Republic of Congo - National Capacity Building by ihe44077

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									                    AFRICAN DEVELOPMENT FUND




               DEMOCRATIC REPUBLIC OF CONGO


         NATIONAL CAPACITY BUILDING PROGRAMME
                    SUPPORT PROJECT
                       (PANPURC)



                     Project Completion Report




GOVERNANCE; ECONOMIC AND FINANCIAL MANAGEMENT DEPARTMENT
(OSGE)                                             September 2007
                                     TABLE OF CONTENTS

Currency Equivalents; Exchange Rate Trend; Fiscal Year; List of Annexes; Acronyms   Pages
and Abbreviations; Executive Summary; Basic Project Data; PANPURC Logical           i-x
Framework Matrix
                                                                                    1
I.     INTRODUCTION
                                                                                    1
II.    PROJECT OBJECTIVES AND FORMULATION                                           1
2.1    Project Objectives                                                           2
2.2    Project Description                                                          2
2.3    Project Origin and Formulation                                               2
2.4    Preparation, Appraisal, Negotiations and Approval                            2

III.   PROJECT IMPLEMENTATION                                                       2

3.1    Effectiveness                                                                2
3.2    Project Modifications and Supervision                                        3
3.3    Implementation Schedule                                                      3
3.4    Reporting                                                                    4
3.5    Procurement of Goods and Services                                            4
3.6    Costs, Sources of Finance and Disbursements                                  5

IV.    PROJECT RESULTS AND PERFORMANCE                                              6

4.1    Results per Component and Operational Performance                            8
4.2    Institutional Performance                                                    8
4.3    Management and Organizational Effectiveness                                  8
4.4    Staff Strengthening, Training and Retraining                                 9
4.5    Performance of the Suppliers and Consultants                                 9
4.6    Financial and Economic Performance                                           9

V.     SOCIAL AND ENVIRONMENTAL IMPACT OF THE PROJECT                               9

5.1    Social Impact                                                                9
5.2    Environmental Impact                                                         9

VI.    PROJECT SUSTAINABILITY                                                       9

VII    PERFORMANCE OF THE BANK, DONEE AND
       EXECUTING AGENCY                                                             10

7.1    Performance of the Bank                                                      10
7.2    Performance of the Donee                                                     10

VIII. OVERALL PERFORMANCE AND RATING                                                10

IX.    CONCLUSIONS, LESSONS AND RECOMMENDATIONS                                     11

9.1    Conclusions                                                                  11
9.2    Lessons                                                                      11
9.3    Recommendations                                                              11
                                    LIST OF ANNEXES



Annex I             :        Administrative Map of the Democratic Republic of Congo
Annex II     :       Performance Indicators and Rating
Annex III    :       Project Training at 31 March 2006
Annex IV     :       Performance of Goods and Services Contracts updated at 20 May 2006
Annex V      :       Breakdown of Project Equipment by Type and by Beneficiary
Annex VI     :       Summary of Resources and Applications by Expenditure Category and
                     Source of Finance
Annex VII    :       Utilization of the Revolving Fund
Annex VIII   :       Financial Implementation by Component, from June 2002 to 18 May 2006
Annex IX     :       Financial Implementation by Expenditure Category




                                       APPENDICES


Appendix 1   :      Audit Report
Appendix 2   :      Financial Report
Appendix 3   :      Supplementary Note




This Completion Report was prepared by Mr. M. SOUISSI, Chief Country Economist, ORCE
(Ext. 2366) and a Consultant, following their mission to the Democratic Republic of Congo from
05 to 16 December 2006. The report was reviewed and amended by Mr. M. B. I. BOUABDALLI,
Senior Economist, OSGE (Ext. 2478). Any queries on the document may be referred to Mr. G.
NEGATU, Director, OSGE (Ext. 2077) and Mrs. M.KANGA, Division Manager. OSGE.2 (Ext.
2251).
                               i

                CURRENCY EQUIVALENTS

      At Appraisal                    At PCR Preparation
       (July 2001)                      (December 2006)
Currency unit = Congolese       Currency unit = Congolese Franc
          Franc                               UA 1
      UA 1 = SDR1
  UA 1 = USD 1.26065                  UA 1 = USD 1.45029
             Currency unit = Congolese Franc (CDF)



                EXCHANGE RATE TREND

             Period                Exchange rate UA/CDF
                                   (annual averages)
             2003                  424.234416
             2004                  572.930916
             2005
         December 2006             665.214




                       FISCAL YEAR
                  1 January to 31 December
                                   ii

                ACRONYMS AND ABBREVIATIONS

ACBF          African Capacity Building Foundation
ADB       :   African Development Bank
ADF       :   African Development Fund
BCC       :   Central Bank of Congo
BCEAO         :      Central Bank of West African States
BCMP      :   Congo Commodity Exchange
BD        :   Bidding Documents
BNB       :   National Bank of Belgium
CEFEB         :      Centre for Financial, Economic and Banking Studies
CIDA      :   Canadian International Development Agency
CPP       :   Programme Steering Committee
CTCPM         :      Technical Unit for Mining Coordination and Planning
DC        :   Developing Country
DRC       :   Democratic Republic of Congo
EDI       :   Electronic Data Interchange
FE        :   Foreign Exchange
GDP       :   Gross Domestic Product
GECAMINES :   State-owned Mining and Quarrying Company
HCR       :   High Commission for Refugees
HIPCI     :   Heavily Indebted Poor Counties Initiative
ICB       :   International Competitive Bidding
IMF       :   International Monetary Fund
INS       :   National Institute of Statistics
LC        :   Local Currency
NCBP      :   National Capacity Building Programme
OGEDEP    :   Public Debt Management Office
PCR       :   Project Completion Report
PETROCONGO:   Petroleum Company of Congo
SENAREC :     National Capacity Building Secretariat
TAF       :   Technical Assistance Fund
UA        :   Unit of Account
UMTYP         :      Updated Minimum Three-year Programme
UNCTAD    :   United Nations Conference on Trade and Development
UNDP      :   United Nations Development Programme
US        :   United States
US$/USD   :   American Dollar
WB        :   World Bank
WFP       :   World Food Programme
                                                 iii

                                           BASIC DATA


1.       COUNTRY:                                      Democratic Republic of Congo
2.       PROJECT No..:                                 P-ZR-KF06-001
3.       GRANT No.:                                    2100155000049
4.       DONEE:                                        Government of the Democratic Republic
of
                                                       Congo

5.       EXECUTING AGENCY:                             National Capacity Building Secretariat
                                                       (SENAREC)
A        GRANT
                                               Estimate at appraisal                    Actual
1.       Amount (in UA million):                    1.97                                1.64
2.       Appraisal date:                            February 2000                       Jan. 2001
3.       Negotiation date:                          18 July 2001
4.       Board presentation date:                    June                                      2001
         20/06/2001
5.       Grant agreement signature date:            July                                       2001
         18/07/2001
6.       Effectiveness date:                        November                                   2001
         18/10/2001
7.       Bid Initiation:                            January 2002                        June 2002
8.       Delivery of goods and start up of services: March 2002                         April 2003

9.       Annual audit of accounts:                     July 2002/Dec2002        Dec.2003;
                                                                     July 2003; and Dec.
                                                                2004
10.      Completion date:                              31           December         2003
         30/06/2006
11.      Number of completion date extensions:        0                                   1
12.      Disbursement rate, for all financing sources                                   100%
         88%


B.       MISSIONS

                                                               Composition     Staff-days
                                           Number of
                    Dates
                                           persons
                                                         Economist     CP(*)   (**)         (***)
1. Identification   Nil
2. Preparation
3. Appraisal
4. Supervisions                            1             1                     1P/18d
- Supervision 1     18 July to 03 August   1             1                     1P/16d
                    2002
- Supervision 2     07 to 18 February      1             1                     1P/12d
                    2003,
- Supervision 3     11 to 22 November      1             1                     1P/11d
                    2003,
- Supervision 4     04 to 18 May 2004,     1             1                     1P/14d
- Supervision 5     09 to 16 December      1             1                     1P/7d
                    2004,
                                                   iv
- Supervision 6     17 to 24 November       1           1         1P/7d
                    2005.
5. PCR              06 to 19 December         02        01   01   2P/18d
                    2006
Total                                         09        08   01   09/75d
(*) = Consultants; (**) = Staff; (***) = Days
                                                       v
C.         PROJECT COST
                                                           (UA Million)
                 Project                           Estimate at Appraisal              Actual figures at 30 June
                                                                                      2006
                                              FE             LC.        Total %         FE      LC. Total %
1.    Total cost (in UA million)       1.46           1.27  2.73                          1.92     0.48 2.40      100
      i.e. (in $US million)            1.90           1.64  100%
                                                            3.54
                                                            100%
2. Financing plan (UA million)         Amount % Amount % Amount                 %
     TAF                               1.16  79 0.81    63 1.97                72         1.62     0.02   1.64    68.3
     CIDA                              0.30  21       -     0.30               11         0.30       -    0.30    12.5
     Government                                  0.46   37 0.46                17                  0.46   0.46    19.2
      Total                            1.46  100 1.27   100 2.73               100        1.92     0.48   2.40    100



D.         DISBURSEMENTS (UA Million)

Year                                                 2002      2003    2004     2005        2006          Total at
                                                                                                          30/06/2006
Estimated TAF disbursements: all direct payments 1.48  0.49                -          -                   1.97
and payments into the special account
Disbursements released, including all financing  0.024 1.727               -        0.559        0.080    2.39
Requests pending payment by ADF                  -     -     -                  -           -             -
Estimated balance on grant                       1.456                                                    0.330



E.         PERFORMANCE INDICATORS

 1. Grant balance at 30 June 2006                                      UA 326 671.38              Outstanding Bank
                                                                                                      payments
 2. Time overrun on schedule at appraisal                               24 months
 3. Time overrun on updated schedule                                     6 months
   * Slippage on effectiveness (deadline required since approval)        1 months
   * Slippage on completion date anticipated at appraisal               24 months
   * Slippage on completion date updated in March 2005                   6 months
   * Slippage on last disbursement anticipated at appraisal              6 months
   * Slippage on last disbursement report updated at first extension    18 months
   * Slippage on last disbursement updated at second                    12 months
disbursement
Number of final disbursement deadline extensions                         03 times
4. Status of project implementation                                    Completed at 30 June 2006
5. List of verifiable indicators and stage of completion               Amount realized in     Actual/ Estimate
   (in % of anticipated stages) per component                          USD million      UA
  Technical assistance                                                 0.534            0.411      101%
  Equipment                                                            0.900            0.692       87%
     Training                                                          0.764                0.280           98%
     Operation                                                         0.555                0.427          132%
     Audit                                                             0.040                0.031          100%
                                                         vi

   F.       PRINCIPAL CONSULTANTS AND SUPPLIERS

   F-1.     CONSULTANTS:

 Purpose of Contract by         Successful bidder               Amount in UA                    Explanation
      component                                           Estimated  Actual        Diffe
                                                                                  rence
    International debt              GEMACOR              0.175       0.188        -        Contract extended by
  management Consultant                                                           0.013    six (6) months.
    Computer training        CAL-CONGO and               0.046       0.044        0.002    Cost in USD 35 062
                             participants’ transport                                       plus 2nd session 8 766
                             expenses                                                      and transport 14 585

            Audit            PRICEWATERHOUSE             0.031       0.031        0

   F-.2.    SUPPLIERS:


