Benin - Economic Competitiveness Support Programme (PACEB)

Project Summary

Approval Date	31 Oct 2018
Signature Date	12 Nov 2018
Planned Completion Date	30 Jun 2020
Last Disbursement Planned Date	30 Jun 2020
Sovereign / Non-Sovereign	Sovereign
Sector	Multi-Sector
DAC Sector Code	11330
Environmental Category	3
Commitment	U.A 7,000,000
Status	Completion

Project General Description

The Economic Competitiveness Support Programme (PACEB-I) is a set of two programmatic budget support operations spanning Fiscals 2018 and 2019, with a total funding budget of UA 13 million. This new reform support operation comes in continuation of the Benin Energy Sector Support Programme (PASEBE) approved in 2017 by the Bank to support essential emergency measures put in place by the Government to address the country’s severe energy crisis. PACEB is divided into two complementary components, namely (i) Strengthening the investment environment and (ii) Improving energy governance and inclusion. These two components contribute to the implementation of reform measures aimed at removing the main constraints on competitiveness of Benin’s economy and reducing spatial disparities in access to energy. This support constitutes the first phase I of The program (PACEB-I).

Project Objectives

PACEB aims to contribute towards creating conditions conducive to strong and inclusive economic growth by boosting Benin's economic competitiveness. More specifically, the programme will contribute to: (i) the establishment of a legal and regulatory framework conducive, on the one hand, to the development of a structured private sector that creates added value and, on the other hand, to the optimization of public investment; and (ii) strengthening energy sector governance to fill the energy gap and ensure more inclusive access.

Beneficiaries

PACEB’s direct beneficiaries are the Ministry of the Economy and Finance through financing of the national budget, the Ministry of Energy, AER, SBEE, CEB and all private sector actors. Indirectly, the programme will benefit the Benin population as a whole. It will definitely lay the groundwork for a structural transformation of the economy around viable private and public investment projects that are engines of strong and sustainable economic growth and socioeconomic well-being thanks in particular to the induced improvement in basic public services (health, education, drinking water, etc.), private sector development, job creation and reduction of urban social insecurity.

Participating Organization

Funding

African Development Fund

Implementing

GOUVERNEMENT DE LA REPUBLIQUE DU BENIN MINISTERE DES FINANCES

Information

IATI identifier	46002-P-BJ-K00-005
Last Update	06 Feb 2023

Export

Contact Details

Name	SOW Koudeidiatou
Email	i.sow@afdb.org

Geographic Location

Country	Benin

Coordinates	Location Name
6.36736 2.4225	Cotonou
9.5 2.25	Benin

Project Classification

Finance Type	Aid Loan Excluding Debt Reorganisation
Flow Type	ODA
Aid Type	General Budget Support

Commitments

U.A 7,000,000

African Development Fund

U.A 4,830,000

African Development Fund

U.A 2,170,000

Disbursements

Repayments (Interest & Loan)

Document Type	Language	Document
Evaluation Report	fr	PN10957 SR FR
Project Completion Report	fr	PR11059 SR FR
Appraisal report	en	Benin AR- Economic Competitiveness Support Programme PACEB APRV
Appraisal report	fr	Benin RE- Programme dappui a? la compe?titivite? e?conomique du Benin PACEB APRV
Evaluation Report	fr	viewer

