## Chapter 1: Introduction and 2010 Annual Progress Report (PRSP II mid‑term review) ## Source details **Canonical URL:** [Chapter 1: Introduction and 2010 Annual Progress Report (PRSP II mid‑term review)](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2011/_cr11195.pdf) ## Other formats - [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2011/_cr11195.pdf.md) - [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2011/_cr11195.pdf.json) --- ### Overview and implementation highlights - 2010 Annual Progress Report is the Government of Sierra Leone’s mid‑term review of implementation of the Agenda for Change—the PRSP II (2008-2012). - Marked shift in public expenditure toward development financing and poverty expenditure. - Infrastructure: - Construction/rehabilitation of roads linking major cities and neighbouring countries; about 4000km feeder roads in the pipeline with donor support. - Infrastructural and other development spending increased by 154% from Le177bn in 2007 to Le450bn in 2009. - Development spending from internally generated revenues increased by 375% from Le 42.5bn in 2007 to Le201.7bn in 2010. - Free Healthcare Programme (2010 priority): beneficiaries included pregnant women, lactating mothers and the under fives; increased visits to hospitals and peripheral health units reported. - Smallholder Commercialisation Scheme pursued within national agricultural programmes. - Monitoring & Evaluation: - Robust M&E system coordinated by MoFED; four nationwide M&E exercises in late 2009 and during 2010; Office of the President and civil society involved. - Regular follow‑ups and field visits improved contractor and supervisor performance; most MoFED‑financed Local Council projects completed by third quarter of 2010 from October 2009. ### Human development and poverty - Sierra Leone MDGs Report 2010 estimates incidence of poverty at 60 percent versus 70 percent in 2005. - Sierra Leone moved 12 points upwards on the UNDP Human Development Index in 2010 after many years at the bottom. - If Free Healthcare Programme is sustained, infant and under‑five mortality rates are expected to reduce drastically. ### Report preparation and structure - Data sources: sector reports (energy, transport, agriculture, education, health, water and sanitation, gender), quarterly M&E reports by MoFED, Budget Speech 2010, Sierra Leone MDGs Report 2010. - One day technical working session organized for sector status updates. - Report structure: Chapter Two—macroeconomic performance 2010; Chapter Three—progress, challenges and recommendations for strategic priorities; Chapter Four—pre‑conditions (good governance, peace, security); Chapter Five—conclusions and key recommendations. --- ### Macroeconomic performance (2010) ### Inflation and prices - End of period inflation: 17.8 percent in December 2010. - Annual average inflation: 16.8 percent (2009: 8.9 percent). - Consumer price changes Dec 2009–Dec 2010: - Local rice: increased by 3.3 percent - Imported rice: increased by 6.5 percent - Palm oil: increased by 12.3 percent - Fish: increased by 74.4 percent - Flour: increased by 10 percent - Cassava: declined by 29.4 percent - Sweet potatoes: declined by 15 percent - International commodity movements: - Average international price of crude oil rose by 27.9 percent. - Pump price for petroleum products increased by 18.2 percent. - Price of rice on the international market fell by 11.4 percent. - Inflationary drivers: international food and oil prices, pump price increases, gradual depreciation of the exchange rate. ### Trade: imports, exports, and trade balance - Total imports (2010): US$ 770.0 million, 48 percent higher than 2009. - Imports growth driven by machinery and transport equipment; manufactured goods imports up 53 percent. - Value of rice imported fell by around 10 percent; food imports roughly unchanged from 2009. - Exports (2010): US$ 341.2 million, up 48 percent from US$ 230.7 million in 2009. - Mineral export growth: Diamonds 45 percent; Bauxite 66 percent; Rutile 13 percent. - Agricultural exports declined by 20 percent in 2010. - Cocoa exports: US$ 37.1 million in 2010. - Other unrecorded separate exports: US$ 20.0 million in 2009 to US$ 78.2 million in 2010. - Trade deficit widened to US$ 428.8 million from US$ 289.6 million in 2009. - Structural vulnerability: heavy dependence on a small number of primary mineral and agricultural exports; expected large iron ore exports from 2012 will further concentrate the export base. - Government strategy: pursue export diversification toward non‑traditional exports, manufactured goods, refined primary commodities and services. ### International reserves and exchange rates - Gross international reserves at end‑2010: US$ 345.2 million, or 5.4 months of imports. - Foreign reserves slightly higher than program expectations due to lower outflows and payments by African Minerals Limited. - Leone‑US Dollar exchange rate: - Official depreciation: 7.7 percent over 2010 (monthly average end‑Dec 2010 vs end‑Dec 2009). - Parallel market depreciation: 6.5 percent. - Domestic currency values vis‑à‑vis other major currencies broadly followed this trend. --- ### Fiscal performance (2010) ### Revenue, grants and GST - Fiscal focus: intensifying domestic revenue mobilization and re‑orienting expenditures to capital spending. - Domestic revenue exceeded original Budget projections by 19.4 percentage points and was 34.2 percent above 2009. - Total domestic revenue: Le 1.01 trillion (13.3 percent of GDP) in 2010, up from Le 750.8 billion in 2009 (11.7 percent of GDP). - Tax revenue: Le 879.3 billion (growth of 38.9 percent versus 2009 Le 633.0 billion). - Non‑tax revenue: Le 76.3 billion, up 10.3 percent from Le 69.2 billion in 2009. - Income Tax Department receipts: Le 303.0 billion (4.0 percent of GDP); exceeded budget projection of Le240.5 billion by Le62.5 billion (26.0 percent). - Drivers: Le 24.5 billion outstanding personnel income tax from African Minerals; Le 34.1 billion capital gains tax paid by Woodside Energy; intensified audits yielded Le 16.8 billion; tax arrears collection Le 8.5 billion. - Goods and Services Tax (GST): - Total GST collected in 2010: Le 246.4 billion (3.2 percent of GDP). - GST receipts were not in the original budget due to uncertainties. - Implementation supported by sensitization, audits, penalties and sealing of defaulters’ premises. - Customs and Excise duties: - Total: Le 329.9 billion (4.3 percent of GDP) vs budget target Le 477.7 billion (6.6 percent of GDP); shortfall due to replacement of import/domestic sales tax with GST and technical clearing difficulties. - Non‑tax revenues: Le 76.3 billion, Le7.7 billion above budget (11.2 percent); mining revenues Le 24.2 billion vs budgeted Le 30.3 billion. - Total grants (programme and project): Le 542.6 billion in 2010 vs budgeted Le 567.5 billion; external budget support exceeded projection by Le 15.7 billion. - Share of domestic revenue in total revenue and grants: 65.0 percent in 2010 vs 60.0 percent in 2009. - External budgetary support share: fell from 24.4 percent in 2009 to 17.1 percent in 2010. ### Revenue table highlights (exact reported figures) - Total Revenue and Grants (2010 Commit.): Le 1,550,241 million; 2010 Budget: Le 1,411,629 million; 2010 Variance: 299,096 Le ’m; 2010 % deviation: 9.8%; 2010 Revised Budget Le ’m: 1,475,542; 2010 Variance Le ’m: 45,309; 2010 % deviation: 3.0% - Domestic Revenue (2010 Commit.): Le 1,007,626; 2010 Budget: Le 844,110; 2010 Variance: 256,818; 2010 % deviation: 19.4%; 2010 Revised Budget: Le 946,245; 2010 Variance: Le 19,840; 2010 % deviation: 2.0% - Income Tax Department (2010 Commit.): Le 303,026; 2010 Budget: Le 240,511; Variance: 62,515; % deviation: 26.0%; 2010 Revised Budget: Le 228,987; Variance: 66,591; % deviation: 28.2% - Goods and Services Tax (2010 Commit.): Le 246,362; 2010 Budget: 0; 2010 Variance: -246,362; 2010 Revised Budget: Le 196,813; 2010 Variance: -3,628; 2010 % deviation: -1.5% - Customs and Excise Department (2010 Commit.): Le 329,931; 2010 Budget: Le 477,689; Variance: -147,751; % deviation: -30.9%; 2010 Revised Budget: Le 361,164; Variance: -19,721; % deviation: -5.6% - Mines Department (2010 Commit.): Le 24,190; 2010 Budget: Le 20,269; Variance: 3,921; % deviation: 19.3%; 2010 Revised Budget: Le 41,052; Variance: -6,962; % deviation: -22.3% - Road User Charges (2010 Commit.): Le 51,972; 2010 Budget: Le 57,285; Variance: -5,313; % deviation: -9.3%; 2010 Revised Budget: Le 57,285; Variance: -5,328; % deviation: -9.3% ### Year‑on‑year revenue performance (selected) - Total Revenue and Grants: 2009 Actuals Le ’m: 1,563,994; 2010 Commit. Le ’m: 1,550,241; Variance against 2009: -13,753; % Variance: -0.9% - Domestic Revenue: 2009 Actuals Le ’m: 750,210; 2010 Commit. Le ’m: 1,007,626; Variance: 253,553; % Variance: 34.3% - Income Tax Department: 2009 Actuals Le ’m: 211,901; 2010 Commit. Le ’m: 303,026; Variance: 91,125; % Variance: 43.0% - Goods and Services Tax: 2009 Actuals Le ’m: 0; 2010 Commit. Le ’m: 246,362; Variance against 2009: 108,633; % Variance: 78.9% - Customs and Excise Department: 2009 Actuals Le ’m: 421,109; 2010 Commit. Le ’m: 329,931; Variance: -47,157; % Variance: 16.7% ### Expenditure composition and poverty spending - Total expenditure and net lending in 2010: Le 2.1 trillion (27.3 percent of GDP), about 17.1 percent higher than budgeted Le 1.8 trillion. - Recurrent expenditure: Le 1.3 trillion (16.9 percent of GDP). - Wages and salaries: Le 535.7 billion (7.1 percent of GDP) versus budgeted Le 453.3 billion. - Interest payments: Le 159.2 billion (2.1 percent of GDP); domestic interest payments Le 141.9 billion. - Non‑salary, non‑interest recurrent expenditure: Le 591.6 billion (7.8 percent of GDP) vs budgeted Le 483.4 billion. - Development (capital) expenditure: - Development expenditure accounted for 51 percent of total spending in 2010 vs 36 percent in 2009. - Total capital expenditure: Le 787.3 billion in 2010 (10.4 percent of GDP), up from Le 452.3 billion (7.0 percent of GDP) in 2009; 13.0 percent higher than budget. - Domestically financed capital expenditure: Le 355.1 billion (4.7 percent of GDP) vs Le 107.0 billion (1.7 percent of GDP) in 2009; higher than budget by Le 153.4 billion. - Foreign financed capital expenditure: Le 432.2 billion (5.7 percent of GDP) in 2010 vs Le 345.3 billion (5.4 percent of GDP) in 2009. - Poverty‑related expenditures: - Total poverty expenditures in 2010: Le 635.0 billion (8.4 percent of GDP) vs Le 361.6 billion (5.6 percent of GDP) in 2009; exceeded budgeted Le 402 billion by 30 percent. - Poverty expenditures accounted for 67.1 percent of total discretionary expenditure; 54.6 percent of total recurrent expenditure; 87.9 percent of total development expenditure. - Poverty‑related recurrent spending (FY 2010 Commitment): Le 323.10 billion. - Poverty‑related development spending (FY 2010 Commitment): Le 311.99 billion. - Poverty‑related health spending: actual Le 41.5 billion (17.7 percent below budgeted Le 50.4 billion). - Transfers to Local Councils: Le 91.1 billion vs budget Le 72.8 billion. - Poverty‑related road sector: Works, Housing & Infrastructure actual Le 139.3 billion vs budget Le 73.3 billion (90.0 percent above budget); 21.9 percent of total poverty expenditure. - Sectoral shares of poverty expenditure (FY 2010 actuals and % of total poverty expenditure): - Health: Budget Le 50.4 billion; Actual Le 41.5 billion; 6.5 percent of total poverty expenditure. - Works, Housing & Infrastructure: Budget Le 73.3 billion; Actual Le 139.3 billion; 21.9 percent. - Agriculture: Budget Le 31.0 billion; Actual Le 28.0 billion; 4.4 percent. - Education: Budget Le 75.9 billion; Actual Le 69.5 billion; 10.9 percent. - Local Council: Budget Le 72.8 billion; Actual Le 91.1 billion; 14.3 percent. ### Budget deficit and financing - Overall budget deficit (including grants) in 2010: Le 523.5 billion (6.9 percent of GDP) vs Le 201.1 billion (3.1 percent of GDP) in 2009. - Primary deficit (net of interest payments): increased to 6.2 percent of GDP from 3.9 percent of GDP in 2009. - Budget financing: Domestic financing Le 446.2 billion; Foreign financing Le 161.7 billion. - PRSP remaining financing gap for 2012 (updated): Le 475 billion, equivalent to just over USD 100 million. - Note: 2011 budget targeted, already in operation and fully‑financed. --- ### Monetary and financial sector developments ### Monetary outcomes and interest rates - Broad money expanded by 32.7 percent, exceeding programme target of 14 percent. - Reserve money expanded by 34.6 percent, breaching IMF programme target of 7.5 percent. - Drivers of broad money expansion: - Net credit to Government grew by 88.3 percent. - Credit to the private sector increased by 31.5 percent at end 2010. - Reserve money components: - Currency issued increased by almost 30 percent. - Commercial bank deposits with the central bank grew by 82 percent. - Interest rate movements in 2010: - Commercial bank savings rate: fell from 6.32 to 6.19. - 91‑day treasury bills rate: increased to 24.5 percent at end 2010 from 14.0 percent at end 2009. - 180‑day treasury bills rate: rose to 28.4 percent from 12.2 percent. - 365‑day treasury bills rate: increased to 29.0 percent from 14.3 percent. - Treasury bearer bond rate: rose to 20 percent from 12 percent. - Prime commercial bank lending rate: fell to 21 percent from 22 percent. - General lending rate: rose to 30 percent from 29 percent. - Causes of rate increases: increased Government borrowing from the domestic banking system and higher inflationary pressures. ### Central bank reforms and liquidity management - Bank of Sierra Leone (BSL) reviewed monetary policy framework in 2010; introduced Monetary Policy Rate (MPR) early in 2011 as main instrument. - Introduced Lombard facility at penal rate of 5 percent above the MPR for lender‑of‑last‑resort liquidity. - BSL Liquidity Management Framework operational; forward‑looking liquidity framework introduced to strengthen open market operations. - Broad money and reserve money exceeded targets under the IMF programme in 2010. ### Financial sector development support - Financial Sector Development Plan implementation commenced with partner assistance. - Trust fund arrangement between BSL, World Bank, GTZ and KFW managed by World Bank; World Bank disbursed US$4 million early in the year to BSL. - Activities: interim Credit