Benin - Economic Competitiveness Support Programme (PACEB)

Benin - Economic Competitiveness Support Programme (PACEB) - PHASE II

Project Summary

Approval Date	15 Jul 2019
Signature Date	13 Aug 2019
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 5,042,277
Status	Completion

Project General Description

The proposed operation concerns the extension of a loan of UA 3,497,974 and a grant of UA 1,544,303 from the resources of the African Development Fund (ADF) to the Republic of Benin for the financing of Phase II of its Economic Competitiveness Support Programme (PACEB-II). PACEB is a programme-based series comprising two consecutive General Budget Support (GBS) operations covering the 2018 and 2019 fiscal years. With overall financing of UA 13 million, PACEB aims to remove the major constraints on Benin's economic competitiveness and narrow the spatial disparities in energy access by supporting, on the one hand, the establishment of a legal and regulatory framework as well as appropriate infrastructure conducive to the development of a well-performing private sector and, on the other hand, strengthening energy sector governance with a view to closing the energy gap and making energy access more inclusive. Phase II of the Programme will continue with support for further reforms required to achieve the programme's goal and the specific expected results, including: (i) sustainable increase in private investment; creation of greater industrial value added and; (iii) increase in electricity supply and improved energy inclusion through increased installed generating capacity and promotion of off-grid electrification. The budget support resources supporting PACEB II will also contribute towards partially bridging the 2019 budget’s financing gap, which stands at CFAF 274.3 billion.

Project Objectives

PACEB-II is Phase II of PACEB whose key objective is to contribute towards creating favourable conditions for strong and inclusive economic growth, by improving Benin's economic competitiveness. More specifically, the programme will contribute towards: (i) establishing a legal and regulatory framework conducive, on the one hand, to the development of a structured private sector that creates value added and, on the other hand, to public investment optimisation; and (ii) strengthening energy sector governance with a view to closing the energy gap and making energy access more inclusive. The programme addresses the country’s key challenges and constraints.

Beneficiaries

PACEB’s direct beneficiaries are the Ministry of the Economy and Finance through financing of the national budget, Ministry of Energy, Electricity Regulatory Authority (ARE), Benin power company (SBEE), Bi-national power company (CEB) and all private sector actors. Indirectly, the programme will benefit Benin’s population at large. It will lay the groundwork for a structural transformation of the economy around viable private and public investment projects, which constitute drivers of strong and sustainable economic growth and socio-economic well-being thanks particularly to the induced improvement of basic public services (health, education, drinking water, etc.), private sector development, job creation and reduced urban insecurity.

Participating Organization

Funding

African Development Fund

Implementing

MINISTERE DES FINANCES ET DE L'ECONOMIE

Implementing

Ministère des Finances et de l'Economie

Information

IATI identifier	46002-P-BJ-K00-006
Last Update	24 Mar 2023

Export

Contact Details

Name	Koudeidiatou SOW
Email	i.sow@afdb.org

Geographic Location

Country	Benin

Coordinates	Location Name
6.36736 2.4225	Cotonou

Project Classification

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

Commitments

U.A 5,042,277

African Development Fund

U.A 3,497,974

African Development Fund

U.A 1,544,303

Disbursements

Repayments (Interest & Loan)

Document Type	Language	Document
Appraisal report	fr	viewer
Appraisal report	en	viewer
Evaluation Report	fr	viewer
Evaluation Report	fr	viewer
Project Completion Report	fr	PR11059 SR FR

Indicator	Indicator Measure	Target Year	Target Value	Actual Year	Actual Value
Production capacity	MW	2019	354.0	2020	209,5
KWh cost	XOF	2019	150.0	2020	110.0
Households’ access to electricity in rural areas	%	2019	8.0	2020	8,66
Private investment rate (as percentage of GDP)	%	2019	22,4	2020	22,6
Adoption of the draft investment code by the Government	None	2019	Yes	2020	Achieved
Adoption of the bill on MSMEs by the Government	None	2019	Bill on MSMEs adopted	2020	Achieved
Adoption of the national policy on private investments promotion	None	2019	National policy on private investments promotion adopted	2020	Achieved
Creation of the Sèmè pilot special economic zone	None	2019	Decree establishing the zone and approving management plans adopted	2020	Under development
Presentation of PPP liabilities effective annex to the 2019 Finance Act	None	2019	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	2019	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	2019	Implementing decrees of the unified and official legal framework	2020	Achieved
Production and publication of audits of 2015 - 2017 public procurements	None	2019	The 2015 to 2017 audit reports published	2020	Partially achieved
Adoption of the Benin Electricity Code bill by the Government	None	2019	Code bill adopted	2020	Achieved
Adoption by the Government of the bill on renewable energies	None	2019	Bill on renewable energies adopted	2020	Achieved
Adoption of the technical cooperation protocol between SBEE and ABERME for access to electricity	None	2019	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	2019	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	2019	Decree on the regulatory framework for off-grid electrification adopted	2020	Achieved
Economic growth rate	%	2019	7,1	2020	2,3
Competitiveness index	Scale (1 - 100)	2019	71.0	2020	45,82
Value added of the industrial sector	%	2019	9.0	2020	9,87
Trade balance deficit	%	2019	12,19	2020	5,6
Installation and operationalisation of the Cotonou Commercial Court and the Porto Novo Court of Appeal	None	2019	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
Establishment of the legal framework to formalise the creation of the GUCE (Single Window for Foreign Trade)	None	2019	New decree establishing, powers and functioning of the GUCE	2020	Achieved
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	2019	Adoption of the decrees application of law n° 2016-25	2020	Under development
Conduct of a study on the creation of a fund to support access to finance for MSMEs and promote women's entrepreneurship	None	2019	Study report validated in 2019	2020	Achieved
Adoption of the implementing decrees of the unified and official legal framework for Public-Private Partnership	None	2019	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	2019	Achieved	2020	Achieved
Adoption of the Decree on the updated catalogue of PPPs 2018	None	2019	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	2019	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	2019	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	2019	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	2019	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	2019	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	2019	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	2019	DPPD 2019 validated in 2018 and 2020 validated in 2019 by the Ministry of Energy contain specific gender promotion subprograms	2020	Achieved