Purpose of             Successful              Amount in USD                   Explanation of Differences
Contract or Order      bidder         Estimated Actual      Difference
Computer               ENERBO           335 000   35 0767      -15 767       The cost of computers was
equipment                                                                    underestimated.      ADB’s no-
                                                                             objection opinion was given
                                                                             following this overrun.
Vehicles               AFRIMA            275 000       276 850    -1 850     Slight overrun approved by the
                                                                             Bank
Furniture and office   ENERBO             10.000         12106    -2 106     Slight overrun approved by the
automation                                                                   Bank
equipment
Mobile phone and       ECP               115 000        57 026    57 974     Initial cost of MS Office licences
telephone exchange                                                           overestimated at USD 100.000
                                                                             whereas the same licences were
                                                                             acquired at USD 50.000.
Photocopiers           ENERBO            108 000       109.780    -1 780     Slight overrun approved by the
                                                                             Bank
Cabling and            ENERBO              9 850         9.850        0
network
GDM software           BRGM                5 000        13.504    -8 504     Difference due to the inclusion of
                                                                             the cost of training in that of the
                                                                             software
EVIEWS 5.0             QMS                25 000        11.755    13 245     The BCC acquired the EVIEWS
software                                                                     software at a cheaper price,
                                                                             although it comprised the
                                                                             functions of the 5 initially
                                                                             planned software packages
SYGADE software        UNCTAD             38 000        38.000        0
                                       vii
        H.        LOGICAL FRAMEWORK MATRIX
   Hierarchy of                   Objectively Verifiable Indicators (OVI)                   Means of verification       Important assumptions/
  objectives (HO)                                                                                  (MV)                         risks
                                  Estimated                          Actual
1 – Sector Goal

Formulation,          A programme was concluded with      Financial cooperation with        Documents of the Sustainability of outputs
implementation and the Bretton Woods institutions by      the       Bretton     Woods       different programmes
evaluation         of 2004                                Institutions and the other        and projects with
economic policies are                                     bilateral and multilateral        bilateral            and
improved.                                                 lenders was restored.             multilateral lenders

                      Number of partners who resumed World Bank - IMF                       1- PIP implementation Sustainability of outputs
                      the cooperation.               European Union - UNDP                  reports
                                                     Belgium – France, Etc…                 2-     Reports  from
                                                                                            Ministry           of
                                                                                            Cooperation       and
                                                                                            Planning
                                                                                            3- UNDP development
                      1-Number and quality of reports Quarterly and annual reports          cooperation Reports, Sustainability of outputs
                      produced by the Central Bank of                                       etc. on
                      Congo
                                                           Carried out                      1- BCC Reports
                      2- Agreement of all development
                      partners on the DRC’s foreign debt                                    2- OGEDEP Activity
                      amount                                                                reports
                                                           Over six hundred (600)
                                                           officials trained                3- Quarterly reports
                      3- Number of officials trained.                                       and project completion
                                                           Active contribution to the       report
                                                           Poverty           Reduction
                      4- Poverty Reduction Strategy Paper. Programme.                       4- Annual         Project
                                                                                            Audit reports
                      5- Programme Paper on Post-Conflict Financing of the programme
                      Development.                        and observation on the
                                                          restoration of peace.          5- DRC             operating
                                                                                         budgets
                                                          Monetary and bank statistics
                                                          available as soon as possible,
                                                          and more reliable.                                       Sustainability of outputs
                                                                                                                   thanks to the reconciliation
                                                          Reliable             automated                           policy       vis-à-vis      the
                                                          management system of both                                opponents        and      their
                                                          official and foreign debt.        Poverty     Reduction respective              support,
                                                                                            Strategy Paper         unification      and      basic
                                                          Contribution to finalization of                          development        within     a
                                                          PRSP                              Reports of the Truth framework          of     rooting
                                                                                            and     Reconciliation democracy and respect of
                                                                                            Committee.             public freedoms and human
                                                          Contribution        to     the                           rights.
                                                          programme

2. Activities

1-     Training    of ADF                                 Over a hundred officials          Activity and Project Sustainability of outputs
Ministry of Finance CIDA                                  received computer training,       supervision reports
and          Planning CPG                                 six hundred and fifteen
officials.                                                trained in different modules
                                                          on the job, Workshops, local
                                                          or overseas seminars
                                                                                            Project    Completion
2- Computerization                                        The BCC and the technical         report
of BCC and various                                        departments of the Ministry
departments of the                                        of Finance and Planning were
Ministry of Finance                                       computerized,
and Planning.
                                                          Computer equipment and
                                                          Internet (101 computers, 61
3-Equipping the                                           printers, 64 UPS inverters, 11
various departments                                       photocopiers, 11 motor
                                                          vehicles, furniture, four
                                                          software: packages
                                                          EVERVIEWS 5.0 for BCC,
                                                          GDM for CTCPM, SYGADE
                                                          for OGEDEP and GIN for
                                                          SENAREC
                                            viii

                               EXECUTIVE SUMMARY

1.        In order to move the country out of the chaotic political, economic and social
situation of the nineties, which was mainly characterized by the accumulation of
considerable domestic and external public debt payment arrears, the Government initiated
dialogue with multilateral and bilateral donors. However, since it was virtually impossible
for any reconstruction, stabilization or sustainable economic recovery to become effective
in such a context exacerbated by weak national institutional capacities, the Government, as
a prelude to such an initiative, formulated a National Capacity Building Programme
(NCBP) with UNDP support.

2.       The Bank decided to provide institutional support to the programme in 2001
through the National Capacity Building Programme Support Project PANPURC, with the
overall objective of striving to build minimal institutional capacities for planning and
macro-economic management. Specifically, it was a matter of building national macro-
economic and sector coordination and management capacities through the implementation
of a project based on an evolutionary approach in the short to medium term and,
subsequently, in the long term.

3.       To attain these objectives, the project was formulated around four (4)
components, namely: (i) building the institutional framework for the coordination of
macro-economic and sector policies and reforms; (ii) strengthening domestic and external
public debt management; (iii) supporting the participatory process in the preparation of the
poverty reduction strategy; and (iv) managing and monitoring the National Capacity
Building Programme.

4.        At the end of its implementation, project performance seemed globally
satisfactory. At institutional level; the project beneficiary structures operated better than
previously. Indeed, the procurement of equipment, computerization, technical assistance,
studies conducted and the training organized, led to substantial improvement at
institutional level, as far as planning, the macro-economic framework, budget preparation
and public investment programme monitoring were concerned. Public debt statistics
became reliable and their management was improved. Project-funded studies contributed
to the preparation of a full-fledged Poverty Reduction Strategy Paper, which was adopted
by the Government in Government in July 2006. Financial intermediation, foreign
exchange management and exchange control became much more reliable and speedy.
Improved project monitoring and management capacity impacted positively on the
implementation of the National Capacity Building Programme. It is necessary, however,
to pursue current efforts with a view to attaining a higher level of efficiency of the
administrations and institutions of the Republic.

5.       Lessons

The main lessons to be learnt from project implementation are as follows:

         a)      The political will and continuing commitment of the Government of the
                 DRC were vital to the achievement of the objectives;
         b)      Improvement of the socio-political situation constituted the principal asset
                 for the sustainability of the project impact;
                                            ix

         c)     The targeted institutional support of the partners, especially in the form of
                technical assistance and preparation of strategy and policy papers, played
                a decisive role in national capacity building.
In light of the foregoing, the following measures should be adopted:
         i)     future appraisal reports should identify in more detail problems likely to
                hinder projects from rapidly attaining full development, by envisaging
                suitable solutions and organizing, especially at the beginning,
                familiarization sessions for members of the executing agencies to become
                acquainted with the Bank’s rules and procedures;

         ii)    the recommendations in the appraisal report should be applied fully, not
                partially as was the case of the Steering Committee;

         iii)   to ensure the sustainability of outputs, the national budget should be
                required to bear the recurrent costs half-way through the projects, rather
                than at the close. This would enable the Bank to ensure that the Donee
                has effectively complied with this requirement in respect of investments
                in equipment, as well as in human capital; and

         iv)    the continuity of activities should be ensured with the support of the
                authorities and other partners with a view to preserving and consolidating
                project output.

6.       Recommendations

6.1.     For the Government

         i)     Ensure the continued inclusion of the necessary credits in the budgets of
                the authorities and other institutions that benefit from investments, to
                cover recurrent costs and investments renewal;

         ii)    Train and re-train a sufficient number of officials with a view to ensuring
                the connection and effective use of the CTCPM network for information
                interchange between the different user services;

         iii)   Pursue training and re-training programmes to prevent staff mobility risks
                and constitute a critical mass of increasingly competent staff on a
                sustainable basis;

         iv)    Ensure, as much as possible, the stability of trained officials through an
                enticing career management policy;

         v)     Authorize the transfer of the balance of the special account into the
                Bank’s account once the latter communicates its bank account details;

         vi)    Release the last tranche of the Government’s counterpart still outstanding
                at the Ministry of Finance; and

         vii)   Ensure that the Donee’s draft project completion report is validated by all
                beneficiaries for onward communication to the Bank.
                                           x

6.2   For the Bank

      (i)     Communicate the details of the bank account into which the Government
              should transfer the balance of the special account;

      (ii)    Cancel the undrawn balance still in its books and close the grant; and;

      (iii)   Contemplate, in partnership with the other donors, a new project for
              institutional support to good governance and economic management for
              the civil service and other public institutions, the private sector and civil
              society.
I.       INTRODUCTION

1.1      The disastrous socio-economic and financial situation of the last phase of the
Second Republic was mainly characterized in 2001 by a disorganized administration deprived
of the minimum resources indispensable for the public authorities to fulfill their duties.
Indeed, with a real per capita income having slumped from USD 380 in 1960 to USD 68,31
in 2000, a GDP which contracted by 30% between 1990 and 1993 and a drastic fall in the
quality and level of public expenditure, government revenue accounted for a mere 3.8 % of
GDP in 2000 compared to 17 % before independence. The State had become insolvent and
accumulated enormous domestic and foreign payment arrears
1.2      In view of this situation, no reconstruction, stabilization and subsequently
sustainable economic recovery programme could be carried out without a preliminary stage
of rebuilding the institutional capacities of the central government, de-concentrated and
decentralized communities, as well as the private sector and civil society. In order to sustain
the emergence of minimal institutional capacities for planning and macro-economic
management, the National Capacity Building Programme (NCBP) was formulated with the
assistance of the United Nations Development Programme (UNDP).
1.3      In June 1999, a Bank mission was fielded which identified this institutional support
project with a view to helping the advent of progressively more effective institutions as a
precursor to the institution of an actual economic stabilization programme.
1.4       The programme retained therefore consisted in providing the Government with the
means of building the technical capacity of the administration in public debt management,
policy evaluation, economic and social development programmes and projects, and the
collection and processing of socio-economic data..
1.5      This completion report was prepared on the basis of information available to the Bank
and the outcome of a mission fielded to DRC from 05 to 16 December 2006. It is also based
on the draft completion report prepared by the Donee, activity reports of the beneficiary
administrations of the support, audit reports, procurement and payment documents, as well
as various correspondence exchanged in that framework.

II.      PROJECT OBJECTIVES AND FORMULATION

2.1      Project Objectives

Sector Goal: The National Capacity Building Programme Support Project (PANPURC) was
aimed at helping build national development management capacities and especially
supporting the emergence of minimal institutional capacities for planning and macro-
economic management.

Specific Objective: More specifically, the Project was aimed at building national capacities
for macro-economic and sector coordination and management. By interaction, it is expected
that the Government will take advantage of these capacities to prepare an interim post-crisis
programme. The project was therefore based on an evolutionary approach in the short to
medium term and, subsequently, in the long term.
                                            2

2.2      Project Description

In order to attain its objectives, the project was formulated around the following four (4)
components:

Component 1: Strengthening of the institutional framework for the coordination of macro-
economic and sector reform policies.

Component 2:    Strengthening of domestic and external public debt management.

Component 3:    Support to the participatory process of preparing the Poverty Reduction
Strategy, and

Component 4:    Project management and monitoring.

2.3      Project Origin and Formulation

          PANPURC stemmed from the observation of the economic and socio-cultural
situation mainly characterized by inadequate quantitative and qualitative human resources, as
well as weak institutional capacities. Against that backdrop, the Government in 1997 sought
the assistance of the donors, including the Bank.

