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discussions with Saur Int’l concerning financing for the capital expenditures o f Energie du Mali, the integrated powedwater utility. The IFC financing i s beingdeveloped jointly with IDA, which backed the privatization. A potential investmento f up to US$lOO million by IFC and other commercial sources i s envisaged. The IFC and the Bank’s energy team have also played a role inhelping Saur and the G o M address disputes concerning the reduction in tariffs, the associated compensation to be paid to Saur, G o M arrears, and the state o f the utility upon assumption o f control by Saur.

57.

M a l i i s expected to be one o f the countries to implement an integrated micro, small

and medium-sized enterprises (MSME) support program, implementedby IFC with IDA

support. The program i s currently being finalized and will consist o f establishment o f a commercial micro-finance bank, capacity buildingfor banks and other lending

intermediaries, Business Development Services to firms, and support to improve the enabling environment for SMEs. Support from IDA i s under discussion from the proposed Sources o f Growth Project inFY05, and possibly from the existing Financial Sector Development Project. IFC and other commercial sources would invest up to US$3 million inthe capital o f

the micro-finance bank.

  • D.

    Lessons Learned

    • 58.

      A thorough analysis o f the implementation o f the Bank’s previous CAS, including

OED’s evaluations o f closed projects, indicates important lessons which have been taken into account in the selection and design o f future Bank activities inMali.

59.

An efficient institutional framework increases sustainability and accelerates

service delivery. Institutional weaknesses, noted for nine active projects (PNIR, PASAOP, PPIP, Manantali, FSDP, PAAA, PRODESS,PRODEC, and TSP), primarily stem from: (ifrequent G o M reshuffles - since 1992, the GoM has changed twelve times; (iipoor donor coordination for meetings and procedures, which leads to multiplicity o f tasks for civil

servants; (iiicomplex procedures, particularly for procurement and disbursement, complicated by an absence o f motivation and sanction, absence o f follow-up, and weak human resources; and (iv) insufficient post-project planning from the onset, putting sustainability at risk.

60.

Trained and motivated human resources are vital. Key structures need to be

continually reinforced: (icentral administration, particularly inthe various ministry offices

  • o

    f administration and finance (Directions administratives etfinanci&es), where lack o f

training, motivation, and accountability contributes to slow procurement, poor financial management, and slow disbursement; (iidecentralized and deconcentrated administrative structures, particularly for the health and education sectors, where personnel i s often lacking or poorly motivated because o f low salaries; and (iiicivil society and the private sector, where there are large deficiencies inplanning, management, procedures, and monitoring and evaluation.

6 1.

Decentralization of service delivery and community-driven development

increase grassroots participation and help adapt development programs to local

realities. By supporting community-driven development, the Bank was able to contribute to

improved service accountability and increased local participation inthe preparation and implementation o f development programs. Aspects o f decentralization were included in

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