Mapping Resources To GB 07 April 2008

Mapping of Resources & Gaps
For Peacebuilding in Guinea-Bissau
7 April 2008
PBSO UNITED NATIONS

1
PEACEBUILDING SUPPORT OFFICE
Executive Summary
In resolution A/RES/60/180, the Peacebuilding Commission (PBC) was mandated to bring

together all relevant actors to marshal resources and to advise on and propose integrated
strategies for post conflict peace building and recovery. The same document recognizes
that support from the Peacebuilding Support Office (PBSO) could include gathering and
analyzing information relating to the availability of financial resources.
This note, prepared by PBSO*, provides an overview of the availability and gaps in
resources to Guinea-Bissau. Typically, peacebuilding efforts in post-conflict countries
exhibit three types of gaps:
1) Financing Gaps
2) Project and Thematic Gaps
3) Coordination Gaps for Mobilizing Additional Resources
The experience in Guinea-Bissau confirms those gaps.
Part I focuses on Financial Resources and Financing Gaps. Section 1 describes the
external resource flows and gaps to Guinea-Bissau. Section 2 describes domestic resource
mobilization. Section 3 looks at the international initiatives to fill resources gaps and their
status. Section 4 provides an overview of the priorities in the existing plans. A summary of
financing sought, pledges and funding gaps for existing plans highlights the need for
improving coordination in support of additional resources.
Part II focuses on Projects and Project Gaps.
*
This document benefited from very useful inputs by the UN Peacebuilding Support Office in Guinea-
Bissau (UNOGBIS) and UN agencies in Guinea-Bissau. It also benefited from information provided
by the European Commission, European Union, OECD/FSG, African Development Bank, Economic
Community Of West African States (ECOWAS), Brazil, France, Italy, Portugal, and Spain. The
document was updated in March 2008 with some modifications in the main text (section 1.3) and the
addition of three annexes.
Contact: PBSO/External Relations Section, Julien Serre, +1 212 963 6295, serre@un.org
2
Mapping of Resources & Gaps
For Peacebuilding in Guinea-Bissau
Table of Contents
Part I – Financial Resources and Financing Gaps.. ………………………………………….Page 1
1. DOMESTIC RESOURCES.................................................................................................................................. - 2 -
1.1. GOVERNMENT RESOURCES..............................................................................................................................- 2 -
1.2. DOMESTIC PRIVATE RESOURCES & BUSINESS CLIMATE .................................................................................- 4 -
1.3. DEBT SITUATION .............................................................................................................................................- 5 -
2. EXTERNAL RESOURCE FLOWS .................................................................................................................... - 7 -
2.1. AID FLOWS ......................................................................................................................................................- 7 -
2.2. RESOURCES FROM MULTILATERAL AND REGIONAL DONORS ..........................................................................- 9 -
2.3. RESOURCES FROM MAIN BILATERAL DONORS ..............................................................................................- 12 -
2.4. EXTERNAL AND PRIVATE RESOURCES ...........................................................................................................- 13 -
2.5. UNDERSTANDING THE FLOW OF RESOURCES LINKED TO DRUG TRAFFICKING ..............................................- 13 -
3. RECENT INTERNATIONAL INITIATIVES TO FILL RESOURCE GAPS.............................................. - 16 -
3.1. ECOSOC AD HOC ADVISORY GROUP ON GUINEA-BISSAU (2002-)..............................................................- 16 -
3.2. INTERNATIONAL CONTACT GROUP ON GUINEA-BISSAU (ICG-GB) (2006-)..................................................- 16 -
3.3. GENEVA ROUND TABLE CONFERENCE, 2006.................................................................................................- 16 -
3.4. LISBON INTERNATIONAL CONFERENCE ON DRUG TRAFFICKING IN GUINEA-BISSAU, 2007...........................- 17 -
3.5. GROUP OF FRIENDS OF GUINEA-BISSAU SSR, 2007.......................................................................................- 17 -
4. OVERVIEW OF THE PRIORITIES AND FUNDING OF EXISTING PLANS & FRAMEWORKS....... - 18 -
4.1. NPRSP (2007-2010): PRIORITIES AND GAPS .................................................................................................- 18 -
4.2. UNDAF 2008-2012: FIRST OVERVIEW .........................................................................................................- 19 -
4.3. COUNTRY PROGRAM ACTION PLANS & ELECTIONS .....................................................................................- 20 -
4.4. OPERATIONAL PLAN TO COMBAT AND PREVENT DRUG TRAFFICKING IN GUINEA-BISSAU ...........................- 21 -
4.5. RESTRUCTURING AND MODERNIZATION OF THE DEFENSE AND SECURITY SECTOR - 2007-2010...................- 22 -
PRELIMINARY CONCLUSIONS & SUMMARY TABLE .................................................................................... - 23 -
Part II – Projects and Project Gaps.. ………………………………………………….…….Page 25
5. GOVERNMENTAL CAPACITY FOR NATIONAL FINANCES, PUBLIC SECTOR REFORM AND

CORRUPTION .................................................................................................................................................................. 26
6. SECURITY SYSTEMS, JUDICIARY, RULE OF LAW, DRUG TRAFFICKING AND ORGANIZED
CRIME................................................................................................................................................................................ 30
7. ECONOMIC RECOVERY, BASIC SOCIAL SERVICES, VULNERABLE GROUPS ................................... 37
8. ELECTIONS............................................................................................................................................................. 41
Annexes:
1) Acronyms and Abbreviations
2) Useful Links
3) List of Contributions to Guinea-Bissau by Donor
3
Part I – Financial Resources and Financing Gaps
Key Facts of Part I
The Government continues to face difficulties in achieving a balanced budget. Despite clear
commitments with respect to public expenditure and other recent improvements, the Government has
not yet reversed the dire budgetary situation. Budget support has been crucial for the ability of the
government to pay its wage bill, still marked by arrears.
The financial sector, although key for sustained economic recovery, is under-developed. Normal
business operations are extremely difficult. Guinea-Bissau has no access to capital markets, low but
increasing FDI, and increasing remittance flows. Private sector activity is very weak.
Private flows are increasing, which may in part indicate a growing impact of drug trafficking on the
economy. Resource flows from drug trafficking exceed the country’s GDP and could pose important
governance problems, amongst other pressing issues.
Guinea-Bissau is still in a debt distress position. It has yet to benefit from full debt relief, even though
recent bilateral and multilateral initiatives are encouraging. Given the debt burden, the country will
require continued access to grants and concessional aid flows in the medium term.
Official Development Assistance (ODA) is a crucial flow for Guinea-Bissau, the world's third
poorest country. Donor support is increasing, and in ODA per capita Guinea-Bissau compares
relatively favorably to other countries. Yet the donor base is still limited.
The main multilateral partners of Guinea-Bissau are the EC (largest contributor), the IMF, World
Bank, African Development Bank, and ECOWAS. The bilateral donor base is mainly composed of
Portugal, France, Spain, Italy and Brazil.
The need for donor coordination is a priority in a context of increasing donor activity.
The ability to productively absorb large amounts of external assistance is a central issue for efforts to
scale-up aid: 1) the macro-economic absorption capacity of Guinea-Bissau is limited and 2) UN
capacity on the ground may also be faced with absorptive capacity risks.
Several recent international initiatives contributed to filling resource gaps: Geneva 2006 donor
roundtable (pledges of $262.5 m and $29.5 m for budget support; funding target $538 m); 2007 Lisbon
International Conference on Drug Trafficking in Guinea-Bissau ($6.7 m pledged; $19.1m requested).
Security Sector Reform and the fight against drug trafficking are receiving the bulk of international
attention, although funding gaps remain in these areas.
Several plans and projects still lack the required funding.

There are various forms of resources for peacebuilding: domestic and external, public and
private, financial and non-financial. This document is divided into two parts: Part I focuses
on financial resources and financing gaps and Part II focuses on projects and thematic gaps.
1. Domestic Resources
Although domestic resource mobilization efforts usually center on financial sector development in
most developing countries, post-conflict contexts require giving urgent priority to the following
areas: government resource mobilization, debt relief and domestic private resources.
1.1. Government Resources
Despite clear commitments with respect to public expenditure, the Government is facing
difficulties in reversing the dire budgetary situation:
The Government continues to face major difficulties in paying the wage bill. Wage restraint
and reform of the civil and military services are critical for successful and sustainable fiscal
management in Guinea-Bissau.
State tax revenue is improving but still insufficient to meet recurrent expenditures. This
impairs investment and state delivery in the economic and social sectors.
The lack of fiscal governance and transparency has had negative consequences both for
domestic resource mobilization and donor support. While recent progress has contributed to
easing donor concern since 2007, further efforts are needed to enhance transparency and
accountability.
Contrary to regional trends, the fiscal situation in Guinea-Bissau has deteriorated sharply in the
post-conflict period, due mainly to large and unsustainable increases in the wage bill (IMF).
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Budget Revenue Gap Figure 1: Central Government Operations 2000-2010 (billion CFA Franc)
70
Overall, revenues were 60
never able to cover even 50
the current expenditure Project grants
40
Budget support
in the last decade, even 30 Nontax revenue
with the addition of 20 Tax revenue
budget support. Current
10 Expenditure
0 + Capital
2000 2002 2004 2006 2008 2010 Expenditure
Tax revenue is expected to grow in absolute

terms and as a share of total
revenues in the coming years. Expenditure exceeds total revenue and grants.
+ Non tax revenue, in particular revenue from EU The government balance excluding
fishing compensation agreements grants has been negative since
is expected to pick up in 2008. 2000, and reached $-77.6 million
+ Budget support is crucial to cover the domestic in 2006 ($-96 million expected in
primary deficit. It reached $22 2007). Including grants, the
million in 2006, but fell by 30% in government balance was $-34.8 m
2007 due to governance concerns. and $-54 m, respectively.
Several recent efforts contribute to improving the budgetary situation. The government has been
implementing an emergency program to correct fiscal imbalances. A Minimum Fiscal Stability
Program (Programme minimum d’assainissement des finances publiques) was presented in May
2007 by the new government. As a result, fiscal performance improved in the second half of 2007
although the government has not made strenuous efforts in collecting taxes, mainly, from foreign
enterprises. The introduction of a value-added tax to replace the sales tax should also contribute to
improving the budgetary situation. The establishment in mid-2007 of a Treasury Committee should also
contribute to improving resource management, disbursements of salaries, and debt servicing.
-3-
The fiscal stance is expected to improve in 2008 as the government’s emergency fiscal program
takes effect. Non tax revenues are expected to be above the norm, reflecting two disbursements from
the EU for fishing compensation (including a delayed 2007 annual compensation). Tax revenues are
projected to be constant as a share of GDP. Current expenditures are expected to decline in 2008,
Toward Sustainability in the Medium Term
Significant concessional external assistance, including debt relief, will be needed, and, at a
minimum, the following three elements: 1) Project grants and loans (at least 14% of GDP)* to
finance a minimal level of capital expenditures, a level consistent with current absorptive capacity
according to the IMF. 2) Budget support (at least 3% of GDP in 2008–12)* to cover the domestic
primary deficit. 3) Securing comprehensive debt relief.
*Estimates are from IMF, to ensure sustainability of a Medium Term outlook prepared with the government.
reflecting a nominal freeze of the wage bill and control of non-wage discretionary outlays. The
primary deficit should decline to just 1.2% of GDP, much lower than in previous years.
1.2. Domestic Private Resources & Business Climate
The financial sector, although key for sustained economic recovery, remains under-developed.
Guinea–Bissau has the West African Economic and Monetary Union's weakest financial system.
Corruption is significant and the informal market dwarfs the formal market. A new investment code
(2006) provides for incentives and guarantees against nationalization and expropriation, but
investment freedom remains insufficient.
While the domestic savings rate was negative from 2001 to 2005, transfers from migrants have been
the basis for a recent positive national savings performance (IMF). As private savings are
traditionally weak in the country, and only four financial institutions operate, it is difficult to fully
account for this evolution.
Normal business operations are extremely difficult in Guinea-Bissau. Restrictions on foreign

