including:
  - 194,466 primary readers.
  - 28,993 collège-level French books.
  - 11,378 books on the physical sciences.
- Students received 273,960 textbooks under the Support to Basic Education Project (PRAEBASE).
- Teachers were provided with 19,715 teaching guides for primary school and 268,828 for the first cycle of secondary school throughout the entire country.

### Improving sector management — SIGE implementation and capacity building
- Implementation of an educational management information system (SIGE) began with training sessions and a pilot survey in the department of Plateaux.
- Statisticians have been trained to oversee and manage the databases.
- Directors of studies and school planning have been trained to use ACCESS and SPSS software as part of SIGE implementation and school mapping.
- Plateaux department’s experience with implementing a school map will be replicated in the country’s remaining departments, using demographic data disaggregated by department.

### Improving service quality and teaching conditions
- Continuing education for teachers has been provided.
- Teachers have been supplied with teaching guides.
- Financial resources have been provided to departmental directors to support school operations, inspections, and departmental teaching guidelines.

### Outcomes and key education indicators (comparisons with 2005)
- Gross primary school admission rate:
  - 71.9 percent in 2005.
  - 104 percent in 2008.
- Gross primary schooling rate:
  - 111 percent in 2005.
  - 114 percent in 2008.
- Gross enrollment rate in the first cycle of secondary school:
  - 61 percent in 2005.
  - 65 percent in 2008.
- Completion of primary:
  - 73 percent in 2005.
  - 77 percent in 2008.
- Transition from primary to the first cycle of secondary school:
  - 68 percent in 2005.
  - 82 percent in 2008.
- Completion and retention rates during the first cycle and transition from the first to the second cycle of secondary school increased from 2005 to 2008 (exact values for these latter indicators beyond those listed above are reported as increased).

*Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2010/_cr1069.pdf*

### 20.8   percent,   60.4   percent,   and   21   percent   in   2005   to   43   percent,   76   percent,   and

### _cr1069 - 20.8   percent,   60.4   percent,   and   21   percent   in   2005   to   43   percent,   76   percent,   and

### Technical and vocational training
- 2008 focus: rehabilitation, construction, and equipment of infrastructure nationwide.
- Actions undertaken:
  - Construction of the OCH technical school in Pointe-Noire.
  - Construction and equipping of the ENI in Brazzaville.
  - Continued work on March 8 vocational school in Brazzaville (80 percent completed).
  - Construction of civil engineering workshop at February 5 technical school.
  - Construction of two CEFAs in Pointe-Noire and Brazzaville (to be completed in 2009).
  - Construction of the teaching clinic (90 percent completed).
  - Rehabilitation and equipping of the CMI in Boundji.
- Studies complete for Mossaka fisheries school and school for NICTs in Brazzaville; construction to begin in 2009 and 2011, respectively.
- Ministry premises renovated; documentation and information center equipping and conference room near completion.
- Planned works: complete LTA in Sibiti, LAAC in Brazzaville, rehabilitate technical college in Makoua, construct CEFA boarding facilities in Botala and Gamboma.
- Training programs being updated; free public access to books offered.

### Higher education
- Deconcentration-related actions:
  - Preparation of the Higher Education Deconcentration Plan in Congo (SDES), administratively in process; expected to lead to a programming law for the subsector in 2009.
  - Technical documentation and feasibility studies for Oyo agro-industrial upper school complete; construction expected to begin in 2010.
  - Preparation of construction plans to reconfigure Marien Ngouabi University (Marien Ngouabi 1 and Marien Ngouabi 2); works expected to start in 2009 including buildings for the Higher Institute of Management, the Faculty of Economics, a new amphitheatre, a university residence, and a large university library for Marien Ngouabi 1.
- Institutional and human capacity-building:
  - Construction of the social sciences and humanities documentation center.
  - Opening of a university cyber-space with U.S. Embassy and UNDP support.
  - Inauguration and commissioning of the Francophone Digital Campus in Brazzaville.
  - Commencement of COSELEARN e-learning project phase 2 (equipping ENS multimedia room).
  - Recruitment of 61 teachers and 13 other staff.
  - Some teacher and non-teaching staff training under UNESCO TTISSA; further efforts needed.
  - Renovations begun on university housing and cafeterias.
- Academic standards:
  - Introduction of LMD (Licence, Master’s, Doctorate) standards at start of 2007/2008 academic year at certain Marien Ngouabi University establishments.
  - Decree No. 2008-127 of June 23, 2008, governing private education signed; implementing provisions in process of adoption.
- Gender and staff statistics:
  - In 2007/2008: 5,447 male and 2,388 female scholarship recipients (i.e. 30.45 percent female, of which 18.69 percent in the sciences) at post-secondary establishments.
  - Scholarships abroad: 1,253 females versus 1,615 males, i.e. 43.69 percent females.
  - Instructional staff: 11.48 percent women.

### Health
- Sector objective: implement the National Health Development Plan (PNDS) to strengthen decentralized health system leadership, management, operations; rehabilitate, construct, equip facilities; improve access to minimum health care services package (PESS) and mother and child health.
- Ministry restructuring (late 2008/early 2009) pursuant to:
  - Decree No. 2008-25 of December 31, 2008.
  - Decree No. 2009-1 of January 12, 2009.
  - Decree No. 2009-2 of January 12, 2009.
- Human resources: creation of a Human Resources Directorate.
- Facility rehabilitation, construction, and equipping (selected items):
  - Continued rehabilitation of the University Hospital Center (CHU) begun under Priority Action Program 2007-2009 with total cost of CFAF 20 billion.
  - Completion of rehabilitation of the National Public Health Laboratory and National Public Health Center.
  - Brazzaville: completion/continuation of works at Mpissa Hospital, Tsiémé Hospital, Pierre Mobengo Army Hospital modernization, Blanche Gomez Hospital renovation.
  - Interior: rehabilitation of Impfondo, Dolisie, and Owando Hospitals; modernization/construction of Pointe-Noire facilities; continued construction of Oyo General Specialized Hospital (200 beds).
  - Construction and rehabilitation of CSIs at PMAS and PMAE; equipping with biomedical waste disposal and drinking water supply.
- Quality of care advances: revised flow charts for adults and children; standardized therapeutic protocols for basic hospitals; preparation of reproductive health norms and procedures.
- Maternal, newborn, and child health: continuing education for personnel; dissemination of reproductive health guidelines and procedures; provision of basic equipment, medicines, and basic and emergency obstetric care kits for CSIs in PMAE.
- Malaria measures:
  - Malaria treatment free of charge to children up to age 15 and to expectant mothers.
  - Training of 360 health care officers to oversee malaria cases and manage antimalaria medicines at CSIs.
  - Provision and distribution of antimalaria medicines enabled 81.9 percent of operational CSIs to provide basic malaria treatment free of charge.
  - Continued long-term distribution of more than one million treated mosquito nets to expectant mothers.
- Tuberculosis: new updated manual validated and implemented; at the Eighth Round of the Global Fund, proposal for category 2B admission will be approved; analytic capacity strengthened through training in Cotonou for two laboratory technicians.
- Vaccinations: more than 90 percent of children under one year of age immunized against main diseases under PEV.
- Medicine availability via COMEG:
  - Rehabilitation and additional equipment.
  - Capacity-building: training and hiring of two pharmacists (another planned for 2009).
  - Introduction of computerized management.
  - Drafting of a management manual.
  - Review of list of generic drugs and needs assessment (with WHO support).
- International aid and projects:
  - PASCOB launched September 2004 with funding of € 9,570,000; completed in 2008; set up purchasing center for essential generic drugs procurement and supply.
  - European Union-Congo cooperation strategy (Tenth EDF) provides for a budget of € 6.2 million for 2008–2013 in this area; continued support for pharmaceutical sector (through COMEG) and human resources strengthening.
  - Partnership with World Bank for Health Care Services Development Program (PDSS) established by Decree No. 2008-5 of December 31, 2008.

