World Bank Documentdocuments.worldbank.org/curated/en/409991468746771640/pdf/multi0... · CNE Caisse Nationale d'Epargne COBAC Commission Bancaire de l'Afrique Centrale CORAF Congolaise

Document of

The World Bank

Report No. T-6654-COB

TECHNICAL ANNEX

TO THE

MEMORANDUM AND RECOMMENDATION(REPORT NO. P-6654-COB)

ON A

PROPOSED CREDIT

IN THE AMOUNT EQUIVALENT TO SDR 5.8 MILLION

TO THE REPUBLIC OF CONGO

FOR A

PRIVATIZATION AND CAPACITY BUILDING PROJECT

JULY 25, 1995

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CURRENCY EOUTVALENTS

Currency unit = CFAF

Current:lUS$ = 480.00 CFAFAverage for 1994:]US$ = 556.46 CFAFAverage for 1993:1US$ 283.16 CFAFAverage for 1992: IUSS = 264.69 CFAF

WEIGHTS AND MEASURESMetric Tons (MT)

Kilometer (km)

ABBREVIATIONS

AfDB African Development BankATC Agence Transcongolaise des CommunicationsBEAC Banque des Etats de l'Afrique CentraleBCC Banque Commerciale CongolaiseBIDC Banque Internationale du CongoCAR Central African RepublicCCA Caisse Congolaise d'AmortissementCCE Commission de Coordination EconomiqueCCP Centre de Cheques PostauxCFA Communaute Financiere AfricaineCFCO Chemin de Fer Congo-OceanCFD Caisse Francaise de DeveloppementCNE Caisse Nationale d'EpargneCOBAC Commission Bancaire de l'Afrique CentraleCORAF Congolaise de RaffinageCRC Credit Rural du CongoDCO Direction du Contr6le et des OprationsDGH Direction Generale des HydrocarburesEIB European Investment BankERC Economic Recovery CreditESAF Enhanced Structural Adjustment FacilityGOC Government of CongoHC Hydro-CongoIDA International Development AssociationIGE Inspection Generale de l'EtatLPG Liquified Petroleum GasMEFPP Ministere de l'Economie, des Finances charg6 du Plan et de la ProspectiveMUCODEC Mutelles Congolaises d'Epargne et de CreditONPT Office National des Postes et T61ecommunicationsPARESO Programme d'Appui a la Relance Economique et SocialePE Public EnterprisePPN Port de Pointe-NoireSDR Special Drawing RightsSPCP Secretariat Permanent du Comite de PrivatisationSNDE Societe Nationale de Distribution d'EauSNE Societe Nationale d'ElectriciteUCB Union Congolaise de BanquesUDEAC Union Douaniere des Etats d'Afrique CentraleVNPTF Voies Navigables, Ports et Transports Fluviaux

FISCAL YEARJanuarv I - December 31

REPUBLIC OF CONGOPRIVATIZATION AND CAPACITY BUILDING PROJECT

TECHNICAL ANNEX

Table of Contents

SECTION A: ECONOMIC AND FINANCIAL ASPECTS OF THEPUBLIC ENTERPRISE SECTOR .............................................................. 1

SECTION B: DETAILED PROJECT DESCRIPTION ............................................................. 4

1. PROJECT DESCRIPTION .............................................................................. 4

A. Divestiture and Quality Improvement in Public Services ................................................................. 4

Restructuring of Agence congolaise des communications (ATC) ....................................................... 4

Restructunrng of Office national des postes et telecommunications (ONPT) ....................................... 5

Letting of Concession Contracts on Water and Power Services (SNE. SNDE) ........... ....................... 6

Liberalization of importation and distribution of petroleum products (HC) ............ ............................ 7

Regulation .............................................................................. 8

Intenrm management of enterprises ......................... ..................................................... 8

B. Portfolio Overhaul ................................................................. 8

C. Financial Sector and Public Sector Reform ................................................................. 9

D. Public Information Component ................................................................. 9

SECTION C: PROJECT COSTS AND ADMINISTRATION ......................................................... 11

I. PROJECT COSTS ..... I

II. PROCUREMENT .............................................................................. 12

A. Recruitment of Consultants ................................................................. 13

B. Purchasing .................................................................. 13

111. DISBURSEMENT PROCEDURES . .............................................................................. 13

IV. ACCOUNTS MANAGEMENT AND AUDITS .. ..... 15

SECTION D: PROJECT MANAGEMENT AND IMPLEMENTATION ....................................... 17

1. PROJECT MANAGEMENT .............................................................................. 17

II. PROJECT IMPLEMENTATION PLAN .............................................................................. 17

III. REPORTING REQUIREMENTS .............................................................................. 17

IV. SUPERVISION .............................................................................. 18

V. MD-TERM REVIEW ............................................................................... 8

SCHEDULES: A 9

Schedule 1: Restructuring of ATC: Actions, Anticipated Results, and Schedule .............. I ..... 19

Schedule II: Railway Concession Contract Strategy and Schedule .......................................... 22

Schedule III: Restructuring of ONPT: Actions, Anticipated Results, and Schedule ......... ........ 23

Schedule IV: Restructuring of SNE and SNDE: Actions, Anticipated Results,and Schedules ................................................................. 25

Schedule V: Restructuring of Hydro-Congo Privatization: Actions, Anticipated Results,and Schedule .................................................................. 27

Schedule VI: Public Enterprises in Government Portfolio: Classification and Action Plan ....... 28

Schedule VII: Detail of Project Costs ................................................................. 30

Schedule VIII: List of Project Activities and Procurement Procedures . . 31

Schedule IX: Project Execution Plan and Anticipated Project Results ................ ...................... 32

Schedule X: Project Supervision Plan ......................... ......................................... 41

Schedule XI: Project Structure ................................................................. 42

Schedule XII: Privatization Committee Secretariat: Organization Chart ................................... 43

Schedule XIII: Project Status: Performance Indicators ............................................................. 44


TECHNICAL ANNEX

SECTION A: ECONOMIC AND FINANCIAL ASPECTS OFTHE PUBLIC ENTERPRISE SECTOR

I. Introduction. A 1994 Public Enterprise Sector Review (Report No. 13755 COB) carriedout by partner agencies in Congo under the direction of the World Bank, and at the same timestudies by the Permanent Secretariat of the Privatization Committee, identified the shortcomingsof the public enterprise sector and provided an assessment of the resulting burden on the nationaleconomy. It led to formulation of strategies to restructure monopoly sectors and open them tocompetition, and to development of plans to privatize viable and liquidate non-viable enterprises.The work of putting these strategies and plans into effect in advance of the next structuraladjustment program will be supported by the present project.

2. Structure and Role of the Public Enterprise Sector in the Economy. In 1987, whenCongo adopted its first structural adjustment program, the public enterprise sector consisted ofover 100 enterprises, of which 81 were wholly-owned PEs and 15 had mixed ownership (societed'economie mixte), with the state holding at least 50% of the shares. The state also held aminority share in several other mixed enterprises. By the end of 1991, the number of PEs haddeclined to 71, of which 27 were mixed-ownership enterprises majority-owned by the State. Infact, only 42 PEs were still in operation. The reduction in the size of the PE sector, still modest,can be attributed to several factors, the most important being the deepening of the government'sliquidity crisis and the swelling of the country's external debt.

3. During the period 1987 to 1993, many PEs ceased operations and were either liquidatedor privatized, as the Government's ability to subsidize loss-making PEs became severelyconstrained. Eleven (11) PEs were liquidated, approximately 11 other loss-making ones werepartially privatized and 6 were wholly privatized'. Furthermore, the monopoly enjoyed by certainPEs over the export of coffee (OCC), timber (OCB), tobacco (OCT), and the import anddistribution of meat (ONIVEG), consumer goods (OFNACOM) and foodstuffs (OCV) wasabolished and the PEs liquidated. It is estimated that as of April 1994, there were fiftyGovernment-owned or controlled enterprises. These include enterprises which have ceasedoperations but have not yet been liquidated, and those which are still being liquidated. As of endof 1994, 18 enterprises had been restructured, while only 31 remained active with the rest inunclear legal status.

' SUCO (sugar), CIDOLOU(cernent), SIAP(paper), UAB(fodder), SOCOME(furniture), YQIURTERIE (yogurt).

4. In 1993, the PE sector accounted for 20 % of GDP, 12% of value added and 10-15 % ofemployment in the formal sector, while its share of the Public Investment Program is significant.

5. Performance and Weight on Public Finances. It Box :Con2o-EvolutionofWafces

is very difficult to determine the actual financial Av. Wage (Mil/ vr.) 89 90 91 92

performance of most public enterprises due to the poor public 1.7 2.1 3.4 3.5

quality of their financial statements and the resulting lack of Private 3.4 3.2 3.2 3.4

transparency. However, globally, the performance of the TOT.WAGES AS % OF TOT. RPVENUES

PE sector in Congo has been characterized , over the past 91 92

15 years, by low productivity coupled with mounting levels I 9 9

of foreign and local debt of about CFAF 100 billion2 and 90 Public 19% 26% 36% 41%

billion respectively. Despite CFAF 350 billion of public Private 14% 10% 11% 12%

investments over the period of 1985-1990, the sector's total deficit reached CFAF 100 billion in1993; and lost fiscal revenue attributed to the PE sector reached an estimated CFAF 10 billion in1993. As of end-1993, cross debts between PEs were estimated at CFAF 140 billion and on therise. Furthermore, high wages constitute a major draw-back in the sector (see box I above).

6. The Sector is dominated by six (6) PEs considered strategic by the Government3 -and thusdesignated "pilot enterprises" by law- and enjoying monopoly over the key sectors of theeconomy. Aggregate loss of these six pilot PEs was CFAF 13.3 billion (equivalent to aboutUS$40 million before devaluation) in 1992, and increased to CFAF 15.5 billion (US$47 millionbefore devaluation) in 1993. Accumulated losses for the six pilot PEs during the 1989 -1992period are estimated at CFAF 32.2 billion, which represents 7% of the budget. The heaviestlosses were incurred by ATC, the transport conglomerate. Despite a decline in output during thisperiod, personnel expenses of the pilot PEs doubled from CFAF 24.6 billion in 1989 to CFAF49.3 billion in 1992. Only two, Hydro-Congo and ONPT, showed a profit during this time butneither of them paid any dividends. This poor performance of the pilot PEs is representative of theoverall performance of the sector. Key financial indicators of the pilot PEs for the period 1989-93are summarized below:

Table 1: Pilot PEs - Key financial indicators(CFAF billion)

1989 1990 1991 1992 1993

Revenues 155.7 149.2 157.4 141.5 141.7Net Income -3.0 -2.3 -13.4 -13.3 -15.5Wage Bill 24.6 29.9 46.2 49.4 49.1N. of Employees 14,360 13,947 13,468 13,356 13,121

2This amount is adjusted to the post devaluation exchange rate.

'SNE (electricity), SNDE (water), ONPT (post and telecomnmunications), ATC (raiL port, river transport), HC (petroleum distribution), and CORAF(refining).

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7. Constraints and Issues. The poor performance of the PE sector can, in most cases, beattributed in summary to the following factors: At the sector level: (a) absence of an appropriateinstitutional and legal framework; (b) shortage of expertise in policy formulation, sector oversight,and regulation; and (c) non-payment by Government of services provided to it by the PEs. At theenterprise level: (a) weak managerial capacity, as well as an inappropriate incentive framework toreward and/or penalize performance; (b) absence of discipline in financial management of PEs,and staffing and wage policies driven by political considerations, resulting in all PEs becomingoverstaffed with under qualified personnel; and (c)absence of cost-accounting systems in mostPEs, making it difficult to convince Government of the need to adjust prices of goods and servicesto economic levels.