2.4      Project Preparation, Appraisal, Negotiation and Approval

2.4.1     PANPURC was identified in June 1999 during a dialogue mission between the
Bank and the DRC authorities, and the preparation mission was fielded in November in 1999.
At that time, the country was under sanctions for cumulating considerable public debt arrears.
Nonetheless, the appraisal mission was continued in Kinshasa in February 2000. However,
sanctions were not applied to TAF-funded operations. Moreover, just like the Bretton Woods
institutions and other multilateral and bilateral donors, the Bank deemed it more effective to
strengthen dialogue with the Government with a view to contributing to seeking suitable
solutions to the problem of external debt arrears. Initially estimated at UA 4.0 million in
February 2000, the project again underwent a downward estimation in January 2001, at UA
1.97 million, on account of the country’s performance criteria.
2.4.2     Negotiations for the Grant Agreement, which were held at the Bank’s headquarters
on 18 July 2001, mainly focused on project management, implementation schedule, the
procurement arrangements, disbursement, Grant conditions, and conditions precedent to
presentation of the project to the Board of Directors. The TAF grant was approved on 20
June 2001 by the Board of Directors of the Bank for a two- (2) year duration, and the Grant
Agreement was signed on 18 July 2001.

III.     PROJECT IMPLEMENTATION

3.1      Effectiveness

The Grant became effective after the Donee had fulfilled the following conditions:

         (i)    production of evidence of opening in the Central Bank of Congo, of a
                special account in the name of the project, into which the TAF resources for
                the Revolving Fund were to be deposited no later than 08 October 2001;
                                             3



         (ii)    provision of evidence of providing the SENAREC Coordination Office with
                 adequate premises no later than 27 July 2001.

         (iii)   communication of Ministerial Orders on the establishment of: (i) the
                 Technical Secretariat of the Inter-ministerial Committee on Economic,
                 Monetary and Financial Affairs, by 25 February 2000; (ii) Technical
                 Secretariat of the Inter-ministerial Infrastructure Committee; and (iii)
                 Technical Secretariat of the Inter-Ministerial Social Protection Coordinating
                 Committee no later than 11 February 2000; and

         (iv)    provision of evidence that CIDA had signed a loan or grant agreement or
                 had undertaken to fund the project no later than 03 October 2001.

3.2      Project Modifications and Supervision

3.2.1    Project modifications: The project did not undergo any significant changes.
However, it is worth emphasizing that, instead of the UN Volunteers contemplated in the
appraisal report for recruitment, two (2) months before the end of the Public Debt
consultant’s contract and in the desire to ensure the sustainability of the project impact on
public debt management capacity building, two OGEDEP officials were appointed as
counterparts of the consultant, whose contract was extended by six (6) months to afford the
OGEDEP team greater mastery of the SYGADE software. Finally the procedure for the
procurement of some goods and services, namely, the EVIEWS 5.0 software for BCC,
SYGADE for OGEDEP, GMD for CTCPM and GIN for SENAREC, was modified with the
Bank’s agreement due the situation of monopoly of the suppliers. There was no alternative
but to conclude private agreements with the suppliers, since the call for bids provided for in
the appraisal report proved impossible.

3.2.2. Project supervision: During the four (4) years of project implementation (2002-
2006), six (6) field supervision missions were carried out respectively from 18 July to 03
August 2002, 07 to 18 February 2003, 11 to 22 November 2003, 04 to 18 May 2004, 09 to 16
December 2004, and 17 to 24 November 2005. Project supervision was therefore carried out
on a regular basis, which made it possible to gradually remove the constraints on its smooth
implementation.

3.3      Implementation Schedule

3.3.1    A comparison of estimated and actual project outputs is set out in the table below:
                                                      4


        COMPARATIVE TABLE OF ESTIMATED AND ACTUAL SCHEDULES

  Activities                Institution Responsible   Date/Period                              Observations
                                                      Estimated              Actual
  Presentation to ADB       ADF                       June 2001              20 June 2001      Deadline adhered
  Board of Directors                                                                           to
  Signature of Grant        ADF/Government            July 2001              18 July 2001      Deadline adhered
  Agreement                                                                                    to
  Effectiveness of Grant    ADF/Government            November 2001          08 October 2001   Objective attained
  agreement                                                                                    before fixed date
  Initiation of Bidding     SENAREC                   January 2002           July 2002         Six (6) months
                                                                                               delay
  Goods delivery and        SENAREC                   March 2002             April 2003        Twelve         (12)
  Start-up of services                                                                         months delay
  Annual      Audit    of   External audit            July           2002    10/07/2002 to     A total of three
  Accounts                                            December       2002,   31/12/2003        audits, instead of
                                                      July 2003              2004              the four envisaged.

  Final    Audit      of    External audit            January 2004           2005-2006
  Accounts



Scheduled for an initial period of two years from 24 October 2001, it was not until after four
years that the activities were completed, i.e. doubling of the project implementation period
for many reasons. However, not all the planned activities were delayed.

3.3.2    The project was presented to the Bank’s Board of Directors and signed on schedule,
and the agreement even became effective almost one month in advance, which is proof of the
speed with which all the interested parties initially fulfilled their obligations. The same did
not apply to the initiation of bidding nor to deliveries, which were made with six (6) and
twelve (12) months delay respectively. Similarly, the first revolving fund was only set up on
10 June 2002. The delays were mainly due to the time it took SENAREC personnel to master
ADB rules and procedures, carry through the bidding processes and execution of some
contracts and, on the other hand, the time spent in establishing the revolving fund and
replenishing the special account.

3.4        Reporting

SENAREC regularly provided the Bank with periodic project status reports, fourteen (14)
quarterly reports in all. They contained all the information requested by the Bank, especially
on the progress made in project implementation, difficulties encountered, and solutions
envisaged. SENAREC finally produced its draft project completion report (PCR) on
schedule. Three (3) instead of two (2) audit reports were submitted to the Bank certifying as
to the genuineness of the accounts. Delay in the establishment of the Steering Committee
was the reason why there were so few reports, but the mission was able to obtain the last
report of the Steering Committee.

3.5.       Procurement of Goods and Services

3.5.1. The essential part of goods and services was procured in keeping with the Bank’s
rules and procedures. However, it was not always possible to comply with the mode of
procurement set out in the appraisal report. Sometimes, after the Bank’s agreement, there
was no alternative but to negotiate private agreements. Such was precisely the case in the
                                            5

procurement of specific software where there was extremely limited competition: EVIEWS
5.0 (financial intermediation) for the Central Bank of Congo; SYGADE (public debt
management) for OGEDEP; GDM (mineral resource management) for CTCPM; and GIN
(project management) for SENAREC.
3.5.2. At the close of the project, twelve (12) goods and services contracts had been
concluded between SENAREC and various suppliers. The related contracts or an amount of
USD 1,203,260.50 were fully executed and settled. The detailed situation of the contracts
and distribution of project equipment by type and by beneficiary is appended to this report.
3.5.3. As co-financing, CIDA delivered a batch of computer equipment to BCC, and the
Government provided the Project with a functional building and personnel. The equivalent of
this expense was entered into the accounts as the Government’s counterpart.

3.6      Costs, Sources of Finance, and Disbursements

3.6.1    Project Costs

The actual cost of the project was UA 2.40 million compared to UA 2.73 million i.e. a 0.33
million undrawn balance accounting for12 % of the initial cost. Thus, the overall
disbursement rate was only 88 % of the initial project cost, but was sufficient for all the
procurements.

3.6.2    Sources of Finance, and Disbursement

        The project was jointly funded by TAF, the Canadian International Development
Agency (CIDA) and the Government of the DRC.

          The TAF was to provide 1.97 million funding in the form of a grant, i.e., 72.16 % of
the total cost accounting for 79.45 % of the expenditure in foreign exchange, and 63 % in
local currency, excluding all duties and taxes. In the final analysis, TAF contributed UA 1.64
million i.e. 68.5 %, instead of 72.16 %.

          CIDA, too, was to contribute UA 0.30 million, in the form of a grant, i.e., 10.99 %
of the total project cost. This contribution, 20.55 % of foreign exchange expenditure,
unchanged in value, was the equivalent of 12.5 %, which was slightly higher than the 11 %
estimate.

          The Government counterpart of UA 0.46 million or 17.22 % of the total project cost
was to cover 37.01 % of the entire expenses in local currency. In line with the appraisal
report, the Government provided consumables and paid the salaries and travel expenses of the
BCC computerization sub-component for the “public debt management” component, as well
as those of four (4) Technical Secretaries of the first component of the project. Its share in
the project financing plan therefore attained UA 0.455081 million, i.e. 19.5 % compared to
the 17 % projected in the appraisal report, as summarized in the table below:
                                                         6

                         Estimated and Actual Disbursements (UA million)
 PROJECT                                 ESTIMATE (at appraisal)                   ACTUAL (at completion)
 Source of Finance                 FE         LC.      Total         %         FE        LC      Total       %
 TAF                              1.16        0.81     1.97         72       1.625     0.015    1.64        68.5
 CIDA                             0,30         --      0.30         11        0.30        --    0.30        12.5
 Government                        --         0.46     0.46          17        --      0.455    0.455        19
 Total                            1.46        1.27     2.73         100      1.925     0.470    2.395       100


3.6.3     TAF Grant undrawn balance: At 30 June 2006, the loan amount disbursed was UA
1.64 million out of the UA1.97 granted. The unused balance (UA 0.330 million) accounted,
on the one hand, for the amount un-disbursed by the Bank i.e., UA 0.327 million for
cancellation and, on the other hand, UA 0.003 million available in the special account. This
balance was to be transferred by SENAREC to the Bank, once the latter notified it of its bank
account details.

3.6.4     Total disbursed, and percentage: Overall, the project will have cost UA 2.395
million in relation to the initial estimates of 2.73 million, i.e. an overall disbursement rate of
88 %.

3.6.5     The table below compares the disbursement schedules, at project appraisal and
completion. Actual project grant disbursements were spread over four (4) years instead of 2
as estimated at appraisal. Although first-year disbursements in relation to the estimates were
insignificant, they intensified the following year and stagnated in 2004 owing to a
combination of many negative factors, i.e., one-year vacancy of the post of Technical
Assistant responsible for public debt, delays in the preparation of the terms of reference for
training, choice of the SYGADE and EVIEWS 5.0 software, and replenishment of the
Revolving Fund. Consequently, grant disbursements were not made at the rate estimated at
appraisal, as shown in the comparative table below (in UA million: direct payments and
payments into the special account).


      Years                              2002    2003        2004   2005    2006     Total at 30/06/2006
      Estimated TAF                      1.48    0.49          -      -                      1.97
      disbursements under the
      project
      Disbursements made on all      0.024       1.727        -     0.559   0.080            2.39
      project financing
      Outstanding requests for            -         -         -       -       -                -
      payment to the Bank
      Estimated grant balance                                                 -               -
      Grant balance                  1.456                                                  0.330


IV.        PROJECT RESULTS AND PERFORMANCE
4.1        Results per Component and Operational Performance
Component 1: Strengthening the Institutional Framework for the Coordination of Macro-
economic and Sector Policies and Reforms
Estimate: Provisions were made for training and procurement of computer equipment and
software for the central services of the economic ministries, CTCPM, with a view to building
their capacities for decision-making, engaging in macro-economic and sector dialogue, and
                                             7

macro-economic and sector reform coordination. For the BCC, these materials were to lead
to automated financial intermediation (hitherto manual) which is both extremely reliable and
speedy.
Outputs: Office automation and computer equipment and software were acquired and
training organized. Their detailed list is hereto appended.
Performance: BCC has since been performing its services more speedily and more reliably,
thanks to the equipment procured in 2003 and supplemented in 2005 with the delivery of the
EVIEWS 5.0 software. Before then, the currency issuing agency recorded its operations
manually. The procurement of 50 desktop computers and laptops provided by the project led
to remarkable improvement in the quality and efficiency of the work of the BCC
departments. This reduced the lead-time for the production of reports and other analytical
notes from one week to only two days. This support with materials was reinforced with the
training of about a hundred officials in financial intermediation and improved exchange
control, and in the handling and processing of economic, financial and monetary statistics in a
secure computerized environment. Furthermore, after the training, especially the computer
training, the other beneficiaries of the Component 1, in this case the Technical Secretariats of
the Inter-ministerial Committees responsible respectively for Infrastructure (STCI-Infra),
Social Welfare (STCIP), Financial and Monetary Affairs (STCI Ecofin), as well as the
Technical unit for Mining Coordination and Planning (CTCPM), demonstrated quite a good
mastery of their working tools.