### Water and sanitation
- Objective: improve access to safe drinking water and develop sanitation infrastructure; decentralization (Law No. 10-2003 of February 6, 2003) transfers water mandates to local governments but faces human, material, financial resource limitations.
- 2008 legislative and regulatory texts:
  - Decree No. 2008-66 of April 3, 2008 (by-laws of ARSE).
  - Decree No. 2008-67 of April 3, 2008 (organizational structure of the Consultative Water Council).
  - Decree No. 2008-85 of April 16, 2008 (terms and conditions for water production activities).
  - Decree No. 2008-559 of November 28, 2008 (by-laws of Water Sector Development Fund).
  - Law No. 38-2008 of December 31, 2008 (creating ANHYR).
- Infrastructure actions (2008/early 2009):
  - Laying cornerstone for second water treatment plant for Brazzaville in Djiri.
  - Feasibility studies on rehabilitation and extension of potable water supply systems in Brazzaville and Pointe-Noire, financed by AWF.
  - Rehabilitation and expansion of water supply systems for Owando, Oyo, Mossaka, and Sibiti.
  - Order placed for four desalination units for Brazzaville.
  - Completion of three boreholes at Pointe-Noire.
  - Call for tenders for 500 water points in rural areas (HIPC funds).
- 2009 plans:
  - Install four desalination units in Brazzaville.
  - New boreholes planned for Pointe-Noire.
  - Complete 500 rural water points.
  - Tender calls for works following Brazzaville and Pointe-Noire distribution system studies.
  - Tender for water quality laboratory to be launched in 2009.
  - Sector strategy being drawn up including financial and technical restructuring program for SNDE.
- Sanitation:
  - WASH project financed by UNICEF, implemented by NGOs under Directorate-General of Water Supply oversight; 2008 operations established solid waste collection and treatment system in Brazzaville.
  - Feasibility studies financed by AWF and AFD for rehabilitation and expansion of sanitary and storm sewers in Brazzaville and Pointe-Noire.
  - Low-cost adapted sewer solutions disseminated by CREPA, UNICEF, and NGOs.
  - Donor round-table on March 3, 2009, to mobilize funds for Brazzaville and Pointe-Noire rehabilitation and expansion; government-proposed project funding and monitoring coordination platform. Implementation of these projects will begin in 2009.

### Housing
- Objective: promote access to adequate living conditions and decent housing; priority on social housing in major urban centers.
- Actions in 2008:
  - Continued priority program to build 10,000 social housing units since 2005 under public-private partnership between SOPROGI and Chinese company WIETC on sites in Brazzaville (Bacongo, Camp Clairon), Pointe-Noire (la Loya), Oyo, Kindamba, and Owando.
- 2009 plan:
  - Launch new strategic partnership with Government of China to carry out same program on Mpila and August 15 Camp sites in Brazzaville.

### Scientific research and technological innovation
- Legal and institutional steps:
  - Law No. 15-95 of September 5, 1995 called for three organizations; until 2008 only the Scientific and Technological Research Board was in operation.
  - 2008 establishments: High Council on Science and Technology (first session January 1, 2008) and Interministerial Committee on Science and Technology (first session January 26, 2008).
  - Ministry activated the Scientific Council on Research Centers.
- Strategy papers prepared awaiting Cabinet validation: national policy paper on science and technology development; national science and technology development plan; programs to mobilize research for economic and social development.
- Steps taken in 2008: rehabilitate research centers; procure rolling stock and scientific equipment; project to develop National Herbarium under way.

### Culture and the arts
- Cultural policy law adopted by Parliament in December 2008 covering protection of historical and cultural heritage and promotion of cultural activities.
- Infrastructure and works:
  - Roof of Sainte Anne du Congo Cathedral repaired.
  - National library renovation nearing completion.
  - Performance spaces at CFRAD and Sony Labou Tansi Center renovated.
  - Feasibility study completed for FESPAM Pavilion and Cultural Palace.
  - Seven-year building plan for monuments underway; monuments being delivered gradually.
- 2009 priorities: initial application of cultural policy law; commence construction on FESPAM Pavilion and Cultural Palace; renovate national museum and national archives.

### Sports
- Implementing regulations for Law No. 11-2000 of July 31, 2000 drafted and transmitted to SGG; national sports policy paper in process.
- Competitions organized departmental and national level; national direct soccer championship created for first time in 2008/2009 season.
- International participation increased; national teams trained in France (boys) and Germany (girls).
- Infrastructure:
  - Dolisie and Owando stadiums completed; inauguration in 2009.
  - Continued construction on Oyo gymnasium.
  - Massamba Debah stadium upgraded to FIFA standards (roof, protection barriers, seat installation, tunnel, evacuation improvements).
- Training: local coach training; referee training continued within African federations.

### Pillar 4 — Social environment and mainstreaming of vulnerable groups

#### Social protection
- Draft legislation instituting social security system and regime to protect families and children in difficulty and to insure high-profile personalities transmitted to Government.
- CNSS provided with board of directors now in operation.
- Draft legislation amending Law No. 004/86 of February 25, 1986 (creating the CNSS) currently with SGG.
- Draft legislation converting Civil Service Pension Fund (CRF) to public administrative agency with financial autonomy submitted to SGG.
- Computerization process under way to modernize social security and pension fund management.
- Automated system installed to cover civil service retirements and regular pension payments by CRF and CNSS.
- Three new regimes (health insurance, persons living with disabilities, and students), computerization, and human and material capacity-building at CRF and CNSS scheduled for 2009.
- Reform of national solidarity sector under way; preliminary draft legal framework submitted to SGG.

#### Employment and working conditions
- Objective: draft and implement national employment policy promoting private sector employment, vocational training, labor-intensive activities; improve legislative and regulatory framework and health and safety considerations.
- Draft national employment policy paper prepared with ILO being analyzed by Government.
- Draft administrative order creating National Committee for Social Dialogue submitted to SGG.
- New jobs created since 2005:
  - Civil service recruited roughly 25,000 new staff since 2005.
  - Private sector: 10,000 jobs in industrial timber processing sector.
  - 2,000 new jobs in various industrial subsectors.
  - 5,000 jobs in context of accelerated municipalization.
  - 17,000 offers of employment made possible through privat sector revitalization (all lines of activity combined).
- Civil service: 58 positions in health care sector reserved for disabled persons in 2008.
- Wage and pensions:
  - Wage arrears to State employees regularly paid off per government arrears payment plan.
  - Retirement pension payments up to date.
  - Minimum wage raised in 2008 (Decree No. 2008-942 of December 31, 2008) from CFAF 40,370 to CFAF 50,400.
- Labor code revision deferred in 2008; revision to take place in 2009.