Reference Bureau establishment; analytical tools and capacity building for banking supervision; national payments system development. --- ### Debt and public debt management ### External debt (end December 2010) - Total disbursed, outstanding external debt: US$ 767.9 million (end December 2010) vs US$ 692.6 million (end December 2009); increase 10.9 percent. - Increased disbursements from multilateral creditors: - IMF: US$ 40.1 million - World Bank: US$ 30.3 million - AfDB: US$ 16.2 million - Shares of external debt portfolio (end 2010 vs end 2009): - Multilateral: 61.9 percent (end 2010) vs 56.9 percent (end 2009). - Commercial creditors: 30.1 percent (down from 34.7 percent). - Bilateral creditors: 7.9 percent (down from 8.4 percent). - Bilateral creditors (end 2010): US$60.8 million (marginal increase ~US$ 2.0 million from end 2009). - Within bilateral: China ~39.3 percent; Kuwait 34.5 percent; India EXIM Bank 22.6 percent; Saudi Fund 3.45%. - Table 2.6.1 : Stock of External Debt (US$ million) - Multilateral: End Dec 2009 = 394.4 ; End Dec 2010 = 475.5 ; Annual change (%) = 20.6 - World Bank Group: 124.3 -> 154.6 ; 24.4 - IMF: 72.9 -> 113.0 ; 55.0 - ADB/F: 60.2 -> 76.4 ; 26.9 - Other Multilateral: 137.0 -> 131.5 ; -4.0 - Official Bilateral: 58.0 -> 60.8 ; 4.9 - Commercial Creditors: 240.2 -> 231.5 ; -3.6 - Total: 692.6 -> 767.9 ; 10.9 ### External debt service and buy‑back - Since HIPC Completion Point (December 2006), annual debt service obligations declined by over US$25 million annually. - Total debt service payments in 2010: US$ 19.4 million vs projected US$18.01 million. - Total estimated external commercial debt: US$240.2 million (end 2009) reduced to US$231.5 million (end Dec 2010). - IDA debt‑buy‑back operation: - World Bank approved US$950,000 grant in April 2009 for preparatory work. - Preparatory activities in progress; implementation expected in 2012. - Buy‑back programme, once implemented, expected to reduce Sierra Leone’s external commercial debt by over 90 percent (current about US$ 231.5 million). ### Domestic debt and interest payments (end Dec 2010) - Total stock of domestic debt instruments: Le1.16 trillion, increase of 23.8 percent vs end 2009. - Increase driven by conversion into Treasury securities of Le177.5 billion (NNIB) and Le45.3 billion (Ways and Means Advances). - Of converted NNIB: Le100 billion as 5‑year, 9 percent coupon bond for recapitalisation of BSL; residual in Special Treasury bills for monetary operations. - Table 2.6.2: Stock of Domestic Debt Instruments (Le ’m) - Treasury bills: End 2009 = 651,968.50 ; End 2010 = 771,053.35 ; % Change = 18.27 - 1‑Treasury bond: 103,976.40 -> 107,666.45 ; 3.55 - Recapitalisation bond: 180,000.00 -> 280,000.00 ; 55.56 - Total: 935,944.90 -> 1,158,719.80 ; 23.80 - Ways & Means Advances: 0 -> 178,000 ; ... - Table 2.6.3: Treasury Securities by Tenor (Le ’M) - 91‑day T‑bills: 278,101.00 -> 291,303.65 ; 4.75 - 182‑day T‑bills: 124,304.30 -> 249,222.35 ; 100.49 - 364‑day T‑bills: 249,563.20 -> 230,527.35 ; -7.63 - 1‑year T‑bond: 103,976.40 -> 107,666.45 ; 3.55 - Recapitalisation bond: 180,000.00 -> 280,000.00 ; 55.56 - Total: 935,944.90 -> 1,158,719.80 ; 23.80 - Investor shifts: 364‑day T‑bill stock fell ~8 percent as investors moved to higher yielding 182‑day bills (stock increased 100 percent). - Interest payments on domestic debt and Ways & Means Advances: - Total interest payment in 2010: Le142,427.90 million vs Le88,803.32 million in 2009 ; % Change = 60.39 - Table 2.6.4: Interest Payments (Le ’m) - Treasury bills: 46,978.19 -> 65,317.08 ; 39.04 - Special Treasury bills: 10,637.85 -> 21,376.38 ; 100.95 - 1‑year Treasury bond: 14,924.57 -> 11,853.98 ; -20.57 - Recapitalisation bond: 13,275.00 -> 22,950.00 ; 72.88 - Ways & Means Advances: 2,987.71 -> 20,930.46 ; 600.55 - Total: 88,803.32 -> 142,427.90 ; 60.39 - Projected interest payment for 2010: Le135 billion; actual interest paid: Le142 billion; difference due to unplanned interest on Ways & Means Advances (projected Le500 million; actual Le20.9 billion). --- ### Medium‑term macroeconomic outlook and policy framework (2011–2013) ### Growth, inflation and reserves - Real GDP growth projections: - 2011: 5.1 percent - 2012: 6 percent - 2013: 6 percent - Growth drivers: investment in infrastructure and energy, rise in agricultural productivity, large mining investments, commencement of iron mining. - Inflation: end‑period inflation projected to decline to 7.5 percent in 2013; aim to return to single‑digit inflation. - Import coverage of gross foreign exchange reserves expected to decline from 5.4 months in 2010 to 3 months in 2013. ### Fiscal and monetary policy measures - Domestic revenue projected: 13.3 percent of GDP in 2010 to 13.6 percent in 2011 and 13.7 percent in 2013. - Revenue measures: efficiency gains from GST, increase in royalties, improved tax administration and broadened tax base. - Institutional changes: Domestic Tax Department integrating GST with Large Tax Payers Office; penalties for late/non‑filing; small taxpayer regime. - BSL direct credit to Government via ways and means to be severely curtailed; GBAA amendment to require ex‑ante parliamentary approval for supplementary budgets. - Monetary policy tightened to achieve single‑digit inflation by end 2012 and beyond. - Reserve money projected growth: 19.0 percent at end 2012 and 15.8 percent at end 2013. - Fiscal tightening to lower T‑bill interest rates. - BSL Act amendments to limit credit to Government; introduction of benchmark monetary policy rate. - Commitment to flexible exchange rate and enhancement of foreign exchange management; promote inter‑bank market and wholesale foreign exchange auction system. ### Debt management - Priority on debt sustainability; commitment to concessional external borrowing. - National Debt Law and procedures manual enacted by Parliament. - Improvements to debt data and reporting; CS‑DRMS to be electronically linked with IFMIS. - World Bank‑assisted commercial debt buy‑back operation to eliminate external commercial creditor stock in 2011 (implementation activities noted). - Government seeking World Bank and Fund assistance to develop Medium‑Term Debt Management Strategy (MTDS). - Domestic debt strategy: lengthen tenure of government debt instruments to between two to five years; develop long‑term bond market with commercial banks, NASSIT and other non‑bank financial institutions. --- ### Sector highlights, challenges and recommendations ### Energy - Energy Policy formulated and adopted by Cabinet; awaiting Parliamentary ratification. - Policy focus: legal/regulatory framework, Rural Electrification Strategy, energy efficiency, renewable energy, environmentally friendly energy use. - National electricity generation capacity: - Baseline (2008): 24MW; Target for 2010: 78.26MW; Status (2010): 87.7MW; Target for 2011: 104.5MW. - Regional capacities and targets detailed in Table 3.1.1 (North, South, East, W/A). - Recent developments: - Electricity supply in Freetown rose from 5MW in 2007 to over 60MW after JICA 10MW plant and Bumbuna Hydro operations. - New plants (Blackhall Road) to add 16.5MW; upgrades and installations across regions; plans for mini hydro dams and solar pilots; materials for electrification of 5000 rural homes arrived. - Sector challenges: - Uncertainty of donor funding; line losses; revenue collection problems including illegal connections; risk to single transmission lines. - Recommendations: - Timely donor disbursement; proper metering and revenue accounting; monitor illegal abstraction and institute recovery charges; load balancing and voltage upgrades; phase out obsolete equipment. ### Transport and feeder roads - Trunk road construction underway nationwide. - Completed: 164km Masiaka‑Bo highway (March 2010); 64km Bo‑Kenema highway (completed Feb 2010). - Freetown‑Conakry road phase 2 (86km) expected mid 2011. - Projects in progress include Tokeh‑Lumley (21.2km), Kenema‑Pendembu (87km, expected 2013), Hillside Road (4.2km), Wilkinson road reconstruction, Bandajuma‑Mano River Bridge feasibility, Port Loko‑Lungi road (62km), Matotoka‑Koidu and Makeni‑Kamakwe plans. - Feeder roads: - ~555km feeder road completed in 2010 in Bombali, Tonkolili, Kailahun and Kono. - World Bank Rural and Private Sector Development Programme total 780km feeder road component; donors expected to deliver 3,232km if completed. - Challenges: - Contractor attitudes; weak service provider capacity; delayed donor disbursements; low wages reducing labor supply. - Recommendations: - Train contractors in technical estimates; SLRA to supervise; constant monitoring by central/sectoral offices and local councils; timely and market wages. ### Education - Access improvements: - Gross Primary Enrolment examples: 1,291,355 (2005/6); 1,356,688 (2006/7); 1,324,968 (2007/8); 1,353,723 (2008/9). - Gross JSS Enrolment: 150,917 (2005/6) to 252,162 (2008/9). - NPSE and BECE pass figures reported for boys and girls across years; BECE passes for girls trending upward. - School census indicates more schools and primary school construction 2008–2010; urgent need to accelerate secondary access. - School feeding: - WFP schools report high retention; children benefiting < 300,000. - Pujehun District reported stunting at 55 percent. - National School Feeding Programme recommended. - Textbook‑pupil ratio: 3:1 in 2009 and on average remained the same in 2010; SABABU project supplied 1,000,000 primary and 100,000 secondary textbook sets. - EMIS strengthened: data collection training, procurement of computers/software, staff training by UNESCO Institute of Statistics. - Challenges: - Poor storage for textbooks; weak district staffing/capacity; lack of JSS in some localities; lack of qualified teachers in remote areas; limited staff quarters. - Recommendations: - Regular in‑service training for secondary teachers; provide staff quarters and incentives for remote areas; increase EMIS staff; establish National School Feeding programme; construct more JSS and train teachers; improve storage and monitoring of materials. ### Health — Free Healthcare Programme (FHP) and PHUs - Challenges: - Poorly equipped facilities; shortage of trained health personnel; inadequate financial resources; poor staff conditions; weak coordination; weak Local Council capacity; insufficient financing for health care financing system; delays on policy decisions for NPPU. - 2010 M&E findings: poor drug storage; long waiting times; lack of electricity (some use candle or touch light for deliveries); lack of basic consumables (protective gloves); insufficient delivery beds; worn out hospital beds/mattresses; dilapidated PHUs; inadequate operating finances; poor water facilities; staff shortages. - Recommendations: - Prioritize implementation of the COMPACT Agreement for health sector service delivery in 2011. - Undertake comprehensive needs assessment for sustainable FHP assistance nationwide. - Mount sensitization and education campaigns on FHP targeting stakeholders. - Increase medical personnel motivation; improve imprest situation for PHUs. - Increase provision of delivery materials, beds, mattresses, water supply, storage facilities and drugs. - Continue improving national road system with focus on feeder roads to increase PHU access. ### HIV/AIDS - Objective: prevent HIV/AIDS, provide treatment, care and support, mitigate socio‑economic impact. - NAS pillars and timelines for 2010–Q1 2011: KYE/KYR (May–Aug 2010); Final Joint Programme Review of NSP 2006‑2010 (Aug 2010); NSP 2011‑2015 (Oct 2010–Feb 2011); National HIV/AIDS M&E Plan 2011‑2015 (Dec 2010–Feb 2011); National Operational Plan 2011‑2012 (Feb–Mar 2011). - Partnerships: UN, World Bank, Global Fund, Irish Aid, DfID, GIZ, KfW and others. - Prevalence: - HIV prevalence among general population stabilized at 1.5% since 2005. - Antenatal surveillance: 3.5% in 2009 to 3.2% in 2010; antenatal clinic prevalence 3.0% as of Dec 2010. - Outcome indicators (selected, as per Table 3.7.1): - PLHIV on ART (Dec 2010 status): 5,606 (Baseline Dec 2009: 6,592; Target Dec 2010: 8,501); % Achievement 66 - Condoms distributed (Dec 2010 status): 10,744,810 (Baseline 9,000,000; Target 10,299,615); % Achievement 104 - Health care facilities providing STI services (Dec 2010 status): 1,050 (Baseline 850; Target 950); % Achievement 111 - Pregnant women receiving complete ARV prophylaxis (Dec 2010 status): 2,642 (Baseline 3,095; Target 3,338); % Achievement 79 - ANC prevalence: Baseline 3.5%; Target 3.2%; Status 3.0%; % Achievement 100 - Challenges: - Heavy donor dependence (nearly 95% of national response); sustainability concerns as World Bank financing closed and GF expected to contribute 85%–90%. - Coordination difficulties with dispersed civil society organizations; stigma and discrimination persist; lack of integrated district planning; overstretched health infrastructure due to FHP; difficulty reaching most‑at‑risk populations. - Recommendations: - Mainstream HIV/AIDS in line ministries’ operational plans. - Improve policy and legal environment; strengthen private sector collaboration; fulfill ‘three ones principles’. ### Water and Sanitation - New National Water and Sanitation Policy of December 2010 launched January 2011. - Objectives: comprehensive water resources framework; cross‑sectoral interests; improve safe water and sanitation in urban/rural areas; stakeholder participation; strategies for sustainable management. - Outcome indicator targets: - % population with access to safe drinking water: Baseline (2005) 47%; Target for 2010 62% (3% annual increment). - % households with access to improved sanitation: Baseline 30% (2005); Target for 2010 49.5% (3.9% annual increment). - Urban and rural projects supported by EXIM Bank of India, ADB, DFID, JICA, World Bank LCDSP, UNICEF and others. - Rural sanitation: CLTS (no‑subsidy) approach scaled up. - Challenges: inadequate human resources; slow policy implementation; limited coordination among actors; procurement bottlenecks. - Recommendations: popularise water sector policies; strengthen sector M&E; strengthen capacity at national and local level. ### Gender - Sustained government commitment to mainstream gender and children’s issues. - Continued girl‑child support programme; development partners significant. - ~70 Sexual and Gender‑Based Violence Committees formed nationwide. - Government action plan for UN SCR 1325 and 1820; sixth