8. In the face of the present crisis, the central objective of Public Enterprise Sector Reform inCongo is to eliminate the heavy financial and economic burden the PEs impose oln the countiy,while improving the quality of much needed services. Many of the problems experienced by thepublic enterprises are recognized by the authorities, who have adopted the program describedbelow, and which: (a) calls for disengagement from operations of public services in favor ofprivate operators; and (b) emphasizes the Government's role of regulation and defining aframework for private sector participation. It is important to point out that the major PEstargeted for privatization are attractive to the private sector. Potential bidders have alreadyexpressed interest in participating in future investments.

9. PROJECT BENEFITS. The operation is opportune as it buttresses Government's efforts tore-establish credibility as a major effort following devaluation just over a year ago. Moreover, itwould reduce the financial drain of the public sector and the PEs on the State, and eventuallyincrease fiscal revenues through improved services and private sector financing of infrastructurefor the water, power, telecommunications, and hydrocarbon sectors. The project's successfulimplementation will increase economic activity and household revenues through enhancedavailability of power, water and improved transportation services, will help restore the contidenceof foreign private investors in Congo, reinforcing Government's efforts to attract private capitaland strengthen the financial sector, and produce a demonstration effect for adjustment.

10. QUANTIFICATION OF PROJECT COSTS AND BENEFITS. Although as a capacity buildingoperation, no formal cost/benefit analysis was carried out, the Public Enterprise Sector Reviewprovides indications of the financial and economic costs and benefits of the project. Overallfinancial costs of the project are estimated at CFAF 5.5 billion (US$ 11.0 million) over 3 years.Overall financial benefits are estimated in excess of CFAF 20 billion (US$ 4 million) each year interms of revenue increases and budgetary savings. Some of the financial benefits of the projectwill be derived from : (a) improving fiscal revenues from the petroleum sector by an estimatedCFAF 5 billion per year currently not collected by the Treasury; and (b) eliminating the drain onithe Treasury from loss-making pilot PEs estimated at CFAF 15 billion annually for the five majorPEs. These financial benefits to the budget also, of course, yield economic benefits. The value ofthe latter depends on the assumptions made about the premium on public income in Congo. Forthe CFAF 20 billion a year worth of positive impact on the budget to translate into economicbenefits of thie order of CFAF 3-5 billion a year does not require unreasonable assumptions; ifanything, the bottom end of this range would perhaps be an estimate on the conservative side.Economic benefits will be obtained by: (i) reducing economic inefficiencies which for thehydrocarbon sector aione are estimated at CFAF 7 billion in needless overheads; and (ii) in thepower sector, decreasing technical and non-technical losses by approximately 50%.

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SECTION B: DETAILED PROJECT DESCRIPTION

1. PROJECT DESCRIPTION

11. The project comprises the following four components, designed to lay the foundations fora structural adjustment program: (a) improvement in the quality of public services; (b) overhaulof the Government's portfolio of holdings in public enterprises; (c) preparation of financial sectorand civil service reforms; and (d) a public information campaign.

A. Divesfiture and Quality Improvement in Public Services

12. The Government's intentions here are: (a) to upgrade the quality of public servicesthrough improvements in performance, to be achieved by transferring these activities to theprivate sector; and (b) to restrict the role of government to formulation of sector policies andregulation. The Government will rely on specialized consulting firms in preparing sectordevelopment strategies, in restructuring the distribution of petroleum products and the delivery ofwater, power, telecommunication and transportation services, and in seeking private investors totake over existing public enterprises. This component of the project will provide the Governmentwith the means to retain consultants to assist with actual transfer of public service enterprises tothe private sector, especially those responsible for water, power, transportation, and postal andtelecommunication services and the distribution of petroleum products, as well as with creation ofa regulatory framework conducive to the development of a competitive market. The componentwill also provide means to organize and launch the Permanent Secretariat of the PrivatizationCommittee which is in charge of program implementation.

Restructuring of Agence congolaise des communications (ATC)

13. This public enterprise will be put under interim administration and broken up into threeseparate entities.

(a) An already selected consulting firm will be appointed officialadministrator/liquidator for twelve months. During this period, it will be expectedto identify and allocate ATC assets among the three new entities, dispose of orgrant concessions on navigable waterways, develop social plans and put them intoeffect, and liquidate ATC once its functions are taken over by the new structures.The administrator will also draw up regulations to govern opening of the transportsector to competition, and to be put into effect before privatization. The bodiesresponsible for regulating sector activities are to be identified by the consultantsand reinforced as part of the project.

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(b) The port of Pointe Noire (PPN) is to be converted into an autonomous,commercially-oriented public agency. The membership of its board of directors isto be open to users, and it will subcontract all port-related activities to the privatesector. This subcomponent is to be completed within six months of selection ofconsultants, whose mandate will cover drafting of the agency's articles ofassociation, organization of its board of directors, setting up of its organizationalarrangements (initial financial statement, organization chart, accounting systems),and drafting of the conditions of contract and terms of concession that are togovern relationships between the state, users, and PPN itself.

(c) The activities of VNPTF, the Navigable Waterways, Ports and River TransportAuthority, are to be reorganized into different entities: the river fleet (andshipyards, if need be) will be ceded to the private sector, subject to operationalrequirements specified in the associated conditions of contract; the port ofBrazzaville will be converted into a commercially-oriented public agency, as in thecase of Pointe Noire; secondary ports will be transferred to local governments tobe operated as semi-government enterprises, or to local private investors underconcession arrangements. The consultants will draw up the legal documentationcovering conversion of the port of Brazzaville, organize its board of directors, setup its organizational arrangements, and draft the conditions of contract and termsof concession that are to govern relationships between the state, users, and theport itself

(d) CFCO (Chemin defer Congo-Ocdan) will be let under concession arrangements toa private operator. Terms of reference for technical support with implementationof the strategy for restructuring ATC have been agreed on with IDA and used asthe basis for competitive bidding of the necessary consulting services. Schedule Ito this present document indicates the results anticipated from restructuring PPNand VNPTF and sets out the proposed implementation schedules. In the case ofthe railway agency (CFCO), the Government intends to seek a different type ofconcession arrangement, tailored to the strategy and implementation scheduledetailed in Schedule II.

Restructurinig of Office national des postes et telecommunications (ONPT)

14. Against the background of current realities in Congo,4 ONPT will be restructured so asto: (i) give the country the modern telecommunications facilities essential for development, andotherwise bring it up to date in this arena; and (ii) attract more private investment. In specificterms:

4 Although ONPT holds a monopoly on postal and telecommunication services, a private sector, with fornal (DHL) andinfonnal subscctors, has sprung up in Congo to handle the transportation and distribution of mail, not to mention the cellulartelephone services provided from outside the country (via a Zairian network).

5

(a) A commercially oriented postal enterprise will be created, limited to distribution ofmail and packages and to philatelic activities. It will hold no monopoly and will bereorganized so that it becomes financially self-sustaining on the basis of a policy offree pricing and maximum subcontracting. Its relationship with the state will beformally prescribed in an agreement backed by a business strategy, an operationsplan and a Postal Code.

(b) All existing post-office financial intermediation services (Caisse nationaled'epargne, postal checks, postal money orders) will come under restructuring ofthe financial sector. [Liquidation plans will be drawn up as part of this componentof the project before being handed over to the Financial Sector RestructuringCommission for execution.] In future, services of this type are to be provided bythe banking sector after it has been restructured/privatized. The Government will,however, define the obligations of public services existing in the financial sectorand will study the methods of provision of these services.

(c) A commercially-oriented telecommunications corporation is to be set up andprivatized, and a new Telecommunications Code is to be drafted and enacted. TheGovernment already adopted the following principles for this new entity: minorityshareholding by the Government and Congolese private sectors, transfer of assets,and development of a sectoral environment that is competitive and regulated.Work on this subcomponent will include drafting not only of legislation andregulations but also of licensing requirements and conditions of contract necessaryfor the pre-selection of investors.

(d) Documentation for the liquidation of remaining ONPT units, plus plans forredeployment of staff (posts, telecommunications, retirements, voluntarywithdrawals) and settlement of severance rights, will be drawn up andimplemented.

15. A firm of specialized consultants will be commissioned by the Government to carry outthis restructuring and to draft a new body of regulations conducive to competition in the sector.The terms of reference for this mission, after being agreed on with IDA, were used in selectingconsultants. The tasks to be performed, the results anticipated, and the implementation scheduleare detailed in Schedule III to the present document.

Letting of Concession Contracts on Water and Power Services (SNE, SNDE)

16. Restructuring of these two agencies is seen as a way to upgrade not only the quality ofwater and electric power supplies but also access to them, and to bring down this cost. Besidesimproving standards of living in Congo, this would also help revitalize economic activities andcompetitiveness. From now on, the Government will limit its role in these two sectors to theformulation of sector policy and to regulation. Operation of power and water supply services willbe handed over to private investors. Monopolies on production, transmission and distribution will

6

be terminated, and in, w sets of regulations will be introduced in order to facilitate competition,while the Government will expand its regulatory capacity. Minority Government shareholdings inthe companies granted water and/or power concessions are not to be ruled out. The Governmentwill encourage and promote the participation of Congolese nationals in the capital of water andpower companies, including that of their own employees.

17. A firm of specialized consultants will be commissioned by the Government to carry out theconcession process of water and power services, as well as to draft the necessary regulations andto prepare plans and documentation for the liquidation of remaining water and power units. Theanticipated results of the work to be performed by these consultants, and the time schedule for fullimplementation of the concession arrangements, have been agreed on with IDA and are set out inSchedule IV to this present document.

Liberalization of importation and distribution of petroleum products (HC)

18. The Government is seeking, first of all, to restore adequate supplies of petroleum productsto the country at competitive prices and with a positive tax flow from the hydrocarbon sector tothe treasury. These objectives can be achieved while simultaneously promoting the participationof the national private sector at different levels of the distribution chain. The role of the State inthese areas will also be refocused on formulating sectoral policy, rate-setting and regulation. Allcommercial aspects of the chain will be handed over to private operators, who are better equippedthan the Government to carry out these activities efficiently and competitively. In this connectionthe downstream petroleum sector will be restructured as follows:

(a) Storage facilities will preferably be sold or, if necessary, transferred to a newstorage company that could be set up as a pool by the oil companies selected todistribute the petroleum products and/or by other specialized interests in the area;

(b) Transport facilities will also be sold off and the activity liberalized. Theestablishment and development of small and medium-sized Congolese transportcompanies will be promoted;

(c) Distribution facilities will be sold to companies authorized as distributors ofpetroleum products in Congo through competitive bidding procedures. Thesecompanies will also be able to import petroleum products freely;

(d) Distribution facilities for aviation products, lubricants, gas and chemical productswill also be sold; and

(e) Documentation for the liquidation of the residual Hydro-Congo and CORAF,along with a plan for staff redeployment (retirements and departures) andsettlement of severance rights will be prepared and implemented.

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19. The Government will engage a specialized consulting firm to implement the reforms inaccordance with the terms of reference already agreed with IDA. The activities and expectedresults of privatization, along with a timetable, are shown in Schedule V.

Regulation

20. This component will provide support for the establishment of regulatory entities andservices. For the water, electricity and telecommunications and postal sectors, this will be theresponsibility of a regulations department with specialized divisions to be set up within thesectoral supervisory ministry. Upstream and downstream petroleum activities and the transportsector will be regulated respectively by offices within the Hydrocarbons Directorate and theTransport Department. The Government nevertheless remains favorable to a gradual shift in theinstitutional framework of regulation to a centralized and autonomous structure. The newregulatory frameworks for the sectors to be privatized will be adopted and put into effect beforethe actual transfer of the enterprises to private operators takes place. Schedule IX describes thetiming of privatization activities and those related to the regulation of the sectors in question.

21. As part of the preceding subcomponent, the privatization consultants will prepare the textsand regulatory frameworks including necessary arrangements for the protection of environment,draft the statute and organization charts of the regulatory entities, and assess needs in training,equipment and operations. If necessary, certain regulatory functions may be delegated to them.The regulation subcomponent will finance the establishment of the entities, technical support andthe necessary training for their startup.