#### Children
- Objective: create protective environment guaranteeing survival, development, well-being.
- 2008 actions:
  - Parliamentary Offices for Children set up in every department and National Parliamentary Office in Brazzaville.
  - Day of the African Child celebrated.
  - More than 40,000 birth certificates distributed free of charge, including 5,000 over the past ten months to Bantu and indigenous children not previously declared in departments: Pool, Pointe-Noire, Likouala, Niari, Cuvette, Plateaux, Sangha, and Kouilou. Birth certificates delivered in packages with treated mosquito nets and deworming products.
  - 2,133 school kits distributed to orphans and children from vulnerable families in 2008.
  - Project care to orphans and vulnerable children converted to national scale; 15,000 children cared for.
  - Street children project expanded to Brazzaville in 2008; 100 children returned to their families.
  - Construction began on a nursery in Dolisie and two nurseries opened for abandoned children in Brazzaville.
  - Child protection code proposed and in process of adoption by Parliament.

#### Youth
- Objective: reduce youth vulnerability and promote reintegration.
- 2005 statistics: one of every three young people was unemployed; of these, 37 percent aged 20 to 24 and 27 percent aged 25 to 30 (i.e. 64 percent of the unemployed belong to the 20 to 30 age bracket).
- Employment programs: DOJETIC, PED, PADER, PAME.
- Commission set up to draft national policy paper on young people; validation planned at national youth conference in 2009; related action plan available.
- African Youth Charter signed in February 2008 but not yet ratified; draft ratification legislation transmitted to SGG.
- Implementing regulations for Law No. 9-2000 of July 31, 2000 (youth guidelines) sent to SGG in 2008.
- Health: Ministry assisted 200 teenage mothers to gain access to income-generating activities in 2008.
- Infrastructure: three youth centers under construction in Otsendé, Odibé, and Kindamba; recreation center operating at Ouenzé (Brazzaville). Completion of three centers and rehabilitation of Djoué recreation center scheduled for 2009.
- Pilot project (protocol signed December 3, 2008 with Commission of African Union) on nonformal technical and vocational training and youth reintegration benefiting 110 learners in NICTs, pork rearing, fish farming, garden farming, sewing, welding, hairdressing, agricultural machine work; program duration 12 months.

#### Indigenous peoples
- Indigenous peoples are most marginalized and vulnerable segment.
- National plan for indigenous peoples covering 2009-2013 prepared in 2008; implementation began in 2009.
- Ministry held three workshops on planning to improve indigenous peoples’ quality of life in Impfondo, Ouesso, and Bélé (Gamboma), leading to national action plan for 2009-2013.
- Birth certificates provided to 2,102 indigenous children in 2008; school kits distributed to indigenous children.
- Study on albinism planned for 2009.

#### Special education
- Objective: improve access to schooling for handicapped children via capacity-building, adapted schooling, mainstreaming into regular classrooms with/without aide.
- Study on revitalizing physical rehabilitation and orthopedic devices sector conducted; report validated February 2009.
- Owando functional rehabilitation center reopened April 6, 2008.
- Tricycle manufacturing workshop at Brazzaville national orthopedic devices center reopened October 22, 2008.
- Six blind students registered with arts and human sciences faculty of Marien Ngouabi University.
- Documentary film on mainstreaming blind children produced and distributed.
- UNESCO-supported project: 89 disabled young people trained and placed with artisans in Brazzaville following apprenticeship.
- Positive discrimination: 10 percent of budgeted positions at Ministry of Health, Social Affairs, and the Family reserved for handicapped.
- HIV/AIDS: 25 peer educators trained to work with associations of disabled people.

### Pillar 5 — Combating HIV/AIDS

#### Prevention of sexual transmission
- National communication strategy designed with UNFPA and World Bank support, addressing cultural dimension and gender.
- Two AIDS charity events in Brazzaville and Pointe-Noire mobilized in 28 days more than 61,250 people; 1,500 screened.
- Two weekly programs (Communities and AIDS; Stop AIDS) broadcast by DRTV and Télé Congo.
- MTN Foundation partnership, Serment Universel Association, and SEP/CNLS installed HIV/AIDS telephone help line receiving about 8,970 calls a day; total of 168,947 calls answered and processed in 2008.
- Sector response (schools, universities, correctional facilities, law enforcement):
  - 735 peer teachers and 271 service providers in social communication trained.
  - In 2008, 47,695 people reached by peer teaching; 61,413 by social communication, with 963 peer teachers and 485 service providers trained.
- Condoms:
  - Total of 6,582,119 condoms distributed or sold: 644,518 for men and 137,001 for women.
- Counseling and testing:
  - 103 centers offering information and voluntary HIV screenings nationwide.
  - 72,191 visitors; 63,460 provided with preventive counseling (88 percent); 62,063 tested (98 percent acceptance rate); 8,213 tested positive.
- Civil society: 93 NGOs carried out community-based prevention reaching 70,826 people through peer teaching and 61,413 through social communication, with 963 peer teachers and 485 service providers trained.
- STIs: 87 centers offer free STI treatment based on syndrome approach; 37,105 STI cases treated free of charge in 2008.
- Blood safety: all 35,350 units of donated blood tested for HIV and Hepatitis B in 2008.

#### Improvements in care
- Medical care:
  - 37 centers providing medical care for people living with HIV/AIDS countrywide.
  - Active cases number 11,526, of whom 8,856 (76.8 percent) are taking ARVs.
- Orphans and vulnerable children:
  - In 2008, 15,895 orphans and vulnerable children benefited from care; 859 guardians received support for income-generating activities.
- Prevention of mother-to-child transmission:
  - 71 organizations provide prevention counseling and voluntary testing for expectant mothers in prenatal consultations; 21 provide care for HIV-positive expectant mothers.
  - 33,759 expectant mothers given prenatal care; 29,398 received preventive counseling (87 percent); 23,530 of those receiving counseling were tested (80 percent acceptance rate).
  - 919 expectant mothers tested HIV-positive; 350 are taking ARVs.

#### ARV approach and distribution
- Supply interruption in May and June 2008 of drugs, reagents, and consumables led to major government and partner efforts to procure pharmaceutical products in all departments.
- Major donors and financing:
  - Global Fund allocated US$45 million to Congo for 2006-2011 (funding executed by SEP/CNLS).
  - World Bank project initiated in 2004 with US$19 million to slow spread of HIV/AIDS and strengthen support and care.
  - UNICEF active in PMTCT, orphans and vulnerable children care, and prevention among young people.
  - UNFPA working on HIV/AIDS prevention in sexual and reproductive health services.
  - WFP provides nutritional support for HIV/AIDS patients.
  - French Red Cross strengthening two ambulatory treatment centers in Brazzaville and Pointe-Noire.
  - French cooperation agency provides technical assistance to SEP/CNLS.

*Source: _cr1069 - 20.8   percent,   60.4   percent,   and   21   percent   in   2005   to   43   percent,   76   percent,   and   43 percent in 2008. (IMF PDF content provided).*

### 3. CONSTRAINTS AND OUTLOOK

### 3. CONSTRAINTS AND OUTLOOK

### 3.1. Constraints

- The first year of PRSP implementation has highlighted a number of constraints, both endogenous and exogenous.

- Weaknesses in human resources for administration
  - The weaknesses identified in multiple areas led to the introduction of a reform plan aimed at improving administrative performance.
  - It is difficult to resolve the question of capacity-building in just one year.
  - Many training sessions took place in 2008; others are scheduled for 2009 and beyond.
  - A national capacity-building in the economic and financial area has been prepared and is being implemented with support from development partners.