investment combine with domestic regulations to create an unfavorable climate for business. Weak
enforcement of the rule of law jeopardizes the protection of property rights. Burdensome
employment regulations hinder employment opportunities and productivity growth. Protection of
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property is weak. The country ranks last according to the latest Transparency International data, and
173rd out of 175 on the World Bank’s Doing Business indicators for 2007. The judiciary is subject to
influence, judges are poorly trained, poorly paid, and amenable to corruption. Customary courts
prevail in rural areas, and in urban areas often judicial disputes are brought to traditional counselors
to avoid the impediments of the official system. The N-PRSP acknowledges that the private sector
should be the main player in the recovery of the economy. The Government authorities recognize
the need to foster private sector development in order to achieve equitable economic growth and to
encourage job creation.
Fostering a favorable business climate with a legal and regulatory framework conducive to
increasing savings and investment, together with the improvement of political stability and the
required basic public sector, will thus be crucial to achieve some of the peacebuilding objectives.
1.3. Debt Situation
Overview - The country’s indebtedness is excessive. A recent debt sustainability analysis (DSA)
indicated that Guinea-Bissau is currently in a debt distress position. Total public debt including
arrears amounted to 436 percent of GDP in 2006, and scheduled annual debt service was about 58
percent of total government revenues during the same year. The country compares very poorly with
its neighbors (Figure 2). There are clear risks that the country may not be able to timely service its
debt to development partners -about $160 million of the country's debts comprises arrears and late
interests. As a result, financial support from these partners may be delayed or suspended.
HIPC Debt Relief Guinea-Bissau has yet to benefit from full debt relief. In
(in 2000) $790m
+ December 2000, Guinea-Bissau had qualified for nearly $800
million in debt relief under the enhanced HIPC initiative.
First Tranche
(in 2000) However, the PRGF program was suspended following
$350m
disbursement of the 1st tranche due to off-program expenditures.
Arrears
X 2.5
IMF Staff expects that Guinea-Bissau will not reach HIPC
$139m ‘completion point’ before 2010. Debt relief under the HIPC
initiative and MDRI would reduce annual scheduled public
2000 2007 debt service to less than 12% after 2010 (source: IMF).
-5-
Domestic debt - It is expected that Guinea-Bissau will remain at high risk of external debt distress
even after multilateral debt relief, and additional donor support will continue to be needed to
reduce the outstanding domestic debt burden (IMF Art. IV consultation 11/2007). Clearing
domestic arrears is a priority and requires an external audit, financed by the EU, of the stock
accumulated. The authorities will then seek external assistance, in addition to normal budget support.
Paying off the audited arrears over the medium term (2008–10) could require up to 8% of GDP
yearly in additional aid, assuming about half of the 2000–06 arrears will be eliminated after the audit
(Source: IMF).
Recent Progress and Challenges - An Emergency Post-Conflict Assistance was recently granted
by the IMF for $5.6 million. The EPCA aims to enable the country to build a track record to move to
a formal PRGF program, followed by possible HIPC completion.
It has been suggested that post-conflict countries should be provided with an opportunity to benefit
from shorter and simplified negotiation processes: bilateral debt restructuring could be conducted
hand-in-hand with multilateral debt relief, to limit the cost in time and resources for the country2.
Furthermore, the IMF Board recently decided (16 January 2008) to modify the PRGF-HIPC Trust
Instrument to take into account the specific circumstances of a number of Heavily Indebted Poor
Countries (HIPCs). This modification could benefit, at some stage, Guinea-Bissau.
Recent GA resolutions also welcome efforts to take into account the situation of post-conflict
countries. A resolution on "External debt crisis and development" (A/C.2/62/L.2 ) “Welcomes the
efforts of, and calls upon the international community to provide flexibility, and stresses the need to
continue those efforts in helping post-conflict developing countries, especially those that are
heavily indebted and poor, to achieve initial reconstruction for economic and social development”.
2
B. Schneider, UN-DESA, PBC Working Group on Lessons Learned, November 2007
-6-
2. External Resource Flows
2.1. Aid Flows

Official Development Assistance (ODA) is a crucial flow for Guinea-Bissau, the world's third
poorest country. The country ranks 175 out of 177 in the 2007/2008 UNDP Human Development Index.
Evolution of Aid Flows Figure 1 – ODA Flows to Guinea-Bissau (m $)

180
Excluding debt relief, ODA increased steadily 160
since 2001 (see figure 1). Aid had fallen from 140
120
$180 million in 1996 to less than $50 million at
100
end 1998. It picked up again after 2000, 80
reaching $82.3 million in 2006. This includes 60

40
technical cooperation, which has been stable in
20
at around $16 million per annum. In 2006, 0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
bilateral aid reached $39.4 million, and
Net ODA (Million US$)
multilateral aid $42.9 million, up by 1% and 8% Net ODA excl. debt relief (Million US$)
since 2005, respectively.
Yet the donor base in Guinea-Bissau is limited. As noted by OECD’s Fragile State Group, Guinea-
Bissau is among the fragile states with the lowest number of active donors. The top five donors in
2006 provided 83% of aid, and the European Commission alone accounted for 40% of aid that year.
Aid per Capita Compared Figure 2 – net ODA receipts per capita (in $, 2006)
140
With $56 per capita in ODA
120
in 2006, Guinea-Bissau
100
compares favorably to its 80
neighbors (Figure 2). It is 60
above average, although 40
many factors influence this 20 1

data, including the population 0
Central African Rep.
Guinea-Bissau
tanzania
Yemen
Congo, Rep.
Congo, Dem. Rep.

Burundi
Djibouti
Mauritania
rwanda
Sudan
uganda
Zimbabwe
Guinea
Côte d'Ivoire
Angola
Niger
Cameroon
Nigeria
Sierra Leone
Somalia
Chad
Togo
Comoros
Liberia
Gambia
Eritrea
(less than 2 million

inhabitants in Guinea-
Bissau). -7-
Capacity Issues
The ability to productively absorb3 large amounts of external assistance is a central issue for
efforts to scale-up aid. The macro impact of large aid flows on the tradable sector can be serious in
the short run; large-scale frontloading of aid can be costly as it pushes against absorptive constraints.
The absorption and spending capacity of Guinea-Bissau is limited. In the most fragile states
absorptive capacity is substantially lower than in other contexts: negative returns to aid arise at a
much lower level of aid to GDP. A recent report by the Independent Evaluation Office of the IMF
found that Sub-Saharan countries with an IMF Poverty Reduction and Growth Facility (PRGF), such
as Guinea-Bissau, spent an average of only 28% of aid flows during 1999-2005. According to the
same IMF report, only 63% of aid flows to sub-Saharan Africa were ‘absorbed’ during 1999-2005.
The remaining 37% were used to stockpile reserves. According to UNDP Poverty Centre, Guinea-
Bissau has low absorption rates and a high level of reserves (estimated in months of imports). IMF /
World Bank Staff cautioned in September 2007 that the absorptive capacity of the economy needs to
be improved. A sustained practice of excessive reserve accumulation may act as a substantial barrier
to resource mobilization. UN capacity on the ground may also be faced with absorptive capacity
risks if a surge in aid is not compounded with an adequate increase in human and physical
capacities.
An Aid Management Platform (AMP) could contribute to enhancing the allocation, use and
monitoring of aid to Guinea-Bissau. This web-based application gathers data, which is made
accessible on a real-time basis, and allows for monitoring of benchmarks and indicators. It can be
used by the government ministries, specialized agencies and donors.
3
Absorption is the extent to which non-aid current account deficit widens in response to increased aid flows (reflects
increase in net imports resulting from increased aid), while aid spending is the widening of fiscal deficit that accompanies an
aid increase (shows extent to which government uses aid to finance increase in expenditures).
-8-
The Challenge of Donor Coordination
In resolutions GA/60/180 and SC/1645, the PBC was mandated to “provide recommendations and
information to improve the coordination of all relevant actors within and outside the United Nations”. If the
donor base in Guinea-Bissau increases as a consequence of engagement with the PBC, improved coordination
will be an essential aspect of efficient resource mobilization. A 2005 OECD report had estimated that 31
poor-country governments had received 10,837 donor missions in 2005, or one mission a day. It will be
essential for the PBC to contribute to the coordination between traditional and new donors, in all the priority
areas of the country and in complementarity of existing funding.
2.2. Resources from Multilateral and Regional Donors
European Union - The European Commission (EC) is Guinea-Bissau’s largest multilateral

contributor, focusing in particular on security sector reform, economic recovery and budget support.
The Cotonou Agreement is the main bilateral agreement between the EC and Guinea-Bissau, aiming
to reduce poverty and foster the country’s integration in the global economy. The key document for
cooperation between the EC and Guinea-Bissau is the Government’s PRSP.
The European Development Fund (EDF) is the main

