Benin - Economic Competitiveness Support Programme (PACEB)

Project Summary

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

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	07 Aug 2020

Export

Contact Details

Name	SOW Koudeidiatou
Email	i.sow@afdb.org

Geographic Location

Country	Benin

Project Classification

Finance Type	N/A
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
	en	General Conditions 2009
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

Indicator	Target Year	Target Value
Power capacity installed	2017	174
KWh cost	2017	150
Households’ access to electricity in rural areas	2017	8
Private investment rate (as percentage of GDP)	2017	19,3
Adoption of the draft investment code by the Government	2017	Yes
Adoption of the bill on MSMEs by the Government	2017	Bill on MSMEs adopted
Adoption of the national policy on private investments promotion	2017	National policy on private investments promotion adopted
Creation of the Sèmè pilot special economic zone	2017	Decree establishing the zone and approving management plans adopted
Effective presentation of PPP	2017	Presentation of PPP
Preparation and publication of selection criteria for Public Investment Projects	2017	PIP selection criteria are posted on the MEF and MPD websites
PIP selection criteria are posted on the MEF and MPD websites	2017	Implementing decrees of the unified and official legal framework
Production and publication of audits of 2011 - 2017 public procurements	2017	The 2011 to 2017 audit reports published
Adoption of the Benin Electricity Code bill by the Government	2017	Code bill adopted
Adoption by the Government of the bill on renewable energies	2017	Bill on renewable energies adopted
Adoption of the technical cooperation protocol between SBEE and ABERME for access to electricity	2017	Technical cooperation protocol between SBEE and ABERME for access to electricity signed
Conduct of an impact assessment of the new tariff policy on households	2017	The impact assessment of the new tariff policy on households validated
Adoption by the Government of the national regulatory framework for off-grid electrification	2017	Decree on the regulatory framework for off-grid electrification adopted