CEDAW report produced. - Challenges: low budgetary allocation; inadequate human/logistical support; weak sectoral coordination. - Recommendations: increase financial, technical and logistical support to Ministry of Social Welfare, Gender and Children’s Affairs; map institutions implementing gender issues to improve coordination. ### Public Financial Management (PFM) reform - Integrated Public Financial Management Reform Programme (IPFMRP) entered to strengthen macrofiscal coordination, control systems, central finance functions, non‑state actor oversight and project management. - Legal/regulatory revisions in progress: Local Government Act 2004, GBAA 2005, Procurement Act 2004; draft amendments and consultations ongoing; "Public Debts Management Act 2010" ratified by Parliament. - MEFF and MTEF institutionalization: Macro‑Fiscal Section, SLIMM model developed for 2011–2013; MTEF process implemented with budget officers recruited and trained; IFMIS roll‑out and Petra Financials for Local Councils used. - Revenue administration: ASYCUDA++ launched April 2010; Domestic Tax Department established. - Debt management: DEMPA initial assessment; national DSA workshop (Aug 2010); Public Debt Bulletin 2009 released; PDMU facilitating commercial debt buy‑back. - Procurement: NPPA procurement forum; recruitment of 30 procurement officers; procurement cadre development; CPAR completed; price norm 2010 developed. - Accounting and reporting: Accountant General produced financial statements for year ended 31 Dec 2009 by 31 Mar 2010; unaudited statements for Jan–Nov 2010 published on MoFED website. - Key challenge: heavy reliance on contract staff for reforms and need for an exit strategy to ensure sustainable human resource capacity in MoFED. ### Strengthening the Civil Service - Staff rationalization and recruitment: - Civil Service numbers: 17,560 in 2007/2008 to 13,631 in March 2010 (increased to 15,703 in May 2010 due to FHP recruitment). - Over 300 technical positions filled by November; PSC advertised over 150 posts in December. - Teacher Record Management Project: - GoSL provided PSRU Le464.8m (Component One) and Le435.2m (Component Two) totaling Le900m for first phase. - Created files for every teacher (35,305) on AG payroll; second phase physical verification due early 2011; ADB funding discussions near completion. - Civil Service Code, Regulations and Rules drafted for presentation to the President. - ICT modernization and E‑Government Unit established with UNDP support. - National Training Policy drafted; multiple capacity building programmes delivered to civil servants. - Policy and Planning Units and Service Charters being developed across MDAs. - Monitoring visits to Ministries conducted in 2010 to track MFR implementation and manpower planning. ### Tourism - Strategic Tourism Action Plan developed; National Tourism Policy and 1990 Tourism Development Act review planned. - Tourist (Visitors) arrivals: - 2008: 35,679; 35,688 - 2009: 26,122; 26,152 - 2010: 31,271; 31,271 - Outlook: arrivals expected to rise with economic boom, improved security and branding. --- ### General recommendations and PRSP financing gap ### General policy and implementation recommendations - Develop comprehensive policy framework to regulate contractor behaviour. - Ensure timely release of donor funds. - Ensure sustained/continuous monitoring of all infrastructural projects and the Free Healthcare Programme. - Develop a comprehensive M&E Policy and procedures for Sierra Leone. - Integrate district M&E and Planning Units with national M&E system for routine reporting by District Councils to MoFED. - Strengthen functionality of Regional Planning Offices for coordination of District Planning and M&E Units. - Strengthen District Budget Oversight Committees and integrate them into national M&E system. - Enhance domestic revenue, especially from the mining sector. - Seek additional donors to support the Agenda for Change. - Build strong capacity in the civil service to ensure timely delivery of basic services. ### Updated estimated PRSP financing gap (In Le ‘000) — selected totals (exact figures) - Grand Total PRS Estimate: 783,247; 624,010; 512,290; 1,480,371; Total 3,399,918 - Grand Total Actual Spending: 795,297; 1,194,218; 1,177,585; 1,005,426; Total 4,172,526 - Financing Gap for 2012 (Grand Total): 474,944 - Remaining financing gap for 2012 (updated elsewhere in report): Le 475 billion, equivalent to just over USD 100 million. *Source: Chapter 1: Introduction, 2010 Annual Progress Report (PRSP II mid‑term review) and accompanying IMF report excerpts (2010 fiscal and macroeconomic review) as provided in content unit _cr11195.* ### Chapter 1: Introduction.....................................................................................6 ### Chapter 1: Introduction ### 1.1 An Overview - The 2010 Annual Progress Report is the Government of Sierra Leone’s mid-term review of implementation of the Agenda for Change—the PRSP II (2008-2012). - 2010 saw increased Government determination and action to implement development projects mapped in the Agenda for Change, with a marked shift in public expenditure toward development financing and poverty expenditure. - Infrastructural Development: - Work began on rehabilitation of cities and district headquarter township streets and reconstruction of roads linking major cities, towns, and Sierra Leone with neighbouring countries or in the immediate pipeline. - Works were underway on the construction of about 4000km feeder roads with various donor support. - Infrastructural and other development spending increased by 154% from Le177bn in 2007 (end of PRSP I) to Le450bn in 2009 (the first year of effective implementation of PRSP II). - Development spending from internally generated revenues increased by 375% from Le 42.5bn in 2007 to Le201.7bn in 2010. - Free Healthcare Programme: - Implemented as a 2010 priority; beneficiaries included pregnant women, lactating mothers and the under fives. - Programme was well received and considered a poverty-reducing initiative with increased visits to hospitals and peripheral health units for free medical care. - Smallholder Commercialisation Scheme: - Pursued within the National Sustainable Agricultural Development Programme and the Comprehensive African Agricultural Development Programme to target small farmers. - Other Projects: - Key development projects were undertaken in HIV/AIDS, water and sanitation, and education; Government consolidated progress and expanded national coverage in electricity and other forms of energy. - Monitoring and Evaluation: - A robust M&E system was established under the coordination of the Ministry of Finance and Economic Development (MoFED). - Four nationwide M&E exercises were conducted in the last quarter of 2009 and during 2010 to follow up on project execution and ensure probity and value for money. - The Office of the President complemented these exercises; all M&E exercises involved civil society organizations. - Lessons Learned: - Regular follow-ups and field visits improved contractor and supervisor performance and timeliness. - Most MoFED-financed Local Council implementation projects exceeded planned periods but had generally appreciable performance; the vast majority completed works by third quarter of 2010 from October 2009. - Feeder road component of the Rural and Private Sector Development Programme progressed laudably. - Education for All and Fast Track Initiative school construction projects were generally impressive nationwide. - Regular quarterly M&E exercises enabled identification of problems and informed recommendations to improve project performance. - Human Development Indices: - Sierra Leone MDGs Report 2010 estimates the country’s incidence of poverty at 60 percent against 70 percent in 2005. - If the Free Healthcare Programme is sustained, mortality rates (infant and under-five) are expected to reduce drastically in coming years. - Sierra Leone moved 12 points upwards on the UNDP Human Development Index in 2010 after remaining at the bottom for many years. ### 1.2 Report Preparation Process - Data sources for the report: - Sector reports covering energy, transport, agriculture, education, health, water and sanitation, gender, and sectors related to good governance, peace, and security. - Quarterly M&E reports by MoFED. - Budget Speech 2010, Sierra Leone MDGs Report 2010, and other national reports on economic developments and progress. - A one day technical working session was organized to firm up sector status updates on PRSP II strategic priorities. ### 1.3 Structure of the Report - Chapter Two: presents macroeconomic performance in 2010. - Chapter Three: presents progress, challenges and recommendations for Government strategic priorities—energy, transport, agriculture and fisheries, education, health and sanitation and gender. - Chapter Four: indicates progress in implementing pre-conditions for achieving strategic priorities, including promotion of good governance, peace and security. - Chapter Five: concludes the report and presents a summary of key findings and recommendations for improved implementation of strategies. *Source: Chapter 1: Introduction, 2010 Annual Progress Report (PRSP II mid-term review).* ### introduction of the GST. During the year, inflationary pressures remained high ### _cr11195 - introduction of the GST. During the year, inflationary pressures remained high ### Inflation and prices - End of period inflation stood at 17.8 percent in December 2010. - Annual average inflation for the year was 16.8 percent, compared to 8.9 percent in 2009. - Changes in consumer prices between December 2009 and December 2010: - Local rice: increased by 3.3 percent - Imported rice: increased by 6.5 percent - Palm oil: increased by 12.3 percent - Fish: increased by 74.4 percent - Flour: increased by 10 percent - Cassava: declined by 29.4 percent - Sweet potatoes: declined by 15 percent - International commodity price movements in 2010: - Average international price of crude oil rose by 27.9 percent. - Pump price for petroleum products increased by 18.2 percent. - Price of rice on the international market fell by 11.4 percent. - Inflationary pressures were attributed to continued rise in international food and oil prices, increase in the pump price of petroleum products, and the gradual but continuous depreciation of the exchange rate. ### Trade: imports, exports, and trade balance - Total value of imports in 2010: US$ 770.0 million, 48 percent higher than 2009. - Imports growth driven by machinery and transport equipment (large-scale mining investments and road construction). - Imports of manufactured goods increased by 53 percent. - Value of rice imported fell by around 10 percent. - Food imports as a whole remained roughly unchanged from 2009. - Exports in 2010: US$ 341.2 million, up 48 percent from US$ 230.7 million in 2009. - Mineral exports recovered; export growth for: - Diamonds: 45 percent - Bauxite: 66 percent - Rutile: 13 percent - Agricultural exports overall declined by 20 percent in 2010 (coffee exports in 2009 were unusually high and returned closer to trend in 2010). - Cocoa exports reached US$ 37.1 million in 2010. - Other unrecorded separate exports increased from US$ 20.0 million in 2009 to US$ 78.2 million in 2010. - Trade deficit widened to US$ 428.8 million from US$ 289.6 million in 2009. - Structural note: Sierra Leone remains highly vulnerable to volatile international commodity markets due to dependence on primary mineral and agricultural exports; expected large iron ore exports from 2012 will concentrate export base in a small number of mineral commodities. - Government strategy: continue pursuing diversification of the export base, encouraging non-traditional exports and commodities from the secondary or tertiary sector, including manufactured goods, refined primary commodities and services. ### International reserves and exchange rates - Gross international reserves at end-2010: US$ 345.2 million, or 5.4 months of imports. - Foreign reserves slightly higher than Government program expectations due to lower than projected outflows for goods and services and payments of mining royalties and surface rents by African Minerals Limited. - Leone-US Dollar exchange rate: - Official exchange rate depreciated by 7.7 percent against the US dollar over 2010 (based on monthly average official exchange rate as of end-December 2010 compared to end-December 2009). - Parallel market depreciation: 6.5 percent. - Domestic currency values vis-a-vis other major currencies broadly followed this trend. ### Fiscal performance in 2010 — revenue and grants - Fiscal focus: intensifying domestic revenue mobilization and re-orienting expenditures in favor of capital spending. - Domestic revenue exceeded original Budget projections by 19.4 percentage points and was 34.2 percent above 2009. - Total domestic revenue: Le 1.01 trillion (13.3 percent of GDP) in 2010, up from Le 750.8 billion in 2009 (11.7 percent of GDP). - Tax revenue: Le 879.3 billion (growth of 38.9 percent versus 2009 tax revenue of Le 633.0 billion). - Non-tax revenue: Le 76.3 billion, up 10.3 percent from Le 69.2 billion in 2009. - Income Tax Department receipts: Le 303.0 billion (4.0 percent of GDP), exceeding budget projection of Le240.5 billion by Le62.5 billion (26.0 percent). - Reasons for better performance: - Payment of outstanding personnel income tax by African Minerals: Le 24.5 billion. - Capital gains tax paid by Woodside Energy: Le 34.1 billion. - Intensified field audits yielded additional revenue of Le 16.8 billion. - Collection of tax arrears: Le 8.5 billion. - Goods and Services Tax (GST): - Despite initial challenges at launch in January 2010, GST was successfully implemented. - Total GST collected in 2010: Le 246.4 billion (3.2 percent of GDP). - GST receipts had not been programmed into the budget due to uncertainties. - Implementation supported by sensitization programmes, intensified field audits, penalties for late filing and payment, and sealing of defaulters’ premises. - Customs and Excise duties: - Total Customs and Excise duties amounted to Le 329.9 billion (4.3 percent of GDP) versus budget target of Le 477.7 billion (6.6 percent of GDP). - Shortfall largely due to cessation of import sales tax and domestic sales tax (replaced by GST) and technical difficulties related to clearing of