Indicator	Indicator Measure	Target Year	Target Value	Actual Year	Actual Value
Production capacity	MW	2018	354	2020	209,5
KWh cost	XOF	2018	150	2020	110
Households’ access to electricity in rural areas	%	2018	8	2020	8,66
Private investment rate (as percentage of GDP)	%	2018	22,4	2020	22,6
Adoption of the draft investment code by the Government	None	2018	Yes	2020	Achieved
Adoption of the bill on MSMEs by the Government	None	2018	Bill on MSMEs adopted	2020	Achieved
Adoption of the national policy on private investments promotion	None	2018	National policy on private investments promotion adopted	2020	Achieved
Creation of the Sèmè pilot special economic zone	None	2018	Decree establishing the zone and approving management plans adopted	2020	Under development
Presentation of PPP liabilities effective annex to the 2019 Finance Act	None	2018	PPP liabilities presented in annexes to the Finance Act 2019 and 2020	2020	Not achieved
Preparation and publication of selection criteria for Public Investment Projects	None	2018	PIP selection criteria are posted on the MEF and MPD websites	2020	Achieved
PIP selection criteria are posted on the MEF and MPD websites	None	2018	Implementing decrees of the unified and official legal framework	2020	Achieved
Production and publication of audits of 2015 - 2017 public procurements	None	2018	The 2015 to 2017 audit reports published	2020	Partially achieved
Adoption of the Benin Electricity Code bill by the Government	None	2018	Code bill adopted	2020	Achieved
Adoption by the Government of the bill on renewable energies	None	2018	Bill on renewable energies adopted	2020	Achieved
Adoption of the technical cooperation protocol between SBEE and ABERME for access to electricity	None	2018	Technical cooperation protocol between SBEE and ABERME for access to electricity signed	2020	Partially achieved
Conduct of an impact assessment of the new tariff policy on households	None	2018	The impact assessment of the new tariff policy on households validated	2020	Achieved
Adoption by the Government of the national regulatory framework for off-grid electrification	None	2018	Decree on the regulatory framework for off-grid electrification adopted	2020	Achieved
Economic growth rate	%	2018	7,1	2020	2,3
Competitiveness index	Scale (1 - 100)	2018	71	2020	45,82
Value added of the industrial sector	%	2018	9	2020	9,87
Trade balance deficit	%	2018	12,19	2020	5,6
Establishment of the legal framework to formalise the creation of the GUCE (Single Window for Foreign Trade)	None	2018	New decree establishing, powers and functioning of the GUCE	2020	Achieved
Conduct of a study on the creation of a fund to support access to finance for MSMEs and promote women's entrepreneurship	None	2018	Study report validated in 2019	2020	Achieved
Installation and operationalisation of the Cotonou Commercial Court and the Porto Novo Court of Appeal	None	2018	Judges and Consular Advisers of the Cotonou Commercial Court and the Porto Novo Commercial Court of Appeal are installed in 2018 (Installation report) and include 6% of women	2020	Under development
Adoption of the implementing decrees of law n° 2016-25 of 04 November 2016 on the organisation of competition in the Republic of Benin	None	2018	Adoption of the decrees application of law n° 2016-25	2020	Under development
Adoption of the implementing decrees of the unified and official legal framework for Public-Private Partnership	None	2018	Implementing decrees of the unified and official legal framework for Public - Private Partnership	2020	Achieved
Finalisation of the computerization process of the land management system for a total dematerialisation of the property transfer	None	2018	Achieved	2020	Achieved
Adoption of the Decree on the updated catalogue of PPPs 2018	None	2018	Updated catalogue of PPPs 2018 and validated by decision of the Minister of State for Planning and Development	2020	Achieved
Adoption of the Decree on the updated catalogue of PPPs 2019	None	2018	Updated catalogue of PPPs 2019 and validated by decision of the Minister of State in charge of Planning and Development	2020	Achieved
Adoption by the Government of updated strategic plans for the development of the industry and trade sectors	None	2018	Statement of the Council of Ministers adopting updated strategic plans for the development of the industry and trade sectors	2020	Not achieved
Update and validation of a manual (or guide) on public investments planning, selection and programming	None	2018	Regulatory instrument on manual (or guide) on public investments planning, selection and programming adopted in 2018	2020	Achieved
Strengthening Public Investment Planning: Evaluation and External Review	None	2018	Regulatory texts instructing the obligation of feasibility studies and the thresholds for carrying out evaluation and external review available	2020	Achieved
Adoption of the decree on determination of the basis and methods for collecting the regulation charge	None	2018	Decree on the method of determining the basis and conditions for collecting the regulation charge adopted by the Council of Ministers in 2019	2020	Achieved
Determination of the methods of calculation, recovery of license fees, authorisation and declaration of operation of electrical installations in Benin	None	2018	Joint Order of Ministers in charge of Energy and of Finance laying down the methods of calculation, recovery of license fees, and authorisation and declaration of operation of electrical installations in Benin adopted in 2018	2020	Achieved
Multi-year Expenditure Planning Document (DPPD) 2019 and 2020 of the Ministry of Energy, gender sensitive	None	2018	DPPD 2019 validated in 2018 and 2020 validated in 2019 by the Ministry of Energy contain specific gender promotion subprograms	2020	Achieved