Interim management of enterprises

22. The Government will also issue a decree appointing the interim administrators andspecifying their powers. The main task of the consulting firms selected will be oversight of theenterprises' operations and management until such time as their take-over by the private sector.

23. The interim controller will directly approve all decisions regarding operating or investmentexpenditures and/or commitments, as well as all decision-making regarding personnelmanagement including recruitment, separation and redeployment. The interim administrator andthe controller will report to the president of the Privatization Committee, while the controller willact as advisor to the Privatization Committee.

B. Portfolio Overhaul

24. As part of this component, 44 liquidations under way will be completed, of which 38 byDecember 31, 1995 at the latest and six by March 31,1996, at the latest; 13 non-viable enterpriseswill be liquidated, of which six by December 31, 1995 at the latest and seven by March 31, 1996,at the latest. Moreover, 11 additional PEs with potential will be transferred to the Privatization

8

Committee by September 1, 1996, at the latest for privatization, in addition to the 30 alreadytransferred. The Privatization Committee will complete four privatizations by December 31, 1995at the latest, eight by March 31, 1996 at the latest, 17 by June 30, 1996, at the latest and seven byJune 30, 1997, at the latest. Schedule VI provides an inventory of the State's portfolio and, foreach of its enterprises, the timeframe and action agreed for completing the liquidations under way,the dismantling of "empty shells," and the transfer of the entities slated for privatization to thePrivatization Committee.

25. Law No. 020/89 determining the procedure for liquidating public enterprises allows forsatisfactory framework of liquidation. For the implementation of the liquidations, theGovernment has confirmed its agreement to use qualified private liquidators. The project willprovide the Ministry of Justice, which oversees the liquidations, with advisory technicalassistance, and will finance the services of private liquidators in order to ensure that the process iscarried swiftly and efficiently. The project will also finance the equipment and a share of theoperations of the Liquidation Department so that it can supervise the liquidations. The technicalassistance to the Ministry of Justice will provide support to the Portfolio Department in itsrelations with the Privatization Committee.

C. Financial Sector and Public Sector Reform

26. Restructuring of the finance sector is key to the Government's program. It will return theeconomy to a position of liquidity, and result in recovery of savings and a sound financial system,including the banks and non-bank financial institutions. A Finance Sector RestructuringCommittee was therefore established to formulate and implement the rehabilitation plan for thefinancial sector. The audits and evaluations necessary in preparing for the restructuring of banksand insurance companies, reform of the legal framework of the finance sector and settlement ofthe internal debt will be financed by a grant from Japan and carried out as part of a concomitantprogram. In this program, reform of the system and the institutions of social security will also becarried out. This project component, however, will finance the costs of equipment and operationof the Committee's technical secretariat.

27. In the public sector, the Government will continue its staff downsizing program byformulating a strategy for streamlining Congolese public administration structures. To that end,the Inspection Generale de I'Etat will receive support in the form of equipment to continue itsclean-up of civil service and debt records. The same is true for the General Secretariat ofGovernment for the publication of the Journal Officiel and the setting up of a database for legaltexts.

D. Public Information Component

28. The communications strategy for the project is as follows: (a) ensure public support, bymaking Congolese stakeholders aware of the need and advantages of the planned reforms, inparticular privatization; (b) ensure transparency in the process and acceptance of the program by

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the population; and (c) both abroad and within the country, announce the necessary structuralchanges to improve the economic and business environments, as well as the regional and nationaleconomic potential of the country.

29. This project component will finance technical assistance to help the Government, over atwo-year period, implement the public information and awareness campaigns among the targetedgroups. It will also cover the transfer of know-how by developing local private capacity toconduct opinion polls, target information toward the general public and employees, identify andtrain spokesmen, formulate and produce targeted publicity messages and provide training innational and international media relations. These activities will improve the public's understandingof the economic stakes at play and the rationale of the reforms.

30. The elements of the communications program and an implementation plan have beenagreed on with the Government. The terms of reference for technical assistance of 24 man-months, of which 12 short-term, as well as the bidding documentation were also agreed on withthe Government. The consultant will help set up a communications unit within the PermanentSecretariat of the Privatization Committee in accordance with the organizational framework,profile and terms of reference agreed with the Government.

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SECTION C: PROJECT COSTS AND ADMINISTRATION

1. PROJECT COSTS

31. The total project cost, including contingencies, is estimated at US$11.0 million, net oftaxes. The CFD would contribute US$0.9 million, excluding taxes, to co-finance the technicalassistance to the privatization of SNE, SNDE, ATC and ONPT. Given the financial difficulties ofthe Government, its contribution to the project would be US$1.1 million, or 10% of the total cost,in the form of the provision of personnel, premises and the operating support for the entitiesinvolved in the project. However, as the project will not provide funds to finance the costsrelated directly to staff separations and/or arrears in salaries or pensions, the Government, withthe support of the donors as part of the flow of funds, will include each year in its budget thenecessary allocations to implement employee compensation plans related to the liquidation of theresidual PEs. Already, CFAF 15 billion have been included in the Government's 1995 budget.Detailed project costs net of taxes are given in Schedule VII and summarized in Table 1 below:

Table 1: Summary of Project Costs (US$ million equivalent)

Project Components Local Foreign TotalA. Privatization and Sector Regulation

1. Privatization of Pilot PEsa. ATC - 1.4 1.4b. SNE-SNDE - 1.1 1.1c. HYDROCONGO - 1.1 1.1d. ONPT - 1.1 1.1

2. Regulationa. Hydrocarbons 0.0 0.5 0.5b. Telecom, Water and Electricity 0.0 0.5 0.5c. Transport 0.0 0.5 0.5

3. Support to CP/ST & Project Management 0.4 0.5 0.9Subtotal Privatization and Sector Regulation 0.5 6.7 7.2B. PE Sector Liquidation 0.3 0.5 0.8C. Financial, Public & Legal Sector Reforms

1. Legal Component 0.0 0.1 0.12. Secretariat of CRB - 0.1 0.13. Strengthening Insurance Control Direction - 0.1 0.14. Strengthening of IGE - 0.3 0.35. CNSS/CRF Restructuring - 0.5 0.5

Subtotal Financial, Public & Legal Reforms - 1.1 1.1D. Communication Campaign 0.3 0.6 0.9Total BASELINE COSTS 1.1 9.0 10.1

Physical Contingencies 0.0 0.1 0.1Price Contingencies 0.4 0.5 0.9

TOTAL PROJECT COSTS 1.5 9.5 11.0

11

Table 2: Financing(in US$ millions)

IDA CFD Government

Equipment and vehicles 0.9 - 0.1Consulting services, training 8.1 0.9 -

Operating costs _ - 1.0Total 9.0 0.9 1.1

11. PROCUREMENT

32. The project will include a planning and monitoring system for all procurement proceduresrequired for project implementation. Table 3 shows project components, their cost andprocurement methods.

Table 3: Summary of Procurement Methods(US$ millions)

Description ICB Other Total

1. Equipment and vehicles 0.6 0.3 0.9(IDA) (0.6) (0.3) (0.9)

2. Consultants and training 9.0 9.0(IDA) (8.1) (8.1)(CFD) (0.9) (0.9)

3. Operating costs 1.1 1.1(IDA) (° °! (0.0)

Total 0.6 10.4 11.0(IDA) (0.6) (8.4) (9.0)(CFD) (0.9) (0.9)

12

A. Recruitment of Consultants

33. During the appraisal rmission, the Government indicated its agreement that thequalifications, experience as well as the modalities and conditions of employment for theconsultants will be satisfactory to IDA. The consultants will be selected in accordance withprinciples and procedures satisfactory to IDA, in conformity with the World Bank's Guidelines forthe Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency,published by the Bank Group in August 1981. Contracts with consulting firms for more thanUS$100,000 as well as contracts with individual consultants for more than US$50,000 will haveto have prior approval of IDA. However, the exemption from prior review by IDA does notapply to: (a) the terms of reference of such contracts; (b) instances in which the Borrowerdirectly contacts a specific consulting firm; (c) amendments to contracts relating to the use ofconsulting firms for contracts with an exchange value of US$ 100,000 or more; or (d) amendmentsto contracts relating to the use of independent consultants with an exchange value of US$50,000or more. IDA will selectively review those contracts for less than the above amount.

B. Purchasing

34. Purchases of goods and equipment are to be made in lots in excess of US$50,000 percontract in accordance with IDA international competitive bidding guidelines for procurement(January 1995). IDA's model bidding documents will be used for all international bidding. Goodsof a value equal to or less than US$50,000 per contract, up to a cumulative amount equivalent toUS$300,000, may be acquired through direct international or national shopping, or throughIAPSO (Inter-Agency Procurement Office). Only contracts valued at more than US$50,000 willhave to be previously approved by IDA. IDA will selectively review those contracts for less thanUS$50,000.

MIl. DISBURSEMENT PROCEDURES

35. Table 4 gives the breakdown for each category of the Credit. The percentage ofexpenditures net of all taxes or duties to be financed is 100% for consulting services, training andequipment. Operating costs will be paid by the counterpart funds.

13

Table 4: Allocation and Categories of Expenditure(US$'OOO)

Category Credit allocation % of financing

Vehicles and equipment 900 100% in foreign exchange85% in local currency

Consultants and training 7,600 100%

Unallocated 500

Total 9,000

36. Project completion is scheduled for December 31, 1998, and the closing date will be June30, 1999. Table 5 below shows the estimated six-monthly disbursements.

Table 5: Disbursement Schedule for the IDA Credit(US$ millions)

Fiscal year 96 97 98 99

Six-month period Si S2 SI S2 Si S2 Si S2

Disbursements 1.1 1.4 2.0 1.8 1.0 0.8 0.5 0.4

Cumulative disbursements 1.1 2.5 4.5 6.3 7.3 8.1 8.6 9.0

Cumul. % 12% 26% 47% 66% 81% 90% 96% 100%

37. In order to facilitate disbursements and ensure the availability of funds, the Governmentwill open and maintain a special account in foreign exchange in a commercial bank with terms andconditions acceptable to IDA. The special account will be managed by the project coordinator.The authorized amount of the special account is FF 3 million; requests for replenishment are to besent to IDA monthly or at any other interval decided by IDA. The Government will also have toopen a project account, distinct from the special account, to hold the counterpart funds to financeproject operating costs.

38. Disbursements will use standard IDA documentation, with the exception of contracts withconsulting firms for an amount of less than US$100,000, and for contracts with individualctnsultants for an amount of less than US$50,000, for which statements of expenditure will be

14

used. The supporting documentation for these statements will be kept in the project office andsubject to verification by supervision missions and regular financial audits. The minimum amountfor a direct payment request to the Credit account will be US$100,000.

IV. ACCOUNTS MANAGEMENT AND AUDITS

39. Project accounts will be managed by a local chartered accountant acceptable to IDA. Thisfull-time accountant will maintain the books and accounts and, in accordance with internationalaccounting standards and practices, will duly reflect the project's activities, resources,expenditures and net worth position. The procedures manual and the computerized accountingand assets management system prepared as part of the on-going PE project (Ln. 2868-COB) willbe maintained and utilized.

40. The project executing agency will furnish interim and annual financial reports reflectingthe project's position and progress. These reports will have to include the annual and total cost ofthe project, as well as the sources of financing.

41. Signature of a three-year audit contract with a qualified firm acceptable to IDA will be acondition of credit effectiveness. Agreement on the following points was reached at appraisal:

(a) Project accounts and accounting records will be audited in accordance withinternational principles audited by an independent auditor acceptable to IDA;

(b) No later than six months after the end of each fiscal year, IDA will be sent an auditreport certified by the auditor for that fiscal year;

(c) IDA will be furnished with all additional information relative to project accountingdocumentation, accounts and audits as it may request from time to time; and

(d) Without prejudice to (a) to (c) above, the accounting records of the specialaccount, the project account and expenditure statements will be audited inaccordance with (a) to (c) above: (i) every four months during the first 12 monthsfollowing the effectiveness date and (ii) every six months during the second 12-month period; these audits are to be submitted to IDA no later than two monthsfollowing the end of the audit period.