Component 2: Strengthening Public Debt Management (support to OGEDEP)

Estimate: An international consultant specialized in public debt was to assist OGEDEP
benefit from computer equipment and software, with staff training. The aim was to
rationalize and master public debt management.

Outputs: The various procurements enabled OGEDEP improve the quality of its services and
secure almost 500 loan agreements and conventions to constitute a reliable database on
magnetic media. The international consultant’s support made it possible for the country to
take the necessary steps to reach the HIPC Initiative completion point. Indeed, the
Consultant helped OGEDEP to: (i) make a clear diagnosis of the problems linked to its public
debt management system; (ii) procure and master the SYGADE software, (iii) conduct an in-
depth assessment of the skills of the technical officials of the automated debt management
office, (iv) update data on debt retro-ceded and guaranteed by the State, (v) evaluate the stock
of outstanding debt and debt service; and (vi) contribute to the preparation of a data file on
the procedures and rules of the principal bilateral and multilateral sources of official
development assistance

Performance: The results obtained were satisfactory despite the delay in start-up and the one-
year break in the activities of this component.

Component 3: Support to the Participatory Process of the Preparation of the Poverty
Reduction Strategy

Estimate: In addition to the procurement of equipment, the capacity building envisaged in the
appraisal report also comprised modern working tools and training in the conduct of the basic
studies necessary for the preparation of the poverty reduction strategy.
                                            8

Outputs: Seven (7) sector studies made it possible to provide economic and social data for
the preparation of the PSRP, especially with regard to vulnerable groups, training-
employment match, enrolment of young girls, poverty profile in the provinces and in
Kinshasa, and the PSRSP implementation strategy.

Performance: The studies were conducted at the right time and afforded not only the
Congolese public authorities but also all the development partners the data indispensable for
formulating economic and socio-cultural programmes.

Component 4: Programme Monitoring and Management

Estimate: The aim was to provide SENAREC with adequate equipment, train its staff and
render it capable of performing its functions, which consisted in coordinating and ensuring
the implementation of all the thrusts of the National Capacity Building Programme and
serving as the Secretariat of the Steering Committee.
Outputs: Office automation and computer equipment and software, vehicles and overseas
training helped build SENAREC’s project management capacities, especially those of the
National Capacity Building Programme supported by this project.

4.2.     Institutional Performance

         Beneficiary Administrations: Training, technical assistance and computerization of
the administration contributed to building the technical and institutional capacities of the
beneficiary structures, thereby improving operation and management, i.e. regular production
of quarterly reports, satisfactory conclusion of audits, and the draft completion report. At
macro-economic and sector policy level, the project fostered policy-based dialogue. These
efforts must however be pursued.

4.3      Management and Organizational Effectiveness

4.3.1     After a period of trial and error, SENAREC’s performance can be considered
satisfactory during project implementation, in view of to the activities accomplished.
SENAREC demonstrated efficiency in the formulation of the measures necessary for
obtaining the required approvals and supervision of the implementation of the Project
components. It succeeded in conducting the concurrent implementation of several activities.
The organization was effective and especially contributed to meeting the conditions for grant
effectiveness, preparation of bidding documents, their evaluation, contract awards,
acceleration of the training programme, financial monitoring, etc Until the project was
closed in June 2006, SENAREC submitted activity and audit reports within acceptable
deadlines

4.4      Staff Strengthening, Training and Retraining

4.4.1. Training and support of the recruited Consultants contributed sustainably and
rationally to endowing the staff of the administration with skills in IT, project analysis,
financial analysis, economics, general and sector planning, macro-economics, banking and
financial intermediation, etc.
                                              9

4.4.2. The expertise thus acquired is, in our opinion, confirmed. It is expressed through
the trained officials’ awareness of the limitations to their respective capacities, and this urges
them to improve their performances (better work accomplishments, adherence to deadlines).
4.5      Performance of the Suppliers and Consultants
4.5.1    Performance of the Suppliers: The equipment, materials and software delivered
were functional. With the exception of two contracts fulfilled at the estimated cost, five were
the subject of overruns in relation to the estimates and two remained below the estimates.
Delivery periods, technical specifications and bid prices were generally adhered to.
Performance was therefore satisfactory on the whole.

4.5.2    The performance of the consultants was satisfactory overall. Technical assistance
missions were conducted successfully to the satisfaction of OGEDEP and BCC.

4.5.3      The performance of local service providers also proved satisfactory in view of the
difficult environment in which they found themselves.

4.6      Financial and Economic Performance

Since the project was one of institutional support, no economic and financial evaluation was
conducted at appraisal. However, the financial performance of the project can be appraised
by the fact that, in spite of slippage on the implementation schedule, there was no overrun on
the Bank’s financing. The considerable overrun (32 %) on the operating funds was attributed
to the fact that the project was implemented in double the time initially estimated.
V.       SOCIAL AND ENVIRONMENTAL IMPACT OF THE PROJECT
5.1      Social Impact

5.1.1     Thanks to short-term training schemes, participation in seminars and in-service
training, the beneficiary structures were able to build their capacities. Almost all staff of the
administrations concerned benefited from such training. The only source of dissatisfaction
was the low rate of women staff benefiting from training, i.e. only 10 % of the total staff
complement.

5.1.2    Procurement of furniture and equipment also led to an improvement in the working
conditions of the beneficiary administrations.
5.2      Environmental Impact
         The project did not provide for any measures with direct impact on the environment.
VI.      PROJECT SUSTAINABILITY

Sustained donee commitment, the political environment, staff capacity and maintenance of
the acquired equipment were the principal criteria for assessing project sustainability.
6.1.     Sustained Donee Commitment:

         Throughout project implementation, the Government demonstrated its
determination to pursue dialogue with all the interested parties, the donors in particular, on
the reforms to be implemented.
                                            10

6.2.      Political Environment: In comparison with the situation prevailing at project start
up, the new political context raised hopes of achieving the democratic process sustained by
the international community. The authority in place should however embark on a
conciliatory policy of national reconciliation, reconstruction and poverty reduction with a
view to consolidating this stability, which is still fragile.

6.3.      Technical Viability and Staff Retraining: The outcome of the training
programmes appeared encouraging since it involved 620 officials. The skills acquired must
be replicated in the State bodies.

6.4.       Proper Maintenance and Periodic Equipment Renewal are prerequisites for the
sustainability of outputs. The Government has already demonstrated its determination to
include the necessary resources in the budget and release them as its counterpart funds. It is
up to it to pursue the same process.

VII.     PERFORMANCE OF THE BANK, DONEE AND EXECUTING AGENCY
7.1       Performance of the Bank: Overall, project administration and supervision were
satisfactory, from preparation to closure. At the preliminary stage, the Bank worked in
coordination with the Government and other donors, in particular UNDP, the World Bank,
and IMF. Project supervision comprised two field missions per year to help improve the
Donee’s performance and, between two missions, with on-line assistance to the executing
agency. Nonetheless, there were delays in some notifications and disbursements. Finally,
extremely sustained coordination with the other partners contributed to smooth project
implementation.

7.2      Performance of the Donee: The project implementation period doubled. Indeed, at
project start-up, the institutional arrangements made for monitoring the programme
encountered difficulties. However, the executing agency submitted its quarterly reports to the
Bank on schedule. It also speeded up the training programme, saw to the delivery of
equipment once the contracts were awarded, and organized audits on a timely basis. The
subsequent reports confirmed the genuineness of the financial statements. The preliminary
draft completion report was presented to the Bank mission responsible for PCR preparation,
pending its validation by the Steering Committee. Adequate documentation on project
implementation was always available to the Bank. Considering the difficult political and
socio-economic context, the overall performance of the Donee was satisfactory. The Bank
was regularly consulted by the Donee, whose performance as counterpart in the project was
also deemed satisfactory.

VIII.    OVERALL PERFORMANCE AND RATING

The overall project implementation performance was considered satisfactory. On the basis of
the performance assessment criteria, the project was rated 2.83. This was mainly due to the
sound financial management of the project and its impact on development in the difficult
context of the country, which was one of the main reasons for the doubling of the project
implementation period. Overall, the Bank’s performance was satisfactory. Details of the
ratings are set out in annex.
                                            11

IX.      CONCLUSIONS, LESSONS AND RECOMMENDATIONS

9.1      Conclusions

         The project was concluded in a special context of the advent of a Third Republic
with a new Constitution and duly-elected political leaders.
        Notwithstanding the delays, the PANPURC objectives were attained. Its
achievements impacted significantly on the capacity building of the beneficiary structures.
While the mission was in Kinshasa, the CTPM computer network was finally installed and
connected but, owing to the inadequate number of staff trained and assigned to the server, it
was impossible to operate the network on a permanent basis.

9.2      Lessons
The main lessons to be learnt from project implementation are as follows:
         -      The political will and continuing commitment of the Government of the
                DRC were vital to the achievement of the objectives;
         -      Improvement of the socio-political situation constituted the principal asset
                for the sustainability of the project impact;
         -      The targeted institutional support of the partners, especially in the form of
                technical assistance and preparation of strategy and policy papers, played a
                decisive role in national capacity building.
In light of the foregoing, the following measures should be adopted:
         i)     future appraisal reports should identify in more detail problems likely to
                hinder projects from rapidly attaining full development, by envisaging
                suitable solutions and organizing, especially at the beginning, familiarization
                sessions for members of the executing agencies to become acquainted with
                the Bank’s rules and procedures;
         ii)    the recommendations in the appraisal report should be applied fully, not
                partially as was the case of the Steering Committee;
         iii)   to ensure the sustainability of outputs, the national budget should be required
                to bear the recurrent costs half-way through the projects, rather than at the
                close. This would enable the Bank to ensure that the Donee has effectively
                complied with this requirement in respect of investments in equipment, as
                well as in human capital; and
         iv)    the continuity of activities should be ensured with the support of the
                authorities and other partners with a view to preserving and consolidating
                project output.
9.3.     Recommendations

9.3.1    For the Government

         i)     Ensure the continued inclusion of the necessary credits in the budgets of the
                authorities and other institutions that benefit from investments, to cover
                recurrent costs and investments renewal;
                                            12

        ii)    Train and re-train a sufficient number of officials with a view to ensuring the
               connection and effective use of the CTCPM network for information
               interchange between the different user services;

        iii)   Pursue training and re-training programmes to prevent staff mobility risks
               and constitute a critical mass of increasingly competent staff on a sustainable
               basis;

        iv)    Ensure, as much as possible, the stability of trained officials through an
               enticing career management policy;

        v)     Authorize the transfer of the balance of the special account into the Bank’s
               account once the latter communicates its bank account details;

        vi)    Release the last tranche of the Government’s counterpart still outstanding at
               the Ministry of Finance; and

        vii)   Ensure that the Donee’s draft project completion report is validated by all
               beneficiaries for onward communication to the Bank.