container cargo. - Non-tax revenues: Le 76.3 billion, Le7.7 billion above budget (11.2 percent); mining revenues accounted for Le 24.2 billion versus budgeted Le 30.3 billion (shortfall partly due to slowdown in Koidu Holdings operations). - Total grants (programme and project): Le 542.6 billion in 2010 compared to budgeted Le 567.5 billion. - Project grants lower than budgeted; external budget support exceeded projection by Le 15.7 billion. - Share of domestic revenue in total revenue and grants: 65.0 percent in 2010 versus 60.0 percent in 2009. - External budgetary support share: fell from 24.4 percent in 2009 to 17.1 percent in 2010. ### Revenue performance — selected table highlights (exact figures as reported) - Total Revenue and Grants (2010 Commit.): Le 1,550,241 million; 2010 Budget: Le 1,411,629 million; 2010 Variance: 299,096 Le ’m; 2010 % deviation: 9.8%; 2010 Revised Budget Le ’m: 1,475,542; 2010 Variance Le ’m: 45,309; 2010 % deviation: 3.0% - Domestic Revenue (2010 Commit.): Le 1,007,626; 2010 Budget: Le 844,110; 2010 Variance: 256,818; 2010 % deviation: 19.4%; 2010 Revised Budget: Le 946,245; 2010 Variance: Le 19,840; 2010 % deviation: 2.0% - Income Tax Department (2010 Commit.): Le 303,026; 2010 Budget: Le 240,511; Variance: 62,515; % deviation: 26.0%; 2010 Revised Budget: Le 228,987; Variance: 66,591; % deviation: 28.2% - Goods and Services Tax (2010 Commit.): Le 246,362; 2010 Budget: 0; 2010 Variance: -246,362; 2010 Revised Budget: Le 196,813; 2010 Variance: -3,628; 2010 % deviation: -1.5% - Customs and Excise Department (2010 Commit.): Le 329,931; 2010 Budget: Le 477,689; Variance: -147,751; % deviation: -30.9%; 2010 Revised Budget: Le 361,164; Variance: -19,721; % deviation: -5.6% - Mines Department (2010 Commit.): Le 24,190; 2010 Budget: Le 20,269; Variance: 3,921; % deviation: 19.3%; 2010 Revised Budget: Le 41,052; Variance: -6,962; % deviation: -22.3% - Other Departments (2010 Commit.): Le 52,145; 2010 Budget: Le 48,356; Variance: 3,789; % deviation: 7.8%; 2010 Revised Budget: Le 60,944; Variance: -11,112; % deviation: -17.6% - Road User Charges (2010 Commit.): Le 51,972; 2010 Budget: Le 57,285; Variance: -5,313; % deviation: -9.3%; 2010 Revised Budget: Le 57,285; Variance: -5,328; % deviation: -9.3% ### Year-on-year revenue performance (selected) - Total Revenue and Grants: 2009 Actuals Le ’m: 1,563,994; 2010 Commit. Le ’m: 1,550,241; Variance against 2009: -13,753; % Variance: -0.9% - Domestic Revenue: 2009 Actuals Le ’m: 750,210; 2010 Commit. Le ’m: 1,007,626; Variance: 253,553; % Variance: 34.3% - Income Tax Department: 2009 Actuals Le ’m: 211,901; 2010 Commit. Le ’m: 303,026; Variance: 91,125; % Variance: 43.0% - Goods and Services Tax: 2009 Actuals Le ’m: 0; 2010 Commit. Le ’m: 246,362; Variance against 2009: 108,633; % Variance: 78.9% - Customs and Excise Department: 2009 Actuals Le ’m: 421,109; 2010 Commit. Le ’m: 329,931; Variance: -47,157; % Variance: 16.7% - Mines Department: 2009 Actuals Le ’m: 20,163; 2010 Commit. Le ’m: 24,190; Variance: 2,177; % Variance: 10.8% - Other Departments: 2009 Actuals Le ’m: 49,022; 2010 Commit. Le ’m: 52,145; Variance: 3,123; % Variance: 6.4% - Road User Charges: 2009 Actuals Le ’m: 48,620; 2010 Commit. Le ’m: 51,972; Variance: 3,352; % Variance: 6.8% ### Expenditures and composition - Total expenditure and net lending in 2010: Le 2.1 trillion (27.3 percent of GDP), about 17.1 percent higher than budgeted Le 1.8 trillion. - Recurrent expenditure: Le 1.3 trillion (16.9 percent of GDP). - Wages and salaries: Le 535.7 billion (7.1 percent of GDP) versus budgeted Le 453.3 billion. - Overrun in the wage bill due to: Free Maternal and Child Healthcare Initiative wage increases in health sector, higher pension payments, social security contributions, lump sum allowance to teachers, and exchange rate effects on payments to foreign missions. - Interest payments: Le 159.2 billion (2.1 percent of GDP), with domestic interest payments Le 141.9 billion. - Non-salary, non-interest recurrent expenditure: Le 591.6 billion (7.8 percent of GDP) compared to budgeted Le 483.4 billion. - Development (capital) expenditure: - Development expenditure accounted for 51 percent of total spending in 2010 compared to 36 percent in 2009. - Total capital expenditure increased from Le 452.3 billion (7.0 percent of GDP) in 2009 to Le 787.3 billion in 2010 (10.4 percent of GDP), 13.0 percent higher than budget. - Domestically financed capital expenditure: Le 355.1 billion (4.7 percent of GDP) versus Le 107.0 billion (1.7 percent of GDP) in 2009; higher than budget by Le 153.4 billion. - Foreign financed capital expenditure: increased from Le 345.3 billion (5.4 percent of GDP) in 2009 to Le 432.2 billion (5.7 percent of GDP) in 2010. - Domestic capital overrun drivers: additional infrastructure costs (energy and road projects), unanticipated hospital rehabilitation expenditures (Free Health Care Initiative), and additional transfers to local councils as development grants. ### Poverty-related expenditures - Total poverty expenditures in 2010: Le 635.0 billion (8.4 percent of GDP) versus Le 361.6 billion (5.6 percent of GDP) in 2009; exceeded budgeted Le 402 billion by 30 percent. - Poverty-related expenditures accounted for: - 67.1 percent of total discretionary expenditure - 54.6 percent of total recurrent expenditure - 87.9 percent of total development expenditure - Composition and deviations: - Poverty-related recurrent spending (FY 2010 Commitment): Le 323.10 billion. - Poverty-related development spending (FY 2010 Commitment): Le 311.99 billion. - Poverty-related expenditure on health was 17.7 percent below the budgeted amount of Le 50.4 billion (actual Le 41.5 billion). - Transfers to Local Councils: Le 91.1 billion against budget of Le 72.8 billion. - Poverty-related road sector expenditure increased by 90.0 percent above the budget of Le 73.3 billion (actual Works, Housing & Infrastructure: Le 139.3 billion; 21.9 percent of total poverty expenditure). - Sectoral shares of poverty-related expenditure (FY 2010 actuals and % of total poverty expenditure): - Health: Budget Le 50.4 billion; Actual Le 41.5 billion; 6.5 percent of total poverty expenditure. - Works, Housing & Infrastructure: Budget Le 73.3 billion; Actual Le 139.3 billion; 21.9 percent. - Agriculture: Budget Le 31.0 billion; Actual Le 28.0 billion; 4.4 percent. - Education: Budget Le 75.9 billion; Actual Le 69.5 billion; 10.9 percent. - Local Council: Budget Le 72.8 billion; Actual Le 91.1 billion; 14.3 percent. ### PRSP funding gap - Remaining financing gap for 2012 (as updated): Le 475 billion, equivalent to just over USD 100 million. - Note: 2011 budget was targeted, already in operation and fully-financed. ### Budget deficit and financing - Overall budget deficit (including grants) in 2010: Le 523.5 billion (6.9 percent of GDP) compared to Le 201.1 billion (3.1 percent of GDP) in 2009. - Primary deficit (overall deficit net of interest payments) increased to 6.2 percent of GDP from 3.9 percent of GDP in 2009. - Budget financing: - Domestic financing: Le 446.2 billion. - Foreign financing: Le 161.7 billion. ### Monetary and financial sector developments - Monetary policy objective: maintenance of price and financial sector stability; proactive stance to contain second-round effects of high international food and oil prices. - Bank of Sierra Leone (BSL) reforms: - Reviewed monetary policy framework in 2010. - Introduced the Monetary Policy Rate (MPR) early in 2011 to serve as the main instrument for conducting monetary operations in the secondary market and to signal monetary policy stance. - Introduced a Lombard facility set at a penal rate of 5 percent above the MPR for lender-of-last-resort liquidity supply. - Liquidity management: - BSL Liquidity Management Framework operational, based on regular monitoring of commercial banks’ daily reserves to guide monetary operations, particularly repo operations. - A more forward-looking liquidity framework introduced to strengthen open market operations. - Monetary aggregates: - Broad money and reserve money exceeded targets under the IMF programme in 2010 (specific growth rates not provided in the supplied text). *Source: Excerpt from the provided IMF report content (2010 fiscal and macroeconomic review).* ### 32.7 percent exceeding the programme target of 14 percent. Similarly, reserve ### _cr11195 - 32.7 percent exceeding the programme target of 14 percent. Similarly, reserve ### Monetary and money supply developments (2010) - Broad money expanded by 32.7 percent, exceeding the programme target of 14 percent. - Reserve money expanded by 34.6 percent, in breach of the IMF programme target of 7.5 percent. - Drivers of broad money expansion: - Net credit to Government grew by 88.3 percent. - Credit to the private sector increased by 31.5 percent at end 2010. - Components of reserve money growth: - Currency issued increased by almost 30 percent. - Commercial bank deposits with the central bank grew by 82 percent. - Interest rate movements in 2010: - Commercial bank savings rate: fell from 6.32 to 6.19. - 91-day treasury bills rate: increased to 24.5 percent at end 2010 from 14.0 percent at end 2009. - 180-day treasury bills rate: rose to 28.4 percent from 12.2 percent. - 365-day treasury bills rate: increased to 29.0 percent from 14.3 percent. - Treasury bearer bond rate: rose to 20 percent from 12 percent. - Prime commercial bank lending rate: fell slightly to 21 percent from 22 percent. - General lending rate: rose slightly to 30 percent from 29 percent. - Causes of rate increases: increased Government borrowing from the domestic banking system and higher inflationary pressures. ### Financial Sector Development activities and support - Implementation of the Financial Sector Development Plan commenced with assistance from development partners. - Trust fund financing arrangement agreed between Bank of Sierra Leone, World Bank, GTZ and KFW to be managed by the World Bank. - A grant of US$4 million was disbursed early this year by the World Bank to the Bank of Sierra Leone in support of the development plan. - Ongoing implementation activities under the plan: - Establishment of an interim Credit Reference Bureau, in line with the Government’s program with the IMF and in collaboration with IFC specialists. - Development of analytical tools and capacity building for banking supervision and development of the national payments system. ### Composition and structure of external debt (end December 2010) - Total disbursed, outstanding debt: US$ 767.9 million (end December 2010) versus US$ 692.6 million (end December 2009). Increase: 10.9 percent. - Increased disbursements from multilateral creditors: - IMF: US$ 40.1 million - World Bank: US$ 30.3 million - AfDB: US$ 16.2 million - Credit outstanding to other multilateral creditors declined from US$ 137.0 million to US$ 131.5 million. - Shares of external debt portfolio (end 2010 vs end 2009): - Multilateral: 61.9 percent (end 2010) compared to 56.9 percent (end 2009). - Commercial creditors: 30.1 percent (down from 34.7 percent). - Bilateral creditors: 7.9 percent (down from 8.4 percent). - Bilateral creditors (end 2010): - Debt owed to bilateral creditors: US$60.8 million (marginal increase of about US$ 2.0 million from end 2009). - Composition within bilateral category: - China: about 39.3 percent - Kuwait: 34.5 percent - India EXIM Bank: 22.6 percent - Saudi Fund: 3.45% - China emerged as the largest portfolio of non-Paris Club Bilateral debt following increased disbursement by the China EXIM Bank in 2008 to fund the telecommunications project. - Table 2.6.1 : Stock of External Debt (US$ million) - Multilateral: End Dec 2009 = 394.4 ; End Dec 2010 = 475.5 ; Annual change (%) = 20.6 - World Bank Group: 124.3 -> 154.6 ; 24.4 - IMF: 72.9 -> 113.0 ; 55.0 - ADB/F: 60.2 -> 76.4 ; 26.9 - Other Multilateral: 137.0 -> 131.5 ; -4.0 - Official Bilateral: 58.0 -> 60.8 ; 4.9 - Commercial Creditors: 240.2 -> 231.5 ; -3.6 - Total: 692.6 -> 767.9 ; 10.9 ### External debt service and commercial debt buy-back - Since HIPC Completion Point (December 2006), annual debt service payment obligations have declined by over US$25 million annually. - Total debt service payments in 2010: US$ 19.4 million compared to a projected payment of US$18.01 million. - Deviation due to higher amortisation in favour of external commercial creditors and effect of exchange rate movements in the basket of loan currencies. - Total estimated external commercial debt: US$240.2 million (end 2009) reduced to US$231.5 million (end December 2010). - IDA debt-buy-back operation: - World Bank approved a grant of US$950,000 in April 2009 to fund preparatory work. - Preparatory activities, including recruitment of financial and legal advisors, are in progress. - Implementation of the scheme is expected to take place in 2012. - The buy-back programme, once implemented, will result in significant reduction (over 90 percent) in Sierra Leone’s external commercial debt (currently about US$ 231.5 million). ### Domestic debt and interest payments (end December 2010) - Total stock of domestic debt instruments: Le1.16 trillion, reflecting an increase of 23.8 percent compared to end 2009. - Increase driven by conversion into Treasury securities of Le177.5 billion (NNIB) and Le45.3 billion (Ways and Means Advances). - Of converted NNIB: Le100 billion in the form of 5 years, 9 percent coupon paying bond for recapitalisation of Bank of Sierra Leone; residual in Special Treasury bills for monetary operations. - Table 2.6.2: Stock of Domestic Debt Instrument and Ways and Means Advances (in Le’m) - Treasury bills: End 2009 = 651,968.50 ; End 2010 = 771,053.35 ; % Change = 18.27 - 1-Treasury bond: 103,976.40 -> 107,666.45 ; 3.55 - Recapitalisation bond: 180,000.00 -> 280,000.00 ; 55.56 - Total: 935,944.90 -> 1,158,719.80 ; 23.80 - Ways & Means Advances: 0 -> 178,000 ; ... - Table 2.6.3: Treasury Securities by Tenor (in Le’M) - 91-day Treasury bills: 278,101.00 -> 291,303.65 ; 4.75 - 182-day Treasury bills: 124,304.30 -> 249,222.35 ; 100.49 - 364-day Treasury bills: 249,563.20 -> 230,527.35 ; -7.63 - 1-year Treasury bond: 103,976.40 -> 107,666.45 ; 3.55 - Recapitalisation bond: 180,000.00 -> 280,000.00 ; 55.56 - Total: 935,944.90 -> 1,158,719.80 ; 23.80 - Observed shifts in investor preferences: - Stock of 364-day Treasury bill fell by about 8 percent as investors