42. For all expenditures for which withdrawals from the Credit account were based onstatements of expenditure, the Borrower:

(a) will keep accounting documentation and the related accounts;

(b) for at least one year after IDA receives the audit report for the fiscal period inwhich the last withdrawal from the Credit account or the last payment from the

15

special account is made, all accounting documentation (contracts, purchase orders,invoices, receipts and the like) relating to such expenditures;

(c) will allow all IDA representatives to examine that documentation; and

(d) will have the account records and statements of expenditure audited in accordancewith the foregoing and ensure that the audit reports in question contain a specificopinion of the auditor as to the reliability of the SOEs submitted during the periodunder review, as well as the internal control procedures governing theirpreparation, to justify the withdrawals made.

16

SECTION D: PROJECT MANAGEMENT AND IMPLEMENTATION

1. PROJECT MANAGEMENT

43. The MEFPP is responsible for project implementation. It has appointed a projectcoordinator for the implementation of project activities and Credit management. The institutionalframework for project implementation given in Schedule XI was developed in conjunction withthe Government. The SPCP is responsible for the privatization, regulation and communicationscomponents, reinforced by a qualified consultant recruited in the local market under the financingof technical assistance. A liquidation unit of the Ministry of Justice is responsible, in conformitywith current legislation, for implementation of the liquidation component. The unit will also besupported by a technical advisor who will work in collaboration with the privatization advisor.

11. PROJECT IMPLEMENTATION PLAN

44. A project implementation plan has been prepared (Schedule IX) and will be used by theproject coordinator and the heads of the components as a tool in project monitoring, and by theGovernment and donors in monitoring the reforms. The plan complies with all IDA procedures,time and resource constraints, and will be used to generate periodic progress reports. It alsoreflects the actions already begun by the Government, particularly in the recruitment of theprivatization consultants. The project will be implemented over a 34-month period followingeffectiveness expected on September 30, 1995. The Credit will be completed on December 31,1998.

Ill. REPORTING REQUIREMENTS

45. The project coordinator will send IDA every six months a detailed report on projectimplementation. The report will indicate the progress on each privatization and liquidationprocess as well as each of the other project components. It will highlight existing or potentialdifficulties and constraints that might affect project actions and accomplishment of projectobjectives. It will indicate the corrective measures or actions envisaged by the Government. Todocument the actual completion of each liquidation process, the report of the liquidator, thefindings of the audit of the liquidator's accounts and final discharge will be included as schedules.Lastly, the report will provide a financial statement of project expenditures by component, a listand subject of the contracts concluded during the period and whether or not the financial and legalobligations of the Credit Agreement were satisfied.

46. By the twenty-fifth of the last month of each quarter following the date of creditnegotiation, the project coordinator will send IDA a summary progress report by using projectmanagement software. The report will cover implementation and progress regarding thestructural reforms. The Borrower will submit to IDA a project completion report no later than sixmonths after the closing date of the Credit.

17

IV. SUPERVISION

47. Given the variety of sectors and domains covered by the project's activities, the followingspecializations will be contributed by IDA: regulation, environment, privatization,restructuring/liquidation of enterprises; railway, energy/petroleum and transport. Projectsupervision will be carried out as follows:

For IDA

(a) Evaluation from headquarters of procurement records, terms of reference, study,analysis and audit reports, prequalification and privatization records and thedrafting of regulatory legislation; and

(b) Field missions to assess progress and the results obtained from technical assistance,studies, the handling of liquidations and the implementation of the other projectcomponents, particularly the progress made in structural reforms (Schedule X).

For the Government

(a) Sectoral units including representatives designated by the technical ministries,members of the SPCP and a task manager for each process who will ensure itsregular monitoring and submit the periodic progress reports (Schedule XII); and

(b) The project coordinator and heads of components will use project managementsoftware to plan for the management of project activities and results.

48. Schedule XIII presents the performance indicators that will be used in monitoring theprogress of each component.

V. MID-TERM REVIEW

49. A mid-project review will be made by the Government and IDA in the last quarter of1996. This review will critically analyze: (a) the achievement of objectives and the resultsobtained by the project in relation to the initial objectives and agreed performance indicators; (b)the implementation of privatization plans; (c) the implementation of economic liberalizationmeasures; and (d) consultant performance. The mid-project review will give IDA the opportunityto assess the Government's commitment to pursuing project objectives and economic structuralreforms.

18

REPUBLIC OF CONGO Schedule IPRIVATIZATlON AND CAPACITY BUILDING PROJECT Page 1 of 3

Schedule I: Restructuring of ATC: Actions, Anticipated Results and Schedule

ACTIVITE DEBUT FIN J F |M A |M J J A I S 0 | N I F M A M J J A S N J F M A M

Restructuration de l'ATC 3/1/95 3/31/97

Selection du cabinet conseil 3/1/95 | 11/20/95

Evaluation des offres 3/1/95 5/30/95

Avis de l'AID 5/31/95 6/13/95

Negociation 6/14/95 8/7/95

Avis du CP 8/8/95 8/14/95 -

Avis de l'ID 8115/95t 8128/95

Signature du Contrat 8/28/95 8/28/95

Mobilisation, Etat des Lieux et Plan de Travail 8/29/95 10/23/95

Adoption des schemas et strategies sectoriels 10/24/95 11/20/95

Execution Schemas de Restructuration 1/21/95 3/31/97

Corporatisation du Port de Pointe Noire 11/21/95 4/19/96 .

Preparation Bilans d'ouverture j 11/21/95 1/19/96

Preparation de l'organigramme 11/21/95 1/19/96

Validation Comptabilite 11/21/95 1/19/96

Organisation du Conseil d'Administration 11/21/91 1/19/96

Preparer cahier des charges et de la concession 1/22/96 3/15/96

Preparation des statuts 1/22/96 3115/96

Preparation Decret de Creation 3/18/96 4/12/96

Adoption Decret de Creation 4/ 15 /9 6 4/19/96

Corporatisation des VNPTF 11/21/95 3/31/97

Privatisation Flotte Fluviale 11/21/95 6/21/96 .

Identification et evaluation des actifs 11/21/95 1/15/96

Strategie et methodologie de cession 12/22/95 1/18/96

Preparation dossiers de ventes 1/19/96 2/15/96

19

REPUBLIC OF CONGO Schedule IPRIVATIZATION AND CAPACITY BUILDING PROJlECT Page 2 of 3

Schedule 1: Restructuring of ATC: Actions, Anticipated Results and Schedule1 ___________ ~~1995 151I96

ACTIVITE DEBUT FIN J F M A M J JA S | N D ! F M A M i i A S |Lancement de l'appel d'offres 2/16/96 2/22/96

Preparation des offres par candidats F 2/23/96 3/21/96

Evaluation des Offres 3/22/96 3/28/96

Choix des repreneurs 3/29/96 3/29/96

Avis de 'AID 4/1/96 1 4/12/96


Avis du CP 5/27/96 6/7/96

Signature des contrats de cession 6/10/96 6/21/96

Chantier navale 11/21/95 6/24/96

Identification et evaluation des actifs 11/21/95 1/15/96

Definition schema de restructuration 12/22/95 1/18/96

Finalisation schema de restructuration 1/19/96 1/19/96

Avis de l'AID 1/22/96 2/2/96

Preparation et mise en oeuvre schema retenu 2/5/96 6/21/96

Fin mise en oeuvre schema de restructuration j 6/24/96 6/24/96

Corporatisation Ports de Brazzaville et Secondaires 11/21/95 4/11/96

Preparation Bilans d'ouverture 11/21/95 1/15/96

Preparation de l'organigramme 11/21/95 1/15/96

Validation Comptabilde6 12/22/95 1/18/96

Organisation du Conseil d'Administration 12/22/95 2/15/96

Preparer cahier des charges et de la concession 2/16/96 4/11/96

Preparation des statuts 2/16/96 4/11/96

Adminitration et Liquidation de I'ATC residuei 11/21/95 3/31/97

Elaboration plan redeploiement personnel 11/21/95 4/8/96

Mise en oeuvre plan redeploiement personnel 4/9/96 8/26/96

20

REPUBLIC OF CONGO Schedule IPRIVATIZATION AND CAPACITY BUILDING PROJECT Page 3 of 3

Schedule I: Restructuring of ATC: Actions, Anticipated Results and Schedule1995 1996

ACTIVrrE DEBUT FIN J TF FM I A I M I J I J |A|S|O|N |D |J I F M I A M J J A S O N D J F MA MFin mise en place plan de redeploiement 8/27/96 8/27/96

Pr6paration dossier de liquidation ATC 11/21/95 4/8/96

Remise rapport final d'6valuatlon 1/7/97 1/7/97

Liquidation ATC r6siduel 7 3/31/97

21

REPUBLIC OF CONGO Schedule 1IPRIVATLZATION AND CAPACITY BUILDING PROJECT Page 1 of 1

Schedule II: Railway Concession Contract Strategy and Schedule1995 1 1996 1991

ACTIVITE DEBUT FIN_ J F MA M J J|ASO 0 J F MA M J J A S ON D J F MA M J JJASON J F MA

Mise en concession chemin de fer 8/29/95 2/17/97

Strat4gie de mise en concession 7 8/29/95 9/25/95 WAdoption des schemas et strategies 8/29/95 9 _ 5_

Choix du concessionaire 8/29/95 2/17/97

Prospection 8/29/95 10/9/95

Preparation dossiers prequalificaticn I 10/10/95 12/4/95

Avis de l'AID - 12/5/95 12/18/95

Lancement dossiers de prsqualification 12/19/95 12/25/95

Deiais de reponse 12/26/95 3/25/96

Evaluation et preselection des candidat 3/26/96 4/22/96

Avis du CP 4/23/96 5/6/96

Avis des bailleurs de fond sur preselec 5/7/96 6/3/96

Pr6paration dossier d'appel d'omres [ 6/4/96 | 9/16/96

Lancement appel d'offres de concessio 9/17/96 9/23/96

Preparation offres par candidats 9/24/96 11/18/96

Evaluation des Offres 11/19/96 11/25/96

Avis de l'AID 11/26/96 12/2/96 .l

Choix du concessionnaire 12/2/96 12/2/96

Negociation 12/3/96 I 1/13/97

Avis du CP 1T14/ 97 1/27/97

Avis de lAID 1/28/97 2/1/97


22

REPUBLIC OF CONGO Schedule IIIPRIVATIZATION AND CAPACITY BUILDING PROJECT Page 1 of 2

Schedule ILI: Restructuring of ONPT: Actions, Anticipated Results and Schedule

_ 1995 | 1996Task Name Start Finish FTM I A I M I J I J I A I S I O | N I D J.J F M A M |J |J |A |S I O | N I D J FONPT 311/95 12/31/96

