Central African Republic - Economic and Financial Reform Support Programme

Project Summary

Approval Date	21 Mar 2017
Signature Date	14 Apr 2017
Planned Completion Date	31 Dec 2017
Last Disbursement Planned Date	31 Dec 2017
Sovereign / Non-Sovereign	Sovereign
Sector	Multi-Sector
DAC Sector Code	11330
Environmental Category	3
Commitment	U.A 12,280,000
Status	Completion

Project General Description

The Economic and Financial Reform Support Programme (PAREF) is an extension of the Emergency Support Programme for Emerging from the Crisis and Economic Recovery (PUASCRE). PUASCRE has supported the transitional government in restoring the capacities of the financial and social administrations. The PAREF will take the form of a Programmatic Support Operation (PSO) covering the 2016 and 2017 fiscal years. It incorporates more structuring measures to help relaunch the economy and improve public finance management. The Programme will have an impact on the country's economic growth and social situation. The programme will contribute to (i) improving tax collection; (ii) improving transparency and the budget execution rate, especially in the social sectors and; (iii) consolidating economic growth through an improvement of the business climate and governance in productive sectors (agriculture, forestry and mining). The programme will have two components, namely (1) Improvement of tax revenue mobilisation and public expenditure management and (2) Improvement of the business environment and governance in productive sectors. The two components are complementary and help revive economic growth in CAR. Tax revenue mobilisation and improved public finance management will enable government to gradually create the fiscal space to support economic recovery.

Project Objectives

PAREF’s goal is to contribute to the improvement of public financial management and the revival of economic growth. It seeks to consolidate the improvement of public finance management and support the revival of productive sectors.

Beneficiaries

The final beneficiaries of the Program are the same as those of the previous Programme. They are the Central African populations as a whole, i.e. nearly 4.9 million inhabitants, and in particular the vulnerable populations. The programme will directly benefit the Government by helping to close the financing gap.

Participating Organization

Funding

African Development Fund

Funding

Fragile States Facility

Implementing

Ministère des Finances et du Budget

Information

IATI identifier	46002-P-CF-K00-006
Last Update	31 Jul 2021

Export

Contact Details

Name	LUMBILA Kevin Numbi
Email	k.lumbila@afdb.org

Geographic Location

Country	Central African Republic

Project Classification

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

Commitments

U.A 12,280,000

African Development Fund

U.A 2,700,000

Fragile States Facility

U.A 8,020,000

Fragile States Facility

U.A 1,560,000

Disbursements

Repayments (Interest & Loan)

Document Type	Language	Document
	en	General Conditions 2009
Appraisal report	en	CAR- Approved- Econmic and Financial Reform Programme
Appraisal report	fr	RCA - Approuvé- Programme d appui aux réformes économiques et financières

Indicator	Indicator Measure	Target Year	Target Value	Actual Year	Actual Value
Improving tax revenues	%	2017	8,7	2017	8,1
Improving transparency in procurement	%	2017	50	2017	70
Preparation of a Progress Report on the status of exemptions granted by the Interministerial Committee on Tax and Customs Exemptions	None	2017	Report available before the end of October 2016	2017	Preliminary report available
Revision of the legal, regulatory and institutional framework for granting and managing exemptions	None	2017	Revision of the framework before June 2017	2017	Framework not yet revised
Census of taxpayers and updating of the taxpayer file in the new tax management system (SYSTEMIF4)	None	2017	Census conducted and Taxpayer File updated prior to June 2017	2017	Census in progress and SYSTEMIF4 being installed
Revision of derogating conventions expiring in 2016	None	2017	Review of all relevant agreements before June 2017	2017	Conventions not yet revised
Validation of the expenditure execution procedures manual - trigger - and development of the budget preparation guide	None	2017	Manual and guide developed before September 2016	2017	Manual and guide being finalised
Adoption of texts relating to the appointment of credit managers and administrators for a better definition of the terms of their appointment and their attributions	None	2017	Text adopted before June 2017	2017	Texts in the process of adoption
Public procurement audit	None	2017	Audits carried out in 2017 for the years 2012-2015	2017	Audit carried out for the years 2012 - 2015
Evaluation of losses and damages suffered by companies during the events in 2013	None	2017	Report on loss assessment validated in 2016 and measures adopted in 2017	2017	Evaluation of losses in progress
Adoption of an internal arrears clearance plan for the 2012-2014 period	None	2017	Arrears clearance plan adopted before June 2017	2017	Audit of domestic arrears 2012-2014 being finalised
Development of specifications for migration to a new integrated public finance management system	None	2017	Specifications drawn up in 2017	2017	Audit of the existing system (GESCO) carried out and elaboration of the specifications in progress
Operationalisation of the Dispute Resolution Committee at the "Agence de régulation des marchés publics (ARMP)"	None	2017	Appointment of Dispute Resolution Committee members in 2017	2017	The members of the Dispute Resolution Committee have not yet been appointed
Operationalisation of the "Guichet unique de formalisation des entreprises (GUFE)" (Window for Business Formalisation)	None	2017	GUFE manual and procedures for financial and accounting management implemented before June 2017	2017	GUFE does not have a manual of procedures and an accounting and financial management system
Establishment of a National Guarantee and Support Fund for the Private Sector	None	2017	Study finalized in 2016 and organization of a round table for the capitalization of the Fund carried out before the end of 2017	2017	Study on the National Guarantee and Support Fund for the Private Sector in progress
Operationalisation of an approved management centre within the Chamber of Commerce of Industry, Mines and Handicrafts (CCIMA)	None	2017	Study finalised in 2016 and a Management and Administrative Board operational in 2017 in Bangui	2017	Study in view of the creation of an approved management centre in progress
Update of the National Programme for Agricultural Investment, Food Security and Nutritional (PNIASAN)	None	2017	PNIASAN Updated before 30 October	2017	PNIASAN being updated - preliminary report available
Adoption of a decree on implementing legislation for the environment code	None	2017	Decree on the implementing texts of the environment code - Text adopted in 2017	2017	Prepared environmental code application texts
Relaunch of cotton and food crop production by clearing the State's arrears to the operators in the sector	None	2017	Cleared sector arrears in 2017	2017	State arrears to the sector not cleared in 2015
Carrying out a study on forest taxation and parafiscality with a view to making the timber harvesting sector competitive	None	2017	Study on forest taxation finalised in 2016 and new taxation adopted in 2017	2017	Study in progress
Re-launching mining production through the continued implementation of measures to bring diamond production areas into full compliance with the Kimberley Process	None	2017	Reach at least ten diamond production zones declared compliant in 2017	2017	Four Diamond Production Areas Declared Compliant in September 2016
Revision of the Mining Code to improve the attractiveness and industrialization of the sector	None	2017	New mining code adopted in 2017	2017	Mining code under review