moved resources to higher yielding 182-days bill, which stock increased by 100 percent. - Stock of 91-days bill and 1-year bond remained relatively unchanged. - Interest payments on domestic debt instruments and Ways & Means Advances: - Total interest payment in 2010: Le142,427.90 million versus Le88,803.32 million in 2009 ; % Change = 60.39 - Table 2.6.4: Interest Payments (in Le’m) - Treasury bills: 46,978.19 -> 65,317.08 ; 39.04 - Special Treasury bills: 10,637.85 -> 21,376.38 ; 100.95 - 1-year Treasury bond: 14,924.57 -> 11,853.98 ; -20.57 - Recapitalisation bond: 13,275.00 -> 22,950.00 ; 72.88 - Ways & Means Advances: 2,987.71 -> 20,930.46 ; 600.55 - Total: 88,803.32 -> 142,427.90 ; 60.39 - Projected interest payment for 2010: Le135 billion; actual interest paid: Le142 billion. - Difference attributed to unplanned interest payments on Ways and Means Advances (projected Le500 million; actual Le20.9 billion). ### Medium-term macroeconomic outlook and policy framework (2011-2013) - Real GDP growth projections: - 2011: 5.1 percent - 2012: 6 percent - 2013: 6 percent - Growth drivers: increased investment in basic infrastructure and energy, rise in agricultural productivity and huge investment in the mining sector, commencement of iron mining. - Inflation and reserves: - End-period inflation projected to decline to 7.5 percent in 2013, with aim to return to single-digit inflation. - Import coverage of gross foreign exchange reserves expected to decline from 5.4 months in 2010 to 3 months in 2013. - Fiscal policy (2011-13): - Domestic revenue projected to increase from 13.3 percent of GDP in 2010 to 13.6 percent in 2011 and 13.7 percent in 2013. - Measures: efficiency gains from GST, increase in royalties, improved tax administration and broadened tax base. - NRA institutional changes: establishment of a Domestic Tax Department integrating GST with the Large Tax Payers Office; application of penalties for late/non-filing and late payment; introduction of a small taxpayer regime. - BSL direct credit to Government through ways and means advances to be severely curtailed and used only under exceptional short-term circumstances. - Amendment to Government Budgeting and Accountability Act (GBAA) to require ex-ante parliamentary approval for supplementary budgets. - Monetary and exchange rate policy: - Monetary policy tightened to achieve single digit inflation by end of 2012 and beyond. - Reserve money projected growth: 19.0 percent at end 2012 and 15.8 percent at end 2013. - Fiscal tightening aimed at lowering T-bill interest rates. - BSL Act to be amended to limit the amount of credit extended to Government. - Introduction of a benchmark monetary policy rate as a signaling tool. - Commitment to a flexible exchange rate and enhancement of foreign exchange management: promote inter-bank foreign market transactions and move to a wholesale foreign exchange auction system. - Debt management policy: - Priority on debt sustainability; commitment to external borrowing on concessional terms. - A national Debt Law and procedures manual enacted by Parliament. - Improvements to debt data and reporting; CS-DRMS to be electronically linked with IFMIS. - World Bank-assisted commercial debt buy-back operation to eliminate external commercial creditor stock in 2011. - Government seeking World Bank and Fund assistance to develop a Medium-Term Debt Management Strategy (MTDS). - Domestic debt strategy: lengthen tenure of government debt instruments to between two to five years; collaborate to develop a long-term bond market involving commercial banks, NASSIT, and other non-bank financial institutions. ### Energy sector: progress, indicators, challenges and recommendations - Energy policy status: - An Energy Policy has been formulated and adopted by Cabinet and is awaiting ratification by Parliament. - Policy focus areas: - Develop a legal and regulatory framework for the energy sector. - Develop a Rural Electrification Strategy and Plan. - Promote energy efficiency and conservation measures. - Encourage renewable and alternative energy use for cooking, heating, cooling, lighting and other applications. - Make maximum profitable use of energy sources with little or no adverse environmental impact. - Performance indicators (Table 3.1.1 summary) - National electricity generation capacity: - Baseline (2008): 24MW - Target for 2010: 78.26MW - Status (2010): 87.7MW - Target for 2011: 104.5MW - Electricity generation capacity in W/A: - Baseline (2008): 17MW (Rented) - Target for 2010: 10MW (NPA) - Status (2010): 26.5MW - Target for 2011: 26.5MW - Electricity generation capacity in North: - Baseline (2008): 1.3MW - Target for 2010: 51MW - Status (2010): 51.2MW - Target for 2011: 67MW - Electricity generation capacity in South: - Baseline (2008): 2MW - Target for 2010: 5.26MW - Status (2010): 4MW - Target for 2011: 5MW - Electricity generation capacity in East: - Baseline (2008): 6MW - Target for 2010: 6MW - Status (2010): 6MW - Target for 2011: 6MW - % of households with access to electricity: - Baseline (2008): 7% - Target for 2010: 8.5% - Status (2010): - - Target for 2011: - - % of electricity lost during transmission & distribution: - Baseline (2008): 40% - Target for 2010: 35% - Status (2010): 45% - Target for 2011: 30% - % of billed electricity revenue collected: - Baseline (2008): 78% - Target for 2010: 88% - Status (2010): - - Target for 2011: 90% - Recent capacity and infrastructure developments: - Electricity supply in Freetown rose from 5MW in 2007 to over 60 megawatts following commissioning of the JICA funded 10MW plant at Kingtom Power Station and start of Bumbuna Hydro Power operations. - New power plants in Eastern Freetown (Blackhall Road Power Station) will add another 16.5MW. - Installation of 33kV lines in Freetown and the Western Area, including a sub-station in Regent, is about 75% complete; expected to increase T&D transport capacity from 30MW to about 45MW by end of 2011. - Bo/Kenema thermal plants being overhauled to provide a steady 5MW; upgrade of Dodo hydroelectric plant to 12MW planned. - 6MW plants installation in Lungi and Koidu/New Sembehun in Kono underway; completion by end 2011. - Bumbuna Town and Kamanke receiving supply; Makeni, Magburaka and Lunsar to benefit; plans to increase Bumbuna capacity ten-fold via construction of a second dam. - Mini hydro-electric dams planned at Makali, Charlotte and Port Loko (Bankasoka) with Chinese government funding; EU-supported technical activity for Moyamba hydro facility. - Solar street lights installation in Freetown and district headquarter towns to commence with EBID and Government funding. - Solar electrification pilots in rural communities (Konta Line, Mamusa, Blama Massaquoi, Kissy Koya, Makandeh and Mambioma); solar technical college constructed at Konta Line; materials for electrification of 5000 rural homes have arrived. - Key challenges in the sector: - Uncertainty of donor funding; access to EU funding and additional funds required. - Line losses of electricity generated. - Problems with revenue collection, including illegal connections. - Risk of damage to single transmission lines for Bumbuna and Dodo hydroelectric plants. - Recommendations: - Timely disbursement of donor funds. - Proper metering and accounting for revenues. - Increased monitoring of illegal abstraction of energy, instituting energy recovery charges and penalties. - Load balancing; upgrade voltage levels to 33/11kV to reduce technical losses and accommodate increased power generation. - Gradual phasing out of obsolete equipment (causing high losses) with modern low loss equipment. *Source: IMF country report content from _cr11195 - 32.7 percent exceeding the programme target of 14 percent. Similarly, reserve* ### 3.2 Developing the National Transportation Network ### 3.2 Developing the National Transportation Network ### All weather road works - Trunk road construction is underway in every corner, region and district of Sierra Leone. - Completed and near-completed projects: - The 164km Masiaka-Bo highway completed in March 2010 under EU government funding. - The 64km Bo-Kenema highway started in March 2008 and completed in February 2010. - Application of tarmac on the 86km second phase Freetown-Conakry road is at advanced stage and are expected to be completed by mid 2011. - Projects under construction or advanced planning: - The 21.2km Tokeh-Lumley road—original contractor Burhan terminated; contract awarded to CSE with design adjusted to a four-lane road from Lumley to Hamilton. - The 87km Kenema-Pendembu section of the Kenema-Kailahun highway, with expected completion in 2013. - The construction of the 4.2km Hillside Road—Pademba Road to Blackhall Road, with the Pademba road – Berry street section expected to be completed by end 2011. - The reconstruction and widening of the 5km Wilkinson road to a four dual carriage and expected to be completed by July 2011. - Feasibility studies and detailed engineering design completed for the construction of a 97km Bandajuma-Man0 River Bridge highway. - The construction of the 62km Port Loko-Lungi road. - Plans underway to begin construction of Matotoka-Koidu road, partly funded by the ADB, and the Makeni-Kamakwe road. - The EU is funding upgrading of the Makeni-Kabala highway and the Bo to Bandajuma highway, including city streets in Freetown. ### Freetown City and Provincial Headquarter Town Road Works - Construction of township streets is underway in all cities and district headquarter towns. - Rehabilitation of 25 km of roads in Freetown is at an advanced stage. - Work in progress in Bo, Kenema, Makeni, Magburaka, Port Loko and Kambia. - Contracts awarded for Koidu, Kailahun, Moyamba, Kabala, Bonthe and Pujehun. ### Feeder Roads - Feeder road development is considered crucial for improving local communities' access to markets. - Delivery of assistance follows the government's Feeder Road Policy Framework. - Achievements and ongoing work: - About 555km of feeder road were completed in 2010 in Bombali, Tonkolili, Kailahun, and Kono district. - Feeder road works in other districts progressing, including Kambia, Port Loko, Kenema and Pujehun that commenced in September 2008 and were rated at 70 percent completion in the last quarter of 2010. - Donor-funded programmes and coverage: - There are about 10 ongoing donor funded feeder road programmes with government counterpart funding across the country. - The World Bank funded Rural and Private Sector Development Programme covering all districts with a total of 780km Feeder Road Component. - Other donors include the African Development Bank, the Islamic Development Bank, the International Fund for Agricultural Development, the European Union, and the German kfW. - If successfully completed, these projects are expected to deliver 3,232km of feeder road for agricultural and other sectoral development. ### Challenges (transport/feeder road sector) - Negative attitude by some contractors; - Capacity of service providers weak in terms of skilled workers; - Delayed disbursement of funds from development partners; and - Low wages fail to attract youths for labour-intensive based road works. ### Recommendations (transport/feeder road sector) - Contractors should be well trained in preparing technical estimates for road projects and must be familiar with the project environment and terrains, while hiring trained road foremen to supervise projects; - The SLRA should supervise all road construction and /or rehabilitation to ensure good quality standards; - Need for constant monitoring of works from central and sectoral offices, especially local councils; and - Yimely payment of wages to workers as well as market wages. *Source: 3.2 Developing the National Transportation Network — _cr11195 - 3.2 Developing the National Transportation Network* ### 3.5 Education ### 3.5 Education ### Access to Education - Legislative framework and policies to promote access to schooling exist and have been implemented. - Many more children are attending school than ever, as shown in Table 3.5.1: - Gross Primary Enrolment: 1,291,355 (2005/6); 1,356,688 (2006/7); 1,324,968 (2007/8); 1,353,723 (2008/9); N/A (2009/10) - Gross JSS Enrolment: 150,917 (2005/6); 179,710 (2006/7); 195,215 (2007/8); 252,162 (2008/9); N/A (2009/10) - NPSE Passes: Boys: 63,917 (2005/6); 69,774 (2006/7); 74,731 (2007/8); 74,970 (2008/9); 72,429 (2009/10) - NPSE Passes: Girls: 24,142 (2005/6); 29,918 (2006/7); 31,696 (2007/8); 33,743 (2008/9); 33,448 (2009/10) - BECE Passes: Boys: 12,909 (2005/6); 15,036 (2006/7); 14,851 (2007/8); 16,481 (2008/9); 18,539 (2009/10) - BECE Passes: Girls: 5,701 (2005/6); 7,622 (2006/7); 7,692 (2007/8); 8,692 (2008/9); 9,721 (2009/10) - Source – West African Examination Council, N.P.S.E- National Primary School Examination, B.E.C.E- Basic Education Certificate Examination - School census (preliminary) indicates many more schools now than before, with more primary schools constructed than other levels during 2008-2010. - Current proportion of JSS and SSS schools relative to primary schools indicates urgent need to accelerate secondary-level access. - Low growth of secondary schools leads to: - Denial of opportunity for many pupils to complete basic education. - Mismatch between primary and JSS establishments, causing JSS and SSS overcrowding. - Higher pupil-teacher ratios that may negatively impact school performance. - Despite construction of hundreds of JSS, they remain inadequate for the tens of thousands completing primary education; priority actions recommended (see Recommendations). ### Gender Dimension - Government prioritizes girl-child support program to improve retention of girls at secondary level and eliminate gender disparity. - UNICEF and USAID are significant partners. - Gender enrolment gap has narrowed considerably at primary level. - BECE performance for girls shows an upward trend (see BECE Passes: Girls figures above). ### School Feeding Programme - Many children, especially in rural communities, go to school without breakfast. - WFP School Feeding Program provides nutrient-rich diets addressing health and educational needs. - WFP schools report high retention rates for both boys and girls and good academic performance. - Children benefiting from WFP School Feeding Program are less than 300,000. - National School Feeding Program would: - Increase access significantly. - Improve academic