Selection Cabinet Restructuration ONPT 3/1/95 10/9/95


Avis de 'AID 5/31/95 6/13/95

Negotiation 6/14/95 8/7/95

Avis de l'AID - 8/8/95 8/21/95

Avis du CP CM 8/22/95 8/28/95

Signature du Contrat J 8/28/95 8/28/95

Mobilisation, Etat des Lieux et Plan de Travail 8/29/95 [ 10/9/95

Restructuration des telecommunications 8/29/95 [ 7/23/96

Preparation strategie de developpement sectoriel 9/5/95 10/2/95

Adoption de la strategie de dcveloppement sectoriel 10/9/95 10/9/95

Prospection 8/29/95 10/9/95

Preparation d'appel d'offres de privatisation 10/9/95 1/5/96

Appel d'offres privatisation 1 1/9/96 1/9/96

D6lais de soumission 1/9/96 3/18/96

Selection des candidats 3/20/96 4/16/96

_____ ~ Avis de l'AID - 4/17/96 4/30/96

Avis du CP 5/1/96 5/7/96

Demarrage des negociations 5/8/96 7/16/96

Signature des Contrats 7/17/96 7/23/96

Likquidation des services financiers - I 10110/95 3/4/96

Constitution du dossier de liquidation 0/95 3/4/96

Cl6ture de la liquidation 3/4/96 3/4/96

23

REPUBLIC OF CONGO Schedule IIIPRIVATIZATION AND CAPACITY BUILDING PROJECT Page 2 of 2

Schedule III: Restructuring of ONPT: Actions, Anticipated Results and Schedule

1995 1 1996Task Narme Start Finish F|M|A|M | J J A SONDJFMAMJ I J I A | S O D NJ|MD |MJ|

Corporatisation de la Poste 10/10/95 2/19/96

Plan Entreprise et strategie commerciale 10/10/95 2/5/96

Afectation personnel 10/10/95 2/5/96

Pr6paration bilans d'ouverture 10/10/95 1/8/96

Prdparation textes d'etablissement 1/9/96 2/19/96

Adoption des Textes 2/19/96 2/19/96

Liquidation ONPT residuel 2/21/96 12/31/96

24

REPUBLIC OF CONGO Schedule IVPRIVATIZATION AND CAPACITY BUILDING PROJECT Page 1 of 2

Schedule IV: Restructuring of SNE and SNDE: Actions, Anticipated Results and Schedule1995 i1%19

ACTIVrrE DEBUT FIN FM I A I M J I J[ A I S 0 O | N D J F M A M J J A S N I F J MF I M I A I M J J JA |S N NDSNE-SNDE 7/1/95 7/9/97

Selection Cabinet Conseil 7/1/95 10/27/95

Lancement de lappel doffre 7/1/95 7/1/95

Delais preparation des offres 7/3/95 7/28/95

Evaluation des offres 7/31/95 8/18/95 UAvis de l'AID 8/21/95 9/1/95 '

Avis CP 9/4/95 9/15/95 .

Negociations 9/18/95 9/29/95


Mobilisation et Etat des Lieux 10/9/95 10/27/95

Mise en concession 10/30/95 8/5/96

Phase de preselection 10/30/95 4/19/96

Strategie sectonelle 10/30/95 11/24195 .

Preparation strategies 1 0/30/95 11/24/95

Presentation strat6gies 11/24/95 11/24/95

Prospection 11/27/95 11/27/95

Preparation dossier de pr6qualification 10/30/95 4119/96

Projet de codes sectonels et plan de developpe 10/30/95 12/22/95

Modele de projections financieres des secteur 10/30/95 12/22195

Projets de cahiers de charges 10/30/95 12/22/95

Projet de contrat de concession 10/30/95 12/22/95

Avis de l'AID 12/25/95 1/12/96

Avis du CP 1/15/96 1/19196

Lancement appel d'offre 1/19/96 1/19/96

Delais de reponse 1/22/96 3/15/96

Depouillement et selection 3/18/96 4/5/96

Avis de l'AID 4/19/965

25

REPUBLIC OF CONGO Schedule IVPRIVATIZATION AND CAPACITY BUILDING PROJECT Page 2 of 2

Schedule IV: Restructuring of SNE and SNDE: Actions, Anticipated Results and Schedule19 95 1996 i 1997

ACTIVITE L DEBUT FIN FMIA MJJIA I S I O N ID JFMA I M J I AS|O ND J F MA M J ASON

Phase de Selection finale 418/96 8/5/96

Preparation appel d'offres de concession 4/8/96 5/3/96

Lancement appel d'offres de concession 5/6/96 5/10/96

Evaluation, negociations 5/13/96 7/5/96

Avis de lAID [ 7/8/96 7/19/96

Avis de CP 7/22/96 7Q2t96

Negociation du Contrat(s) de concession 7/23/96 8/5/96

Liquidation SNE-SNDE residuel 8/6/96 7/9/97

26

REPUBLIC OF CONGO Schedule VPRIVATIZATION AND CAPACITY BUILDING PROJECT Page 1 of 1

Schedule V: Restructuring of Hydro-Congo Privatization: Actions, Anticipated Results and Schedule

1 [ ~~~~~~~~~19959 1 996 1997ACTIVITE DEBUT __FIN F MA Md JA S N D J F MA M J J SON 0 J F MA ML J A S O N J MHYDROCONGO 3/1/95 12/23/97

Selection cabinet conseil 3/1/95 11/20/95


Avis de AID 5/31/95 6/13/95


Avis du AID 8/8/95 8/21/95

Avis de CP 8/22/95 28/95 .


Mobilisation, Etat des Lieux et Plan de Travail 8/29/95 10/23/95

Adoption des schemas et strategies 10/24/95 11/20/95

Privatisation 11/21/95 12/23/97

Prospection 11/21/95 12/18/95

Preparation dossiers prequalification 12/19/95 1/15/96

Avis de l'AID 1/16/96 1/29/96

Avis du CP 1/30/96 2/5/96

Lancement dossiers de pre-qualification repren 2/5/96 2/96

Delais de soumission des offres 2/6/96 . 4//96


Preselection des repreneurs 4/15/96 4/15/96

Negociations 4/16/96 6/10/96

Avis de l'AID 6/11/96 6/24/96

Avis du CP 6/25/96 7/1/96

Signature des contrats avec repreneurs 7/1/96 7/1/96

Liquidation residuel 7/2/96 12/23/97

Cl6ture du dossier et bilan 12/23/97 12/23/97

27

Schedule VIREPUBLIC OF CONGO Page 1 of 2

PRIVATIZATION AND CAPACITY BUILDING PROJECTSchedule VI: Public Enterprises in Government Portfolio:

Classification and Action Plan

.N-E tp&&&*:4Apt~A~V'<~p p -. - ~p.M _FE _k E _ >'5k_7CVTA Centre de Vulgaisation des techniques agricoles A liquider 31-Dec-95 1

Ferme Kombe Ferme de Kombd A liquider 31-Dec-95 2INC Imprimerie Nationale du Congo A liquider 31-Dec-95 3RNPC Rdgie Nationale des Palmeraies du Congo A liquider 31-Dec-95 4

Yaourterie Yaourterie de Brazzaville A liquider 31-Dec-95 5

Ferme porcine Ferme Porcine d'Owando A liquider 31-Mar-96 6LAPCO Laboratoire Pharmaceutique du Congo A liquider 31-Mar-96 7

SOCOPHAR Socidtd Congolaise des Pharmacies A liquider 31-Mar-96 8SOFAB Socidtd de Fabrication d'Aliments de Betail A liquider 31-Mar-96 9

SONATRAB Socidte Nationale de Transformation du Bois A liquider 31-Mar-96 10

OCI Office Congolais d'informatique A restructurer 31-Mar-96 11

CNSS Caisse Nationale de Securite Sociale A restructurer 31-Mar-96 12Huilka A transfdrer au Com. de Priv. et privatiser 31-Dec-95 13Huilka S.A A transfdrer au Com. de Priv. et privatiser 31-Dec-95 14LINA CONGO Ugne Nationale Ahrienne A transferer au Com. de Priv. et privatiser 31-Dec-95 15SNPLASCO Societd des Platiques du Congo A transferer au Com, de Priv. et privatiser 31-Mar-96 16SOPROGI Socidtd de Promotion et de Gestion Immobiliere A transfdrer au Com. de Priv. et privatiser 31-Mar-96 17UBC Usine de Broyage de Calcaire A transfdrer au Com. de Priv. et privatiser 31-Mar-96 18Touring Club A transfdrer au Com. de Priv. et privatiser 31-Mar-96 19

SAGAP Societe anonyme de gestion et d'armement de peche A transfdrer au Com. de Priv. et privatiser 30-Jun-96 20SANGHA-PALM Complexe Agro-industriel Palmier A huile A transferer au Com. de Priv. et privatiser 30-Jun-96 21SARIS Societd Africaine de recherche de recherche en industrie sucriere A transfdrer au Com. de Priv. et privatiser 30-Jun-96 22SOCICO Societd de Ciment du Congo A transfdrer au Com. de Priv. et privatiser 30-Jun-96 23Cosmos Pulman Audit du contrat de gestion 30-Jun-96 24Meridien Audit du contrat de gestion 30-Jun-96 25NOVOTEL Audit du contrat de gestion 30-Jun-96 26SOFITEL M'Bamou Palace Audit du contrat de gestion 30-Jun-96 27Olympic Palace Audit du dossier 31-Dec-95 28Atlantic Palace Atlantic Palace Cl1turer la liquidation 31-Dec-95 29CHACONA Chantiers de Construction Navale C10turer la liquidation 31-Dec-95 30CIDOLOU Cimenterie Domaniale de Loutdte Cldturer la liquidation 31-Dec-95 31COPEMAR Congolaise de Peche Maritime ClAturer la liquidation 31-Dec-95 32CSPPAF Caisse de Stabilisation des Prix C10turer la liquidation 31-Dec-95 33Ferme laitibre Ferme Laitiere C10turer la liquidation 31-Dec-95 34Ferme Makoua Ferme de Manioc de Makoua Clturer la liquidation 31-Dec-95 35Ferme Mbe Ferme de Manioc de Mbe C10turer la liquidation 31-Dec-95 36Ferme porcine Ferme porcine de Dolisie C10turer la liquidation 31-Dec-95 37IAD Industrie Africaine du Disque C10turer la liquidation 31-Dec-95 38OCC Office du Cafe et Cacao C10turer la liquidation 31-Dec-95 39OCF Office Congolais des ForEts C10turer Ia liquidation 31-Dec-95 40OCMC Office Congolais de Matedaux de Construction C10turer Ia liquidation 31-Dec-95 41OCT Office Congolais des Tabacs ClOturer la liquidation 31-Dec-95 42OCV Office des Cultures Vivrieres C10turer la liquidation 31-Dec-95 43OFNACOM Office National du Commerce Cl1turer la liquidation 31-Dec-95 44OGB Office du Gros Betail C10turer la liquidation 31-Dec-95 45ONACI Office Naitonal du Cinema C10turer la liquidation 31-Dec-95 46ONIVEG Office National d'Importation de Viande en Gros C16turer la liquidation 31-Dec-95 47ONLP Office National des Librairies C10turer la liquidation 31-Dec-95 48ONT Office Naitonal du Tourisme ClOturer la liquidation 31-Dec-95 49SAPM Societd Agro Pastorale de Madingou C10turer la liquidation 31-Dec-95 50SEMICO Societd d'tconomie Mixte de Construction ClOturer la liquidation 31-Dec-95 51SIACIC Silos A ciment du Congo C10turer la liquidation 31 -Dec-95 52SNEB Socidtd Nationale d'Exploitation du Bois C10turer la liquidation 31 -Dec-95 53SOCALIA Socidtd Congolaise Arabe Cl1turer la liquidation 31-Dec-95 54SOCOME Socidtd Congolaise du Meuble Cloturer la liquidation 31-Dec-95 55SONACEM Societe Nationale de Commer. d'Appareils menagers Cldturer la liquidation 31 -Dec-95 56SONACO Societe Nationale de Construction Cldturer la liquidation 31-Dec-95 57