- Problems with strategic planning
  - The current approach adopted by the government is marked by the need to establish sectoral strategies that are consistent with the pillars of the PRSP.
  - The preparation of the OAP for the PRSP led to further reflection in this area.
  - At this writing, only a few ministries have introduced strategies and determined policies in keeping with the PRSP.
  - A work plan is in place to gradually cover the sectors not yet involved.

- Problems with managing public investment
  - This mixed assessment of management is the outcome of a recent past characterized by both post-conflict and emergency situations resulting in poor management of public investment.
  - A first step toward finding a solution has been taken with the adoption of the institutional architecture for the programming and management of public investment, which has been made more consistent with the initiation of the operational action plan for PRS implementation.

- Formulation of sectoral projects
  - The situation varies by technical ministry, but overall, studies for sectoral projects remain few in number.
  - The absence of such studies generally does not make it possible to determine their consistency with poverty reduction objectives and priorities or to assess their economic and social return, much less to set up monitoring and evaluation arrangements or measure project impact.

- Public procurement execution
  - Most of the sectoral ministries experience problems with the disbursement of budget appropriations.
  - With the reform of the expenditure chain, there is now a new dynamism in the area of project finance.
  - The implementation of the new government procurement code generates genuine hope for streamlining project management.

- Monitoring and evaluation
  - In the sectoral ministries, monitoring operations remain limited.
  - Many research and planning directorates (DEPs) lack the material resources to fulfill this mandate and still lack all the technical information required to perform genuine project monitoring.
  - At the Ministry of Planning and Territorial Development, evaluation missions are conducted twice a year and lead to the production of a report on the financial and physical execution of the projects and programs included in the investment budget.
  - The ongoing reform of DEP missions is consistent with the choice of strategy for improving the financial, technical, and physical management of investment projects.

- Infrastructure development
  - One of the major constraints on revitalizing economic growth in Congo remains poor infrastructure for physical and intellectual communications.
  - An underdeveloped road system (including rural tracks), delays in CFCO improvements and, perhaps to a lesser degree, river transport improvements, act as a brake on the development of the productive sectors, which still lack the infrastructure they need for their development.
  - Opening up certain parts of the country, or at least improving their access to production areas, are crucial to improving the flows of persons and goods and will facilitate production and commercial activity.
  - Rapidly bringing the transportation sector up to the required standard, and the provision of electricity and telecommunications services, remain key to the country’s development.
  - The outlook for improving the provision of transportation services, new information and communications technologies, and water and electrical power are crucial to reducing factor costs and achieving satisfactory economic dynamism.

- The effects of the financial crisis
  - The financial crisis that struck in late 2008 has had less of a direct impact on the economies of African countries than those in Europe.
  - Because of the decline in export consumption, several African countries felt the effects of the crisis fairly rapidly. This is the case of Congo and its exports of forest products.
  - Timber is the second largest revenue source after petroleum, and falling exports in the last quarter of 2008 pushed down activity and threatened jobs.

- Erosion
  - Toward the end of 2008 there were multiple consecutive instances of erosion caused by heavy rainfall.
  - This required mobilizing emergency loans and disrupted expenditure execution at the end of the fiscal year.
  - The country is facing a phenomenon of constant erosion that is interfering with the completion of transportation infrastructure.

### 3.2. Macroeconomic performance (2008-2009)

- Overall growth and sectoral drivers
  - In 2009, the GDP growth rate in real terms will increase by about 7.2 percent as compared to 6.4 percent in 2008.
  - This growth will be driven mainly by an acceleration of oil sector activity, which will rise by 14.9 percent thanks to the coming-on-stream of production from the Awa Paloukou and Ikalou fields by ENI, the Azurite fields by the Murphy firm, the return to normal production in the Nkossa field, and the increased power of the deep water Moho Blondo well.
  - The forestry (growth and exploitation) branch will see production decline in particular as a result of the 40 percent drop in log output.
  - The nonoil sector will experience 4 percent growth, propelled by sugar production, construction activity, telecommunications, ocean transport, and the continued implementation of macroeconomic and structural reforms.

- Projected changes in specific activities
  - Construction and public works will grow by 8.7 percent, as against 8.5 percent in 2008, with continued work on accelerated municipalization in the departments of Cuvette and Brazzaville, the construction of basic infrastructure (the Brazzaville-Kinkala and Obouya-Owando-Makoua roads), works at the Lékéti port, expansion of the Maya-Maya airport, etc.
  - Retail trade, and restaurants and hotels: 7.5 percent as against 6.0 percent in 2008, in anticipation of holding the presidential election and the Pan-African Music Festival (FESPAM).
  - Agriculture, livestock, hunting, and fisheries: 6.8 percent as compared to 6.2 percent in 2008, with the implementation of the National Food Security Program (PNSA) and the diversification of Rural Development Projects (PRODER).
  - Transportation and telecommunications: 6.1 percent as compared to 6.8 percent in 2008, following the announced expansion of activities of the mobile telephone companies (Celtel, MTN, Warid) and the Congo Telecommunications Company (SOTELCO).
  - Energy and water supply: 1.3 percent as compared to 3.5 percent in 2008, with the construction of the gas power plant at Djeno and the second water supply plant at Djiri.

- Aggregate and price effects
  - GDP would be valued at CFAF 3,614.3 billion as opposed to CFAF 4,435.7 billion in 2008, a decline of 22.7 percent in nominal terms.
  - This decline is attributable primarily to the anticipated fall in the price of oil per barrel (averaging US$47.3 in 2009 compared to US$101.2 in 2008).

- Contributions to real growth in 2009
  - Domestic demand will contribute 4.7 percentage points primarily as a result of strong consumption.
  - Overall consumption would drive up growth by 3.2 points, 2.7 of which would be driven by private consumption and 0.5 by public consumption.
  - Gross investment will contribute 1.5 points, with the rise in capital expenditure and continued investment in the extractive industry sectors (maintenance of the level in the oil sector and recovery in the other mining sectors, in particular potash), telecommunications, transport, and agri-food industries.
  - Public investment is expected to provide 0.4 percentage point of growth, given the government’s demonstrated willingness to provide the country with basic infrastructure.
  - Nonoil sector investment would contribute 0.3 point, mainly as a result of investments by the cellular and wired telecommunications companies, development of the autonomous port of Pointe-Noire, and in other food industries.

- External sector outlook
  - With respect to external demand, the decline in exports of oil and timber will have a negative impact on the current account balance, which will deteriorate considerably, from -1.7 percent of GDP in 2008 to -17.8 percent of GDP in 2009.
  - Exports by value will plummet from CFAF 3,541.2 billion in 2008 to CFAF 2,244.7 billion in 2009.

*Source: 3. CONSTRAINTS AND OUTLOOK*

### 64.0 percent resulting from the decline in the price per barrel of oil (down 63.0 percent) in

### 64.0 percent resulting from the decline in the price per barrel of oil (down 63.0 percent) in

### External sector and trade
- Exports will be depressed by the global economic recession; only exports of miscellaneous products and, to a lesser extent, sugar exports, will escape the depressive effect.
- Value of exports:
  - Miscellaneous goods: increase from CFAF 71.3 billion to CFAF 78.2 billion.
  - Sugar: increase from CFAF 12.7 billion to CFAF 12.8 billion.
- Imports will increase as a proportion of GDP, driven by imports of capital goods to supply growth in investment in the mining, transport, and telecommunications sectors, and in construction and public works.
- Overall balance of payments surplus:
  - CFAF 277.1 billion in 2009.
  - CFAF 1,039.2 billion in 2008.

