Monitoring and Reporting of External and Domestic Debts

R E C O R D I N G , M O N I T O R I N G & R E P O R T I N G R E C O R D I N G , M O N I T O R I N G & R E P O R T I N G O F O F EXTERNAL & DOMESTIC DEBTS

CONTENTS CONTENTS Introduction Introduction PFM Law PFM Law Information Gathering Information Gathering Analysis of SOEs Performance Analysis of SOEs Performance Reporting/Monitoring of Domestic & External Debts Reporting/Monitoring of Domestic & External Debts Details External & Domestic Debts Reporting Additional Details on Debts Reporting/Monitoring in FY2020/2021

INTRODUCTION INTRODUCTION The SOE Unit is responsible for oversight management and The SOE Unit is responsible for oversight management and monitoring of SOEs monitoring of SOEs The Unit coordinates SOEs related activities with regards to: The Unit coordinates SOEs related activities with regards to: Strategic Plans Strategic Plans Budgeting Budgeting Financial Reporting Financial Reporting The Unit plays an advisory role to the minister of finance, the The Unit plays an advisory role to the minister of finance, the national legislatures and other stakeholders to ensure: national legislatures and other stakeholders to ensure: Transparency and accountability Transparency and accountability Fiscal risks monitoring Fiscal risks monitoring

PFM LAW PFM LAW Type of Reports Type of Reports Timeline for Report Timeline for Report PFM Act PFM Act Strategic Plans February 1, of each year Section 44 Section 44 Section 12 (1)(f) Annual Financial plans March 1 of Each Year Section 31 (4) Reg. M.5 Proposed Annual Borrowing Plans Before the start of the fiscal year Section 45 Reg. M.10 Quarterly Financial Statements One month after the quarter ends Debt Servicing Debt Servicing & government Guaranteed Debt Report Guaranteed Debt Report & government At the end of each At the end of each quarter quarter Section 35(5) Section 35(5) Two months after the end of the fiscal period Section 45 Reg. M.11 Annual Financial Statements Three Three months after the end of the months after the end of the fiscal period fiscal period Initiated Initiated by the SOE Unit, by the SOE Unit, not by law not by law Annual Compliance Review Report Annual Compliance Review Report

INFORMATION GATHERING INFORMATION GATHERING SOE quarterly and annual results SOE quarterly and annual results All SOEs tracked submit quarterly and annual reports to the Unit All SOEs tracked submit quarterly and annual reports to the Unit Types of reports submitted by SOEs Types of reports submitted by SOEs Income Income statement, statement, balance balance sheet sheet and Strategic Strategic plans/alignment plans/alignment of of strategic period period. . It It is is also also required required of of SOEs SOEs to to submit submit borrowing and cash cash flow strategic plan flow statement statement. . plan when when submitting submitting budget budget for for the the fiscal fiscal borrowing plans plans with with budget budget submission submission. . Information Information collected Dividends Dividends payment with with the the entity) Tax Tax payment payment to to the Policy Policy document document on collected from payment to to the entity) the revenue on special from within within the the GOL GOL (set the MFDP MFDP. . (set at at the the beginning beginning of of the the fiscal fiscal year year but but also also verify verify revenue authority authority (Verify special arrangements arrangements with (Verify with with SOE with the SOE the LRA LRA and and SOEs) SOEs)

ANALYSIS OF SOE PERFORMANCE ANALYSIS OF SOE PERFORMANCE Frequency of Analysis Frequency of Analysis Quarterly Quarterly financial financial performance Annual Annual financial financial performance, Budget Budget forecast forecast and performance report, performance, and strategic strategic plans report, plans Types of SOEs performance include Types of SOEs performance include Plan Facts analysis Plan Facts analysis Variance Analysis Variance Analysis Financial Ratios Financial Ratios Key financial ratios are used in analyzing SOEs quarterly/annual performance reports Key financial ratios are used in analyzing SOEs quarterly/annual performance reports Ratios are also used when analyzing SOE budget projections Ratios are also used when analyzing SOE budget projections Debt and/or Arrears Analysis Debt and/or Arrears Analysis SOE debts and/or arrears are identified and the potential risks to the government are highlighted. . SOE debts and/or arrears are identified and the potential risks to the government are highlighted. . Contingent liabilities Contingent liabilities Fiscal risks as a result of contingent liabilities are highlighted reported. Fiscal risks as a result of contingent liabilities are highlighted reported.

REPORTING/MONITORING OF DOMESTICS & EXTERNAL DEBTS REPORTING/MONITORING OF DOMESTICS & EXTERNAL DEBTS The The minister minister of of finance of of the the government government for Contracts Contracts between commitments commitments involving government government must Management Management Committee SOEs SOEs intending intending to to acquire request request to to the the Minister The The request request to to the the the Debt Debt Management Management Unit finance is is authorized authorized to to issue for a a loan loan contracted contracted by between SOEs SOEs and involving contingent contingent financial must be be approved approved by Committee. . acquire lone lone locally Minister and and the the DMC the minister minister office office is is share Unit at at the issue guarantee guarantee on by all all SOEs SOEs other parties parties that financial liabilities by the the Minister Minister and on behalf behalf and other that contain contain liabilities to to the and the the Debt the Debt locally are DMC share with the MFDP MFDP for are required required to to make make a a with the for analysis analysis and the SOE SOE Unit and advised Unit and advised. . and