SOPROTHEL Societe de Promotior Hoteliere C10turer Is liquidation 31-Dec-95 58

SOTEXCO/UTS Societe des Textiles du Congo Clturer la liquidation 31-Dec-95 59

SOVERCO Socidte des Verreries du Congo C10turer la liquidation 31-Dec-95 60

STB Socidtd des Transports Brazzaville C10turer Ia liquidation 31-Dec-95 61

STL Socidtd de Transport de Loubomo C10turer la liquidation 31-Dec-95 62

STPN Socidtd des transports de Pointe-Noire Cloturer la liquidation 31-Dec-95 63

28

Schedule VIPage 2 of 2


Schedule VI: Public Enterprises in Government Portfolio:Classification and Action Plan

suco Sucrerie du Congo CIoturer la liquidation 31-Dec-95 64UTS Voir Sotexco Cl6turer la liquidation 31-Dec-95 65SOCAVILOU Societd Avicole de Louvoviti Cloturer la liquidation 31-Mar-96 66SOCOREM Socidt6 Congolaise de Recherche et d'Exploit. Min. Cloturer la liquidation 31-Mar-96 67SONAVI Soc. Nationale d'Aviculture Cloturer la liquidation 31-Mar-96 68STAFRUIT Station fruitiere de Loudima ClOturer la liquidation 31-Mar-96 69UAB Usine d'aliments de betail Cloturer la liquidation 31-Mar-96 70Laboratoire national Laboratoire national Information required. 31-Mar-96 71OCER Office Congolais d'Entretien routier Restructuration de la Fonction Publique 31-Mar-96 72BCBTP Bureau de Contr6le du Batiment et des Tr.Pub Restructuration de la Fonction Publique 30-Jun-96 73BEBATP Bureau d'Etudes du Batiment et Travaux Pub. Restructuration de la Fonction Publique 30-Jun-96 74SEP-DEV Socidte d'Etudes et de D6veloppement Rural Restructuration de la Fonction Publique 30-Jun-96 75ONAPEC Office National des PWche Transfdr6e au CP Loi 10-95, a liquider 31-Dec-95 76FPIB Ferme Piscicole Industrielle de Brazzaville Transfdree au CP Loi 10-95, a liquider 31-Mar-96 77OCB Oftice Congolais du Bois Transfdr6e au CP Log 10-95, a liquider 31-Mar-96 78BNDC Banque Nationale de Ddveloppement du Congo Transferee au CRB Loi 10-95, cloturer 31-Dec-95 79BCC Banque Commerciale Congolaise Transfdr6e au CRB Loi 10-95, cloturer 31-Dec-95 80PLACONGO Placage du Congo Transf6ree au CP Loi 10-95, privatiser 31-Dec-95 81SOCALIB Societ6 Congolaise Arabe Lybienne des Bois Transfdrde au CP Loi 10-95, privatiser 31-Mar-96 82SOCOMAB Socidte Congolaise de Manutention Transferee as CP Loi 10-95, privatiser 31-Mar-96 83SOFORIB Socidte Forestibre Industrielle de B6tou TransfdrAe au CP Loi 10-95, privatiser 31-Mar-96 84UCB Union Congolaise de Banques Transf6rde au CRB Loi 10-95, privatiser 31-Mar-96 85ARC Assurances et Rdassurance du Congo Transfdrde au CRB Loi 10-95, privatiser 30-Jun-96 86BIDC Banque Internationale de Ddvelopement du Congo Transfdrde au CRB Loi 10-95, privatiser 30-Jun-96 87CAIEM Complexe Agro-Industriel de Mantsoumba Transferee au CP Loi 10-95, privatiser 30-Jun-96 88CBI Congolaise de Bois ImprAgn6s Transitr6e au CP Loi 10-95, privatiser 30-Jun-96 89COMETRAB Complexe d'Exploitation et de transf. du Bois Transfdree au CP Loi 10-95, privatiser 30-Jun-96 90

CRC Cr6dit Rural du Congo Transferde au CP Loi 10-95, privatiser 30-Jun-96 91

MAB Minoterie Alimentaire de W6tail Transf6rde au CP Loi 10-95, privatiser 30-Jun-96 92SFAC Socidtd Forestibre Algero-Congolaise Transf6rde au CP Loi 10-95, privatiser 30-Jun-96 93SIBOM Societd Industrielle des des Bois de Mossendlo Transfdree au CP Loi 10-95, privatiser 30-Jun-96 94SIDETRA Soci6t6 Industrielle de Deroulage et de Tranchage Transfdr6e au CP Loi 10-95, privatiser 30-Jun-96 95SNBS Socidtd Nouvelle des Bois de la Sangha Transfdree au CP Loi 10-95, privatiser 30-Jun-96 96SOCOTRA SocAtA Congolaise de Transit Transf6ree au CP Loi 10-95, privatiser 30-Jun-96 97UAIC Unte d'Afforestation Industrielle du Congo Transf6rde au CP Loi 10-95, privatiser 30-Jun-96 98SCBO Soci6t6 Congolaise du Bois Transfer6e au CP Loi 10-95, privatiser 31-Dec-97 99

ATC Agence Transcongolaise de Communications Transf6r6e au CP Log 21-94 Entr. Pilote 31-Dec-97 100

CORAF Congolaise de Raffinage Transferee au CP Loi 21-94 Entr. Pilote 31-Dec-97 101

Hydro-Congo Societe Nationale de Rech TransfdrAe au CP Loi 21-94 Entr. Pilote 31-Dec-97 102ONPT Office National des Poste et des Tdldcommunication Transfdrde au CP Loi 21-94 Entr. Pilote 31-Dec-97 103SNDE Socidte Nationale de Distribution d'Eau Transferde au CP Loi 21-94 Entr. Pilote 31-Dec-97 104SNE Socidt6 Nationale de 1'Electricild Transf6ree au CP Loi 21-94 Entr. Pilote 31-Dec-97 105

29

Schedule VIIPage 1 of 1

REPUBLIC OF CONGOPRIVATIZATION AND CAPACITY BUILDING

Schedule VII: Detail of Project Costs

Base Costs

CFA million $ US millionComposante du Projet Local Etran. Total Local Etran. Total1. Equipement de Bureaux 412 412 0.0 0.8 0.82. Services de Consultant 115 4093 4208 0.2 8.2 8.4a) Administration Intdrimaire de l'ATC 180 180 0.4 0.4b) Privatisation PPN 144 144 0.3 0.3c) Privatisation VNPTF 144 144 0.3 0.3d) Privatisation CFCO 253 253 0.4 0.4e) Privatisation SNE-SNDE 567 567 1.1 1.1f) Privatisation HC 567 567 1.1 1.1g) Privatisation ONPT 567 567 1.1 1.1h) Gestion du Projet 268 268 0.5 0.5i) Reglementations 540 540 1.2 1.2j) Assainissement du Portefeuille 115 185 300 0.2 0.4 0.6k) Reformes Secteur Financier, Public et 366 366 0.7 0.7

Juridigue1) Campagnede Communication 312 312 0.6 0.63. Couits de Fonctionnement 415 415 0.8 0.8Total 530 4505 5035 1.1 9.0 10.1

Costs including Contingencies

CFA million $ US millionComposante du Projet Local Etran. Total Local Etran. Total1. Equipement de Bureaux 452 452 0.9 0.92. Services de Consultant 115 4410 4525 0.2 8.8 9.0a) Administration Intdrimaire de I'ATC 189 189 0.4 0.4b) Privatisation PPN 151 151 0.3 0.3c) Privatisation VNPTF 151 151 0.3 0.3d) Privatisation CFCO 263 263 0.5 0.5e) Privatisation SNE-SNDE 592 592 1.2 1.2f) Privatisation HC 592 592 1.2 1.2g) Privatisation ONPT 592 592 1.2 1.2h) Gestion du Projet 324 324 0.6 0.6i) Reglementations 582 582 1.2 1.2j) Assainissement du Portefeuille 115 248 348 0.2 0.5 0.7k) Reformes Secteur Financier, Public et 388 388 0.8 0.8

Juridigue1) Campagne de Communication 353 353 0.7 0.73. CouitsdeFonctionnement 532 532 1.1 1.1Total 647 4862 5509 1.3 9.7 11.0

Note: Components may not add up to total because of rounding.

30

Schedule VIIIPage 1 of 1


Schedule VIII: List of Project Activities and Procurement Procedures

Activite Cofit $EU million Bailleur de Fond Methode Passation deMarche

Equipement de Bureaux et 0.9 AID ACI & ALVehiculesServices de Consultant pour la 1.5 AID-CFD LRrestructuration et la privatisationde l'ATCServices de Consultant pour la 1.2 AID-CFD LRmise en concession de SNE-SNDEServices de Consultant pour la 1.2 AID LRprivatisation de HCServices de Consultant pour la 1.2 AID-CFD LRrestructuration et la privatisationde l'ONPTServices de Consultant a la 0.6 AID LRprivatisationServices de Consultant pour la 0.4 AID LRreglementation desHydrocarburesServices de Consultant pour la 0.4 AID LRreglementation des Telecoms. del'Eau et de I'ElectriciteServices de Consultant pour la 0.4 AID LRreglementation du secteurTransportServices de Consultant pour 0.5 AID AOII'assainissement du portefeuilleServices de Consultant national 0.2 AID AOLpour l 'assainissement duportefeuilleSemrices de Consultant pour la 0.8 AID LRrestructuration de la CNSS/CRFServices de Consultant pour la 0 7 AID LRcommunication

TOTAL 9.9

LR = Liste RestreinteAOI = Appel d'Of'tres InternationalAOL Appel d'Offres LocalAL = Achats Locaux