### Inflation and prices
- Average annual inflation:
  - 4.0 percent in 2009.
  - 6.0 percent in 2008.
- Inflation moderation attributed mainly to the sharp reduction in imported inflation, despite a rise in domestic demand sustained by civil service pay reassessments.
- Export price prospects (April 2009 WEO averages over the period under review):
  - Crude oil: US$63.92/bbl.
  - Raw logs: US$256/m3.
  - Cut wood: US$772.67/m3.
  - Sugar: US 13.33 cents/lb.

### Public finance
- Fiscal revenue:
  - Estimated at CFAF 1,203 billion in 2009.
  - CFAF 2,462 billion in 2008.
  - Oil revenue: CFAF 804 billion in 2009 versus CFAF 2,118 billion in 2008.
  - Non-oil revenue: CFAF 399 billion in 2009 versus CFAF 344.4 billion in 2008.
- Fiscal expenditure:
  - CFAF 1,238 billion at end-2009.
  - CFAF 1,239 billion in 2008.
  - Current expenditure: down 17.2 percent.
  - Investment expenditure: up 15.9 percent.
- Public debt and solvency indicators:
  - Ratio of debt stock to GDP: 76.8 percent in 2009 versus 62.7 percent in 2008.
  - Ratio of debt service to fiscal revenue: 5.7 percent in 2009 versus 12.7 percent in 2008 (with expected debt restructuring).
  - Ratio of debt service to exports: 4.0 percent in 2009 versus 8.4 percent in 2008.
- Public financial management (commitments basis excluding grants):
  - Overall surplus of CFAF 454.5 billion (5.8 percent of GDP) in 2009.
  - Surplus of CFAF 1,038.2 billion (4.3 percent of GDP) in 2008.

### Government 2009 policy objectives
- Mobilize domestic resources and allocate them optimally to sectors favoring sustainable and job-creating growth, such as agriculture and livestock, forest exploitation, and SMEs/SMIs.
- Construct infrastructure to support economic activity.
- Continue to execute and finance structuring investments with the support of development partners, within a sustainable indebtedness policy.

### Structural reform pillars and measures
- Financial sector:
  - Banking sector restructured within liberalization policy; introduction of new banking structures.
  - Continue finalizing the Development Action Plan for sector development with IMF assistance.
  - Improve business climate, legal and accounting framework, transparency, and quality of information for the private sector.
  - Creation of a National Financial Investigation Agency to bolster arrangements for combating corruption, fraud, and embezzlement.
- Governance and transparency:
  - Continue efforts to strengthen governance and transparency.
  - Provide the anticorruption observatory with needed financial resources.
- HIPC Initiative completion point:
  - Continue progress toward activating triggers for reaching the completion point under the HIPC Initiative, within the Action Plan agreed with the IMF and World Bank.
  - Adopt measures to improve tax receipts:
    - Broadening of the tax base through permanent use of NIUs in tax offices.
    - Securitization of revenue through continued computerization of tax offices.
    - Continuation of the policy of taxation near at hand.
  - Improve customs receipts:
    - Optimization and simplification of customs clearance procedures.
    - Review of customs privileges in government awards and contracts.
    - Elimination of exceptional exemptions.
    - Strengthening efforts to combat smuggling.
    - Introduction of a one-stop shop at the Pointe-Noire port.

### World outlook (April 2009 WEO context)
- IMF projected world growth decline of 1.3 percent at end-2009 due to the global recession triggered in October 2007.
- For 2010, IMF anticipates partial recovery with growth reaching 1.9 percent.
- Global inflation expected to remain moderate with correction of energy prices following the international financial crisis.

### Prospects for more effective implementation: monitoring and statistical capacity
- Restructure the national statistical system to make statistical data more readily available.
- From end-2009, results of the general population and housing census and ongoing/future surveys will help refine the profile of poverty in Congo and measure initial changes.
- Implement a database of monitoring indicators including core PRSP indicators, action indicators (resource/activity), and result/impact indicators to verify implementation and impacts.

### Improving economic and financial governance
- Oil sector management:
  - Sector contains major triggers for achieving HIPC completion point.
  - Ensure audit of 2007 accounts conducted under better conditions.
  - Implement cost accounting before the end of the first half of 2009.
  - Complete action plan to improve crude oil marketing practices by SNPC in early 2009 and begin implementation after final talks in London with World Bank support.
- Macroeconomic framing and medium-term planning:
  - Major effort in 2009 to improve the macroeconomic framing process and develop a plan for medium-term spending.
  - Put in place a macroeconomic framework process and central medium-term expenditure framework; team to be set up and operating as of June 2009.
  - Sectoral work in 2009: pilot sectors health, education, and transportation; seven ministries to receive substantial support to prepare sectoral strategies, priority action plans, and sectoral MTEFs for 2010-2012.
  - Extend to other sectors in 2010 and thereafter so all ministries have access to the same instruments.
  - Objectives-based programming to allow monitoring by indicators and promote administrative accountability.

### Improving management of public finances and public investment
- Implement PAGGFP (public finances overall) and PAAGIP (public investment) to accelerate public finance management reform.
- New public procurement code and related regulations to take effect in 2009.
- Begin implementation of a computerized expenditure chain in 2009 to require expenditure officers to follow redefined procedures, enhance transparency, and track expenditures and loan utilization in real time at stages: committed, verified, authorized, and paid.
- Public investment management:
  - Training for research and programming directorates (DEPs) began end-2007 and will continue into 2009 on health and education and on sectoral strategies and MTEFs.
  - Set up a study fund and management unit in 2009 with technical assistance to address shortcomings in preliminary project studies.
    - Fund access in 2009: credit of CFAF 1 billion contributed by Congo and US$300,000 from the Transparency and Governance Capacity-Building Project.
    - AFD has also set up a fund for studies; government share will rise over coming years.
  - Provide support beginning first half of 2009 to set up a streamlined project selection process (procedures, decision trees, related arrangements).
  - Support in 2009 to central MPAT, sectoral ministries, and departmental planning directorates to strengthen project evaluation capacity.

### Anti-corruption and oversight
- Establishment of planned agencies:
  - National Commission Against Fraud and Corruption (CNLCFC).
  - Anti-Corruption Observatory (OLC).
- Anti-corruption law expected to proceed to a vote soon.
- Diagnostic study on governance completed; action plan based on the report being finalized and to be approved by decree.
- Both organizations have tools to facilitate their role; need to provide appropriations for activities and ensure other oversight agencies incorporate CNLCFC and OLC directives.

### Infrastructure, agriculture, and social sector investments
- Transport and ports:
  - 2009 efforts expected to improve traffic along the Pointe-Noire – Brazzaville corridor.
  - Concession award for the Pointe-Noire port and scheduled upgrades to facilitate increased port traffic.
  - Rehabilitation of tracks and rolling stock plus corporate restructuring plan to enable CFCO to improve traffic volume and prospects for concessioning.
  - Development of RN1 highway (Brazzaville—Pointe-Noire) to offer an additional alternative.
  - Paved road system around RN2 to provide access to Makoua and Ouesso; Mossaka and Impfondo to benefit from river system improvements and rehabilitation of river transport equipment.
  - Improved coordination between METP and MAE to upgrade rural tracks in line with agricultural development strategy.
- Energy:
  - Improve production capacity and rehabilitate distribution grids for Pointe-Noire and Brazzaville to improve urban coverage as of end-2009 and meet energy needs of the two major cities shortly thereafter.
- Agriculture and livestock:
  - National Food Security Program (PNSA) to become sector strategy; operational action plan to be prepared.
  - Focus on priority projects with in-depth studies; emphasis on rural tracks, warehousing, processing and marketing, and facilitating access to credit.
  - Integration of activities with local development processes to ensure effectiveness.
- Water and sanitation:
  - Priority to increasing production capacity and rehabilitating distribution systems in Brazzaville and Pointe-Noire.
  - Rural waterworks: drilling 500 boreholes against HIPC funding.
- Social housing:
  - Continue efforts to complete construction of 10,000 social housing units in partnership with China, mainly in Brazzaville and Pointe-Noire.
  - Housing units should become available starting in late 2010.
- Social sectors funding:
  - Budget resources to be further increased in 2009 to enable health and education sectors to meet objectives.