9.3.2   For the Bank

        i)     Communicate the details of the bank account into which the Government
               should transfer the balance of the special account;

        ii)    Cancel the undrawn balance still in its books and close the grant; and;

        iii)   Contemplate, in partnership with the other donors, a new project for
               institutional support to good governance and economic management for the
               civil service and other public institutions, the private sector and civil society.
                                                                                                             Annex 1
                                                     DEMOCRATIC REPUBLIC OF CONGO

                                         NATIONAL CAPACITY BUILDING PROGRAMME SUPPORT PROJECT
                                                                 (PANPURC)
                                                         Project Completion Report




DRC: Administrative Map
                                           CENTRAL AFRICAN REPUBLIC
                                                                                     SUDAN




                                                                                                UGANDA




                                                                                          TANZANIA




Global WGS 84
                                                                                       ZAMBIA
GEO data sources
CARPE VAN PAM
MONUC


       OCHA DRC
       IMU - GIS unit – September 2005                                                              Data source: OCHA DRC
                                                                                                                   Annex 2
                                                                                                                Page 1 of 2
                                            DEMOCRATIC REPUBLIC OF CONGO

                          NATIONAL CAPACITY BUILDING PROGRAMME SUPPORT PROJECT
                                                  (PANPURC)
                                          Project Completion Report

                         PROJECT IMPLEMENTATION PERFORMANCE
          Rating: 4 = Highly satisfactory; 3 = Satisfactory; 2 = Fair; 1 = Unsatisfactory; 0 = Highly
 unsatisfactory

                                                   Donee performance
                  Indicator                      Rating                               Observations
                                                 (1 to 4)

1. Adherence to Schedule                            1       Poor, because of the slippage on effectiveness and doubling of the
                                                            estimated project implementation period.

2. Adherence to Cost Schedule.                     3.5      Satisfactory, for the total project cost was not exceeded, and the
                                                            contracts remained within the financial allocations.
3.     Compliance          with         Grant
Conditions/Covenants                               3.5      Satisfactory because the Grant conditions/covenants were
                                                            complied with.
4. Adequacy of Monitoring-Evaluation
and preparation of reports.                         4       Extremely satisfactory, for all the quarterly reports were produced
                                                            on schedule in an improved context. The draft completion report
                                                            available was presented to the mission. Audits were performed in
                                                            timely fashion and did not reveal any anomaly.
Satisfactory operation (if necessary)               -       NA
Total                                              12

Performance of the Donee                            3       Satisfactory because all the objectives were attained without
                                                            exceeding the financial package. The fact that it took double
                                                            the time to implement the project is a reflection of the difficult
                                                            political and socio-economic context.


                                                Performance of the Bank

                  Indicator                     Rating                                Observations
                                                 (1 to 4)
1. At identification                                 -      -

2. At preparation                                   3       The logical framework matrix comprised objectively verifiable
                                                            indicators chosen with due consideration of the fragile political
                                                            situation and economic and financial problems. The preparation
                                                            report was of satisfactory quality and prepared with the Congolese
                                                            side taking due account of the opinion of the other donors.

3. At appraisal                                    3,5      Satisfactory, for the estimates at preparation were downscaled to
                                                            take account of the country’s credit absorption capacity; the
                                                            readjustment confirmed by the results obtained. The risks and
                                                            actions to mitigate their impact were well analyzed.

4. At supervision                                  2,5      Satisfactory, for the supervision missions were carried out on a
                                                            regular basis. However, some delays in the release of the
                                                            Revolving Fund were regretted.

                                  Total             9

Performance of the Bank                             3       Satisfactory
                                                                                                                                Annex 2
                                                                                                                             Page 2 of 2
                                                    DEMOCRATIC REPUBLIC OF CONGO

                                 NATIONAL CAPACITY BUILDING PROGRAMME SUPPORT PROJECT
                                                         (PANPURC)
                                                 Project Completion Report

                                                        PROJECT OUTCOME

          Component indicators                        Rating                                            Remarks
                                                      (1 to 4)
1. Relevance and attainment of                            3
objectives
  1.1 Macro-economic framework                           3         Satisfactory owing to the improvement of macro-economic framework
                                                                   capacities
  1.2 Public debt management                             3         Satisfactory, for the public debt was computerized and better managed
                                                                   with reliable statistics. DRC reached the HIPC completion point.
  1.3 Financial intermediation                           3         Satisfactory, for it was computerized and executed with dispatch by more
                                                                   competent staff.
  1.4 Physical outputs                                   3         Satisfactory because they were in keeping with the estimates.
  1.5 Financial management                               3         Satisfactory because it was in keeping with the Bank’s rules, and financial
                                                                   statements were produced on regular basis.
  1.6 Social impact and gender                           3         Satisfactory, for all staff were trained, although women accounted for
                                                                   only about 10%
  1.7 Environment                                         -                                              NA
  1.8 Private sector development                          -                                              NA
                     Total                               18        Satisfactory overall
2. Institutional development                           2.625
  2.1 Institutional framework                            2         The lack of experience of SENAREC staff at project start-up and the
                                                                   delay in the establishment of the Steering Committee contributed to
                                                                   weakening the project institutional framework, thereby contributing to a
                                                                   slippage in the project implementation schedule.
  2.2 Financial management information                   2         Satisfactory, for the audits were performed on schedule and did not reveal
     system including audit system.                                any anomaly.
  2.3 Transfer of technology                             3         Satisfactory, owing to the many in-service training programmes with the
                                                                   assistance of competent consultants, in local and overseas workshop
                                                                   seminars. The speed in the performance of duties testified to the
                                                                   acquisition of the technologies transmitted by administration personnel.
   2.4 Personnel per level of qualification              2.5       Fair, for the number of persons not yet trained remained high
                   Total                                10.5       The efforts made should be pursued.
3. Sustainability                                      2.875
   3.1 Donee commitment                                   3        The Donee succeeded in engaging in, and pursuing, dialogue with all the
                                                                   domestic partners and the donors, which was proof of its determination
                                                                   and a factor of sustainability.
  3.2 Environmental policy                               -                                               NA
  3.3 Institutional framework                            3         Initially difficult, it became favourable for continuing support.
  3.4 Technical viability and supervision                3         Part of the staff of the project beneficiary institutions was well trained and
                                                                   was able to contribute to replicating the skills acquired with a view to
                                                                   ensuring the sustainability of the achievements.
    3.5 Financial viability including cost               -                                               NA
         recovery systems.
   3.6 Economic viability                                -                                                NA
   3.7 Environmental viability                           -                                                NA
   3.8 Operation and maintenance                        2.5        Throughout the project implementation period, the Government released
facilitation (availability of funds, foreign                       its counterpart. It is up to it to continue on the same path by including the
exchange, spare parts, etc.)                                       necessary budgetary credits and making them available to the relevant
                                                                   departments.
                  Total                                 8.5
 Overall Assessment of Project Outcome                 2.83                  Overall, satisfactory subject to pursuing the efforts made.
             (1) + (2) + (3)

      Rating: 4 = Highly satisfactory, 3 = Satisfactory, 2 = Fair, 1 = Unsatisfactory, 0 = Highly unsatisfactory
                                                                                Annex 2
                                                                               Page 3 of 2
                                   DEMOCRATIC REPUBLIC OF CONGO

                        NATIONAL CAPACITY BUILDING PROGRAMME SUPPORT PROJECT
                                                (PANPURC)
                                        Project Completion Report



.   OVERALL RATING
    Heading                                                       Rating
    Donee Performance                                                   3
    Bank performance                                                    3
    Project Outcome                                                    2.83
    Overall rating                                                     2.94
                                                                                                                 Annex 3
                                                                                                               Page 1 of 2
                                                    DEMOCRATIC REPUBLIC OF CONGO

                                 NATIONAL CAPACITY BUILDING PROGRAMME SUPPORT PROJECT
                                                         (PANPURC)
                                                 Project Completion Report

                                                    Project training at 31 March 2006

     TRAINING                                   Place/venue Date / Period    Number of Principal                      Secondary
                                                                             participants beneficiaries               beneficiaries
I. Common training
1      Computer training                        Kinshasa     July-August,    100          STCI Ecofin, STCI Infras,
                                                             Oct.-Nov.                    STCI Social Welfare,
                                                             2003, April -                CTCPM, OGEDEP,
                                                             May 2004                     Health DEP, TPI DEP,
                                                                                          DIS EPSP, ESU DEP
II. Specific training
       Component 1
2         Training in modelling through the     Paris        10-19 July      4             BCC (DE)                   -
          Eviews 5.0 software                                2005
3         Training on EVIEWS 5.0 software       Kinshasa     25 Oct. – 04    50            BCC (DE, D’info, DSE)      Finance, Plan,
                                                             Nov. 2005                                                University of
                                                                                                                      Kin, OGEDEP,
                                                                                                                      Budget
4        Workshop on Interbank computer         Kinshasa     23 May-3 June   42           BCC (DSIF, DE,              -
         network and financial analyses                      2005                         D’Informat, DES)
5        Workshop on Interbank computer         Kinshasa     14 – 25 Nov     40           BCC (DSIF, DE,              -
         network focusing on financial                       2005                         D’Informat, DES)
         analyses through the Banking
         supervision application software
6        Workshop on Interbank computer         Kinshasa     30 May – 3      30           BCC (DSE, DE, D’inform)     -
         network and exchange control.                       June 2005
7        Workshop on Interbank computer         Kinshasa     28 Nov. – 02    50           BCC (DSE, DE, D’inform)     -
         network and BCC foreign exchange                    Dec. 2005
         payment statistics
8        Workshop on Interbank computer         Kinshasa     6 – 10 June     30           BCC (DE, DES)               -
         network and balance of payments.                    2005
9        Training in automated analysis of       Tervuren/   5 April 2005 to 2            CTCPM
         mining data                             Belgium
         Component 2
10       Training in Geneva in the use of the    Geneva/                     4            OGEDEP
         SYGADE software.                       Switzerland
11       Participation by 2 persons in the       Geneva/    03-10 June       1            OGEDEP
         sub-regional conference for            Switzerland 2005
         SYGADE – OGEDEP users.
12       Study trip to neighboring countries    -             -              -            -
         by 4 persons for exchange of
         experience (OGEDEP).
13       Training in debt administration        Kinshasa     20-30           50           OGEDEP                      BCC,
                                                             December.                                                Parliament,
                                                             2005                                                     Finance,
                                                                                                                      Budget,
                                                                                                                      Planning, CTR
14       Workshop on DRC debt relief.           Kinshasa     12- 16          50           OGEDEP                      BCC, Finance,
                                                             December.                                                Presidency,
                                                             2005                                                     Budget,
                                                                                                                      Planning, CTR
15       Thematic seminar on debt               Kinshasa     13 – 17        40            OGEDEP                      BCC,
         management and monitoring                           February. 2006                                           Parliament,
         techniques.                                                                                                  Finance,
                                                                                                                      Budget,
                                                                                                                      Planning, CTR
                                                                                                         Annex 3
                                                                                                       Page 2 of 2
                                           DEMOCRATIC REPUBLIC OF CONGO

                          NATIONAL CAPACITY BUILDING PROGRAMME SUPPORT PROJECT
                                                  (PANPURC)
                                          Project Completion Report

     TRAINING                           Venue/Place   Date /Period      Number of Principal            Secondary
                                                                        participants beneficiaries     beneficiaries
       Component 3
16     Thematic Seminar on the          Kinshasa      3 – 7 May         50           UPPE-SRP          DEP ESU,
       implementation of studies                      2005                                             Health DEP, TPI
       undertaken in the framework                                                                     DEP, DIS EPSP,
       of poverty reduction.                                                                           BCC, Planning,
                                                                                                       SENAREC,
                                                                                                       STCI Infra,
                                                                                                       STCI Social.
                                                                                                       welfare
17     Thematic Seminar                 Kinshasa      25 – 29 April     50           STCI Social       DEP ESU,
       STCI/Social protection.                        2005                           protection        Health DEP,
                                                                                                       DEP TPI, DIS
                                                                                                       EPSP, BCC,
                                                                                                       Planning,
                                                                                                       SENAREC,
                                                                                                       STCI
                                                                                                       Infrastructure
18     Thematic Seminar                 Kinshasa      21 – 24 June      60           STCI               DEP ESU,
       STCI/Infrastructures.                          2005                           Infrastructures   Health DEP, TPI
                                                                                                       DEP, DIS EPSP,
                                                                                                       BCC, Planning,
                                                                                                       SENAREC,
                                                                                                       STCI Social.
                                                                                                       welfare
       Component 4
19     Budget and financial
       management of projects and       Montreal/     9 June – 4 July
       organizations.                   Canada        2003              1            SENAREC
20     Definition and establishment                                                  SENAREC
       of the project monitoring-       Casablanca/   20 – 31 Oct.
       evaluation system.               Morocco       2003              1
       Conclusion of supplies                                                        SENAREC
       contracts and selection of       Casablanca/   3 – 14 Nov.
21     consultants                      Morocco       2003              1
       Project performance indicators   Casablanca/   1- 12 Dec.                     SENAREC
22                                      Morocco       2003              1
23     Operational planning and         Casablanca/   03 – 14 May       3            SENAREC
       project control.                 Morocco       2004
                                                      and 15- 25
                                                      Nov. 2004
24     Project audit                    Dakar/         26 April to 7    1            SENAREC
                                        SENEGAL       May 2004
25                                                    1 to 16 May                    SENAREC
       Study tour to ILO/Turin          Turin/Italy   2004              1
                                                                                                                 Annex 4
                                                 DEMOCRATIC REPUBLIC OF CONGO