9th EDF €79.8m
+ vehicle providing Community aid for development
cooperation with the countries of Africa, the Caribbean and
€ 100 m
10th EDF
+ the Pacific (ACP countries). The 9th EDF for 2002-2007
provided € 80 million for Guinea-Bissau. It focused on 1)
Incentive Tranche
€ 23m infrastructure and transports, and 2) strengthening the Rule
of Law. Several projects are still ongoing (Justice, DDR, administration, and budgetary support).
The 10th EDF (2008-2013) was recently signed in Lisbon for an initial programmable envelope of
€100m. The EC also provided an additional support incentive tranche of €23m to Guinea-Bissau
under the 10th EDF, based on a series of engagements on governance. The 10th EDF mainly focuses
on: 1) conflict prevention (€ 27 million) 2) water and energy (€23million) and 3) budgetary
support (€ 32 million).
In 2007, the EC, on behalf of the EU, and Guinea-Bissau initialed a new Fisheries Partnership
Agreement. This agreement foresees an annual financial contribution of €7m yearly over four years.
-9-
The European Union is playing an active political role in the country which will be further stepped
up through the deployment of a European Security and Defence Policy (ESDP) operation. The EU
is assisting Guinea-Bissau to undertake reforms within the agreed parameters of the national security
strategy in accordance with international norms. Based on terms agreed with the President of
Guinea-Bissau in January 2008, the EU is planning to deploy some 15 military, police and justice
experts to advise and assist the local authorities on reform of the security sector in Guinea-Bissau.
The EU is also putting particular attention to the sub-regional dimension, including the role of
ECOWAS.
International Monetary Fund –The government’s economic program for 2008 is supported under
the IMF's Emergency Post-Conflict Assistance. Under EPCA, Guinea-Bissau received a first
tranche of $2.8 million in January 2008 and is expected to receive the remaining $2.8 million in July
2008, depending on performance under the program. Satisfactory performance with EPCA could
pave the way for a PRGF arrangement and eventual debt relief under the Heavily Indebted Poor
Countries (HIPC) Initiative and the Multilateral Debt Relief Initiative (MDRI).
Recent consultations by the IMF (Nov. 2007, Article IV) highlighted three priorities: 1) achieving
macroeconomic stability, 2) improving fiscal governance and transparency, and 3) addressing key
structural issues to encourage sustainable economic growth.
World Bank Group - The Bank is currently preparing an Interim Strategy Note (ISN) which will
present the Bank's strategy to support Guinea-Bissau and implementation of its PRS in 2008/2009.
The note is expected to be finalized in 2008.
An informal policy note on the cashew sector, an Investment Climate Assessment and a Social
Sector Review are ongoing. This analytical work, the PRSP, other recent work and consultations
with Guinea-Bissau will guide the Bank's strategy in 2008.
As of mid 2007, the International Development Association (IDA) had approved 30 credits for
Guinea-Bissau, including nine credits in the transport and infrastructure sector, three in the energy
sector, three for strengthening the country’s management capability, one for private sector
rehabilitation and development, and one for natural resource management. In 2008, IDA will prepare
a budgetary assistance operation and a community-driven development project.
- 10 -
The International Financial Corporation (IFC) had only limited loans and investments in Guinea-
Bissau through the Africa Enterprise Fund (AEF). The IFC’s current portfolio consists of two
investments: one in agribusiness ($0.25 million), and one in the financial sector ($0.28 million) to
support a commercial bank (Banco da África). Both have been fully disbursed.
The Multilateral Investment Guarantee Agency (MIGA) is also now working with Guinea-Bissau.
The African Development Bank resumed the funding of a number of important on-going projects
in the areas of health, education, agriculture, capacity building, roads and infrastructural
development, valued to the tune of $82.5million.
The Economic Community Of West African States (ECOWAS) is also a key player in Guinea-
Bissau. It contributed US$3.5m for budgetary support in 2007. In August 2007, it paid an additional
$3.5 m to AfDB to lift its sanctions imposed on the country due to arrears. This settlement paved the
way for ADB to resume funding. Additionally, ECOWAS made available US$2m for the training in
vocational skills in Brazil of for 30 senior military officers. In this connection, a project document is
being finalized by UNOGBIS, in partnership with the Government, UNDP, UNOPS and the
Brazilian Agency for Cooperation, and arrangements towards the project’s implementation are
ongoing. The total amount of financial assistance from ECOWAS in 2007 in support of Guinea
Bissau was $9million, which includes the $2m available for the Brazil training.
The situation in Guinea-Bissau was one of the main topics discussed at the last EU-ECOWAS
meeting (Ouagadougou, 11 October 2007). The joint communiqué encouraged the Government to
finalize and execute the Action Plan for the implementation of the National Security Strategy.
The EU and ECOWAS also recently launched a dialogue on the fight against drug trafficking,
including plans to develop comprehensive strategies to combat the increased illicit trafficking of
drugs. ECOWAS, in cooperation with the UN, intends to organize in May 2008 a regional
conference on drug trafficking in West Africa. This forthcoming conference has been conceived
also as follow-up to the Lisbon International Conference on Drug Trafficking in Guinea-Bissau.
- 11 -
2.3. Resources from Main Bilateral Donors
Portugal is a longstanding partner of Guinea-Bissau and its largest bilateral donor. Bilateral
cooperation was €9.8m, about $14 m, in 2007 (€34 m over 2005-2007). Portugal supports a program
in accordance with the NPRSP, aimed at reducing poverty, achieving the MDGs and developing
infrastructures. In 2007, a MoU on Combating Drug Trafficking was signed in Lisbon to support the
Government’s Emergency Plan.
Spain - Spain pledged €15m ($21.9m) over 3 years at the 2006 donor conference (largest bilateral
donor on this occasion). Nearly half of its aid to Guinea-Bissau is channeled through NGOs. In July
2007, Spain signed a cooperation agreement for 2007-2009, with 3 main areas: institutional capacity
building; strengthening of the rule of law; elections and CSO participation.
France’s bilateral support to Guinea-Bissau reached close to $10 million in 2006 and was sustained
in 2007. A Partnership Framework Document is being finalized in early 2008, and will focus on
three priority areas for Guinea-Bissau: human capacity development, support to civil society to
foster leadership and Rule of Law.
Italy is also a longstanding partner of Guinea-Bissau – between 1984 and 2004 Italy earmarked
€34.5 m. Currently, Italy’s aid to the country is mostly channeled through NGOs. Italy finances a
project for the rehabilitation of Raoul Follerau hospital and is financing rural development projects.
Brazil offers several programs to Guinea-Bissau, being implemented or in the pipeline, in the
following sectors: socio-economic sector, in particular through training and capacity building;
capacity building in the public sector, through training and technical assistance amongst other
approaches; and security sector reform. Negotiations are also ongoing regarding Guinea-Bissau’s
debt with Brazil ($35 million).
The United States supports agriculture and private sector development in Guinea-Bissau; health;
education, and good governance.
- 12 -
2.4. External and Private Resources
Guinea-Bissau has no access to capital markets. Only limited types of private international
finance, such as short-term loans or FDI, are available. This explains the heavy reliance on official
financing for long-term capital.
FDI is increasing- FDI inflows, below $1 million per year until 2004, picked up in 2005, in
part for oil exploration, phosphates and telecommunications. Inflows jumped to $42m in 2006. FDI
stocks reached nearly $98m in 2006, or 29% of GDP, above the average for developing countries
(UNCTAD, World Bank). Guinea-Bissau also recently became MIGA’s (World Bank’s Multilateral
Investment Guarantee Agency) newest shareholder. MIGA enables eligible foreign companies
seeking to invest in Guinea-Bissau to receive guarantee coverage.
Remittances are an untapped potential for recovery – They differ from other sources of
development finance: they are both stable and counter-cyclical, since migrants tend to remit more
during periods of economic downturn in their home countries. Because they are private money sent
person-to-person, they tend to benefit the poor more directly. In Guinea-Bissau, money transfers are
increasing and totaled $28 million in 2006, or 8% of GDP4. Migrants have been increasingly active by
creating “hometown associations”, based mostly in Portugal. Overall, there is no money transfer
strategy in Guinea-Bissau and no link made between remittances and microfinance.
2.5. Understanding the Flow of Resources Linked to Drug Trafficking
The financial equivalent of drug flows transiting through Guinea-Bissau probably exceeds its GDP and
the country has become a “trading hot spot” (Friedrich Ebert Stiftung, 2007).
According to a recent report by UNODC, some 27%, or 40 tons, of the cocaine consumed annually
in Europe is transiting through West Africa, worth $1.8 billion at wholesale level. The national
budget of Guinea-Bissau is just about equal to the wholesale value of 2.5 tons of cocaine in Europe.
By way of comparison, a single operation in the context of the Maritime Analysis and Operations
Center-Narcotics (MAOC-N) led to the capture of precisely 2.5 tons of cocaine by a French navy
vessel on the coasts of West Africa on 30 January 2008 (source: UNODC)
4
Although certain reports conclude that remittances in Guinea-Bissau have increased significantly, data cannot be
reconciled and the information retained is from IFAD’s 2007 Remittance Forum .
- 13 -
Several challenges in combating drug trafficking must be addressed by the Government. They include a
lack of investigative, crime intelligence and analysis capabilities; a lack of specialized expertise and
know-how for dealing with new criminal operations, such as financial investigations and money
laundering; few and untrained enforcement capabilities to ensure transparent and accountable use of
natural and financial resources; outdated national anti corruption legislation ; weak capacity and low
levels of integrity across all sectors of the justice system.
- 14 -
Box 2: Private Flows and the Impact of Drug Trafficking
* FDI is picking up. Amongst legal investments, some transactions may be linked to money laundering/
in-country investment of resources from the transit and sale of drugs and related illegal activities.
* Remittances are increasing. Part of retail drug sales in Europe may be transiting back through
remittances, also ensuring money laundering through Guinea-Bissau and the payment of operations.
* Savings are increasing. Part of the increase can reflect a temporary impact of flows of drug money.
The graph below illustrates the flow of resources linked to drug trafficking. Through corruption, illegal
activities in the refining of part of the merchandise, remittances sent back from retail sale in Europe and
money laundering, there are various channels accounting for the impact of drug money in the country.
Figure 4 – Overview of Financial Flows Linked to Drug Trafficking