*Source: Excerpt from IMF document _cr1069 (PDF).*

### 4. CONCLUSION

### _cr1069 - 4. CONCLUSION

### Summary findings
- By adopting a poverty reduction strategy in March 2008, the Government of the Republic of Congo reaffirmed its intention to combat poverty and made this a priority for its economic and social development policy.
- Sectoral policies and poverty reduction programs prepared in the context of PRSP implementation are under way.
- Following the interim evaluation exercise, the government states that Congo’s macroeconomic framework has been strengthened, that the main indicators are moving in the right direction, and that major reforms have either been initiated or are nearing initiation.

### Challenges and government commitments (policy action points)
- Strengthening the monitoring and evaluation framework for PRSP implementation.
- Promoting a participatory approach.
- Developing and improving sectoral poverty reduction policies.
- Accelerating the establishment of economic corridors associated with Congo’s status as a subregional transportation hub.
- Diversifying the economy to lessen the country’s vulnerability to external shocks.
- Promoting a dynamic private sector.
- Improving the quality and transparency of public finance management.
- Accelerating the process of decentralization and local development.
- Strengthening the administration’s operational capacity.
- Promoting coordination among development partners.

### Budget timetable and MTEF preparation (procedural milestones and calendar)
- February
  - Readjustment of evaluations of the budgets of ministries and public establishments (Implementation balance sheet n-1) → Levels of physical and financial execution by ministry (DGB/DGPD/Sectoral ministries; Min. Fin / Min. Plan).
  - Preparation of annual PRSP progress report → Revised strategic objectives (PRSP Team; Council of Ministers).
- March
  - Revision of sectoral MTEFs based on implementation balance sheet and ceilings from available framework (years n to n+2) → Sectoral MTEFs (n+1 to n+3) – 1st version (Sectoral ministries (MTEF units); Sectoral ministries / MTEF team).
  - Economic outlook, macroeconomic framing, and forecast TOFE → 1st version of macroeconomic framing n+1 to n+3 (Framing team/MTEF/PRSP; Macroeconomic framing committee).
- April
  - Updating of overall MTEF based on macro framing and forecast TOFE, annual PRSP progress report, revised sectoral MTEFs → 1st version overall MTEF n+1 to n+3, with sectoral ceilings (MTEF Team; MTEF steering committee).
- May
  - Adoption of macroeconomic framing and overall MTEF with sectoral ceilings → Macroeconomic framing and overall MTEF, 1st versions validated (Macroeconomic framing committee; MTEF steering committee; Council of Ministers).
  - Drafting of budget orientation letter → Publication of the budget framing letter (MEFB/MPAT/DGB/DGPD/Office of the President of the Republic).
  - Notification of sectoral ceilings → Communication to ministries of their ceilings for n+1 to n+3 (MEFB/MPAT/DGPD/DGB/MTEF technical secretariat; MTEF steering committee).
- June–July
  - Revision of sectoral MTEFs (2nd version) and preparation of annual budgets (Sectoral ministries (MTEF units); Sectoral ministries/MTEF team).
- August
  - Possible revision of macro framing and forecast TOFE → 2nd version of macroeconomic framing n+1 to n+3 (Framing team/MTEF/PRSP; Macroeconomic framing committee).
  - Budget conferences (sectoral MTEFs and annual budgets) → Validation of annual budgets n+1 and sectoral MTEFs n+1 to n+3 (MPAT/DGPD/Sectoral ministries/MTEF team; MTEF steering committee).
- September
  - Evaluation of budgets of ministries and public establishments (Implementation balance sheet n) → Levels of physical and financial execution by ministry (DGB/DGPD/Sectoral ministries; Min. Fin / Min. Plan).
  - Finalization of sectoral MTEFs and overall MTEF; Preparation of draft budget law and PIP; Drafting of budget framing report.
- End-September
  - Council of Ministers → Adoption of macroeconomic framing, overall MTEF, and draft budget law.
  - Supreme Court review → Favorable review by Supreme Court of draft budget law.
  - Forwarding of draft budget law to Parliament → Secretariat-General of the Government.
- Mid-October to End-December
  - Examination of draft budget law by Parliament; Passage of draft budget law; Promulgation and publication of budget law so budget execution may begin at the start of January.

### MTEF and budget preparation phases (schematic)
- Strategic phase
  - Examine budget aggregates in conformity with macroeconomic objectives and the PRSP; allocate financial ceilings by sector; prepare forecast TOFE and initial overall MTEF aggregating expenditure by ministry/sector; notify ceilings by budget circular.
- Sectoral phase
  - Intra-sectoral trade-offs and submission of draft ministerial budgets; selection of programs/projects in conformity with strategic phase expenditure ceilings; ministries prepare annual budgets and detailed sectoral MTEFs.
- Finalization phase
  - Reconciliation mechanisms to resolve difficulties between strategic phase allocations and sector-level program/project selection.

### Practical monthly sequencing (selected prescribed steps)
- Toward the end of February: balance sheet on physical and financial execution of year n-1; annual PRSP progress report (available in late February, incorporating financial execution balance sheet).
- March: ministries make preliminary requests; for ministries with sectoral MTEFs, preliminary requests include baseline scenario, reallocation proposals, and proposals for new activities; for ministries without sectoral MTEFs, preliminary requests include estimates of costs for year n+1, multiyear project costs for n+2 and n+3, and proposals for changes in activities.
- April: Medium-Term Economic Framework projections and forecast TOFE provide the overall ceiling; prepare initial overall MTEF allocating room for maneuver by ministry; produce budget policy memorandum.
- May: submit macro framing, forecast TOFE, overall MTEF, and budget policy memorandum to political authorities; after approval, convey orientation letter and sectoral ceilings to ministries.
- June–July: ministries prepare draft annual budgets and multiyear sectoral MTEFs within ceilings.
- August: draft budgets and MTEFs are examined in budget conference; update macro framework and forecast TOFE as needed.
- September: finalize overall MTEF and sectoral MTEFs; prepare PIP and finalize draft budget law and budget framing report.
- Late September to December: government adoption, Supreme Court review, transmission to Parliament, parliamentary examination (mid-October), and passage/promulgation by late December.