performance. - Significantly minimize child stunting; Pujehun District reported highest stunting at 55 percent. ### In-Service Training and Code of Conduct for Teachers - In-service training provided by Government and development partners, mostly targeted at primary school teachers. - Distance education in-service programme for unqualified teachers has expanded nationwide. - A code of conduct for teachers was developed; training-of-trainers workshops organized. - Teachers in all districts are now familiar with the code. ### Monitoring Delivery of Textbooks and School Materials - A Task Force was constituted to oversee delivery of school materials, including textbooks; membership included MEST, MOFED, Ministry of Local Government and Rural Development, the Police, and the Office of National Security. - The Task Force ensured required quantity and quality of school materials were distributed to the 19 Local Councils. ### Textbook–Pupil Ratio - Textbook-pupil ratio in 2009 was 3:1. On average, this ratio remained the same in 2010. - Schools under SABABU and PLAN support programmes had a ratio of 1:1 in 2010. - SABABU project supplied 1,000,000 sets of textbooks to primary schools and 100,000 to secondary schools. ### Education Management Information System (EMIS) - Directorate of Policy and Planning of MEST trained inspectors and supervisors in data collection and reporting for the 2010 national school census; data imputed and report to be published. - Computers, software and accessories procured to strengthen EMIS. - EMIS staff trained in software utilization by UNESCO Institute of Statistics. - Conclusion: EMIS has been strengthened. ### Challenges - Poor storage facilities for textbooks and other Teaching and Learning materials at the District Education Offices. - Poor staffing and capacity at the District Education Offices. - Lack of office equipment and stationery in some District Education Offices. - Lack of Junior Secondary Schools in some localities. - Lack of qualified teachers in remote areas. - Only a few schools have staff quarters for their teachers; lack of staff quarters, especially in rural communities, is a disincentive for qualified teachers to work in remote areas. ### Recommendations - Provide regular in-service training for secondary school teachers and strongly encourage school-based in-service training. - Provide staff quarters and other incentives for teachers in remote areas. - Increase staff strength in the EMIS Unit of MEST. - Establish a National School Feeding programme. - Construct more junior secondary schools and train more teachers. - Strengthen the monitoring of delivery and management of school materials. - Improve storage facilities for textbooks and other learning materials in District Offices. *Source: _cr11195 - 3.5 Education* ### introduction of the FHP. ### introduction of the FHP. ### Challenges (Free Healthcare Programme and PHUs) - Poorly equipped health facilities - Shortage of trained and qualified health personnel - In adequate financial resources for provision of services - Poor conditions of services for health care staff. - Coordination of health Sector Resources - Weak Capacity of Local Councils to manage devolved functions - Insufficient resources to setup an appropriate health care financing system. - Delay on the part of Parliament and cabinet to make decision on policy issues relating to establishment of NPPU. Additional challenges highlighted in the 2010 M&E Report by MoFED on the Implementation of the Free Healthcare Programme: - Poor storage facilities for drugs and medical equipment - Waiting time at clinical centres was reported to be long across the country due to shortfall in supply of medical personnel - Lack of electricity supply in medical centres; some use candle lights or touch light for deliveries. - Lack of basic consumables like protective gloves for safe deliveries and dealing with blood products. - Insufficient delivery beds at PHUs; a number of them mostly use couches or regular hospital beds which are not safe for deliveries. - Lack of hospital beds and mattresses; in some centres, most mattresses are worn out and there are no bed covers. - Some PHUs are still in a dilapidated state, needing urgent repairs. - Inadequate finances for the day-to-day running of the PHUs; this poses serious problem to procure basic services like cleaning and others. There are still cases where patients are not brought to health centres in time. - Water facilities at PHUs still leave a lot to be desired. - Staff shortage is reported in most PHUs visited. ### Recommendations (Free Healthcare Programme and M&E) - The Ministry of Health and Development Partners have developed a COMPACT Agreement towards strengthening the health sector service delivery. The implementation of this agreement should be prioritized in 2011. Recommendations highlighted in the 2010 M&E Report by MoFED on the Implementation of the Free Healthcare Programme: - The Government to undertake a comprehensive needs assessment for informed and sustainable provision of assistance towards the implementation of the free healthcare policy across the country. - Mount sensitization and education campaign on the Free Healthcare Policy to ensure sufficient information of the public on those targeted by the policy and obligations by all stakeholders to ensure effective implementation of the policy. - Education could also help to change people’s attitude towards healthcare seeking behaviour to ensure timely visits to and consultation with health centres by targeted beneficiaries. - Increase motivation of the medical personnel and consider improving on the imprest situation of PHUs to ensure that they are able to procure basic materials and services for the day-to-day running of the facilities. - To increase provision of basic needs such as delivery materials, beds, mattresses, water supply, storage facilities, and drugs. - Government should continue with its determination to improve the national road system, with special focus on feeder roads to increase access of communities by medical personnel. --- ### HIV/AIDS — Overview and Strategic Pillars - Objective: prevent HIV/AIDS, provide treatment, care and support, and mitigate the socio-economic impact caused by the disease. - National AIDS Secretariat (NAS) intensified activities toward Universal Access, UNGASS and MDG 6. - In 2010, Sierra Leone won the MDG Award in halting and beginning the reverse of HIV/AIDS. - The National HIV/AIDS Secretariat identified 5 key pillar activities to be implemented between 2010 and the first quarter of 2011: - The Know your Epidemic, Know your Response (KYE, KYR) — Implementation Period: May–Aug 2010 - The Final Joint Programme Review of the NSP 2006-2010 — Implementation Period: Aug 2010 - National Strategic Plan on HIV/AIDS 2011-2015 — Implementation Period: Oct 2010 - Feb. 2011 - National HIV/AIDS M&E Plan 2011-2015 — Implementation Period: Dec. 2010 - Feb. 2011 - National Operational Plan 2011-2012 — Implementation Period: Feb. – March 2011 - Pillars aligned to Agenda for Change, UN Joint Vision for Sierra Leone and UNAIDS 2009 – 2015 Strategic Outcome Framework; aim to achieve MDG 6 HIV-related targets by 2015. - NAS established in the Office of the President; operates on principles of participation, national capacity building, ownership, buy-in and evidenced-based planning; collaborates with UN, World Bank, Global Fund, Irish Aid, DfID, GIZ, KfW and others. - HIV prevalence among the general population stabilized at 1.5% since 2005 (Population-based sero-prevalence 2005 and 2008 Demographic Health Survey). - Antenatal Surveillance Study: HIV prevalence among pregnant women declined from 3.5% in 2009 to 3.2% in 2010; trend expected to continue with PMTCT scale-up. ### HIV/AIDS — Outcome Indicators (Summary as in Table 3.7.1) - Number of PLHIVs who received ART in the last 12 months: Baseline (Dec 2009) 6,592; Target for Dec 2010 8,501; Status as December 2010 5,606; % Achievement 66 - Number of Condoms Distributed: Baseline 9,000,000; Target for Dec 2010 10,299,615; Status as December 2010 10,744,810; % Achievement 104 - Number of Health care facilities Providing STI services: Baseline 850; Target for Dec 2010 950; Status as December 2010 1,050; % Achievement 111 - Number of Pregnant women receiving complete course of ARV prophylaxis: Baseline 3,095; Target for Dec 2010 3,338; Status as December 2010 2,642; % Achievement 79 - HIV/AIDS prevalence amongst Antenatal clinic attendants: Baseline 3.5%; Target for Dec 2010 3.2%; Status as December 2010 3.0%; % Achievement 100 ### HIV/AIDS — Notes on Indicator Performance - Number of PLHIVs receiving ART: As at December 31 2010, 5,606 PLHIV (Adults and Children) were on treatment; target of 8,501 not met due to death and loss to follow-up; discussions with partners (e.g., WFP) ongoing for nutritional and other support to encourage adherence. - Condoms distributed: Achievement at 10,744,810 against target 10,299,615 for December 2010; distribution via social marketing (CARE International) and free distribution by district health management teams and CBOs. - Health facilities providing STI services: As at end June 2010 the number stood at 1,050 against a target of 950 for December 2010; emphasis now on improving quality through capacity building and provision of essential drugs. - Pregnant women receiving complete ARV prophylaxis: Target not met due to introduction of WHO-recommended triple combination therapy replacing single dose Nevirapine; systematic follow up of HIV positive women in third trimester and scale-up plan for PMTCT and Paediatric Care services being implemented. - Antenatal clinic prevalence: 20 sentinel sites established; antenatal clinic sentinel surveillance of 2008 showed downward trend; most recent survey in October 2009 revealed full achievement of target 3.0% for end 2010. ### HIV/AIDS — Trends in Indicators (INDICATORS 2005–2010) - Number of PLHIVs who received ART in the last 12 months: 475, 1253, 2359, 4810, 6,592, 5,606 - Number of Condoms Distributed: 802,800; 2,377,390; 5,028,364; 7,704,505; 10,744,810 - Number of Health care facilities Providing STI services: 207, 541, 682, 850, 850, 1,036 - Number of Pregnant women receiving complete course of ARV prophylaxis: 35, 291, 1179, 1735, 3,095, 2,642 - HIV/AIDS prevalence amongst Antenatal clinic attendants: 3.9%, 4.1%, 4.4%, 3.5%, 3.5%, 3.0% ### HIV/AIDS — Challenges - Sustainability of the national response: 2006/2007 NASA documented 98% of resources for national response coming from external sources. With closure of World Bank financing, GF contribution anticipated in the range of 85% – 90%. Response remains heavily reliant on external sources; dependence on donor funding for nearly 95% of the national response; almost exclusive dependence on the Global Fund. - Coordination: Increased and dispersed number of civil society organizations across the country makes it challenging to integrate their activities in local/national planning and coordination structures; need to integrate activities into existing coordination and planning mechanisms and establish more structures where interventions cannot fit existing structures. - HIV stigma and discrimination: Awareness improving slowly; many people living with the virus still subjected to stigma and discrimination; basic awareness present but lack in-depth knowledge addressing stigma. - Lack of integrated planning at district level: District AIDS Committees established but district response initiatives show lack of integrated planning; Councils non-health and District Health Management Team appear to work in isolation; HIV/AIDS remains a vertical programme with lack of mainstreaming into comprehensive council plans. - Overstretched health care infrastructure: Shortages of skilled health and non-health personnel; Free Healthcare initiative for pregnant, lactating and under-fives has over-stretched infrastructure in coping with additional demand for PMTCT and paediatric care services; roll-out plan for PMTCT and Paediatric care not supported with adequate communication activities. - Challenge of reaching most-at-risk populations (MSM, SWs, IDUs): No documented effective best practice interventions; dearth of information about HIV infection and spread among different groups; stigma and illegality (homosexuality illegal) leading to ostracization and underestimation; need regular Integrated biological and behavioural surveys among prisoners, IDUs, SWs, and MSM. ### HIV/AIDS — Lessons - Establishment of several partnerships in the national response leads to shared responsibilities in the national response fulfilling the multisectoral approach government adopted in 2001. - Integration of HIV/AIDS services into the national healthcare delivery system leads to sustainability. - Provision of free HIV delivery services increased accessibility and affordability. - Decentralization of HIV implementation increases wider coverage. - Greater involvement of people living with HIV/AIDS helps reduce stigma and discrimination. ### HIV/AIDS — Recommendations - Mainstreaming HIV/AIDS in line ministries Operational Plans - Improved Policy and Legal Environment for HIV Prevention, Treatment, Care and Support Programmes - Improved collaboration with the private sector - Fulfilling the ‘three ones principles’ --- ### Water and Sanitation — Policy and Objectives - New National Water and Sanitation Policy of December 2010 launched January 2011. - Main objectives: - To develop a comprehensive framework for management of water resources - To address cross-sectoral interests in water resources - To improve the provision of safe water supplies and sanitation facilities in urban and rural areas - To ensure stakeholders participate in the management of water resources - To put in place implementation strategies for sustainable development and management of water resources in the gradual changing role of the Government ### Water and Sanitation — Outcome Indicators (Table 3.8.1) - % of population with access to safe drinking water: Baseline (year 2005) 47% (2005 MICS3); Target for 2010 62% (a 3% annual increment) - Note: Government has targeted water supply service provision in some district headquarter towns and provision of rural water supply grants to Local Councils; World Bank LCDSP program and donors (JICA, AfDB, IDB, Government of Sierra Leone, etc.) provide support. - % of households with access to improved sanitation: Baseline 30% (2005 MICS3); Target for 2010 49.5% (at 3.9% annual increment) - Note: Government introduced Community-Led Total Sanitation (CLTS) with a no-subsidy approach; scaling up CLTS has resulted in increased coverage in some areas. ### Water and Sanitation — Access and Implementation Notes - While unlikely demands of water sector will be met during current PRSP ending 2012, considerable efforts ongoing to lay foundation for interventions; sector policy and strategic framework developed and launched. - Urban water supply: Level of services in urban areas remained considerably low; many rely on bottled water, well, spring, tanks. Financing and projects: - EXIM Bank of India: urban water supply improvement planned for Lungi, Kailahun and parts of Freetown (White Water, Allen Town, Wellington-Cemetery Blue, Thunder Hill, Looking Town). - ADB and DFID funding rehabilitation in Bo, Kenema and Mekeni. - Government funding pipe borne water systems for Mile 91/Yonibana, Port Loko, Lunsar, Sumila/Sorie Towns in Freetown, Moyamba, Kamakwie, Gbendembu, Magburaka, and gravity-fed system between Calaba Town and Masiaka. - JICA supporting Kambia town water supply. - Rural water supply: Government supports rural water services through councils; World Bank decentralized grants support rural water supply; UNICEF and NGOs provide assistance. - Rural sanitation: CLTS (subsidy-free) focuses on behaviour change; hand-washing with soap integral to CLTS approach. ### Water and Sanitation — Challenges - Inadequate human resource at national and local level - Slow pace of sector policy implementation - Limited co-operation and collaboration amongst actors towards a harmonized and co-ordinated approach to supporting the water sector - Procurement bottlenecks ### Water and Sanitation — Recommendations - Popularise water sector policies - Strengthen sector M&E system - Strengthen sector capacity at national and local level *Source: _cr11195 - introduction of the FHP.