                                 NATIONAL CAPACITY BUILDING PROGRAMME SUPPORT PROJECT
                                                         (PANPURC)
                                                 Project Completion Report

                     Performance of Goods and Services Contracts updated at 20 May 2006
Goods and services                  Contracts and             Contract      Contract     Level      Amount       Balanc
providers/ Contract Award         mode of procurement        amount of in   signature       of    paid in USD     e due
                                                                USD            date      execut                     in
                                                                                           ion                    USD
1.   AFRIMA Groupe CFAO          Contract n°001/2003                                                                       Contract
   Av Poids Lourds N°17          ICB for 11 Vehicles              276,850   14/04/2003   100%         276,850       Nil    closed
   Kinshasa/Gombe/DRC            Jeeps Toyota Prado
2. ENERBO Sprl                   Contract n°002/2003                                                                       Contract
   Av de la Justice n°97A,       ICB/ for computer                350,767   14/04/2003   100%         350,767       Nil    closed
   Kinshasa/Gombe/DRC            equipment
3. ENERBO Sprl                   Contract n°003/2003                                                                       Contract
    Av de la Justice n°97A,      AON/ for furniture and            12,106   14/04/2003   100%          12,106       Nil    closed
    Kinshasa/Gombe/DRC           office automation
                                 equipment
4. ECPnet Sprl                   Contract n°004/2003                                                                       Contract
    Bldg Nlles galeries          AON for cell phones,              57,026   14/04/2003   100%          57,026       Nil    closed
    Présidentielles RCM7-8       telephone exchange, fax,
    Kinshasa/Gombe/DRC           MS Office licences
5. CAL-Congo                     Contract N°006/2003                                                                       Contract
    Av de la paix                Computer training              35,062.50   03/03/2003   100%       35,062.50       Nil    closed
    Kinshasa/Gombe
6.                                Contract n° 007/2003                                                                     Contract
    PRICEWATERHOUSECO            and amendment National            40,000   8/09/2003    100%          40,000       Nil    closed
    OPERS                        tender/Project audit
    Immeuble Midema13, Av
    Mongala
    Kinshasa/Gombe/DRC
7. ENERBO Sprl                   Contract n°008/2003                                                                       Contract
    Av de la Justice n°97A,      ICB for photocopiers             109,780   18/09/2003   100%         109,780       Nil    closed
    Kinshasa/Gombe/DRC

8. ENERBO Sprl                   Contract n° 009 /2003              9,850   23/09/2003   100%           9,850       Nil    Contract
    Av de la Justice n°97A,      for OGEDEP                                                                                closed
    Kinshasa/Gombe/DRC           networking

9. GEMACOR International         Service contract                 248,560   13/10/2004   100%         248,560       Nil     Contract
   3125, Rue Paul -Contant,      N°14/2004 and                              et                                             closed
   Saint- Laurent, Montréal,     amendment                                  28/10/2005
   Québec, Canada, H4K2H5        ICB/Installation of
   Tél005143321862               international consultant
                                 in debt management
10. BRGM                         Contract N° 15/2004               13,504   06/07/2004   100%          13,504       Nil    Contract
    RCN°58B5614Paris /Tour       GDM software and                                                                          closed
    Mirabeau, 39-43 Quai         training of CTC officials
    André Citroën, 75379 Paris
    Cedex 15
11. Quantitative Micro           Contract n° 19/2005               11,755   19/05/2005   100%          11,755       Nil    Contract
Software (QMS) 4521 Campus       Procurement of                                                                            closed
Drive #336, Irvine, CA 92612     EVIEWS 5.0 software
USA

12. UNCTAD                       Contract of 23 March              38,000   23/03/2005   100%          38,000       Nil    Contract
    Geneva/Switzerland           2005 for the                                                                              closed
                                 procurement of
                                 SYGADE software

     TOTAL AMOUNT                                            1,203,260.50                100%     1,203,260.50
                                                                                                                                                                             Annex 5
                                                                            DEMOCRATIC REPUBLIC OF CONGO

                                                            NATIONAL CAPACITY BUILDING PROGRAMME SUPPORT PROJECT
                                                                                    (PANPURC)
                                                                            Project Completion Report

                                                     Breakdown of Project Equipment by Type and by Beneficiary

Components                                           1st Component                                  2nd Component                 3rd Component                  4th Component     TOTAL
Equipment                  Bcc   Ctcpm    Stci     STCI     STCI    Cab    Cab     DTO     Total1   Ogedep   Total   UPPE   DEP   DEP      DEP      Dis   Tota   Senarec   Total
                                         Ecofin   Prot/So   Infra   Plan   Fina   Financ                      2      DSRP   ESU   TPI     Health   EPSP    l3               4
                                                     c                     nces

1    Computers             40      4       7        2        2       4      5       4       68        10       10     0      1      1       1       1      4       2        2          84

2    Laptops               10      0       0        0        0       1      0       0       11        2        2      0      0      0       0       0      0       4        4          17

3    Laser printers        15      3       7        1        1       4      3       3       37        3        3      0      1      1       1       1      4       1        1          45

4    Ink jet printers       0      1       0        0        0       0      0       0        1        2        2      0      0      0       0       0      0       1        1          4

5    Dot matrix printers    1      0       0        0        0       0      0       0        1        1        1      0      0      0       0       0      0       0        0          2

6    Inverters/UPS         22      4       8        2        2       5      5       4       51        7        7      0      1      1       1       1      4       2        2          64
7    Server                 5      1       0        0        0       0      0       0        6        2        2      0      0      0       0       0      0       0        0          8
8    Scanner                0      0       0        0        0       0      0       0        0        1        1      0      0      0       1       0      1       1        1          8

9    Photocopiers           0      1       1        1        1       0      0       0        4        1        1      1      1      1       1       1      5       1        1          11

10   Chairs                 0      0       0        0        0       0      0       0        0        0        0      0      0      0       0       0      0       16       16         16
11   Tables                 0      0       0        0        0       0      0       0        0        0        0      0      0      0       0       0      0       1        1          1
12   Cupboards              0      0       0        0        0       0      0       0        0        0        0      0      0      0       0       0      0       5        5          5

13   Fixed telephones       0      0       0        0        0       0      0       0        0        0        0      0      0      0       0       0      0       8        8          8

14   Calculators            0      0       0        0        0       0      0       0        0        0        0      0      0      0       0       0      0       6        6          6
15   Vehicles               0      1       1        0        0       0      0       0        2        1        1      1      1      1       1       1      5       3        3          11

16   Cell phones            0      2       2        2        2       0      0       0        8        4        4      0      0      0       0       0      0       5        5          17

17   Generators             0      0       0        0        0       0      0       0        0        1        1      0      0      0       0       0      0       0        0          1

18   Software               1      1       0        0        0       0      0       0        2        1        1      0      0      0       0       0      0       1        1          4
                                                                                              Annex 6
                                                                                           Page 1 of 2
                                 DEMOCRATIC REPUBLIC OF CONGO

                    NATIONAL CAPACITY BUILDING PROGRAMME SUPPORT PROJECT
                                            (PANPURC)
                                    Project Completion Report

  Summary of Resources and Applications by Expenditure Category and Source of
                                   Finance

For the TAF

Justification of Special Account

  Year                       RESOURCES                                  APPLICATIONS
              Disbursement      Amount in    Cumulated       Expenditure   Amount in Cumulated
                                  USD                          category       USD
2002         1st disbursement   23,520.00     23,520.00     - Operation     22,151.00 22,151.00
                                              23,520.00                                      22,151.00

2003         2nd disbursement   246,580.00    246,580.00    - Consultant       8,552.00       8,552.00
             3rd disbursement   668,745.00    915,325.00    - Training        82,820.00      91,372.00
                                                            - operation                      246,604.00
                                                                              155,232.00
                                             915,325.00                                     246,604.00

2004                 -                                      - Consultant      299,027.00     299,027.00
                                                            - Training         60,800.00     359,827.00
                                                            - Equipment,       15,762.00     375,589.00
                                                            - Operation       203,532.00     579,121.00
                                                            - Audit            20,000.00     599,121.00
                                                  -                                         599,121.00
2005/2006    4th disbursement   326,653.00    326,653.00    - Consultant       43,290.00     43,290.00
             5th disbursement   118,120.00    444,773.00    - Training        211,625.00     254,915.00
                                                            - Equipment,       77,140.00     332,055.00
                                                            - Operation       157,443.00     489,498.00
                                                            - Audit            20,000.00     509,498.00

                                             444,773.00                                     509,498.00

Direct payments charged by ADB to the General Account

     Date                 Supplied                        Amount in USD                    UA
01/03/2003       ENERBO                                              280480                       199571
01/03/2003       AFRIMA                                              221480                     157515.91
20/03/2003       ENERBO                                               70178                      50444.45
20/03/2003       AFRIMA                                               55370                      39814.30
15/10/2003       ENGINEUR CONSULTANT                                  45420                      31750.34
22/12/2003       ENGINEUR CONSULTANT                               11405.20                       7762.76
22/12/2003       ENERBO                                              109780                      74719.92
20/03/2005       GEMACOR                                              43290                      29733.12
20/03/2005       GEMACOR                                              43290                      29543.36
20/12/2005       GEMACOR                                              28190                      19503.38
                 GEMACOR                                             39 950                     27647.059
                 GEMACOR                                             39 950                     27647.059
TOTAL                                                              988783.2                     695652.65
                                                                              Annex 6
                                                                           Page 2 of 2
                               DEMOCRATIC REPUBLIC OF CONGO

                  NATIONAL CAPACITY BUILDING PROGRAMME SUPPORT PROJECT
                                          (PANPURC)
                                  Project Completion Report

For CIDA

Purchase of computers and other computer equipment for an amount of UA 0.300 million

As GOVERNMENT COUNTERPART:

DETAILED SUMMARY OF DISBURSEMENTS BY THE GOVERNMENT AND
THEIR UTILIZATION

Support staff salaries (6 months):                            USD 11 500
Bonuses for technical staff (6 months):                       USD 18 000
Maintenance of 3 project vehicles:                            USD 4 100
Fuel for 3 vehicles:                                          USD 3 300
Phone cards                                                   USD 1 200
                                                              __________
DISBURSED AND UTILIZED:                                       USD 38 100

The second tranche is in the process of payment, i.e.:        USD 16 000
                                                              __________



Total Government counterpart                                  USD 54 100
                                                                                                                                                          Annexe 7
                                                                    DEMOCRATIC REPUBLIC OF CONGO

                                                      NATIONAL CAPACITY BUILDING PROGRAMME SUPPORT PROJECT
                                                                              (PANPURC)
                                                                      Project Completion Report

                                                               Utilization of Revolving Fund (in Euro)