### Key budget and PIP figures (as presented)
- Investment Budget (summary lines)
  - TOTAL 400,000; Loans 10,000; Grants 45,000; TOTAL 455,000; 100.00.
  - 2009: 472,450 (Domestic resources) 11,445 (Loans) 30,680 (Grants) TOTAL 514,575 100.00.
- PIP 2009–2011 Summary of allocations by area (selected totals)
  - 2009 budget forecasts — Domestic resources 472,450; Loans 11,445; Grants 30,680; TOTAL 514,575.
  - 2010 budget forecasts — Domestic resources 524,087; Loans 14,031; Grants 57,412; TOTAL 595,530.
  - 2011 budget forecasts — Domestic resources 549,704; Loans 14,031; Grants 47,854; TOTAL 611,589? (table shows Domestic 549,704 and Loans 14,031 and Grants 47,854 listed in same row under heading TOTAL columns).
- Sectoral highlights (selected 2009 domestic resource allocations)
  - Improving governance, and consolidating peace and security: 131,954 (27.93%).
  - Promoting growth – Stability of the macroeconomic framework: 213,063 (45.10%).
  - Improving access to high quality basic social services by the population: 120,943 (25.60%).
  - Improving the social environment and mainstreaming of vulnerable groups: 5,835 (1.24%).
  - Combating HIV/AIDS: 655 (0.14%).
- Selected sectoral allocations (2009 domestic resources)
  - Transportation: 138,630 (29.34% of growth promotion category; detailed within overall).
  - Health care: 25,316 (5.36%).
  - Water: 26,692 (5.65%).
  - Housing: 20,105 (4.26%).
  - Education (elementary and secondary): 18,390 (3.89%).
  - Agriculture, livestock, and fisheries: 17,850 (3.78%).
  - Electrical power: 21,339 (4.52%).

### Selected PRSP indicators and reference/target values (preserve source figures)
- Poverty
  - Poverty line (ECOM, 5 years): CFAF 839/day (2005).
  - Incidence of poverty (ECOM, 5 years): 50.7% (2005).
  - Depth of poverty (ECOM, 5 years): 19.2% (2005).
  - Proportion of population living on less than one dollar PPP per day (ECOM, 5 years): 26.2% (2005) 30.0% 28.3% 26.7% 18,.0%.
  - Poverty gap index (ECOM, 5 years): 15.3% (2005) 13.4% 12.8% 12.2% 9%.
  - Share of poorest quintile in national consumption (ECOM, 5 years): 19.5% (2005).
  - Gini index (ECOM, 5 years): 41.6% (2005).
- Economic and financial governance
  - Inflation rate (CNSEE, monthly): 4.7% (2006).
  - Per capita GDP (MEFB/DGE, annual): 945.3 (2005).
  - Real GDP growth rate (MEFB/DGE, annual): 6.1% (2006).
- Growth-supporting sectors (examples)
  - Length of paved roads (METP/DEP, annual): 1,300 km (2007); targets 1,330 km 1,480 km 1,816 km.
  - Length of earthen roads (METP/DEP, annual): 6,728 km (2007); targets 6,758 km 6,778 km 6,848 km.
  - Number of passengers carried by the CFCO (CFCO management, annual): 727,300 (2007); targets 800,000 900,000 1,200,000.
  - Tonnage of goods carried by the CFCO (CFCO management, annual): 613,900 (2007); targets 750,000 800,000 900,000.
- Education
  - Net enrollment ratio in primary school (MEPSA/DEP/ECOM): 72% (2005); targets 82% 85% 87% 100%.
  - Primary school completion rate (MEPSA/DEP/ECOM): 77% (2005); targets 79% 81% 83% 100%.
- Health-nutrition
  - Infant mortality ratio (EDS, 5 years): 75% (2005); targets 63.75% 60% 56.25% 37.50%.
  - Maternal mortality ratio (EDS, 5 years): 781 (2005); targets 663.7 624.6 585.5 390.
  - Proportion of childbirths assisted by trained health care personnel (MSASF/DEP EDS): 86,1% (2005); targets 90.20% 91.60% 93.00% 100%.

*Source: _cr1069 - 4. CONCLUSION (extracted content unit).*

### 1. REVENUE AND GRANTS 1,564.32,462.01,203.01,662.2 1,981.3 1,921.61,855.0

### _cr1069 - 1. REVENUE AND GRANTS 1,564.32,462.01,203.01,662.2 1,981.3 1,921.61,855.0

### 1. REVENUE AND GRANTS (levels)
- Total: 1,564.3 2,462.0 1,203.0 1,662.2 1,981.3 1,921.6 1,855.0
- Own revenue: 1,564.3 2,462.0 1,203.0 1,662.2 1,981.3 1,921.6 1,855.0
  - Oil revenue: 1,284.5 2,117.6 804.0 1,220.1 1,485.7 1,391.2 1,365.6
  - Non-oil revenue: 279.7 344.4 399.0 442.1 495.6 530.4 489.4
    - Tax receipts: 264.5 305.2 341.7 409.8 461.5 494.3 455.2
    - Nontax revenue: 15.2 39.2 57.3 32.2 34.2 36.1 34.2
- Grants: 0.0 0.0 0.0 0.0 0.0 0.0 0.0

### 2. EXPENDITURE AND NET LENDING (levels)
- Total: 1,171.4 1,238.0 1,239.0 1,269.2 1,341.0 1,439.1 1,349.8
- Current expenditure (reported fragments): 783.7 784.0 649.0 632.0 640.0 668.0 646.7
  - Wages and salaries: 141.9 166.0 175.0 186.0 197.0 208.0 197.0
  - Other current expenditure (primary): 540.9 468.0 401.0 375.0 366.0 382.0 374.3
  - Interest on public debt: 100.9 150.0 73.0 71.0 77.0 78.0 75.3
    - Domestic interest: 16.7 10.0 7.0 1.0 0.0 0.0 0.3
    - External interest: 84.2 140.0 66.0 70.0 77.0 78.0 75.0
- Capital expenditure: 387.7 454.0 590.0 637.2 700.9 771.0 703.0
  - Against domestic resources: 372.0 390.0 469.0 570.0 616.5 680.1 622.2
  - Against external resources: 15.7 64.0 121.0 67.2 84.4 90.9 80.8
- Net lending: 0.0 0.0 0.0 0.0 0.0 0.0 0.0

### Fiscal balances and arrears (levels)
- Primary basic balance, own resources: 276.3 1,010.0 -230.0 254.7 478.9 313.6 349.1
- Primary balance excluding oil: -1,008.2 -1,107.6 -1,034.0 -965.4 -1,006.7 -1,077.5 -1,016.6
- Overall balance (commitments basis, excluding grants): 392.9 1,224.0 -36.0 392.9 640.3 482.5 505.3
- Overall balance (commitments basis, including grants): 392.9 1,224.0 -36.0 392.9 640.3 482.5 505.3
- Changes in arrears (reduction -): -269.8 -1,409.0 -124.0 -53.0 -47.0 -18.0 -39.3
  - Domestic (principal and interest): -89.5 -143.0 -124.0 -53.0 -47.0 -18.0 -39.3
  - External (principal and interest): -180.3 -1,266.0 0.0 0.0 0.0 0.0 0.0
- Overall balance (cash basis): 123.1 -185.0 -160.0 339.9 593.3 464.5 465.9

### 3. TOTAL FINANCING (levels)
- Total financing: -123.0 185.0 161.0 -339.9 -593.3 -464.5 -465.9
- External: -89.5 832.0 90.0 -104.3 -65.1 -51.8 -73.8
  - Project grants: 15.2 18.0 22.0 18.4 19.5 20.0 19.3
  - Drawings: 0.5 47.0 99.0 48.8 64.9 70.9 61.6
  - External debt amortization (principal): -237.7 -170.0 -107.0 -171.6 -149.5 -142.7 -154.6
  - External debt relief obtained: 132.5 937.0 76.0 0.0 0.0 0.0 0.0
  - Secured debt, Treasury certificates and other (net): 0.0 0.0 0.0 0.0 0.0 0.0 0.0
- Domestic: -33.5 -647.0 71.0 -235.6 -528.2 -412.7 -392.2
  - Banking system: -19.7 -599.0 75.0 -213.7 -503.6 -395.8 -371.0
  - Nonbank 2: -13.8 -48.0 -4.0 -21.9 -24.6 -16.9 -21.1