Why some of typical signals do not Money
reflect the impact of trafficking? reaches GB
Drug
While drug trafficking should have
Production
raised discrepancies, it is difficult to Refining inside
measure them due to weak statistical Transit refining or outside
systems. There are delays and large country
unregistered trade and Illegal
inconsistencies between data on net Corruption activities
foreign assets as reported by the Drug
BCEAO and other indicators. Money Drug Money
Retail
Furthermore, while drug money Integration
Enters GB Sale abroad
could have generated inflation by
increasing the monetary base, this Money
Remittances
risk is offset by Guinea-Bissau’s laundering
Money inflows
inclusion in the wider WAMU Banks, capital
(West African Monetary Union). markets abroad
Layering Placement
How much money from drug trafficking remains
in Guinea-Bissau? Data availability is poor and Banks, capital
flows are mainly transiting back through the markets abroad
informal market. Some money remains in the
country for operations or trading, while the rest is
probably repatriated abroad. Some resources can
be used to set up in- country processing plants. While only a small share of drug revenues may be staying in
the country, it still exerts an important impact on this small economy.
What does this entail for strategies aimed at curbing drug trafficking? Activities listed in the Operational
Plan to Combat and Prevent Drug Trafficking in Guinea-Bissau prepared by the Government with UNODC
(described in detail later in this document) are very much needed. However, corruption will remain attractive
to many in a context of extreme poverty, limited economic opportunities, and weak legal and institutional
environments. Therefore it will be crucial to focus on “closing the gates” not only of drug imports to the
country, but also of illicit financial flows. As noted in the Plan, activities to fight drug trafficking should not
be limited to border / territorial control but target prevention and deterrence capabilities vis-à-vis corruption
and external financial flows linked to money laundering.
- 15 -
3. Recent International Initiatives to Fill Resource Gaps
Several initiatives or mechanisms have been created in the last few years to support Guinea-Bissau’s
peacebuilding efforts. They are discussed in a chronological order in which they were launched.
3.1. ECOSOC Ad Hoc Advisory Group on Guinea-Bissau (2002-)
The decision to create an ECOSOC Ad Hoc Advisory Group on Guinea-Bissau was adopted by
ECOSOC on 25 October 2002 (Decision 2002/304). The group comprised Brazil, Netherlands,
Portugal and South Africa (Chair). The group has issued several reports. In its last report E/2007/57,
the Advisory Group recommended that the Government strengthens its commitment to economic
reforms and to full transparency and accountability in the management of public administration; to
enhance tax revenues from fishing, payment of salaries to national civil servants; to improve security
sector reform; to gain enhanced support from the international community to help consolidate gains
and activate process of economic growth; and to restore the role of the Treasury Committee in
relation to government finances.
3.2. International Contact Group on Guinea-Bissau (ICG-GB) (2006-)
The ICG-GB held its third session on 24th September 2007 and encouraged the government to
strengthen economic governance and reinforce transparency and financial accountability, in order to
strengthen the confidence of the international community and speed up the release of funds needed
for the development of Guinea-Bissau. Within this context, the Group underlined once more the
importance that multilateral and bilateral donors honor the pledges they made at the round table
conference held in Geneva, in November 2006. The ICG-GB called for a high–level meeting of the
Heads of State of the Contact Group, Heads of International Financial Institutions and the UN
Secretary-General on Guinea-Bissau. Discussions will centre on ways in which the UN, the IFIs and
Donor Partners could support Guinea-Bissau’s socio-economic development.
3.3. Geneva Round Table Conference, 2006

The 2006 Geneva donor roundtable resulted in pledges of $262.5 million (49% of amount
requested) and $29.5 m for budget support for 2006-2007 – funding target was $538 m. (source:
Secretary-General’s Report S/2006/946). No pledges were made for the Security Sector Reform
- 16 -
plan. The Government presented its poverty reduction strategy
Pledges
paper (PRSP) for 2007-2010 and its security sector reform plan 49% 54% $538m
+
(SSRP). Yet because donor funds tend to be conditional upon
the Government’s commitment to reform, macro economic Budget Support
$29.5m
stability and poverty reduction, the rate of disbursements has

been very limited until now.
The bulk of contributions for implementation of the PRSP came from the European Commission
($118.5 m, most of which for 2008). Spain was the next largest contributor ($18.75 m), followed by
Portugal ($17 m), the World Bank ($16.5 m), the African Development Bank ($14.5 m), the West
African Monetary Union ($15.5 m), the Central Bank of West African States ($10.25 m) and
ECOWAS ($7.5 m). A number of new donors also pledged budgetary support on this occasion,
including Japan ($5 m), Morocco ($.25 m), South Africa ($1.9 m) and Spain ($2 m).
3.4. Lisbon International Conference on Drug Trafficking in Guinea-Bissau, 2007
On 19 December 2007, the Government of Portugal organized in Lisbon an International

Conference on Drug in Guinea-Bissau, in collaboration with UNODC, to mobilize resources for an
operational plan to combat and prevent drug trafficking in the country, within a framework designed
to “Promote the Rule of Law and the Effective Administration of Justice in 2007-2010 in Guinea-
Bissau”.
Extensive details on the Operational Plan are provided in section 4.4 and in Part II, including on
the cost of the plan, estimated at $19.1 million for 2008-2010 and for which $6.7 million were
pledged.
3.5. Group of friends of Guinea-Bissau SSR, 2007
The Group of friends of Guinea-Bissau SSR was created in September 2007. The second meeting of
the Group was held on 28 January 2008 in Brussels, hosted by the EC. In addition to
representatives from EC departments, participants in the meeting included representatives of Brazil,
France, Ireland, Latvia, UK, Portugal, Spain, OECD-DAC, UNDP (BCPR), UNODC, and PBSO.
Discussions aim to ensure better coordination of interventions, avoid overlaps and identify gaps.
- 17 -
4. Overview of the Priorities and Funding of Existing Plans & Frameworks
4.1. NPRSP (2007-2010): Priorities and Gaps

The Government of Guinea-Bissau, in its National Poverty Reduction Strategy Program aims to
fight poverty through four pillars: 1. Governance, public administration and macroeconomic
stability 2. Economic growth and job creation 3. Access to social services and basic infrastructures
and 4. Living conditions for vulnerable groups.
Operationalization of this strategy is ensured through a PRSP Action Plan and a Public
Investment Plan. These documents take into account the interventions that the Government aims to
carry out, in particular for public investments for growth, governance and poverty reduction.
N-PRSP (2007-2010)
While the implementation of the PRSP The goals that guide the strategy are: (i) reduce the
incidence of generalized poverty (ii) reduce extreme
was initially designed to cover the period poverty; (iii) accelerate the achievement of the MDGs; (iv)
2006–2008, it will now cover 2007– develop infrastructure.
Pillars Cost (M USD)
2010.
1. Strengthen governance, modernize the
public administration and ensure 60
macroeconomic stability
As indicated by a recent IMF / WB 2. Promote economic growth and job
203.4
creation
Advisory Note, the PRSP highlights 3. Increase access to social services and
146
broad areas of intervention for each basic infrastructures
4. Improve living conditions for
31.8
strategic pillar but lacks a clear vulnerable groups
prioritization of activities and 441.2

Total
programs. The Staffs recommended that Pledges *
the “authorities more clearly prioritize 43% $441.2m
+
the various actions planned under each
strategic pillar to ensure adequate
* Several donors did not redeem pledges on account of the
sequencing and consistency with unstable political situation end 2006 / early 2007. Real amounts
realized may not correspond to these amounts.
available resources”.
PRSP Gaps Identified by September 2007 IMF / WB Advisory Note:

1. Government should identify a well sequenced series of actions for achieving governance
objectives, and to develop an anti-corruption strategy through a broadly consultative process.
2. PRSP should consider specific measures for improving governance in mining activities.
- 18 -
3. PRSP should include a discussion on the reform of the security sector, which the authorities
plan to implement within the PRSP timeframe.
4. PRSP needs to incorporate a strategy for the cashew sector.
5. Improvements in priorities and long term objectives for Health and Education
As noted by the IMF and World Bank, there are risks of shortfalls in external assistance. 80% of
the PRSP is to be funded by external donors, tied to policy performance so that any setback in
implementing reforms would limit the government’s capacity to mobilize such resources.
4.2. UNDAF 2008-2012: First Overview
The UNDAF is the basic development

UNDAF2008-2012 for Guinea-Bissau
assistance tool used to coordinate UN
Outcomes Indicative Cost Financing raised
program activities at the country level. It (M USD) (%, 1/2008)
24.2% $32.47m
provides an integrated UN system response 1 Governance 32.47 +
to national priorities and needs, including

27.8% $28.38m
national strategies such as the Poverty 2 Poverty +
28.38
Reduction
Reduction Strategies (PRSPs), within the
3 Social Protection 14.3% $55.37m
framework of the Millennium Development and Human 55.37 +
Development
Goals. UNDAF is developed based on the 20.4% $116.22m
Total 116.22 +
outcome of the Common Country
Assessment (CCA) and thorough
consultations with government, financial and technical partners, donors and civil society.
A UN Development Assistance Framework was finalized in early 2007 in Bissau, for 2008-2012. It
is based on thorough consultations and in light of the N-PRSP. It focuses on three outcomes (see table) of
governance, poverty reduction and social protection and human development.
It has been funded only up to one fifth of the indicative cost so far. The government has not being able to
respect its engagements regarding counterpart financial disbursements for UN assistance.
The UNDAF will prioritize the following:

1) the Rule of Law, Regulations, Human Rights and Political Stability; 2) the Prevention and Response to
Natural Catastrophes and Humanitarian Crises and poverty reduction; 3) Security Sector and Defense for the
Consolidation of Democratic Institutions.
- 19 -
4.3. Country Program Action Plans & Elections
On 18 January 2008 the Government signed three Country Program Action Plans (CPAPs) for
2008-2012 with UNDP, UNICEF and UNFPA. CPAPs are characterized by a result-based programming
approach for the populations and national institutions. Each result matrix attached to the documents mentions
indicators of measurement, sources of verification and assumptions. Matrices come from the UNDAF result
matrix formulated by all UN agencies operating in Guinea Bissau. Total funding for the 3 CPAPs is $63.4
millions. Only $25.4m are granted from regular resources. The Government committed himself to
support UN efforts to mobilize $38m, or 60 % of total Cooperation budget of the three agencies.
The CPAP for UNDP was finalized on 17 January 2008, and is designed in the framework of the N-
PRSP and the UNDP Strategic Plan for 2008-2011, around: governance, economic growth and poverty
reduction, equity and human development. It will partner with the IFIs, EU, regional institutions and bilateral
actors. UNDP will develop a strategic partnership with UNOGBIS, the EU and ECOWAS. The goal of the
partnership will be to enhance efforts for political dialogue and resource mobilization for the elections.
The CPAP for UNDP focuses on three areas: (1) democratic, economic and local Governance, (2)
Poverty reduction and economic development and (3) UNDP Election Cycle Project (PACE)
2008-2010
Human development and gender equality. The plan is The PACE Project received support from the EU
based on capacity development approaches to enable the but has to date mobilized only 7% of total needs.
government to lead the reforms to consolidate the Resources Mobilized *

7% $14.4m
democratic process. UNDP is also preparing a programme +
on justice, security and DDR, already in consultations with
the Government. UNDP has identified Guinea-Bissau as a
2008 elections 2008-2012 cycle
priority country for BCPR conflict prevention team.
The CPAP for UNICEF was finalized on 17 December 2007. It will contribute to the attainment of the
MDGs through UNDAF strategic results related to human development and human rights, access to basic
services and the fight against HIV/AIDS. These results are in line with the PRSP. The Programme will focus
on: Child Protection and Rights Promotion; Child Survival; Basic Education and Gender Equality; and
HIV/AIDS. The Programme strengthens collaboration with UN agencies, international and local
NGOs, and with other bilateral and international cooperation agencies.
The CPAP for UNFPA was finalized on 14 January 2008. It will focus on three components: 1)
Reproductive health, 2) Population and 3) Development and Gender.
- 20 -
4.4. Operational Plan to Combat and Prevent Drug Trafficking in Guinea-Bissau
The Operational plan was prepared with the assistance of UNODC5, and notes that Guinea-Bissau
has turned into a transit hub for cocaine trafficking from Latin America to Europe. The plan further
highlights 1) an increased use of Guinea-Bissau’s territory as transshipment points for illicit
trafficking of narcotic drugs, smuggling of migrants and other forms of crime; and 2) an inability of
the state to ensure administration of justice and execution of sentences. The plan suggests strategic
objectives and operational targets and is detailed in Part II.
The first priority of the Plan is organized around Combating Illicit Trafficking. It aims to reduce
the attractiveness of Guinea-Bissau for trafficking and smuggling operations by improving logistical,
analytical, and operational capabilities of law enforcement institutions controlling its frontiers,
intercepting illicit drug consignments, and enforcing law and order.
The second priority is organized around the Illustration:

Prison Conditions in Guinea-Bissau
Administration of Justice and Rule of Law. It
As highlighted in the Operational Plan on Drug
aims to establish a fair, humane and efficient Trafficking, there is in Guinea-Bissau:
justice system by promoting access to justice
(ii) Total absence of proper prisons - current
and ensuring strengthened capacity in the detention centres are incompatible with UN
Standard Minimum Rules for the Treatment of
prison sector. It includes mechanisms to Prisoners and other related international norms
decentralize the administration of justice and and standards.
(iii) Outdated legislative and administrative
dispensing legal advice and mechanisms for frameworks regarding administration of prisons
(iv) Lack of data management system for prison
alternative dispute resolution.
management.
(v) No dedicated prison management capacity and
no trained penitentiary staff.
UN Capacity will be reinforced in particular
in UNDP, with the posting of a UNODC expert and implementation of supporting activities.
Pledges The total cost of the plan is estimated at $19.1 million for
35% $19.1m 2008-2010. About $6.7 million were pledged, including close
+
to $3 million from the EC (€2 m from the 9th EDF, regional
5
“Combating and preventing drug trafficking to and from Guinea-Bissau – Promoting the Rule of Law and the effective
administration of Justice 2007 – 2010”, Operational plan prepared with the technical assistance UNODC for the
International Conference on Drug in Guinea-Bissau, Lisbon, 19 December , 2007 - November 2007
- 21 -
envelope, already confirmed) and $3 million from Portugal. Other pledges included Germany
($0.35m), UNDP ($0.3m), UK ($0.2m), Italy ($0.15m) and US (0.15m). Meetings were held in
January on modalities for setting up a national steering committee that will manage and monitor the
implementation of the plan (details in Part II).
The third and last phase of this plan for 2009-2010 has not yet received financial support. Details
on the amounts of the various phases are provided in Part II of the document.
4.5. Restructuring and Modernization of the Defense and Security Sector - 2007-2010
The Government’s plan for the

Defense & Security Sector Plan
restructuring and the
Program Cost Financing raised
modernization of the Defense and (M USD) (%, 1/2008)
54% $24.4m
Security Sector offers a broad 1.Security and +
24.4
Crime Control
program of action that needs
30% $138.8m
further refining (support will be 2. Defense 138.8 +
provided in particular by the EC’s

3.Reform 31% $20.1m
Instrument for Stability, and by Strengthening 20.1 +
experts under the ESDP).

34% $183.3m
+
Total 183.3
The plan focuses on 1) Security
and Crime Control 2) Defense and 3) Reform Strengthening. Details are provided in Part II.
- 22 -
Preliminary Conclusions & Summary Table
This review of the list of initiatives provides key

information on the financial needs for, and financial gaps in,
peacebuilding in Guinea-Bissau. While not exhaustive, it
offers a comprehensive overview for the PBC to design
concrete actions. It can therefore support the PBC in
bringing visible added value and coordination to existing
initiatives while at the same time filling important
peacebuilding gaps.
In support of a proposed dual track approach of quick win

projects and longer term strategies for peacebuilding, Part I
illustrates the wealth of potential areas where the PBC can
leverage its unique capacities by playing a catalytic and
advocacy role, using its ability to mobilize traditional and
emerging donors.
In Guinea-Bissau, while the donor base is limited, it is

composed of various types of partners: bilateral and
multilateral donors, the International Financial Institutions
and Regional Banks, as well as other international and
regional initiatives. This wide partnership calls for a strong
coordination role by the PBC. As multilateral and bilateral
donors alike are increasing their support to Guinea-Bissau,
they should focus on coordinating their efforts.
In addition, peacebuilding efforts should not lose sight of

regional and sub-regional opportunities for marshaling
resources.
The fact that many initiatives have been launched in

Guinea-Bissau recently does not entail that they have
received full funding. The PBC can contribute to bringing
visibility and support to the most relevant efforts for
peacebuilding still requiring financial or non financial
resources.
- 23 -
Summary
Financing Sought, Pledges, and Funding Gap for Key Roundtable, Plans and Projects in Guinea-Bissau
(USD million)
Financing Funding
Type Title Pledges Status
sought Gap
Roundtable
Geneva Round
Table Conference, 538 292* 246
November 2006
43% $441.2m
NPRSP (2007- +
441.2 190 251.2
2010)
Restructuring
Modernization of
34% $183.3m
the Defense and 183.3 62.3 121
+
Security Sector -
Plans
2007-2010
20.4% $116.22m
UNDAF 2008-2013 116.22 23.7 92.52 +
Operational Plan
(International
35% $19.1m
Conference on 19.1 6.7 12.4
Drug in Guinea- +
Bissau)
Project
7% $14.4m
Elections (UNDP)
14.4 1.1 13.3 +
* including budget support
- 24 -
Part II – Financial Resources and Financing Gaps
Part II – Key Projects and Project Gaps
The following tables provide a non exhaustive list of key initiatives and projects in Guinea-Bissau
This list may be updated with subsequent inputs.
The organization of the list in four areas is purely indicative and does not constitute a prioritization of peacebuilding needs in
Guinea-Bissau.
25
5. Governmental Capacity for National Finances, Public Sector Reform and Corruption
Plan Subtheme Projects Resources / Gaps

Pillar 1.1 –Governance, Public Under Subtheme 1.1.1: Subtheme 1.1.1 receives only
administration and Improvement in receipt collection (funding by EU, IMF, WB, ADB, BID, UNDP, about 0.15% of total PRSP
Macroeconomic Stability with Ministry of Finance as implementing agency) financing.
Expanding the tax base primarily by replacing the ad valorem tax with a VAT
Subtheme 1.1.1 "Continue with (EU, IMF, WB, ADB, BID, UNDP; Ministry of Finance) and Subtheme 1.1.2 receives 95% of
improvements in budget Improve budget preparation, execution and control (EU-ADB-UNDP). the envelope for Pillar 1.1,
management" which accounts for 3.4 % of
Under Subtheme 1.1.2: total PRSP financing.
Subtheme 1.1.2. “Strengthen Revitalize Directorate of economic conditions and Forecasting (UNDP, EU,
macroeconomic management” Ministry of Finance)
Allocate PIP resources according to NPRSP priorities (UNDP, EU, Ministry of
Finance and Ministry of the Economy)
Improve domestic debt management (Ministry of Finance)
Pillar 1.2 – Administration Under Subtheme 1.2.1: Subtheme 1.2.1 receives about
Skills Control wage bill and civil service staffing (UNDP, EU, Ministry of Civil 3/4th of the envelope for Pillar
Service, Ministry of Finance) 1.2, which accounts for about
Subtheme 1.2.1. Reform the Prepare a plan to redeploy civil servants (Ministry of the Civil Service, Ministry 2% of total PRSP financing.
public administration of Finance, further research in progress)
Prepare and enforce the Government organic law / Ministries / state Secretariats Subtheme 1.2.2 receives about
Subtheme 1.2.2. Strengthen skill (UNDP, EU, Ministry of Justice, Ministry of Civil Service) 1/4th of this envelope, or 0.75%
sets Execute a civil service hiring and downsizing plan (UNDP, EU, Ministry of Civil of total PRSP Financing.
National PRSP
Service, Ministry of Finance)
Prepare measures that stimulate assigning Government personnel to rural areas
(UNPD, EU Ministry of Civil Service, Ministry of Finance)
Reform the retirement and social security systems (Ministry of finance, Ministry
of the civil Service, Ministry of Solidarity)
Under Subtheme 1.2.2:

Prepare and implement medium-term plan to strengthen human skills (ADB, EU,
UNDP, Ministry of Civil service, Ministry of Finance)
Create a National School of Administration (Office of the prime Minister,
Minister of Education, minister of Finance, Minister of the Civil Service, further
research in progress)
Support statistics system (ADB, EU, UNDP, Ministry of Economy)
26
Governmental Capacity for National Finances, Public Sector Reform and Corruption (continued)
Resources Financing
Plan Output Key Partners and Role
(USD) Gaps
Population benefits from a UNDP: technical and financial support for ministries of Economy and UNDP: funded 250 000
modernized public Finance, Public Administration, Civil Service and Justice. 1 700 000
administration and reinforced
capacities for a good UNIFEM: technical and financial support for taking into consideration UNIFEM :
implementation of regulatory gender in the Law on Decentralization, including in budget. funded 50 000
framework and principles of
public management. Participating National Institutions: Ministries of Economy and Finance,
National Institutes for Statistics (INEC), Sectoral Ministries.
Autres partenaires : BAD ; Banque Mondiale ; FMI ; Commission

européenne ; Coopérations bilatérales.
UNDAF
Local bodies actively involved in UNDP, UNCDF and Volunteer Program: technical and financial support for UNDP : funded
the set up of decentralization internal administration. 1 200 000
process and in the management
of decentralized programs. Participating National Institutions: Ministries of Justice, of Internal
Administration, and NGOS. UNCDF :
500 000
Bilateral Cooperation.
27
Plan Area Projects
Public Administration Reform The 9th EDF supports the SERA (State Secretariat for Administrative Reform) under the PARAP programme that
recently started supporting public administration reform in Guinea-Bissau and reduce civil service wage burden.
Total cost: €6.5 million
Budgetary Support for The EC agreed to modify its 9th EDF to introduce budget support for Guinea-Bissau. It focused on helping the country
macroeconomic stabilization in its efforts with the IMF to improve the macroeconomic environment. Urgent expenditure and the reform of public
finance were supported.
ABS1 (Appui Budgétaire de Stabilisation / budgetary support for stabilization) in 2006 (€5.5 million) - impact study
ongoing, highlighting positive impact including through payment of civil servant wages and multilateral debt.
-9th EDF
Includes technical assistance for Ministry of Finance and harmonization with IMF activities in Guinea-Bissau.
ABS2 implemented in 2007 – total of €6.2 million
ABS3 expected in 2008 – total of €5.9 million in 2 tranches to transition with 10th EDF
PARI 2 (support for regional integration program) – total of €3.2 million
European Commission
Technical Assistance to Ministry of Finance (2007)
Budgetary Support for ABS (budgetary support for stabilization) – total of €18 million / $25 million
macroeconomic stabilization
The EC will support the Government macro-economic reform program and structural reforms through budgetary
support centered on stabilization objectives. Funds will be disbursed on an annual basis.
This support could evolve toward budget support with increasingly global objectives as soon as conditions will allow it.
Disbursements will be made accordingly with the eligibility criteria of the Cotonou Agreement.
European
-10th EDF
Technical assistance for economic governance and management of public finance, and training for public
Commission
administration will be offered in this context by the EC.
28
Plan Country Projects
Portugal Reinforcing good governance and modernizing the public administration sector: Police cooperation (€0.4m),
A Partnership Framework Document is being finalized, and will focus on human capacity development, support to civil society
France to foster leadership and Rule of Law.
Management of Public Finance and Public Sector Reform: technical assistance for Ministry of Finance to improve expenditure
mechanisms;
Spain Democratic governance and public finance: budgetary support (€1.5m in 2007, commitments in 2008 and 2009);
Thematic UNDP Fund for Governance (€1m for GB);
Regional Fund for Democratic Governance;
Bilateral
Brazil Capacity building program for education professionals from the Ministry of Education of Guinea-Bissau and “Program of work
on Science and Graduate Education” (Brazil)
Technical support for Accounting and Business Administration courses in Bissau’s Management Education Center ($0.15m to
be concluded) (Brazil)
Training of two civil servants on international trade negotiations in Brazil (starting February 2008) (Brazil)
29
6. Security Systems, Judiciary, Rule of Law, Drug Trafficking and Organized Crime
Plan Theme / Subtheme Projects Resources / Gaps