                                   1st Disbursement                    2nd Disbursement                     3rd Disbursement                 4th and 5th Disbursement
                           Estimate      Actual    Differenc   Estimate     Actual    Differenc    Estimate       Actual   Difference   Estimate      Actual     Differenc
                                                       e                                   e                                                                         e
1. Consultant                      -                                   -     7951.00       -7951   302416.90   244682.67    57733.83    33041.26      33041.26           0
2. Training                        -                           71399.44      48981.2    22418.24   102000.00    49666.46    52333.81    184620.0 171990.97        12629.03
                                                                                                                                                 0
3 .Equipment.                      -                            12596.88    10365.00    2231.88     46387.10    13132.21    33254.89    65250.00      62706.16     2543.84
  Supplies, Various
4. Operating costs         24883.47     24271.12      612.35   140045.53   119524.68   20520.91     79171.60   166552.02   - 87380.42   111571.2    126536.17   -14964.93
                                                                                                                                               4
5. Audit                                                               -           -          -      8500.00    16511.30    -8011.30    15000.00     16117.30    -1117.30
Total Expenditure          24883 .47    24271.12      612.35   224041.85   186821.82   37220.03    538475.20   490544.66    47930.24    409482.0    410391.96     -909.36
Category                                                                                                                                       0
2005 Bank expenses                                                                                                                                    3437.40    -3437.40
Exchange Rate Adjustment                                                                                                                20901.02                 20901.02
Exchange Rate Losses                                                                                                                         0.0     10297.18   -10297.18
Recovery of bank charges                                                                                                                 9015.73                  9015.73
from the beginning to 31
December 2005
Foreign Currency                                                                                                                        -11846.67
Transaction Losses
Overall total              24883.47     24271.12      612.35   224041.85   186821.82   37220.03    24883 .47    24271.12       612.35   427552.5    424126.44     3426.14
                                                                                                                                               8
Bank balance                                                                                                                  1438.71                             3099.54
Cash balance                                                                                                                                                       326.60
                                                                                                                               Annex 8
                                                                                                                            Page1 of 2
                                                 DEMOCRATIC REPUBLIC OF CONGO

                                  NATIONAL CAPACITY BUILDING PROGRAMME SUPPORT PROJECT
                                                          (PANPURC)
                                                  Project Completion Report

                         Financial Implementation by Component from June 2002 to 18 May 2006
                                                       (in USD million)
UA 1                                  USD 1.30
                                               IN US$ MILLION                           IN UA MILLION
COMPONENT 1                          ESTIMATE       ACTUAL      BALANCE      ESTIMATE     ACTUAL        BALANCE   PERCENTAGE
A. CONSULTANT                            -              -             -                       -            -          0%
B. TRAINING                            0.240          0.173         0.067      0.185        0.133        0.052       72%
C. EQUIPMENT, SUPPLIES AND
MISCELLANEOUS                          0.424          0.403         0.021      0.327        0.310        0.017       95%
D. Operating costs                     0.200          0.100         0.100      0.154        0.077        0.077       50%
Total basic cost                       0.864          0.676         0.188      0.666        0.520        0.146       78%
Physical contingencies                 0.061            -           0.061      0.047          -          0.047        0%
Price escalation                       0.026            -           0.026      0.020          -          0.020        0%
TOTAL                                  0.951          0.676         0.275      0.733        0.520        0.213       71%
COMPONENT 2                          ESTIMATE       ACTUAL      BALANCE      ESTIMATE     ACTUAL        BALANCE   PERCENTAGE
A. CONSULTANT                          0.227          0.244     -    0.017     0.175        0.188       - 0.013      107%
B. TRAINING                            0.100          0.079         0.021      0.077        0.061        0.016       79%
C. EQUIPMENT, SUPPLIES AND
MISCELLANEOUS                          0.104          0.183     -    0.079     0.080        0.141       - 0.061      176%
D. Operating costs                     0.010          0.011         0.001      0.008        0.008       - 0.000      110%
Total basic cost                       0.441          0.517         0.076      0.340        0.398       - 0.058      117%
Physical contingencies                 0.031            -           0.031      0.024          -          0.024        0%
Price escalation                       0.013            -           0.013      0.010          -          0.010        0%
TOTAL                                  0.485          0.517     -    0.032     0.374        0.398       - 0.024      107%
COMPONENT 3                          ESTIMATE       ACTUAL      BALANCE      ESTIMATE     ACTUAL        BALANCE   PERCENTAGE
A. CONSULTANT                          0.300          0.290         0.010      0.231        0.223        0.008       97%
B. TRAINING                            0.040          0.038         0.002      0.031        0.029        0.002       95%
C. EQUIPMENT, SUPPLIES AND
MISCELLANEOUS                          0.183          0.185     -    0.002     0.137        0.142       - 0.005      101%
D. Operating costs                     0.022          0.023     -    0.001     0.017        0.018       - 0.001      105%
Total basic cost                       0.545          0.536         0.009      0.420        0.412        0.008       98%
                                                                                                                 Annex 8
                                                                                                              Page2 of 2
                                           DEMOCRATIC REPUBLIC OF CONGO

                             NATIONAL CAPACITY BUILDING PROGRAMME SUPPORT PROJECT
                                                     (PANPURC)
                                             Project Completion Report
Physical contingencies            0.038           -          0.038      0.029       -      0.029        0%
Price escalation                  0.016           -          0.016      0.013       -      0.013        0%
TOTAL                             0.599        0.536         0.063      0.462     0.412    0.050       89%
COMPONENT 4                     ESTIMATE      ACTUAL    BALANCE       ESTIMATE   ACTUAL   BALANCE   PERCENTAGE
A. CONSULTANT                       -             -            -          -         -        -          0%
B. TRAINING                       0.040        0.074     -    0.034     0.031     0.057   - 0.026      185%
C. EQUIPMENT, SUPPLIES AND
MISCELLANEOUS
                                  0.206        0.129         0.077      0.159     0.099    0.060       63%
D. Operating costs                0.187        0.421     -    0.234     0.144     0.324   - 0.180      225%
Total base cost                   0.433        0.624     -    0.191     0.334     0.480   - 0.146      144%
Physical contingencies            0.030           -          0.030      0.023       -      0.023        0%
Price escalation                  0.013           -          0.013      0.010       -      0.010        0%
TOTAL COMPONENT 4                 0.477        0.624         0.087      0.367     0.480   - 0.113      131%
AUDIT                             0.040         0.040          -        0.031     0.031    0.000       100%
BASIC PROJECT COST                2.323        2.393     -    0.070     1.790     1.841   - 0.051      103%
Physical contingencies            0.163           -          0.163      0.123       -      0.123        0%
Price escalation                  0.068           -          0.068      0.054       -      0.054        0%
TOTAL PROJECT                     2.554        2.393         0.161      1.967     1.841    0.126       94%
                                                                                            Annex 9
                                              DEMOCRATIC REPUBLIC OF CONGO

                                NATIONAL CAPACITY BUILDING PROGRAMME SUPPORT PROJECT
                                                        (PANPURC)
                                                Project Completion Report

                                    Financial Implementation by Expenditure Category
                                       from June 2002 to May 2006 (in US$ million)


                         FINANCIAL IMPLEMENTATION BY EXPENDITURE CATEGORY (in US$ million).
CATEGORY                  ESTIMATE     ACTUAL    BALANCE ESTIMATE      ACTUAL         BALANCE PERCENTAGE
A. CONSULTANT               0.527       0.534     - 0.007    0.406       0.411          - 0.005  101%
B. TRAINING                 0.420       0.364      0.056     0.324       0.280           0.044    87%
C. EQUIPMENT,
SUPPLIES AND
MISCELLANEOUS               0.917           0.900      0.017      0.703       0.692     0.011          98%
D. Operation                0.419           0.555     -  0.136    0.323       0.427    - 0.104        132%
E. AUDIT                    0.040           0.040        -        0.031       0.031     0.000         100%
Total basic cost            2.323           2.393     - 0.070     1.790       1.841    - 0.051        103%
Physical contingencies      0.163             -        0.163      0.123         -       0.123           0%
Price escalation            0.068             -        0.068      0.054         -       0.054           0%
TOTAL                       2.554           2.393      0.161      1.967       1.841     0.126         94%
                             DEMOCRATIC REPUBLIC OF CONGO

                 NATIONAL CAPACITY BUILDING PROGRAMME SUPPORT PROJECT
                                         (PANPURC)
                                 Project Completion Report

APPENDICES




1. Audit reports (1 June to 31 December 2002 and 1 January to 31 December 2003);


2. Audit report (1 January to 31 December 2004);


3. Audit report (1 January 2005 to 18 May 2006).
                                                   Appendices




"SENAREC" NATIONAL CAPACITY BUILDING SECRETARIAT




1. INDEPENDENT AUDITORS REPORT

2. FINANCIAL REPORT

3. SUPPLEMENTARY NOTE ON THE PROJECT




6 June 2006
                                                                                                       Appendix I




                                                                                                PricewaterhouseCoopers sprl
                                                                                                MIDEMA Building
Mr. TANSIA MOLENDE MONKOY                                                                       13, avenue Mongala
                                                                                                B.P. 10195 Kinshasa 1, R.D.C.
                                                                                                Telephone (243) 998396271/ 8844435
Coordinator                                                                                     Fax (243) 812616010 / 8800075

National Capacity Building Secretariat

“SENAREC”
                                                                                                Kinshasa/Gombe


                               INDEPENDENT AUDIT REPORT
                       ON THE FINANCIAL REPORTS FOR THE PERIOD
               1 JANUARY 2005 TO 18 MAY 2006 AND ON THE OPERATIONS OF THE
               NATIONAL CAPACITY BUILDING PROGRAMME SUPPORT PROJECT



ADF GRANT N° F/ZAR/GI/KF/2001/1


1.   We have examined the financial reports drawn up by SENAREC, comprising the Flow of Funds Table as
     well as the Statement of Assets and Liabilities of the National Capacity Building Programme Support
     Project funded by the ADF grant N° F/ZAR/GI/KF/2001/1 for the period 1 January 2005 to 18 May 2006.
     This financial report falls within the remit of SENAREC. Our responsibility consists in expressing an
     opinion on the financial report on the basis of our audit.

2.    We conducted our examination in keeping with international audit standards and the provisions set out in
      the “General Conditions Applicable to Grant Agreements of the African Development Fund relating to
      the activities of the Technical Assistance Fund”. These standards require that the audit be planned and
      performed with a view to obtaining reasonable assurance that the financial report reflects exhaustively at
      that date the actual and effective expenditures of the Project by carrying out in each case:

             an analysis and control of the type, legality and regularity of the expenditure;

             a reconciliation of the expenditure with the specific accounts and with the project budget;

             verification of the materiality (existence, conformity) of activities ; and

             verification of the existence of an adequate classification of the original probative documents with
             a view to facilitating possible controls.



NRC 1969 - N° Id. Nat. 01-83-C19499X - Tax N° K02A 0332 A
      Lubumbashi Office: BCDC Building –1st floor–B.P. 7224–Lubumbashi – Tel (243) (23) 41 608
3.       Our review consisted in a sampling verification of the probative documents justifying the amounts and
         information given by the financial report. It also consisted in an assessment of the accounting principles
         used, the significant estimates retained for project management, as well as the overall presentation of the
         financial report. We consider our audit as constituting a reasonable basis for expressing our opinion.

4.       For them to conform to the procedures recommended in the framework of the project, project operations
         were to be carried out in keeping with the conditions/covenants of the agreement signed between the
         African Development Fund and the Democratic Republic of Congo which focused, in particular, on:

         •   commitment of expenditure in keeping with the budget approved by the African Development Fund;

         •   commitment of expenditure in keeping with the authorization ceiling required in relation to the
             amount;

         •   the need for expenditure to relate to project objectives by excluding, in particular, expenditure prior
             to the contract;

         •   application of the price comparison procedure to improve purchasing conditions in accordance with
             the quality/price ratio;

         •   the existence of evidence of certified acceptance of goods and/or services subject to procurement;

         •   payment of salaries for the posts in the project document and solely to individuals involved in its
             implementation; and

         •   visible identification and actual allocation of equipment and other goods acquired under the Project.