31

REPUBLIC OF CONGO Schedule IXPRIVATIZATION AND CAPACITY BUILDING PROJECT Page 1 of 9

Schedule IX: Project Execution Plan and Aniticipated Project Results

ID ACTIVITE DEBUT FIN

1 PROJET D'ASSISTANCE TECHNIQUE A LA PRIVATISATION 1/2/95 12/26/97

2 VOLET PRIVATISATION ET REGLEMENTATION 1/2/95 12/25/97

3 PRIVATISATION 3/1/95 12/25/97

4 Restructuration de I'ATC 3/1/95 12/25/97

s Selection du cabinet conseil 3/1/95 11/20/95

6 Evaluation des offres 3/1/95 5/30/95

7 Avis de l'AID 5/31/95 6/13/95

B Negociation 6/14/95 8/7/95

Avis du CP 8/8/95 8/14/95

10 Avis de l'AID 8/15/95 8/28/95

11 Signature du Contrat 8/28/95 8/28/95

12 Mobilisation, Etat des Lieux et Plan de Travail 8/29/95 10/23/95

13 Adoption des schemas et strategies sectoriels 10/24/95 11/20/95

14 Execution Schemas de Restructuration 11/21/95 12/25/97

15 Corporatisation du Port de Pointe Noire 11/21/95 4/19/96

e6 |Preparation Bilans d'ouverture 11/21/95 1/19/96

17 Preparation de l'organigramme 11/21/95 1/19/96

18 Validation Comptabilite 11/21/95 1/19/96

19 Organisation du Conseil d'Administration 11/21/95 1/19/96

20 Preparer cahier des charges et de la concession 1/22/96 3/15/96

21 Preparation des statuts 1/22/96 3/15/96

22 Pr6paration Decret de Creation 3/18/96 4/12/96

23 Adoption Decret de Creation 4/15/96 4/19/96

24 Corporatisation des VNPTF 11/21/95 12/25/97

25 Privatisation Flotte Fluviale 11/21/95 6/21/96

26 Identification et evaluation des actifs 11/21/95 1/15/96

27 Strategie et methodologie de cession 12/22/95 1/18/96

28 Preparation dossiers de ventes 1/19/96 2/15/96

29 Lancement de I'appel d'offres 2/16/96 2/22/96

30 Preparation des offres par candidats 2/23/96 3/21/96

31 Evaluation des Off res 3/22/96 3/28/96

32 Choix des repreneurs 3/29/96 3/29/96

33 , Avis de l'AID , 4/1/96 4/12/96

34 Negociation 4/15/96 5/24/96

35 Avis du CP - 5/27/96 6/7/96

36 Signature des contrats de cession 1 6/10/96 6/21/96

32



ID ACTIVITE DEBUT | FIN

37 Chantier navale 11/21/95 6/24/96

38 Identification et evaluation des actifs 11/21/95 1/15/96

39 Definition schema de restructuration 12/22/95 1/18/96

40 Finalisation schema de restructuration 1/19/96 1/19/96

41 Avis de l'AID 1/22/96 2/2/96

42 Preparation et mise en oeuvre schema retenu 2/5/96 6/21/96_ __ ______ _____ ___- 4 _ ___-

43 Fin mise en oeuvre schema de restructuration 6/24/96 6/24/96

44 Corporatisation Ports de Brazzaville et Secondaires 11/21/95 4/11/96

45 Preparation Bilans d'ouverture 11/21/95 1/15/96

46 Preparation de l'organigramme 11/21/95 1/15/96

47 Validation ComptabilitL= 12/22/95 1/18/96

48 Organisation du Conseil d'Administration 12/22/95 2/15196

49 Preparer cahier des charges et de la concession 2/16/96 4/11/96

50 Preparation des statuts 2/16/96 4/11/96

51 Adminitration et Liquidation de l'ATC residuel 11i21195 12/25/97

52 Elaboration plan redeploiement personnel 11/21/95 418196

53 Mise en oeuvre plan red6ploiement personnel 4/9/96 8/26/96

54 Fin mise en place plan de red6ploiement 8/27/96 8/27/96

ss Preparation dossier de liquidation ATC 11/21/95 4/8/96

56 Remise rapport final d'evaluation 1/7197 1/7197

57 Liquidation ATC residuel 4/9/96 12125/97

58 Mise en concession chemin de fer 8/29/95 1 1/6/97

59 Strategie de mise en concession 8/29/95 9/25/95

60 Adoption des schemas et strategies 8/29/95 9/25/95

61 Choix du concessionaire 8/29/95 1/6/97

62 Prospection 8/29/95 10/9/95

63 Preparation dossiers prequalification 8/29/95 10/23/95

64 Avis de l'AID 10/24/95 11/6/95

65 Lancement dossiers de prequalification 11/7/95 11/13/95

66 Delais de reponse 11/14/95 2/12196

67 Evaluation et preselection des candidats 2/13/96 3/11/96

66 Avis du CP 3/12196 3/25/96

69 Avis des bailleurs de fond sur preselection 3/26/96 4/22/96

70 Preparation dossier d'appel d'offres 4123/96 8/5/96

71 Lancement appel d'offres de concession 8/6/96 8/12/96

72 Preparation offres par candidats 8/13/96 10/7/96

33



D ACTIVITE DEBUT FIN

73 Evaluation des Offres 10/8/96 10/14/96

74 Avis de l'AID 10/15/96 10/21/96

75 Choix du concessionnaire 10/21/96 10/21/96

76 Negociation 10/22/96 12/2/96

77 Avis du CP 12/3/96 12/16/96

78 Avis de l'AID 12/17/96 12/30/96


80 ONPT 3/1/95 12/31 /96

81 Selection Cabinet Restructuration ONPT 3/1/95 10/9/95

82 Evaluation des offres | 3/1/95 5/30/95

83 Avis de lAID 5/31/95 6/13/95

84 Negociation 6/14/95 - 8/7/95

85 Avis de i'AID 8/8/95 8/21/95

Avis du CP CM 8/22/95 8/28/95


_ __ .__ ___ _____._ _X__ __ _ ________________ I88 Mobilisation, Etat des Lieux et Plan de Travail 8/29/95 10/9/95