Rule of Law, Judicial Under Subtheme 1.3.1: Subtheme 1.3.1 receives most of the
Apparatus, Decentralization Make substantial improvements in the working conditions of court funding for the Pillar 1.3 envelope,
and Social Consensus personnel (Ministry of Justice, further research in progress) accounting for about 2.5% of total PRSP
Building (Pillar 1.3) Facilitate access to justice (EU, UNDP, Ministry Justice) financing.
Give human and physical resources to the ANP’s support services
Subtheme 1.3.1. Promote (ACBF, EU, UNDP, ANP) Subtheme 1.3.2 receives very limited
swift, transparent, accessible funding.
and independent justice while Under Subtheme 1.3.2:
strengthening the ANP Creation of a legal framework on decentralization and local
development (UNDP, EU, ADB, Ministry of Tourism, Ministry of
Subtheme 1.3.2. Promote the interior)
local Development and social Prepare a statutory framework that fosters social consensus-building
consensus building (UNDP, EU, ADB, Ministry of Solidarity)
Security Sector Reform Under Subtheme 1.4.1:

(Pillar 1.4) Take a census of soldiers and police officers (Ministry of Defense, Subtheme 1.4.1 and Subtheme 1.4.2 each
Ministry of the Interior, further research in progress) receive 50% of the Pillar 1.4 envelope,
Subtheme 1.4.1. Demobilize Prepare and implement a demobilization and redeployment plan for which accounts for 8% of total PRSP
and redeploy and improve war veterans (Ministry of Defense, Ministry of the Interior, further Financing.
National PRSP
living conditions in the research in progress)
barracks Reorganize the national retirement and social security system for
soldiers and police officers (Ministry of Defense, Ministry of the
Subtheme 1.4.2. Convert the Interior, further research in progress)
security forces into Prepare and implement a barracks renovation plan (Ministry of
stakeholders for pacification Defense, Ministry of the Interior, further research in progress)
and strengthening the Rule of
Law Under Subtheme 1.4.2.:
Convert the security forces into stakeholders for pacification and
strengthening the Rule of Law
30
Security Systems, Judiciary, Rule of Law, Drug Trafficking and Organized Crime (continued)
Resources Financing
Plan Output Key Partners and Role
(USD) Gaps
Judiciary and Security Sector UNDP and UNOGBIS: technical and financial support for justice and UNDP : 300 000 500 000
integrate and apply principles of security sector. UNICEF : 300 1 450 000
a justice that protects human UNICEF : training, technical and financial support, birth registration 000
rights and ensures equality. program UNIFEM : 150 250 000
UNODC (see specific table). In particular posting of a UNODC expert and 000
Laws and national policies in implementation of a number of supporting activites. Co-executed by UNODC : 4 500
conformity with international UNDP and UNODC ($0.3m). 000
women human rights UNIFEM : technical and financial support for drafting and implementation
conventions of legal framework on gender.
National Institutions : Ministries of Justice, Security, and Defense ; NGOs
Bilateral cooperations.
Civil society and population have UNFPA : technical and financial support on gender and gender-based UNFPA : 550 000 500 000
better knowledge of instruments violence. UNIFEM : 150 200 000
for human rights, equity and UNIFEM : technical and financial support 000
gender UNICEF : training for rights and protection of children UNICEF : 300 1 400 000
UNDP : technical and financial support 000
National Institutions : Ministries of Solidarity, Family, poverty reduction
and justice ; Institute of Woman and Child ; ANP, NGOs ; networks; UNDP : 200 000
National Institutions implement UNODC, UNDP and UNOGBIS : technical and financial support for UNDP : 1 500 000 1 000 000
mine programs and fight small security services. UNICEF : 50 000 50 000
weapon proliferation UNICEF : Support for training
UNDAF and CCAPs

Security sector and defense UNODC, UNDP and UNOGBIS : technical and financial support for UNDP : 300 000
organs reformed to consolidate security services and justice.
democratic institutions and
improve their operational
capacities
Public security forces better UNODC, UNDP and UNOGBIS : technical and financial support for UNDP : 500 000 UNODC :
equipped for the respect of security services and justice. 10.995.000 (see
human rights, in particular for plan)
the fight against drug trafficking
and organized crime.
31
Plan Objective Targets Resources / Gaps
Combating Illicit Trafficking In 2008: With the EC, Italy, UK , and UNDP pledges
Target 1 - Posting of a UNODC International Anti Narcotic the entire phase 1 of immediate short term
Reduce attractiveness of Organized Crime Adviser (INOCA) in Bissau (UNDP funded execution of the anti trafficking component
Guinea-Bissau for trafficking ($301,000)) is fully funded.
and smuggling operations by Target 2 - Establishment of a specialized unit within the Judiciary
improving logistical, analytical, Police to investigate and combat drug trafficking and organized
and operational capabilities of crime ($3.55m) * The European Commission has earmarked
Guinean Bissau law Euro 2.4 million (USD 3.55 m) to the
enforcement institutions After the elections (2009-2010): strengthening of the operational capabilities
controlling its frontiers, Improved detection and interdiction capabilities through of the Judicial Police. Funds are
intercepting illicit drug development of training curricula ($0.65m) immediately available, so UNODC is
consignments, and enforcing Improved control of borders through increased mobility, already working on the drafting of the
law and order communication and intelligence capabilities ($2.4m) contract allowing the transfer of funds.
Enhanced control over economic and financial activities taking place
by both improved knowledge of unreported financial flows and This earmarking coupled with the Italian
economic activities and the setting up of an effective anti-money- and UK pledges would allow the full
laundering operational system ($0.35m) financing of Target 2 of the Anti narcotic
efficient system controlling and stamping out corrupt practices in Program.
Guinea-Bissau ($0.4m)
Increased capacity of Public Order Police (POP) to provide In addition to the pledges made by
enforcement of law and order to the citizens of Guinea-Bissau Germany, pledges by Portugal and the US
($1.5m) are needed to proceed with the justice
related component.
In 2008:
Guinea-Bissau
Administration of Justice and Target 3 - Strengthening of judicial capability in prosecuting and
Rule of law sentencing drug related and organized crime ($0.7m) The third and last phase of this plan for
Target 4 - Reform of penitentiary administration ($0.4m) 2009-2010 has not yet received financial
Establish a fair, humane and Target 5 - Availability of proper prison and detention centres ($1.2m) support.
efficient justice system by *
promoting access to justice and Improve access to justice in selected pilot sites ($0.35m)
ensuring strengthened capacity
in prison sector. Includes focus After the elections (2009-2010): * (Projects were included into the Security
on mechanisms aimed at Improved protection and access to justice by ordinary citizens Sector Reform Programme presented to
decentralizing administration of through support to Houses of Justice programme in all eight international partners by the Gov. of GB to
justice and dispensing legal provinces ($0.52m) at the Round Table of Geneva)
advice and mechanisms for Improve access to justice through a focus on children in the justice
alternative dispute resolution system ($0.52m)
Continued restructuring and enhancement of the prison
Operational Plan to Combat and Prevent Drug Trafficking in

administration ($6.15m)
32
Resources /
Plan Area Funding and Projects
Gaps
Programmes 2007 2008 (in million USD)
2010
Section 1. Prepare legal framework for security sector; Recruit, train recruits.
I. Security and Crime Control Section 2. Prepare legislation and a civil protection plan in case of natural
1. Security sector restructuring disasters; Build, renovate and outfit the police stations; Build and renovate the
programme. 24.4 13.1
barracks for fire-fighters; Build and outfit a police academy and barracks for
2. Security forces 1 0.5
modernisation programme. National Guard; Acquire forensic laboratory, service equipment; Conduct
22 10.9
3. Capacity-Building to training inside the country and abroad;
2.1 1.6
Control Organised Crime. Section 3. Train brigade in controlling organised crime; Acquire specialised
0.2 0.1
4. Security and citizenship materials and equipment; Strengthen border control.
programme. Section 4. Organise seminars and workshops ; radio, television, newspapers ;
Publish and disseminate legal instruments
Section 5. Revise the legal framework and fill lacunae; Recruit in the context
II. Defense of the law on compulsory military service.
5. Defence Sector 138. Section 6 Demilitarise the City of Bissau and four inland cities; Renovate and
Restructuring and Resizing. 42.6 See Part I of
8 convert barracks into prisons, police stations and schools; Acquire service
6. Defence Forces 0.4 mapping
2.5 equipment, means of transport, communication and office equipment ;
Modernisation Programme. 28.5
7. Reinsertion Programme for 60.1 Renovate the Cumeré School of Excellence ; Build advance posts and outfit
10.7
Demobilised Personnel. 71.2 Coast Guard; Conduct training inside country and abroad.
3
8. Sub-Regional Peace- 5 Section 7. Prepare reinsertion programme for demobilised personnel; Provide
Keeping, Security Capacities. compensation (Armed Forces and Security Forces).
Section 8. Train and equip a special peace-keeping force.
Section 9. Revise the legal instruments; Build one maximum-security prison
III. Reform Strengthening and three provincial prisons; Equipment (working conditions) and training.
9. Justice and Security
Programme. Section 10. Conduct an exhaustive census, and create and manage a data base;
20.1 6.3
Fine-tune the general framework; Revise the pension grid for the NFFs and
Restructuring and Modernization

10. Improve Living 8.1 3.7
Conditions of Freedom personnel demobilised from the Armed Forces and Security Forces;
Fighters. 0.4 0
Section 11. Create and operate institutional framework to federate national
11. Peace-Building and 2.8 0.7
reconciliation initiatives; create fund to promote culture of peace in civil
National Reconciliation. 8.8 1.8
society; Dialogue / participatory research: INEP/Interpeace Programme.
12. Reform Implementation
of the Defense and Security Sector - 2007-2010