5.     In our opinion, in all its significant aspects, the financial report prepared by SENAREC presents the
resources and expenditure of the National Capacity Building Programme Support Project, as well as its activities
for the period: 1 January 2005 to 18 May 006.

Signed




06 June 2006
                                                                                                      Appendix II
                                                                                                      Page 1 of 2


                            NATIONAL CAPACITY BUILDING SECRETARIAT

                                                    “SENAREC”

                 NATIONAL CAPACITY BUILDING PROGRAMME SUPPORT PROJECT

                                      ADF GRANT N° F/ZAR/GI/KF/2001/1

                 FINANCIAL REPORT FOR THE PERIOD: JANUARY 2005 TO MAY 2006



TABLE OF RESOURCES AND THEIR UTILIZATION AT 18 MAY 2006

(Expressed in US dollars)

                                                   Rating Estimated 2005                                Difference
                                                                                  Actual 2005/2006

COMPONENT
I. Resource
   ADF Grant                                              4             444 727             444 727              0
   Balance carried over to 1 January 2005                 5              67 504              67 504              0
   Recovery                                               6                   0              12 316        -12 316

     Exchange rate gains                                                     0                 147            -147

    Total resources                                           512 231             524 694                  -12 463
II. Utilization

     Consultant                                          7               43 290              43 290              0
     Training                                            8              242 000             211 625         30 375
     Equipment, supply and miscellaneous                 9               87 000              77 140          9 860
     Operation                                          10              144 523             157 049        -12 526
     Audit                                                               20 000              20 000              0
     Total basic cost                                                   536 813             509 104         27 709

     Bank charges                                        6                    0               4 365         -4 365
     Exchange rate adjustments                          11              -24 582               6 315        -30 897
     Total contingencies                                                -24 582              10 680        -35 262

     Total utilized                                                     512 231             519 784         -7 553

III. Available                                          12                   0                4 910         -4 910



The rating: 1 to 12 are an integral part of the financial report.
                                                                                                  Appendix II
                                                                                                  Page 2 of 2

                                 NATIONAL CAPACITY BUILDING SECRETARIAT

                                                         “SENAREC”



                     NATIONAL CAPACITY BUILDING PROGRAMME SUPPORT PROJECT

                                          ADF GRANT No. F/ZAR/GI/KF/2001/1

                     FINANCIAL REPORT FOR THE PERIOD: JANUARY 2005 TO MAY 2006




STATEMENT OF ASSETS AND LIABILITIES AT 18 MAY 2006
(Expressed in US dollars)




Assets                                                                        2006                       2004



Consultant                                                                 350 869                     307 579
Training                                                                   355 245                     143 620
Equipment, supplies and miscellaneous                                      899 431                     822 291
Audit                                                                       40 000                      20 000

Sub total                                                                 1 645 545                  1 293 490

Available                                                                  733 445                     728 535

Total                                                         2 378 990               2 022 025

Financings

ADF Grants                                                                2 905 883                  2 393 652
Recovery of bank charges                                                     12 316                          0
Exchange Rate adjustments                                                     2 916                      9 084
Operating costs                                                            -542 125                   -380 711

Total                                                                     2 378 990                  2 022 025


Notes 1 to 12 are an integral part of the financial report.
                                                                                                        Appendix III
                                                                                                         Page 1 of 4


                             NATIONAL CAPACITY BUILDING SECRETARIAT

                                                     “SENAREC”

                  NATIONAL CAPACITY BUILDING PROGRAMME SUPPORT PROJECT

                                        ADF GRANT No. F/ZAR/GI/KF/2001/1

                                SUPPLEMENTARY NOTES ON THE PROJECT

                              FOR THE PERIOD: JANUARY 2005 TO MAY 2006
                                        (Expressed in US Dollars)


1.     PROJECT SUMMARY AND OBJECTIVES

      The project consisted in contributing to building national capacities for managing development, especially
      supporting the emergence of minimal institutional capacities for planning and macro-economic management.
      The specific objective of the project was to build national capacities for coordination and macro-economic and
      sector management. In an initial phase, the programme defined a framework for seeking solutions to the most
      urgent problems by providing a minimal capacity necessary for the implementation of Government
      programmes. The gradual resumption of activities could then enable the implementation of the Interim
      Programme for economic and financial stabilization and the medium-term programme supported by the poverty
      reduction and growth facility. In a second phase, the programme was to help formulate and implement a
      medium-term capacity building programme guaranteeing a linkage with the short-term actions. The project was
      therefore built on a short- to-medium-term, and subsequently long term, evolutionary approach.

      The specific objectives of the project were:

             Strengthening the institutional framework for the coordination of macro-economic and sector policies and
             reforms;
             strengthening public debt management;
             supporting the participatory process of preparing a poverty reduction strategy; and
             programme management and monitoring.

      The Project beneficiaries were:

Component 1: Strengthening the institutional framework for the coordination of macro-economic and sector policies
              and reforms.
      -      Office of the Minister of Planning;
      -      Office of the Minister of Finance;
      -      Treasury;
      -      Technical Secretariat of the Inter-ministerial Committee for economic, monetary and financial matters;
      -      Technical Secretariat of the Inter-ministerial Infrastructures Committee;
      -      Technical Secretariat of the National Social Welfare Coordinating Committee;
      -      Technical Unit for Mining Coordination and Planning (CTCPM); and
      -      Central Bank of Congo.

Component 2: Strengthening public debt management.
      -      OGEDEP.

Component 3: Support to the participatory process of preparing the poverty reduction strategy.
      -      Directorate for School Infrastructure (Ministry of Primary and Secondary Education);
      -      Directorate for Project Planning and Programming (Primary and Secondary Education);
      -      Directorate for Project Planning and Programming (Higher and University Education);
      -      Research and Planning Office (Ministry of Health); and
      -      Directorate of Studies and Planning (Ministry of Public Works and Infrastructure).
                                                                                                           Appendix III
                                                                                                            Page 2 of 4

Component 4: Project management and monitoring
      -      SENAREC.


2.    PROJECT PRESENTATION

      The National Capacity Building Secretariat – SENAREC – is an institutional body coordinated by the Ministry
      of Planning.

      It was set up by Ministerial Order N° 003/CAB/MIN.PL/98 of 21 February 1998, and supplemented on 14 May
      1999 with Order No. 017/99.

      An Agreement was signed on 18 July 2001 between the Democratic Republic of Congo and the African
      Development Fund for a grant of UA 1,970,000 (USD 2,551,000) which was awarded to the National Capacity
      Building Secretariat, i.e., the Project Implementing Agency.

             The project was for a period of two years from 24 October 2001 on which date it became effective, and
             the last grant disbursement was fixed for 31 December 2005. The first disbursement was made on 10
             June 2002.

3.    PROJECT MANAGEMENT

      3.1.   Reporting and accounts ledgers

      a)     Intermediate reporting

      The intermediate report on project activities comprised precise information on:

             results analysis;
             description of activities;
             justification of the resources used;
             special problems;
             schedule of activities carried out; and
             estimated schedule for project end.

      b)     Final report

      This report will be prepared at project end to take stock of the overall project duration. It will be handed over
      no later than one month after project closure with the final financial report.

      c)     Cash and Bank Ledgers

      Fund movements were recorded in the cash and Bank ledgers open for Project operations.

      3.2.   Bank account

      The Project special account open at the Central Bank of Congo (BCC) was denominated in Euros. For the audit
      period, most of the payments were made in US dollars.

      3.3.   Currency Exchange Rate

      Significant expenditure was made through Bank transactions. Thus, the exchange rates used were those of the
      BCC. For reasons of budgetary comparison, expenditure was converted into USD for the preparation of the
      financial report by applying the exchange rate communicated by BCC.

4.    GRANTS
      During the 2005 fiscal year, ADF awarded the project the following grants:                   Amount
                                                                                                      USD
      Equipment subsidy                                                                               58 000
      Operating subsidy                                                                              386 727
                                                                                                    444 727
                                                                                                       Appendix III
                                                                                                        Page 3 of 4

5.    BALANCE CARRIED FORWARD TO 1 JANUARY 2005

      This was a cash balance at 1st January 2005 detailed as follows:

                                                                                                     Amount

                                                                                                         USD

      Bank                                                                                             66 105
      Cash                                                                                              1 399
                                                                                                       67 504
6.    RECOVERY OF BANK CHARGES

      The amount of USD 12,316 represented Bank charges debited by BCC in the special account of the ADF grant
      since project start-up. These bank charges, including USD 4,365 charges retained by BCC in 2005, were
      refunded in the special project account by this institution on the instruction of the Ministry of Planning,
      following Letter N° 108/CAB.MIN.PL/SEN/2005 of 24 September 2005.

7.    CONSULTANT

      Category                                                                                       Amount
                                                                                                       USD
      International Public Debt Management Consultant
      Invoice of GEMAGOR (25% of contract amount, USD 173.160)                                         43 290

      Total Consultant                                                                                 43 290

8.    TRAINING

      Category                                                                                       Amount
                                                                                                       USD

      Training on BCC modelling                                                                        38 950
      Training on EVIEW 5.0 software                                                                   11 420
      Study trip to Belgium for CTCPM.                                                                 23 058
      OGEDEP training in Geneva                                                                        17 898
      Training in Debt administration                                                                  15 488
      Workshop on DRC debt policies and strategies                                                     15 628
      Thematic Poverty Reduction Seminar (3rd Component)                                               10 260
      Other training schemes & Seminars                                                                78 923

                                                                                                      211 625

9.    EQUIPMENT

      Category                                                                                       Amount
                                                                                                       USD

      Procurement of EVIEWS software (BCC)                                                             11 755
      Procurement of SYGADE/OGEDEP software                                                            38 000
      Procurement of BCC networking cables                                                              9 850
      Other                                                                                            17 535

                                                                                                       77 140

10.   EXCHANGE RATE ADJUSTMENTS

      The amount of USD 6,315 represents the exchange rate differential as a result of the parity used for conversion
      into dollars at market rates of transactions effected in Euros on the special account opened at BCC, since the
      payments received by the project in the special account were made at official rates.
                                                                                              Appendix III
                                                                                               Page 4 of 4

11.   OPERATION

      This heading consolidates all expenditure relating to the following items:

      Category                                                                               Amount
                                                                                               USD

      Bonuses and salaries of technical and support staff                                     66 250
      Office supplies                                                                         48 281
      Computer maintenance                                                                    11 785
      Maintenance of three vehicles                                                           14 027
      Fuel for vehicles                                                                        6 073
      Vehicle insurance                                                                        4 880
      Telephone                                                                                3 000
      Mail dispatch by DHL                                                                     1 753
      Staff remuneration for preparation of accounts
      and audit closure                                                                        1 000

      Heading Total                                                                          157 049

12. SPECIAL ACCOUNT

      This item comprises:
                                                                                             Balance
                                                                                                USD
      BCC Special account                                                                      4 516
      SENAREC Fund                                                                               394
                                                                                               4 910

      12.1. Special Account Balance- Justification Statement

      ADF Grant N° F/ZAR/GI/KF/2001/1
      Account N° H12010723698 held at the Central Bank of Congo

                                                                                       Amount in USD
      Special Account balance at 1 January 2005                                               66 105
      Cash balance at 1 January 2005                                                           1 399
      Amount transferred by ADF during fiscal year.                                          444 727
      Recovery of Bank charges                                                                12 316
      Exchange rate gains                                                                        147
      Expenditure for fiscal year:
      - Current expenditure                                                                 - 509 104
      - Bank charges                                                                           -4 365
      - Exchange rate losses                                                                   -6 315
      Closure balance at 18 May 2006:                                Euro 3 540                 4 910
      Balance according to bank statement of 02 June 2006:           Euro 3 537                 4 913
      Difference                                                              3 Euro               -3

      Difference justified by exchange rate adjustments

								
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