* ### 3.9 Gender ### 3.9 Gender ### Overview - The government demonstrates a sustained commitment to mainstreaming gender and children’s issues into national and sectoral development plans and programmes. - Continued prioritization of the girl-child support programme to improve retention rate of girls in school and to minimise gender disparity. - Development partners have played a significant role in advancing girl-child education. - The gender enrolment gap has been narrowed considerably at the primary level. - The performance of girls at the BECE examination has been showing upward trend. ### Programs and institutions - The government has set up Sexual and Gender-Based Violence Committees around the country to ensure conduct within the legal framework of the three Gender Acts: the Domestic Violence Act, the Devolution of Estate Act, and the Customary Marriage and Divorce Act as well as the Child Right Act. - An operational guideline has been developed for the formation of Child Welfare Committee, a frontline unit within the provision of the Child Rights Act for preventing and responding to issues of child abuse, neglect, exploitation and violence against children. - About 70 such committees have been formed across the country. ### International commitments and reporting - The Government commissioned an action plan for the implementation of UN Security Council Resolution 1325 and 1820 focusing on prevention and protection of women from sexual violence especially in conflict and post-conflict periods. - The government produced the sixth report on the implementation of the Convention on the Elimination of all forms of Discrimination Against Women (CEDAW). ### Challenges - Low budgetary allocation. - Inadequate human and logistical support. - Lack of effective sectoral coordination in addressing gender problems. ### Recommendations - Increase financial, technical and logistical support to the Ministry of Social Welfare, Gender and Children’s Affairs. - Carry out a mapping of all institutions implementing gender related issues to improve coordination and ensure coherence and synergies among various actors in the sector. *Source: _cr11195 - 3.9 Gender* ### 4.1 Public Financial Management Reform ### 4.1 Public Financial Management Reform ### Overview - The Government is continuing its Public Financial Management (PFM) reform programme with support from World Bank, the European Commission, the Department for International Development in UK and the African Development Bank. - A new phase—the Integrated Public Financial Management Programme (IPFMRP)—has been entered into to further strengthen reforms. - The IPFMRP addresses PFM reforms under five major components: (i) strengthening macrofiscal coordination and budget management; (ii) reinforcing the control system for improved service delivery; (iii) strengthening central finance functions; (iv) assisting non-state actors’ oversight; and (v) project management. ### Legal and Regulatory Framework - Consultations initiated to revise: Local Government Act 2004 (and decentralisation policy approved by Cabinet), Government Budgeting and Accountability Act, 2005 and Procurement Act 2004 plus relevant regulations. - Government Budgeting and Accountability Act, 2005 and Financial Management Regulations, 2007: - A team of consultants contracted to facilitate review in collaboration with Parliament, Ministry of Finance and Economic Development (MoFED), Accountant General’s Department (AGD), Audit Service Sierra Leone (ASSL) and Law Reform Commission. - A draft "Options and Issues Paper" submitted and widely discussed; further consultations (including MDAs and Local Councils) planned. - An accelerated plan to revise the GBAA and FMR to include “Public Investment Programme” is underway; a revised bill entitled “The Government Budgeting and Accountability (Amendment) Act 2010” already drafted. - Public Procurement Act, 2004 and Procurement Regulations, 2006: - NPPA continued consultative process for proposed revisions; National Consensus Forum held in March 2010 chaired by the Solicitor-General. - Consultations with members of Parliament undertaken; further consultations planned. - National Debt Law: - Public Debts Management Unit of MoFED championed a sensitisation seminar in March 2010 for legislative framework and procedures manual for public debts management. - The national debt law will: define sub-national borrowing limits and procedures; regulate on-lending, issuing Government guarantees, monitoring contingent liabilities; track private sector external borrowing and reporting. - Procedures manual to outline loan contracting, disbursement and debt service payments. - A Bill entitled "Public Debts Management Act 2010" has been ratified by Parliament. ### Macroeconomic Fiscal Framework (MEFF) and Medium-Term Expenditure Framework (MTEF) - Establishment of Macro-fiscal Section: - A Macro-Fiscal Section now functions within the Economic Policy and Research Division, MoFED to generate macroeconomic fiscal projections. - Supported by Integrated Macroeconomic Modelling and Forecasting Steering Group (IMMF) comprising MoFED, Bank of Sierra Leone (BSL), Statistics Sierra Leone (SSL) and National Revenue Authority (NRA). - Financial Programming and Policies Model: - An IMF-styled Financial Programming and Policies Model (Sierra Leone Integrated Macroeconomic Model – SLIMM) developed for 2011-2013 medium term budgeting period and beyond. - Two sets of consultative retreats/training programmes organised for stakeholders on SLIMM utilisation for the MTEF 2011 – 2013. - Approval and implementation: - The MTEF budget for 2010 approved by Parliament was implemented with monthly budget outturn reports produced and made available to vote controllers; quarterly allocations to MDAs were gazetted. - Strengthening budget process in MDAs: - Seven Budget Officers recruited in April 2010 and received extensive induction training. - Training on GoSL’s 27-digits Chart of Account and IFMIS reporting provided. - Some Budget Officers assigned to key IFMIS rolled-out MDAs to deepen the MTEF process. - Continuous training and support for budget officers in strategic plan preparation; Budget Bureau monitoring support. - Special training programmes for Budget Committees across MDAs undertaken; reviews of budget calendar and MTEF guidelines completed. - 2011 – 2013 MTEF: - Budget call circular issued; policy hearings and budget discussions conducted for all MDAs in August 2010. - Focus on PRSP 2—Agenda for Change strategic priorities: Enhancing National Electricity, Developing the National Transportation Network, Enhancing Productivity in Agriculture and Fisheries and Sustaining Human Development. - Policy hearings included Budget Oversight Institutions and other Non-State Actors. - Budget Bureau, LGFD and other MoFED divisions supported MDAs and local councils in budget preparation; country-wide consultative meeting on budget process organised by Ministry of Energy and Water Resources and jointly facilitated by Budget Bureau and LGFD. - MTEF in Local Councils: - Chiefdom Councils received technical support targeting Treasury Clerks and Central Chiefdom Finance Clerks (CCFCs) of the one hundred and forty nine (149) chiefdoms via a six-day consultative process. - LGFD engaged devolved sector stakeholders and local councils in August 2010 via a four-day seminar attended by Central Government Officials, Mayors and Chairpersons of Local Councils, Chief Administrators, Finance Officers and Professional Heads; clarified grants distribution for 2011. - PFMRU liaised with Budget Bureau and LGFD to coordinate training on development of 2011-2013 budget in accordance with PRSP 2—Agenda for Change; IFMIS for Central Government and Petra Financials for Local Councils utilised. - MoFED provided technical support to Freetown City Council (FCC) during a "Strategic Sector Planning Retreat" to prepare MTEF strategic sector plans and annual work plans for 2011; funding gaps identified. - Monitoring the Budget Process: - District Budget Oversight Committees (DBOCs) undertake regular monitoring; periodic meetings chaired by Director Internal Audit MoFED. - Special training programmes for DBOC members conducted. - Training extended to non-state actors (civil society organisations) to monitor MTEF; Non-State Actors actively participated in policy and budget hearings. ### Revenue Generation - ASYCUDA++ (Automated System for Customs Data Analysis) fully launched in April 2010 by NRA after a test run earlier in the year; facilitates trade data capture and minimizes physical contact at Customs. - Clearing Agents trained on ASYCUDA++; expected improvements: online lodging of customs declaration, auto-channelling and profiling of importers to improve recording and accountability of Customs revenues. - Customer charter developed with Anti-Corruption Commission approved by NRA Board. - Goods and Services Tax (GST) introduced earlier in the year; enhanced sensitisation drive instituted. - Plans underway for construction of eleven (11) border offices and customs posts; locations identified and architect’s report available; to be supplemented by cargo inspection equipments, infrastructure and border surveillance vehicles. - A Domestic Tax Department (DTD) established, headed by a Commissioner and assisted by a Deputy Commissioner; fully operational overseeing taxpayer services, returns and payments processing, collection, enforcement, debt management and investigation. ### Public Debt Management - Debt Management Performance Assessment (DEMPA): - Initial DEMPA undertaken last year covering debt management strategy, evaluation of debt management operation, coordination with fiscal and monetary policy, legal framework and auditing, loan guarantees and contingent liabilities. - PDMU ensured compliance with basic international standards; fragmented legal framework being addressed via new national debt law. - Consultations in last quarter 2010 to develop an internal self-assessment team per DEMPA guidelines, identify performance gaps from 2009 DEMPA report and propose recommendations for improved ratings. - Debt Sustainability Analysis (DSA): - A national DSA Workshop undertaken in August 2010 to update national debt strategy and strengthen capacity to apply DSA-LIC methodology. - Participants included officials responsible for macroeconomic management, external and domestic debt recording and analysis, aid coordination and management, poverty reduction programme MoFED and BSL; sessions facilitated by Director of Debt Management, WAIFEM. - Public Debt Bulletin: - Annual public debt bulletin for 2009 released (publication since 2005) providing updates on debt management developments and risks. - Debt Buy-Back: - PDMU facilitating external commercial debt buy-back operation in accordance with the second external commercial debt reduction programme; process underway. - Medium to Long Term Government Bonds: - PDMU, in collaboration with the Central Bank and other financial sector stakeholders, organised an initial consultative workshop to develop an issuance strategy for medium to long term government bonds. ### Public Procurement - Procurement Forum: - NPPA organised a procurement forum in February 2010 with public and private sectors, non state actors and development partners; updates on 2008 forum resolutions and 2009 procurement conduct provided. - Next procurement forum scheduled for January 2011. - Development of a Procurement Cadre: - NPPA engaged stakeholders including Human Resource Management Office to establish a procurement cadre with specific procurement officers recruited for MDAs. - Thirty (30) procurement officers recruited into the civil service during the fourth quarter and assigned to various MDAs. - Capacity Building: - University of Sierra Leone introduced Procurement as majors in degree courses. - Several training programmes organised for procurement personnel in Central Government and Local Councils. - A one-day sensitization seminar for Councillors in the Western Area and private sector service providers conducted in September 2010 on “Procurement for sustainable economic development in Sierra Leone”; topics included procurement structures, private sector roles, procurement monitoring and delivery, common bidding errors, award procedures, procurement ethics and corruption. - Sensitization