Capacity-Building. Section 12. Build capacities of governmental institutions involved in
implementing reform; Delivery of support, counselling and other services.
33
Plan Area Projects
PAOSED Under 9th EDF, support to Ministry of Justice under PAOSED (Programme d´Appui aux organes de souveraineté et de
l´État de droit), focusing on sovereignty bodies and rule of law – total of €6million. Focus on the legislative and judiciary:
Judiciary Evaluation of organic structures of the judiciary
Rule of Law Proposal for administrative reorganization plan for the judiciary
Creation of Conseil Général de Coordination Judiciaire
Support to Centre National de Formation Judiciaire
Revision of laws
Improvement of judiciary infrastructure
SSR / DDR Stability Instrument

With the EC delegation in Bissau, the EC was offered by the Government to provide technical assistance for strategic
support in the implementation of the national security strategy.
This is currently being implemented with 3 technical experts. In advance of the EDF, the team is funded through the IFS. It
will bring Support for SSR, Legal advice, Advice for integration regimes. It also aims to reinforce coordination among
donors on SSR. It will offer follow-up for 10th EDF.
The EC SSR program under the 9th EDF supports (€ 7.7 million / $11 million):
the National Strategy by funding compensatory activities for militias and militaries that leave the armed and security
forces;
Measures for former combatants;
Other measures for SSR and DDR, including cross-cutting projects and evaluation.
Under 9th EDF, between 1200 and 1800 militaries and ex combatants will benefit from DDR measures. Operational windows
European Commission
are threefold: 1) consolidate gains from previous support on former combatants, 2) financing of compensatory activities for
reintegration of former combatants and 3) cross-cutting initiatives.
It was recently decided that a €1.4m programme will provide assistance in demining (Militar base of Paiol de Bra)
SSR will benefit from renewed support by the EC for the 10th EDF with about €27 million.
Support to Lisbon EC has pledged an additional €2 million for the implementation of the operational plan on drug trafficking.
Conference on Drugs /
UNODC
34
ESDP SSR Mission EU planning to deploy 15 military, police and justice experts to advise and assist local authorities on SSR, to contribute to
creating the conditions for implementation of the National Security Strategy. Likely to be launched officially at the
beginning of the second quarter of 2008 with a duration of up to 12 months. Specific tasks will include:
advise and contribute to the development of detailed resizing/restructuring plans for the Armed Forces;
assist in development of an underpinning doctrine for employment of the Armed Forces;
support development of detailed plans for reorganization / restructuring of police bodies into 4 services, including the
definition of a legal framework and mainstreaming the counter-narcotics effort. The main effort is being aimed at a
restructuring/ redeployment plan for Judiciary Police and establishment of the National Guard;
advise on planning and development of an effective criminal investigations capacity;
advise on the Interpol National Central Bureau in Bissau;
EU
assist planning and advise on the organisation of short-term training activities for the Judicial Police as required;
advise the Guinea-Bissau Prosecution Service on the development of transitory prosecution and criminal assets seizure
capacity;
assist local authorities to ensure that reform policy and planning is consistent with democratic norms, human rights,
gender issues and the principles of good governance and the rule of law, and taking into account as appropriate
employment aspects of SSR;
advice and assist the authorities in disseminating the contents of the NSS (National Security Strategy) to relevant
officials and government agencies.
SSR Handbook Forthcoming in-country consultations and training on SSR in Bissau (11 to 14 March 2008 with support from DFID
and EC). Key features of the approach include: making best use of capacity building, considering joint assessments and
addressing impunity through accountability.
OECD
Comprehensive Preparation of a comprehensive programme on justice, security and DDR that is already in consultations with the
Review Government. The programme will pursue four outputs:
Strengthen justice institutions;
Promote access to justice, with a special focus on women;
Strengthen democratic governance of security institutions
Support the modernization process of security and defense institutions (which includes support to the DDR process).
UNDP
Estimated amount about $8.8 million of which approximately $2 million has been secured.
35
Type Area Projects
Security Military-Technical Cooperation (€0.5m); (Portugal)
New triennial cooperation agreement focused on the areas of education and security sector reform (financial envelope to be
determined) (Portugal)
Technical assistance and training for the military (no bilateral cooperation agreement); (France)
Possible audit mission of navy in 2008 that could feed in ESDP; (France)
$0.75m to the Fund for the Security Service run by UNDP (December 2005) (Brazil)
Brazil is finalizing studies, together with the UNDP, concerning the construction of military installations (deposit for weapons and
ammunition) in Bissau ($4.1 m) (Brazil / UNDP)
Brazil intends to launch a military cooperation mission to Guinea-Bissau aiming at training military personnel (Brazil)
On coherence and coordination, the UK is considering a non-paper with other donors to ensure that National Security Strategy is
overarching framework.
Mission to revisit National Security Strategy and see how drugs component can be incorporated; In taking this work forward, the UK
will in the coming weeks be undertaking a mission to Guinea-Bissau (initial tranche of £75,000) (UK)
Mission also to identify quick wins and launch OECD/DAC handbook on SSR (total €0.1 million); (UK)
International Peace and Prosperity Partnership, NGO active in Bissau since 2004, offers readily available funding for small needs that
may be conducive to implementation of NSS (e.g. financed meetings that led to the production of the NSS). Currently considering
financing a cashew nut processing plant that could provide employment for demobilized soldiers. (NGO)
Judiciary Legal assistance to institutions and international organizations; contribution to the justice sector (0.08m Euro in 2007) (Portugal)
Technical assistance to criminal police (police judiciaire) in 2009; (France)
Trilateral cooperation program aimed at modernizing legislative process in Guinea-Bissau (USA, Brazil)
Bilateral
China is expected to build infrastructures for justice and consultations are under way to ensure complementarity of interventions, in
particular EC’s EDF support to Justice Reform. (China)
Improved access to Justice in selected pilot sites ($0.35m pledged at Lisbon Conference) (Germany)
Rule of Law Through regional Funds: Thematic UNDP Fund for Governance (€1m for GB); Regional Fund for Democratic Governance; (Spain)
Drug In 2007, a MoU on Combating Drug Trafficking was signed in Lisbon to support the Government’s Emergency Plan, where a €3 m
Trafficking / pledge was made over 2008-2010. (Portugal)
Organized In August 2007, GB and Portugal signed a pact to help train a specialized investigating unit in fighting the drugs menace. (Portugal)
Crime technical support to Judiciary Police on drug issues (€0.1m) (two police experts in November 2007 to Guinea-Bissau to advise the
authorities) (Portugal)
Support to GB government through UNODC: for ‘data for Africa’ and control of containers (2007); (France)
Proposed, and supports, Maritime Analysis and Operations Center-Narcotics (MAOC-N); (France)
Supports UNODC plan with regional training and expertise (police and customs); (France)
Six month training programmes offered by the Federal Police of Brazil and financed in the framework of Operational Plan, for six
GB law enforcement officers. The training will start in February 2008 and will focus on general police tasks and criminal
investigation. (Brazil)
36
7. Economic Recovery, Basic Social Services, Vulnerable Groups
Plan Pillar / Themes Subthemes Project Funding Gaps

Pillar II) Promote economic 2.1.1. Improve the business environment and investment
growth and job creation 2.1.2. Stimulate the productive sectors and promote Funding still needed under subtheme 2.2.1 including
diversification and economic competitiveness on following projects:
2.1. Improve the business Build and extend distribution grid
environment and stimulate the 2.2.1. Rehabilitate the energy sector Build energy management and control center
sectors that employ the poor 2.2.2. Develop road infrastructures Acquire 10 generators for Bissau (CFA 2.5
populations 2.2.3. Support the development of surface and river billion per year , or $5.5 million per year)
infrastructures Install decentralized system for generating power
2.2. Develop the infrastructures 2.2.4. Support the air, meteorology and telecommunications in islands and areas far from the grid
that support production sectors
Funding still needed for subtheme 3.3.1 including on
Pillar III) Increase access to 3.1.1. Increase access to primary, secondary and higher education following projects:
basic social services and social 3.1.2. Provide universal high-quality schooling Strengthen drinking-water capture with 150 semi-
infrastructures deep holes in rural areas
3.2.1. Improve the supply and quality of health services Build central wastewater sanitation system in
3.1. Improve access to quality 3.2.2. Fight HIV/AIDS, tuberculosis, malaria and other diseases Bissau (CFA 0.8 billion per year , or $1.8 million
education 3.2.3. Improve the status of mothers and children per year)
Develop an independent and semi-public
3.2. Improve the population’s 3.3.1. Improve access to drinking water and sanitation sanitation system in the urban and semi-urban
health status 3.3.2. Improve social housing areas
Build 15,000 latrines, in the urban localities, for
National PRSP
3.3. Improve the lifestyle of the 15,000 families of 6 people
populations
Funding still needed for Pillar IV including on
Pillar IV) Improve the living 4.1.1. Improve the social protection of vulnerable groups following projects:
conditions of vulnerable groups 4.1.2. Promote income-generating activities Identify and implement social protection
mechanisms specific to vulnerable groups
4.1. Promote the socioeconomic 4.2.1. Promote the creation of reception and monitoring centers Develop a micro lending system to assist the
integration of vulnerable groups and fight illiteracy in women income generating activities of the poorest of the
poor (CFA 1.5 billion per year , or $3.4 million
4.2. Develop specific programs per year)
to support vulnerable groups Compensate for the delayed education of women,
especially girls (CFA 1.5 billion, or $3.4 million)
37
Economic Recovery, basic social services, vulnerable groups (continued)

Resources Financing
Plan Main Output Key Partners and Role
(USD) Gaps
UNDP : technical and financial support for governmental structures UNDP : 500 000 300 000
Reinforced institutional UNFPA support for SII / Data Gathering FAO : 50 000 100 000
capacities for implementation UNICEF MICS 2009 and 2012 UNFPA : 600 000 500 000
and monitoring of NPRSP and PAM: CFSVA (program on food security and nutrition) 2009 UNICEF : 300 000 500 000
MDGs SSSFS in 2010. WHO : 140 000 320 000
WHO : Support for sanitation through PNDS WFP : 100 000
National Institutions: Ministries of Finance and Economy, National
Statistics Institute, Sectoral Ministries
Other Partners : AfDB ; World Bank ; IMF;
Bilateral Cooperations.
M-SMEs and population UNDP, FAO, ONUDI : technical and financial support UNDP : 800 000 UNCDF : 1 000
benefits from microfinance National Institutions: Ministries of Finance and Economy 000
services, diversified and taking Other Partners: FIDA ; FAO : 700 000 300 000
into account equity including Bilateral Cooperations. UNDP : 500 000 250 000
gender UNIFEM : 100 000 150 000
Women and youth a priority for UNFPA : 50 000

employment promotion and ONUDI : 200 000
micro enterprise creation ONUDI : 200 000
UNDAF and CCAPs