---

### Annual change (in percent) — summary
- 1. REVENUE AND GRANTS: -12.7 57.4 -51.1 37.4 18.9 -3.2 17.7
  - Oil revenue: -16.1 64.9 -62.0 51.8 21.8 -6.4 22.4
  - Non-oil revenue: 7.2 23.1 15.9 8.6 10.7 6.5 8.6
  - Tax receipts: 5.6 15.4 12.0 17.4 11.1 6.5 11.7
  - Nontax revenue: 45.5 158.0 46.1 -43.8 6.0 5.7 -10.7
- 2. EXPENDITURE AND NET LENDING: 5.9 5.7 0.1 2.4 5.7 7.3 5.1
  - Current expenditure: 5.6 0.0 -17.2 -2.6 1.3 4.4 1.0
  - Wages and salaries: 5.2 17.0 5.4 6.3 5.9 5.6 5.9
  - Other current expenditure (primary): 26.3 -13.5 -14.3 -6.5 -2.4 4.4 -1.5
  - Interest on public debt: -43.6 48.7 -51.3 -2.7 8.5 1.3 2.3
    - Domestic interest: -41.8 -40.1 -30.0 -85.7 -100.0 0.0 0.0
    - External interest: -43.9 66.3 -52.9 6.1 10.0 1.3 5.8
  - Capital expenditure: 7.8 17.1 30.0 8.0 10.0 10.0 9.3
  - Against domestic resources: 5.4 4.8 20.3 21.5 8.2 10.3 13.3
  - Against external resources: 127.5 307.6 89.1 -44.4 25.5 7.7 -3.7
- Primary basic balance, own resources: -44.7 265.6 -122.8 -206.9 88.2 -36.5 -51.8
- Primary balance excluding oil: -2.2 9.9 -6.6 -5.8 5.0 7.3 2.2
- Overall balance (commitments basis, excluding grants): -42.7 211.5 -102.9 -1,166.5 62.5 -25.9 -376.6
- Changes in arrears (reduction -): 261.2 422.2 -91.2 384.6 18.4 -32.7 123.4
  - Domestic (principal and interest): 2.2 59.8 -13.3 -4.2 8.2 -3.7 0.1
  - External (principal and interest): -1,497.7 602.2 -100.0 0.0 20.9 -39.1 0.0
- Overall balance (cash basis): -79.9 -250.3 -13.5 35.4 -59.9 -81.6 -35.3
- 3. TOTAL FINANCING: -79.6 -250.4 -13.0 34.6 -59.9 -81.6 -35.6
  - External: -40.4 -1,029.4 -89.2 -215.9 -37.6 -20.4 -91.3
    - Project grants: 204.0 18.4 22.2 -16.4 5.8 2.5 -2.7
    - Drawings: -93.8 9,300.0 110.6 -50.7 33.0 9.2 -2.8
    - External debt amortization (principal): -21.3 -28.5 -37.1 60.3 -12.9 -4.6 14.3
    - External debt relief obtained: -4.5 607.2 -91.9 -100.0 0.0 0.0 0.0
  - Domestic: -92.6 1,830.6 -111.0 352.2 -52.6 -55.4 81.4
    - Banking system: -95.0 2,938.7 -112.5 357.3 -48.5 -52.1 85.6
    - Nonbank 2: -75.7 247.8 -91.7 448.3 12.4 -31.6 143.0

---

### Table of Government Financial Operations (in percent of GDP)
- 1. REVENUE AND GRANTS: 43.9 55.5 33.3 37.1 39.2 37.5 37.9
  - Own revenue: 43.9 55.5 33.3 37.1 39.2 37.5 37.9
  - Oil revenue: 36.0 47.7 22.2 27.2 29.4 27.2 27.9
  - Non-oil revenue: 7.8 7.8 11.0 9.9 9.8 10.4 10.0
    - Tax receipts: 7.4 6.9 9.5 9.1 9.1 9.7 9.3
    - Nontax revenue: 0.4 0.9 1.6 0.7 0.7 0.7 0.7
  - Grants: 0.0 0.0 0.0 0.0 0.0 0.0 0.0
- 2. EXPENDITURE AND NET LENDING: 32.9 27.9 34.3 28.3 26.5 28.1 27.6
  - Current expenditure: 22.0 17.7 18.0 14.1 12.7 13.0 13.3
    - Wages and salaries: 4.0 3.7 4.8 4.1 3.9 4.1 4.0
    - Other current expenditure (primary): 15.2 10.6 11.1 8.4 7.2 7.5 7.7
    - Interest on public debt: 2.8 3.4 2.0 1.6 1.5 1.5 1.5
      - Domestic interest: 0.5 0.2 0.2 0.0 0.0 0.0 0.0
      - External interest: 2.4 3.2 1.8 1.6 1.5 1.5 1.5
  - Capital expenditure: 10.9 10.2 16.3 14.2 13.9 15.1 14.4
    - Against domestic resources: 10.4 8.8 13.0 12.7 12.2 13.3 12.7
    - Against external resources: 0.4 1.4 3.3 1.5 1.7 1.8 1.6
  - Net lending: 0.0 0.0 0.0 0.0 0.0 0.0 0.0
- Primary basic balance, own resources: 7.8 22.8 -6.4 5.7 9.5 6.1 7.1
- Primary balance excluding oil: -28.3 -25.0 -28.6 -21.5 -19.9 -21.0 -20.8
- Overall balance (commitments basis, excluding grants): 11.0 27.6 -1.0 8.8 12.7 9.4 10.3
- Overall balance (commitments basis, including grants): 11.0 27.6 -1.0 8.8 12.7 9.4 10.3
- Changes in arrears (reduction -): -7.6 -31.8 -3.4 -1.2 -0.9 -0.4 -0.8
  - Domestic (principal and interest): -2.5 -3.2 -3.4 -1.2 -0.9 -0.4 -0.8
  - External (principal and interest): -5.1 -28.5 0.0 0.0 0.0 0.0 0.0
- Overall balance (cash basis): 3.5 -4.2 -4.4 7.6 11.8 9.1 9.5
- 3. TOTAL FINANCING: -3.5 4.2 4.5 -7.6 -11.8 -9.1 -9.5
  - External: -2.5 18.8 2.5 -2.3 -1.3 -1.0 -1.5
    - Project grants: 0.4 0.4 0.6 0.4 0.4 0.4 0.4
    - Drawings: 0.0 1.1 2.7 1.1 1.3 1.4 1.3
    - External debt amortization (principal): -6.7 -3.8 -3.0 -3.8 -3.0 -2.8 -3.2
    - External debt relief obtained: 3.7 21.1 2.1 0.0 0.0 0.0 0.0
  - Domestic: -0.9 -14.6 2.0 -5.3 -10.5 -8.1 -7.9
    - Banking system: -0.6 -13.5 2.1 -4.8 -10.0 -7.7 -7.5
    - Nonbank 2: -0.4 -1.1 -0.1 -0.5 -0.5 -0.3 -0.4

*Source: Table of Government Financial Operations, summary (from the provided content).*

---


_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2010/_cr1069.pdf_