extended regionally to Councillors and service providers in the Provinces during last quarter of 2010. - Procurement Monitoring: - Continuous monitoring of procurement units in MDAs and Local Councils by NPPA; monitoring reports available. - A joint Country Procurement Assessment Review (CPAR) by World Bank and NPPA completed; report available. - A general price survey and development of a price norm for 2010 completed in August 2010 and disseminated to MDAs and Local Councils as a guide for procurement officers. - Procurement Operations: - In support of 2011 budget, MDAs submitted draft procurement plans for 2011 to NPPA; final procurement plans submitted to MoFED and NPPA. ### Accounting and Recording - Reporting: - The Accountant General produced financial statements for the year ended 31st December 2009 by 31st March 2010 in accordance with regulations; submitted to the Auditor General. - The unaudited Financial Statements for year ended 31st December 2009 and statement of fiscal operations (consolidated fund) for period January – November 2010 have been published on the MoFED website. - Strengthening of AGD: - Nineteen (19) employees recruited at Accountant General’s Department (AGD) in May 2010; induction training conducted. - Extra budgetary/subvented agencies and donor funded projects: - Training on designing processes to strengthen reporting by Project Implementation Units and Extra Budgetary/Subvented Agencies to AGD jointly conducted by AGD and Budget Bureau for Vote Controllers and Accountants; attended by over two hundred (200) participants. - Other Government Accounts Units of AGD continue to monitor and capture quarterly returns from these Agencies and produce regular information. - Stores Control: - Training for Stock Verifiers and Stores Clerks in all MDAs nationwide on standard procedures in stores control conducted by AGD in June 2010. ### Other PFM Reform Areas - Progress made in: public sector human resource management; roll-out of integrated Financial Management Information System; introduction of ICT in MoFED; financial management in Local Councils; aid coordination; monitoring and evaluation of development programs; internal audit; strengthening participation of external oversight actors—Audit Service Sierra Leone, Parliament and Non-governmental Organisations. - For detailed progress, refer to “The Public Financial Management Reform Status Update Reports for 2010” obtainable from the Public Financial Management Reform Unit in MOFED or visit the website: www.mofed.gov.sl. ### Key Challenge - Heavy reliance on contract staff to undertake key PFM reforms over the years. - Main challenge: mapping out an exit strategy to ensure sustainable human resource capacity in MoFED as the number of contract staff declined overtime. *Source: _cr11195 - 4.1 Public Financial Management Reform* ### 4.2 Strengthening the Civil Service ### 4.2 Strengthening the Civil Service ### Staff Rationalization / Recruitment of critical skills - PSRU engaged with the Human Resource Management Office (HRMO), the Public Service Commission (PSC), and the Secretary to the Cabinet and Head of the Civil Service to enhance Civil Service productivity. - Actions taken: - Job Descriptions for all Civil Service Positions were reviewed and updated. - Civil Service numbers reduced from 17,560 in 2007/2008 to 13,631 in March 2010 (although this increased to 15,703 in May 2010 and steadily increased due to recruitment to service the Free Healthcare Initiative). - Recruitment and staffing: - By November, over 300 technical positions across MDAs had been filled through the Public Service Commission (PSC). - In December, the PSC advertised over 150 posts in both the technical and administrative divisions across the Civil Service. - The recruitment process is on-going and will be concluded in early 2011. - Rightsizing efforts: - Identification of obsolete positions for permanent removal and a number of staff were identified for retrenchment. - Rightsizing to be implemented with caution to ensure minimal long-term costs to human development and stability. ### Teacher Record Management Project - Context and scope: - Of the 74,268 public sector workforce, there are over 35,377 Teachers. - Creation and management of a personnel file for every teacher initiated to support a clean payroll and credible human resource database. - Funding and implementation: - On 10 August 2010, GoSL provided PSRU Le464.8m as payment for Component One of the First Phase (creation of Files for Teachers). - Component Two payment of the first phase of Le435.2m was also released, bringing total GoSL funding for the first phase to Le900m. - Work commenced mid August by the IRMT/RMIP; an interim Presentation was made on 2 September 2010. - Outputs and next steps: - Between September and December, the Records Management Team sorted and reviewed over 112,000 Teachers Records Forms held at Ministry of Education, and created files for every teacher (35.305) currently on the Accountant General’s Payroll at MEYS. - Next phase (due early 2011): physical verification to match files with individual teachers, followed by consolidation including electronic scanning and linkage to the payroll. - A data-testing exercise reinforced the need for the Second Phase physical verification. - Discussions nearing completion with the ADB for funds to embark on the second and final phase. ### The Civil Service Code, Regulations and Rules - Rationale: - Existing “Regulations and Rules” were deemed obsolete for a fast-moving, knowledge-based environment. - Need to overcome entrenched attitudes as part of the Change Process. - Action: - A new “Civil Service Code, Regulations and Rules” has been drafted and will be presented to H.E. the President in early January. - The document is described as a “must read” for all Public Servants. ### Improvements in Systems and Tools - ICT modernization: - Action commenced to modernize the ICT platform with modest supplies of essential equipment to the Cabinet Secretariat, HRMO, PSC and PSRU. - E-Government: - With UNDP support, an E-Government Unit and supporting Steering Committee established at the Ministry of Information and Communications to ensure a common platform for Government and fast-track the E-Governance project (a significant component of the National ICT Policy). ### Training and Training Policy - Need: - Since closure of the Civil Service Training College, training had been uncoordinated and ad hoc; a National Training Policy has been drafted to ensure periodic capacity development for Civil Servants. - 2010 capacity-building activities: - PSRU and HRMO designed and implemented training programmes for Middle and Senior Level Civil Servants in Records Management, Human Resource Management, Public Policy and Policy Analysis, Procurement Management, Civil Service Ethics, Business Writing and Communication, Strategic Leadership and Management, Local Governance and Devolution, etc. - Over 150 Middle and Senior Civil Servants benefitted from weekend seminars and short courses. - In September, 40 middle/senior Administrative officers attended a Strategic Leadership and Change Management Programme at IPAM. - In November and December 2010, four training sessions targeted 93 middle/senior civil servants (funding by UNDP under the existing PSR Framework). - Civil Servants received higher level training supported by the African Capacity Building Foundation at GIMPA and ACBF-funded training within the Mano River Union Basin. - Also, 75 officials of the Ministry of Lands, Country Planning and the Environment completed Phase I of GIS training at Fourah Bay College, University of Sierra Leone. - Records and Human Resource Officers benefitted from relevant training programmes at the PSRU. ### Creation of Policy and Planning Units and Development of Service Charters - Purpose of Policy and Planning Units: - To support Ministers in developing ministerial plans, policies and strategic frameworks aligned with Work Plans and performance contracts. - To help implement strategies from Management and Functional Reviews, provide analysis and research, and monitor implementation progress. - Service Charters: - Development planned across MDAs to allow beneficiaries to assess institutional performance and service quality and inform beneficiaries of their responsibilities. - Specifically, Service Charters will: - Make public institutions and public servants accountable - Ensure value for money - Ensure value for customers/clients/citizens - Ensure transparency - Ensure the right to information without compromising security - Adopt a stakeholder approach - Maximize the use of time - Prevent Corruption ### Monitoring Visits to Ministries - In 2010, PSRU conducted three main sessions of monitoring visits to Ministries to complement monitoring of implementation of MFR recommendations. - Focus areas during visits: - Progress of implementation, constraints, way forward, and human resource strength of Ministries. - Comprehensive staff lists and vacancy profiles were collected from each Ministry. - Data analysis informed recruitment and manpower planning and provided remedial action. *Source: _cr11195 - 4.2 Strengthening the Civil Service* ### 4.7 Tourism ### 4.7 Tourism ### Sector policy and institutional developments - The government has continued to pay great attention to the tourism sector, given its potential to contribute revenue towards national development. - A Strategic Tourism Action Plan has been developed. - Plans are underway to develop a National Tourism Policy and to review the 1990 Tourism Development Act. ### Visitor arrivals and outlook - Tourist arrivals have been fluctuating in the last three years. - The number of visitors is expected to rise as the economy continues to boom, security improves, and branding of the country is stepped up. ### Key statistic — Tourist (Visitors) Arrival (Table 4.7.1) - 2008: 35,679; 35,688 - 2009: 26,122; 26,152 - 2010: 31,271; 31,271 *Source: _cr11195 - 4.7 Tourism* ### 6.2 General Recommendations ### 6.2 General Recommendations ### General policy and implementation recommendations - Develop a comprehensive policy framework to regulate behaviour of contractors in Sierra Leone; - Ensure timely release of donor funds for projects; - Ensure sustained/continuous monitoring of all infrastructural projects and the Free Healthcare Programme; - Develop a comprehensive M&E Policy and procedures for Sierra Leone; - Ensure integration of district M&E and Planning Units with the national M&E system to ensure routine and regular reporting of development programme by District Councils to MoFED; - Strengthen the functionality of Regional Planning Offices to ensure effective coordination of District Planning and M&E Units; - Strengthen the work of the District Budget Oversight Committees and integrate them into the national M&E system; - Enhance domestic revenue, especially from the mining sector; - Seek additional donors to support the Agenda for Change; - Build strong capacity in the civil service to ensure effective delivery of basic services on a timely basis. ### Annex 1: Updated estimated PRSP financing gap (In Le ‘000) - Note: Financing Gap is calculated for future spending in the PRSP II period, i.e., FY 2012. - Strategic Priorities 2009-12 - PRS Estimate: 568,430; 414,090; 360,850; 1,208,532; Total 2,551,902 - Actual Spending: 646,759; 891,590; 959,186; 816,461; Total 3,313,996 - Financing Gap for 2012: 392,071 - Enhancing National Electricity - PRS Estimate: 119,150; 76,100; 61,750; 269,516; Total 526,516 - Actual Spending: 202,297; 236,240; 170,588; 177,463; Total 786,589 - Financing Gap for 2012: 92,053 - Developing National Transportation - PRS Estimate: 187,750; 123,500; 128,750; 471,997; Total 911,997 - Actual Spending: 140,810; 256,264; 289,428; 254,821; Total 941,323 - Financing Gap for 2012: 217,176 - Enhancing Productivity in Agriculture and Fisheries - PRS Estimate: 86,900; 59,600; 48,500; 135,674; Total 330,674 - Actual Spending: 102,093; 113,768; 144,422; 121,590; Total 481,872 - Financing Gap for 2012: 14,084 - Promoting Human Development - PRS Estimate: 174,630; 154,890; 121,850; 331,345; Total 782,715 - Actual Spending: 201,560; 285,318; 354,747; 262,587; Total 1,104,213 - Financing Gap for 2012: 68,758 - Preconditions for achieving the strategic priorities - PRS Estimate: 162,167; 139,820; 110,190; 226,629; Total 638,806 - Actual Spending: 110,143; 192,187; 140,401; 171,726; Total 614,457 - Financing Gap for 2012: 54,902 - Consolidating Peace, Good Governance and Security - PRS Estimate: 123,862; 107,450; 93,965; 202,986; Total 528,263 - Actual Spending: 93,277; 109,892; 121,243; 149,423; Total 473,835 - Financing Gap for 2012: 53,563 - Growing the Private Sector - PRS Estimate: 17,500; 12,000; 9,500; 10,412; Total 49,412 - Actual Spending: 13,280; 75,730; 8,837; 10,387; Total 108,233 - Financing Gap for 2012: 25 - Building and Sustaining a Responsible Financial Sector - PRS Estimate: 2,500; 1,500; 1,000; 1,096; Total 6,096 - Actual Spending: -; -; -; -; Total - - Financing Gap for 2012: 1,096 - Framework for Effective Management of Natural Resources - PRS Estimate: 18,305; 18,870; 5,725; 12,135; Total 55,035 - Actual Spending: 3,586; 6,565; 10,322; 11,916; Total 32,389 - Financing Gap for 2012: 219 - Capacity Building, Coordination, Monitoring and Evaluation - PRS Estimate: 52,650; 70,100; 41,250; 45,210; Total 209,210 - Actual Spending: 38,396; 110,441; 77,998; 17,239; Total 244,073 - Financing Gap for 2012: 27,971 - Building Public Sector Capacity - PRS Estimate: 28,900; 52,600; 25,500; 27,948; Total 134,948 - Actual Spending: 23,307; 101,230; 55,990; 8,013; Total 188,541 - Financing Gap for 2012: 19,935 - Stregthening Parliamentary and Civic Oversight - PRS Estimate: 7,250; 6,500; 6,250; 6,850; Total 26,850 - Actual Spending: 9,666; 8,310; 22,007; 6,461; Total 46,445 - Financing Gap for 2012: 389 - Monitoring and Evaluation of PRSP - PRS Estimate: 16,500; 11,000; 9,500; 10,412; Total 47,412 - Actual Spending: 5,422; 900; -; 2,765; Total 9,088 - Financing Gap for 2012: 7,647 - Grand Total - PRS Estimate: 783,247; 624,010; 512,290; 1,480,371; Total 3,399,918 - Actual Spending: 795,297; 1,194,218; 1,177,585; 1,005,426; Total 4,172,526 - Financing Gap for 2012: 474,944 *Source: _cr11195 - 6.2 General Recommendations* --- _Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2011/_cr11195.pdf_