Population, national institutions WFP: Food for asset creation in areas with food insecurity. Capacity- UNDP : 1 250 000 900 000
and professional network building for Ministry of Agriculture FAO : 2 000 000
capacities are developed to ONUDI : Support for quality control structures and for priority sectors WFP : 6 500 000
implement efficient and UNDP and FAO : technical and financial support
competitive productive systems National Institutions: Ministry of Agriculture.
Other Partners : AfDB
FIDA
Bilateral Cooperations
38
Economic Recovery, basic social services, vulnerable groups (continued)

Areas Initiatives
Infrastructure / Water / Rehabilitation of social infrastructure — technical supervision (EC)
Electricity periodic maintenance of paved roads on the national priority road network (EC)
EDF - construction of São Vicente Bridge over the River Cacheu close to the village of São Vicente, Cacheu Region (EC)
Guarantee of $0.6 m to Société Malienne de Promotion Hôtelière (SMPH) for its equity investment in Société Guinéenne de
Promotion Hôtelière. This is the first guarantee that MIGA has issued in support of an investment in Guinea-Bissau (MIGA)
West African Development Bank / World Bank $25 million for a Multisectoral Infrastructure Rehabilitation Project.
Components: Electric Energy ($15 million ) Water ($6 million ) Roads ($4million )
Funding of €1.3 million to improve supply of water and electricity. The convention signed will help to draw up a Master
Plan for the Energy Sector, which will be a framework for all activities, programs and projects carried out in the country
(EU / World Bank)
EDF — supply and installation of 61 solar photovoltaic pump systems under phase II of the regional solar programme
(PRS-II) (EC)
Africa Finance Corporation (AFC) and Government of Guinea-Bissau: upgrade of electricity and water facility to be
powered by an AFC subsidiary and a Chinese equity and technical partner (Nigeria/ China)
Socio-economic/ Rural (November 2008) backed by IFAD; will target incomes and living conditions of some 100,000 rural poor. With a $4.7 m
Development: IFAD grant, the $5.6 m Rural Rehabilitation and Community Development Project will focus on rebuilding communities
with the participation of local public administration, non-governmental organizations (NGOs) and the private sector. It will
also bolster the role of the most vulnerable groups. (IFAD)
Capacity and Expertise Fund (FERC) (€0.5m subsidy) for technical assistance missions and AFD project feasibility studies
(France)
Financing of rural development projects (€0.4 m) (Italy)
Creation of the Center for Professional Training and Social Promotion in Bissau, with an emphasis on professional training
for the youth ($1.4 m) (Brazil)
Initiatives promoting economic growth and employment (Portugal)
Fisheries / Exports 2007: new Fisheries Partnership Agreement with the EC. Will cover a renewable period of 4 years and foresees an annual
financial contribution of 7M€ (EU / EC)
EU will pay an annual specific contribution of € 0.5m to improve sanitary conditions in the fisheries sector and to
strengthen monitoring, control and surveillance in the waters of Guinea-Bissau. Payment of the 1st contribution foreseen
during the Q1 2008 (EU / EC)
Cooperation agreement on immigration and fishing rights (Jan 2008) (Spain)
Fishing sector (2004-2008) ($7.64 m) – building of port Alto Bandim, support for coast surveillance operations, energy
research, tax issues and training (AfDB)
Agriculture / Cashew Preparation of an informal policy note on the cashew sector (World Bank)
Agricultural and Rural Sector Project (2007-2011) including cereal cultivation, production of other foodstuffs and short-
cycle livestock farming ($8.5 million) (AfDB)
39
Loan ($0.75 million) for agribusiness in Guinea-Bissau that will produce for export to India and the EU. 1st project financed
by IFC’s Africa Enterprise Fund (AEF) in Guinea-Bissau. (IFC)
Food and agriculture project with WFP and FAO, and NAUTA Program for fisheries, including technical assistance (Spain)
Trilateral cooperation program (through IBSA Fund) on agricultural techniques as well as institutional strengthening of
Ministry of Agriculture and Rural Development (Brazil, India, South Africa)
“Strengthening of the Center for the Promotion of Cashew Nuts”, providing technical support for processing of cashew
(starting in 2008, $0.15m) (Brazil)
“Transfer of Technology and Capacity Building for Food Security and Agro-business Development”, with an emphasis on
agricultural techniques aimed at providing added-value to the production (to be launched in 2008, $0.1m) (Brazil)
Brazil will enroll 30 military officers in technical courses on agriculture (to start in 2008, $0.36m) (Brazil)
Health National Plan for Development of Sanitation (2001-2008) ($14.7 million) – rehabilitation of National Hospital,
rehabilitation of health centers (AfDB)
Support to NGOs and technical cooperation (France)
Rehabilitation of Raoul Follerau hospital (€ 0.8m) (Italy)
Capacity building of health sector (€1.4 million for basic health with an NGO) (Spain)
Program aimed at providing drugs for HIV/AIDS treatment to patients in need, in addition to technical assistance (Brazil)
Technical support for strengthening the public health system (to be concluded, $0.3m) (Brazil)
Technical support for the prevention and control of malaria (to be launched in 2008, $0.15m) (Brazil)
Expanding access to social services , for health (Portugal)
Education New triennial cooperation agreement focused on the areas of education and security sector reform. Cooperation protocol
between Law Faculties in Bissau and Portugal (€0.55m in 2007) (Portugal)
Expanding access to social services for education (Portugal)
Support through fast track initiative of Education for All (Spain)
Education Project III (2007-2011) ($10.6 m) – basic education, professional education (AfDB)
Students from Guinea-Bissau in Brazilian universities (Brazil)
Improving living conditions for the vulnerable groups.
Bilateral support to regional Infrastructure refinancing from West African Development Bank (France)
initiatives Support to ECOWAS for regulation under EEEOA (electric energy exchange systems) (France)
Financial market development by West African Economic and Monetary Union (France)
Budgetary support to WEMU (France)
NEPAD Fund for income (€0.1m for GB) (Spain)
UNDP-Spain Fund for the MDGs (expected €3m for GB for productive employment) (Spain)
Catalytic Fund for Employment with WB (€1m over two years for GB) (Spain)
Other Francophonie: Training and education in French (€0.15m) (France)

Training for community leaders in Bissau ($0.01 m) (Brazil)
Capacity building on institutional communication (Brazil)
Cooperation on distance-learning methods for teaching Portuguese (Brazil)
40
8. Elections
Framework/ Resources
Area (Output) Initiatives Gaps
Partner (in USD)
UNDP and UNOGBIS offer technical and financial support for internal UNDP : 500 000 1 500 000
National Institutions, ANP administration, ANP and institutions in charge of control
and National Electoral
Committee are reinforced. National Institutions : Ministries of Justice, Internal Administration ;
NGOs
Bilateral Cooperations.
UNDAF
PACE Strategic planning and financial and operational support for the CNE, Funding Gap :
Support to Electoral Cycle GTAPE and other involved organs 93% of total
Project Development of institutional capacity on the short and long term financing or
Support for civil society and media $13.4 million
Secure the electoral process
UNDP
Post-election operations and follow-up
Electoral Mission Guinea-Bissau was selected as a priority for the electoral observation by
the EC in 2008.
Electoral observation mission (EoM) to GB for the elections in 2008
EC
Total election assistance for 2008: € 0.8 M with the 9th EDF and ABS 3.
Elections and role of civil Accountability and Elections: support to UNOGBIS in the preparation of
society the elections (education to citizenship);
Civil society: €0.8m support by Social Development Fund for civil
society and social and civic rights;
France
Voz de Paz / Voice of Peace Democracy Fund. Interpeace peacebuilding programme to build inclusive Quick disbursement of UNDEF
networks of partnership, ensure dialogue and research on past and present grant in February 2007 facilited
sources of democratic instability. Implemented with National Institute of assembling of programme team,
INEP
Studies and Research (INEP). and hiring of local representatives.
UNDEF /
41

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Mapping of Resources & Gaps

For Peacebuilding in Guinea-Bissau

PBSO UNITED NATIONS

In resolution A/RES/60/180, the Peacebuilding Commission (PBC) was mandated to bring

Part II focuses on Projects and Project Gaps.

Part II – Projects and Project Gaps.. ………………………………………………….…….Page 25

5. GOVERNMENTAL CAPACITY FOR NATIONAL FINANCES, PUBLIC SECTOR REFORM AND

Key Facts of Part I

Several plans and projects still lack the required funding.

1.1. Government Resources

Tax revenue is expected to grow in absolute

Toward Sustainability in the Medium Term

1.2. Domestic Private Resources & Business Climate

Normal business operations are extremely difficult in Guinea-Bissau. Restrictions on foreign

1.3. Debt Situation

2.1. Aid Flows

Evolution of Aid Flows Figure 1 – ODA Flows to Guinea-Bissau (m $)

reaching $82.3 million in 2006. This includes 60

since 2005, respectively.

neighbors (Figure 2). It is 60

above average, although 40

many factors influence this 20 1

Congo, Dem. Rep.

(less than 2 million

2.2. Resources from Multilateral and Regional Donors

European Union - The European Commission (EC) is Guinea-Bissau’s largest multilateral

The European Development Fund (EDF) is the main

2.5. Understanding the Flow of Resources Linked to Drug Trafficking

Figure 4 – Overview of Financial Flows Linked to Drug Trafficking

3.1. ECOSOC Ad Hoc Advisory Group on Guinea-Bissau (2002-)

3.2. International Contact Group on Guinea-Bissau (ICG-GB) (2006-)

3.3. Geneva Round Table Conference, 2006

stability and poverty reduction, the rate of disbursements has

3.4. Lisbon International Conference on Drug Trafficking in Guinea-Bissau, 2007

On 19 December 2007, the Government of Portugal organized in Lisbon an International

3.5. Group of friends of Guinea-Bissau SSR, 2007

4.1. NPRSP (2007-2010): Priorities and Gaps

prioritization of activities and 441.2

PRSP Gaps Identified by September 2007 IMF / WB Advisory Note:

4.2. UNDAF 2008-2012: First Overview

The UNDAF is the basic development

to national priorities and needs, including

The UNDAF will prioritize the following:

government to lead the reforms to consolidate the Resources Mobilized *

The second priority is organized around the Illustration:

The Government’s plan for the

provided in particular by the EC’s

experts under the ESDP).

This review of the list of initiatives provides key

In support of a proposed dual track approach of quick win

In Guinea-Bissau, while the donor base is limited, it is

In addition, peacebuilding efforts should not lose sight of

The fact that many initiatives have been launched in

* including budget support

Part II – Key Projects and Project Gaps

This list may be updated with subsequent inputs.

Plan Subtheme Projects Resources / Gaps

Under Subtheme 1.2.2:

Autres partenaires : BAD ; Banque Mondiale ; FMI ; Commission

Total cost: €6.5 million

Plan Theme / Subtheme Projects Resources / Gaps

Security Sector Reform Under Subtheme 1.4.1:

UNDAF and CCAPs