89 Restructuration des telecommunications 8/29/95 7/23/96

Preparation strategie de developpement sectoriel 9/5/95 10/2/95

91 Adoption de la strategie de d6veloppement sectoriel 10/9/95 10/9/95

92 Prospection 8/29/95 10/9/95

93 Preparation d'appel d'offres de privatisation 10/9/95 1/5/96

94 Appel d'offre privatisation 1/9/96 1/9/96

9.5 DDlais de soumission 1/10/96 3/19/96

96 Selection des candidats 3/20/96 4/16/96

97 Avis de L'AID 4/17/96 4130196

98 Avis du CP 5/1/96 5/7/96

9S Demarrage des negociations 5/8/96 7/16/96

100 Signature des Contrats 7/17/96 7/23/96

101 Liquidation des services financiers 10/10/95 3/5/96

102 Constitution du dossier de liquidation 10/10/95 3/4/96

103 Cl6ture de liquidation 3/5/96 3/5/96

104 Corporatisation de la Poste 10/10/95 2/20/96

105 Plan Entreprise et strategie commerciale 10/10/95 2/5/96

106 Affectation personnel 10/10/95 2/5/96

107 Preparation bilans d'ouverture 10/10/95 1/8/96

108 Preparation textes d'etablissement 1/9/96 2/19/96

34



ID ACTIVITE A DEBUT FIN109 Adoption des Textes 2/20/96 2/20/96

110 Liquidation ONPT residuel 2/21/96 12/31/96

SNE-SNDE 7/1/95 7/9/97

112 Selection Cabinet Conseil 7/1/95 10/27/95

113 Lancement de lrappel d'offre 7/1/95 1 7/1/95

114 Delais preparation des offres 7/3/95 7/28/95

115 Evaluation des offres t 7/31/95 8/18/95

116 Avis de l'AID 8/21/95 9/1/95

117 Avis CP 9/4/95 9/15/95

118 Negociations _ _ 9118/95 _ 9 /29/95


120 Mobilisation et Etat des Lieux 10/9/95 j 10/27/95

121 Mise en concession 10/30/95 8/5/96

122 Phase de preselection 10/30/95 4/19/96

123 Strategie sectorielle 10/30/95 11/24/951 - - --- - ___124 Preparation strategies 10/30/95 11/24/95

125 Presentation strategies 11/24/95 11124/95

126 Prospection 11/27195 11/27/95

127 Preparation dossierde prequalification 10/30/95 4/19/96

128 Projet de codes sectoriels et plan de developpement 10/30/95 F 12/22/95

129 Modele de projections financieres des secteurs 10/30/95 _ 12/22/95

130 Projets de cahiers de charges 10/30/95 12/22/95

131 Projet de contrat de concession 10/30/95 12/22/95

132 Avis de l'AID 12/25/95 | 1/12/96

133 Avis du CP 1/15/96 1/19/96

134 Lancement appel d'offre 1/19/96 1/19/96

135 Delais de reponse 1/22/96 3/15/96

136 Depouillement et selection 3/18/96 4/5/96

137 Avis de l'AID 4/8/96 - 4/19/96

138 Phase de Selection finale 4/8/96 1 8/5/96

139 Preparation appel d'offres de concession 48/96 5/3/96

140 Lancement appel d'offres de concession 5/6/96 5/10/96

141 Evaluation, negociations 5/13/96 7/5/96

142 Avis de I'AID 7/8/96 7/19/96

Avis de CP = 7/22/96 7/22/96

144 -[ -~ Negociation du Contrat(s) de concession 7/23/96 8/5/96

35



ID ACTIVITE DEBUT ] FIN

145 Liquidation SNE-SNDE residuel 8/6/96 7/9/97

146 HYDROCONGO 3/1/95 12/23/97

147 Selection cabinet conseil 3/1/95 11/20/95

148 Evaluation des offres 3/1/95 5/30/95

149 Avis de I'AID 5/31/95 6/13/95

150 Negociation 6/14/95 8/7/95

151 Avis du AID 8/8/95 8/21/95

152 Avis de CP 8/22/95 8/28/95


154 Mobilisation, Etat des Lieux et Plan de Travail 8/29/95 10/23/95

155 Adoption des schemas et strategies 10/24/95 11/20/95

156 Privatisation 11/21/95 12/23/97

157 Prospection 11/21/95 12/18/95

158 Preparation dossiers prequalification 12/19/95 1/15/96

159 Avis de l'AID 1/16/96 1/29/96

160 Avis du CP 1/30/96 2/5/96

161 Lancement dossiers de prd-qualification et pre-selection repre 2/5/96 2/5/96

162 Delais de soumission des off res 2/6/96 4/1/96

163 evaluation des offres 4/2/96 4/15/96

164 Preselection des repreneurs 4/15/96 4/15/96

165 Negociations 4/16/96 6/10/96

166 Avis de l'AID 6/11/96 6/24/96

167 Avis du CP 6/25/96 7/1/96

168 Signature des contrats avec repreneurs 7/1/96 7/1/96

169 Liquidation residuel 7/2/96 12/23/97

170 Cl6ture du dossier et bilan 1 12/23/97 12/23/97

171 REGLEMENTATION 1/2/95 5/20/96

172 Mise en place reglementation Hydrocarbure 1/2/95 5/20/96

173 Personnel 1/1/96 5/17/96

174 Dotation en personnel 1/1/96 1/26/96

175 Formation complementaire 1/29/96 5/17/96

176 Equipement 1/2/95 5/19/95

177 Assistance technique 1/2/95 5/19/95

178 Finalisation mise en place de la reglementation 5/20/96 5/20/96

179 Mise en place reglementation Transports 1/2/95 5/20/96

180 Personnel 1/1/96 5/17/96

36




l81 Dotation en personnel 1/11/96 1/26/96

182 Formation complementaire 1/29196 5/17/96

183 Equipement 1/2/95 5119/95

184 Assistance technique 1/2/95 5/19/95


186 Mise en place reglementation Eau, Electricite et Telecommunications 1/1/96 5/20/96

187 Personnel 1/1/96 5/17/96

188 Dotation en personnel 1/1/96 1/26/96

189 Formation complementaire 1/29/96 5/17/96

190 Equipement 1/1/96 5/17/96

191 Assistance technique 1/1/96 5117/96


193 ASSAINISSEMENT DU PORTEFEUILLE 6/15/95 3/1/96

194 Liquidation des entreprises non-viables 6/15/95 3/1/96

195 Collecte des information et preparation des fiches d'ident. 6/15/95 7/4/95

196 Suspension des liquidateurs non qualifies et non prives 6/15/95 7/4/95

197 Preparation des textes de liquidation de 16 entreprises 6/15/95 8/29/95

198 Adoption des textes de liquidation de 16 entreprises | 8/29/95 8/29/95

199 Mise en place de 1 assistance technique a la liquidation 7/1/95 10/26/95

200 Lancement de I' appel d' offre 7/1/95 8/10/95

2D1 Evaluation des offres 8/11/95 8/24/95

202 Avis de l'AID 8/25/95 9/7/95

203 Avis du CP 9/8/95 9/14/95


205 Mobilisation 9/15/95 10/26/95

206 Recencement de I' avancement de liquidations 9/15/95 10/12/95

207 Confirmation du plan d'execution 10/13/95 11/9/95

208 Mise en ouevre des liquidations 11/10/95 3/1/96

209 Selection des liquidateurs 11/10/95 12/21/95

210 Reception des bilans de cloture de liquidation du premier lot de 30 1/1/96 1/1/96

211 Reception des bilans de cloture du deuxieme lot de 26 entreprises 311/96 3/1/96

212 Privatisation des entreprises viables 6/15/95 8/29/95

213 Preparation des textes de privatisation de 7 entreprises 6/15/95 8/29/95

214 Adoption des textes de privatisation de 7 entreprises 8/29/95 8/29/95

215 PROGRAMME DE COMMUNICATION 6/1/95 12/26/97

218 Selection d'une agence d'execution 6/1/95 9/20/95

37

REPUBLIC OF CONGO Schedule IX

PRIVATIZATION AND CAPACITY BUILDING PROJECT Page 7 of 9


ID ACTIVITE B_ DEfUT __ FIN217 Preparer TDR et preselection 6/1/95 6/19/95

218 Lancement de I'appel d'offres 6/19!95 6/19/95

219 Preparation des offres par cabinets 6/20/95 7119/95

220 Evaluation des Offres 7/19/95 r 7/26/95

221 Choixdu cabinet 7/26/95 1 7/26/95

222 Avis de l'AID 7/26/95 8/9195

223 Avis du CP _ 8/9/95 8/16/95

224 Negociation 8i16/95 8/23/95


228 Mobilisation, Etat des Lieux et Plan de Travail 8/23/95 1 9/20/95

227 Execution programme de communication 9/20195 12/26/97

228 Preparation 9/20/95 12/13/95

229 Sondage "point zero" 9/20/95 11/15i95

230 Sondage 9/20/95 11/15/95

231 -______ 11/51/59Rapport bilan des attitudes 11/15195 11/15/95

j 232 Creation d'outils 9/20/95 12/13/95

233 ldentite visuellle/messages 9/20/95 11/15/95

-234 Documents _ 9/20/95 I 12/13/95

235 Dossier de presse 9/20/95 12/13/95

Formation des portes paroles - 9/20/95 12/13/95

237 Fin formation des portes paroles 12/13/95 12/13/95

238 Campagne de publicite& = t - 9/20/95 12/13/95

239 -= Erissions TV/radio 20195_ __ __ _ 9 12/13/95

Dossiers sectoriels 9/2/95 12/13/95

241 Mise en place de bureau de presse 9/20/95 11/1/95 j

242 Fin creation des outils audiovisuels 12/13/95 12/13/95

243 Campagne nationale 11/1/95 12/26/97

244 Reiation de presse 11/1i95 11/6/97 ]

245 Conference de presse a Brazzaville 12/13/95 12/14/95

246 Seminaires presse 12/14/95 12/15/95

247 Campagne de publicite 12/15/95 t 11/5/97

248 Surveillance presse 11/13/95 12/26/97

249 Publication Bulletin/Rubrique 12/13/95 1

250 - Emission radio/television 12/13/95 11/5/97

251 Reunions" portes ouvertes" (12 reunions) 12/13/95 11/5/97

252 Suivies de sondages etape 1 5/15/96 6/12/96

38


Schedule LX: Project Execution Plan and Aniticipated Project Results

ID A-TIVQIE ___ DEBUT FI_

253 Suivies de sondages etape2 12/11/96 1/8/97

254 Recherches qualitatifs suppmentaires 1 (focus groupe) 2/14/9 6 _ 2/15/96

255 Recherches qualitatifs supplsmentaires 2 (focus groupe) 5/16/96 51 /17/96256 Recherches qualitatifs suppimentaires 3 (focus groupe) 7/12/96 /15/96 256 Recherches qualitatifs supplementaires 3 (focus groupe) 7/12/96 7/1 5/96

257 Suivies par sondages etape final 12/1/97 12/26/97

258 Programme Cible Cles 9/20/95 11/6/97

259 = Identification des alliances nationales 9/20/95 1/17/96

260 Creation des alliances nationales 1/17/96 1/17/96

26'. Soutein des allies 1/17/96 11/6/97

262 Soutein institutionel 9/20/95 11/5/97

263 Developpement de materiels 12/13/95 2 J7/96

264 Creer la connaissance au sein des secteurs 12/13/95 4/10/96

265 Accroitre la comprehension au sein des secteurs 4/10/96 7/10/96

__- Achever I'adherence au sein des secteurs 7/10/96 11/6/96

25, j Achevement adherence au sein des secteurs 11/6/96 11/6/96

266 Information des investisseurs etrangers 9/20/95 11/5/97

Adaptation de dossier de presse 9/20/95 11/15/95

Relations avec ia presse (1 briefing tous les 2 mois) 12/13/95 111597

271 Surveillance de la presse 12/13/95 1 11/5/97|

272 1er Reunion du corps diplomatique 12/13/95 12/14/95

273 2e Reunion du corps diplomatique 2/8/96 2/9/96 -- _ t274 3e Reunion du corps diplomatique 5/10/96 5/13/96

275 4e Reunion du corps diplomatique | 9/9/96 9/10/96

276 REFORMES DU SECTEUR FINANER PUBLIC ET JURIDIQUE 7/1/95 12/20/96

277 Restructuration CNSS et CRF 7/1/95 12/20/96

276 Preparer TDR 7/1/95 7/13/95

279 Soumission consultants 7/14/95 8/10/95

----t - Selection consultants t 8/11195 1 8/24/95

861 Avis de iAID sur ia selection du cabinet 8/25/95 8/31/95

Avis du CP 9/1/95 9/7/95

253 Mission sur terrain 9/8/95 10/5/95

264 Redaction du plan 10/6/95 | 10/26/95

285 Discussion avec partenaires 10/27/95 11/15/95

266 | - Adoption par gouvernement 11/16/95 12/1/95

217 Mise en oeuvre restructuration 12/4/95 12/20/96

Redemmarrage payernent des pensions 3/1/96 3/1/96

39

REPUBLIC OF CONGO Schedule IXPRIVATIZATION AND CAPACITY BUILDING PROJECT g 9



289 Renforcement de la Commission de Restructuration Banquaire 7/5/95 7/5/96

290 Renforcement de la Direction de Controle des Assurances 9/1/95 11/30/95

291 Renforcement de l'Inspection Generale de l'Etat 9/1/95 2/29/96

292 Renforcement du system jurique 9/1/95 2/29/96

40

Schedule XPage 1 of I


Schedule X: Project Supervision Plan

Activites Profils Personnes-SemainesSiege Terrain

1995 Passation de Marches P. de Marches 1.0Semestre 2 Evaluation des progres Privatisation 5.0 3.0

Reglementation 2.0 1.0Chemin fer 1.0 1.0Energie 1.0 1.0Gestion Projet 5.0 1.0Decaissement 1.0 1.0Communication 1.0 1.0Environnement 1.0 1.0

18.0 10.01996 Appel d'offres de privatisation P. de Marches 1.0Semestre I Mise en oeuvre cadres reglem. Privatisation 3.0 1.0

Evaluation des progres Reglementation 2.0 2.0Chemin fer 1.0 1.0Energie 1.0 1.0Gestion Projet 5.0 3.0Communication 1.0 1.0Environnement 2.0

16.0 9.01996 Passation de Marches P. de Marches 1.0Semestre 2 F aluation des progres Privatisation 1.0 2.0

RIgleementation 4.0 2.0Chemin fer 1.0 1.0Energie 1.0 1.0Gestion Projet 5.0 2.0Communication 1.0 1.0Environnement 1.0 1.0

15.0 10.01997 Passation de Marches P. de Marches 1.0Semestre I Evaluation des progres Privatisation 1.0 2.0

Reglementation 4.0 2.0Chemin fer 1.0 1.0Energie 1.0 1.0Gestion Projet 5.0 2.0Communication 1.0 1.0

14.0 9.01997 Passation de Marches P. de Marches 1.0Semestre 2 Evaluation des Progrs Privatisation 1.0 2.0


14.0 9.01998 Passation de Marches P. de March6s 1.0Semestre 2 Evaluation des progres Privatisation 1.0 2.0


14.0 9.0TOTAL 91.0 56.0

41

Schedule XI

REPUBLIC OF CONGO Page 1 of 1PRIVATIZATION AND CAPACITY BUILDING PROJECT

Schedule XI: PROJECT STRUCTURE

MEFPPLe Ministre

Coordonnateur du Projet

NMr. Mabialia-Ngoulou

Administration et

Comptabilite du Projet

I admin. et I comptable I_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ D IE P

Coord. de la Privatisation Seretariat Technique C.P. _ -_SA ___

Mmne Lissouba Mr. Ngoulou Cellule Liquidation S Secretariat Technique

Ministere Justice Comite de Restructur. des BanqueConseiller Tech. Conseiller Tech. Conseiller Tech. Mme NzalankaziComnunications Privatisation Liquidateur/Gestion ___

du portefeuille 2 charges de mission

I charge de mission 5 charges de mission I charg de missionCommunications Sectoriels ______

42

Schedule XIIPage 1 of 1


Schedule XII: PRIVATIZATION COMMITTEE SECRETARIAT

ORGANIZATION CHART

Secteur Hydro-Carbures Eau-Electricite Transports Telecom. et Agriculture Banques et CommunicationsPostes F6ret etablissements

financiersSecretariat NZOBADILA PANA DZABA- REPR. NGOULOU NZALANKAZI LISSOUBAtechnique NIEME COMITE DEpermanent RESTRUCT.

BANCAIRERepresentant OVU MVOULI DIOULOU MALONGA DCO-DAC KOUEZO SOUKAMinisterielCharges de MBIYERO NGOULOU PANSIER SAMBA TOMADIA KAYA C. (Attach6 demission STP AWEYAMBI MOUTIMA (Ingenieur) C.M. TUNGA (Analyste Presse)

(Juriste) (Statisticien (Economiste) (Expert financier)economiste) Comptable)

Cabinets PRICE (Cabinet a ARTHUR ICEA-DSS CTL (Cabinet aconseil WATERHOUSE recruter) ANDERSEN recruter)

CTL Conseiller Technique LiquidationsCTP Conseiller Technique Privatisation

43

Schedule XIIIPage 1 of I


Schedule xm: Project Status: Performance Indicators

Secteur R6sultats Attendus Date Responsabilite

Transports Adoption par le Gouvemement do la strat6gie et des sch6mas 20 Novembre 1995 S6cretariat du CPsectoriels (Nzaba-Nierne)

Ministere du TransportAdoption du decret de creation du PPN 19 Avril 1996 (Dioulou)

Cession de la Fbltte Fluviale 21 Juin 1996

Mise en ouevre schema de restructuration du Chantier Naval 24 Juin 1996

Adoption des statuts des Ports de Brazzaville et Secondaires 18 Avril 1996

Prequalification concessionnaires CFCO II Mars 1996

Signature du contrat de concession du CFCO 06 Janvier 1997Poste et Telecom- Selection du cabinet conseil pour la restructuration deol'ONPT 28 Aout 1995 Secretariat du CPmunications (Nzalankazi)

Adoption de la strategie de doveloppement des 09 Octobre 1995 MinistereTelecommunications T6lecommunications

(Malonga)Appel d'offres privatisation 09 Janvier 1996

DemarTage des negociations avec le repreneur 08 Mai 1996

Adoption des textes de corporatisation de la Poste 20 Fevrier 1996

Transfert du dossier de liquidation des Services Financiers au 05 mars 1996Comite de Restructuration des Banques

Eau et Electricite Selection du cabinet conseil pour la concession de la SNE- 06 Octobre 1995 Secretariat du CP (Pana)SNDE Ministere Energie

(Mvouli)Appel d'offre pour la prequalification 19 Janvier 1996

Appel d'offre concession 06 Mai 1996

Conclusion des negociation contrat de concession 05 AoOt 1996Hydrocarbures Adoption du schema et des strategies de privatisation 20 Novembre 1995 Secretariat du CP

(Nzobadila)Lancement du dossier de prequalification 5 Fdvrier 1996 Ministre des

Hydrocarbures (Ovu)Selection des repreneurs 15 Avril 1996

Signature des contrats avec les repreneurs 01 Juillet 1996Assainissement du C16ture de 38 liquidations 31 Decembre 1995 Minist&re de la JusticePortefeuille (Goma)

C16ture de 6 liquidations 31 Mars 1996

Liquidation de 6 entreprises non-viables 31 Decembre 1995

Liquidation de 7 entrprises non-viables 31 Mars 1996

Transfert de 10 entreprises au Comite de Privatisation 01 Septembre 1996Programme de Mise en place d'un cabinet conseil et cellule 23 Aout 1996 Secretariat du CPCommunication (Lissouba)

Rdalisation du Sondage "point zero" 15 Novembre 1996 Ministere de laCommunication (Souka)

Resultats des sondages sur les groupes cibles 15 fevrier 199617 mai 199615 juillet 1996

Banques et Selection du cabinet pour la restructuration de la CNSS/CRF 24 AoOt 1995 Secretariat du CPEtablissements (Nzalankazi)Financiers Redemarrage des payements des pensions 01 Mars 1996 Banque Centrale

(Kouezo)

44

- L '; d . i ; t

; . I ! , ,