REPORTING/MONITORING OF DOMESTICS & EXTERNAL REPORTING/MONITORING OF DOMESTICS & EXTERNAL DEBTS CONT. DEBTS CONT. Total SOEs debts is US$613.8 million SOEs Debts SOEs Debts 2% 2% Domestic debts US$9.8million GoL 13% GT Bank 41% Ecobank 46% External debts US$604.0million World Bank 51% AfDB 23% Saudi Fund & BADEA 5% China Import-Export Bank 8% Kuwaiti Loan 2% EIB 11% US$9.8million US$604.0million 98% 98% Domestic Debts Domestic Debts External Debts External Debts

REPORTING/MONITORING OF DOMESTICS & EXTERNAL DEBTS CONT. REPORTING/MONITORING OF DOMESTICS & EXTERNAL DEBTS CONT. Percentage of External Debts by SOEs External Debts External Creditor Amount 500,000,000 350,000,000 434,400,000 307,100,000 300,000,000 400,000,000 250,000,000 300,000,000 LEC---71% LAA/RIA 13% NPA---2% LTA---4% LWSC---8% 200,000,000 137,000,000 150,000,000 200,000,000 100,000,000 65,900,000 80,000,000 50,000,000 100,000,000 50,000,000 30,000,000 50,000,000 25,600,000 14,000,000 14,000,000 - - World Bank EIB AfDB Saudi Fund & BADEA China Import- Export Bank Kuwaiti Loan LEC LAA/RIA NPA LTA LWSC Domestic Creditor Amount Percentage of Domestic Debts by SOEs Domestic Debts 5,000,000 4,000,000 4,500,000 3,500,000 4,500,000 4,000,000 3,000,000 2,500,000 4,000,000 2,000,000 3,500,000 2,000,000 1,300,000 3,000,000 LAA/RIA---36% NPA---26% NOCAL---13% LIBTELCO---5% NIR---20% 2,500,000 1,000,000 500,000 2,000,000 1,300,000 0 1,500,000 1,000,000 500,000 - GoL G.T. Bank EcoBank

DETAILS EXTERNAL & DOMESTIC DEBTS REPORTING DETAILS EXTERNAL & DOMESTIC DEBTS REPORTING External & Domestic SOEs Debts External & Domestic SOEs Debts Creditor (Funding Creditor (Funding Agency) Agency) Classificatio Classificatio n of Debt n of Debt Credit Credit Amount Amount GOL GOL Amount Amount Year of Year of Signing Signing Interest Interest Rate Rate Grace Grace Period Period SOEs SOEs Name of Project Name of Project Maturity Maturity Disbursed Disbursed LEC LEC LESEP World Bank External 10,000,000 2-Dec-11 0.75% 10yrs 40yrs 9,774,203 LEC LEC LESEP World Bank External 22,000,000 20-Mar-12 0.75% 10yrs 40yrs 20,461,649 LEC LEC LESEP World Bank External 35,000,000 3-Jul-13 0.75% 10yrs 40yrs 24,370,313 LEC LEC LESEP World Bank External 60,000,000 28-Aug-15 0.75% 6yrs 38yrs 54,691,432 LEC LEC Hydro Project EIB External 65,900,000 28-Dec-15 1.43% 6yrs 21 57,060,000 LEC/LME LEC/LME WAPP World Bank External 144,500,000 16-Aug-12 N/A N/A N/A N/A LEC/LME LEC/LME CSLG-PSRD AfDB External 38,300,000 3-Dec-13 N/A N/A N/A N/A LEC/LME LEC/LME LEAP AfDB External 58,700,000 10-May-17 N/A N/A N/A N/A 3,000,00 0 LAA LAA- -RIA RIA RUNWAY 04-22 Saudi Fund & BADEA External 30,000,000 1.00% 10yrs 30yrs 23,242,897 China Import-Export Bank GT Bank LAA LAA- -RIA RIA Passenger Terminal External 50,000,000 23-Sep-16 3.00% 7yrs 20yrs 17,410,076 LAA LAA- -RIA RIA Airport Tarmac & Office Complex Domestic 3,500,000 N/A N/A N/A N/A N/A NPA NPA Ports Rehabilitation Kuwaiti Loan External 14,000,000 N/A N/A N/A N/A 5,924,446 NOCAL NOCAL Loan GOL Domestic 1,300,000 25-Aug-16 7.50% 1yrs 1yrs 1,300,000 LTA LTA WARCIP World Bank External 25,600,000 8-Feb-11 N/A N/A N/A N/A LWSC LWSC Urban Water Project AfDB External 40,000,000 1-Jan-12 N/A N/A N/A N/A LWSC LWSC Liberia Urban Water Project National Biometric Identification System Project Phase II Fiber Optic Expansion Project Emergency Maintenance Dredging Work World Bank External 10,000,000 19-Dec-16 N/A N/A N/A N/A NIR NIR Ecobank Domestic 2,000,000 5-May-18 10.00% 1yr 1yrs 2,000,000 LIBTECO LIBTECO GT Bank Domestic 500,000 19-Oct-19 12.00% 1yrs 1yrs 500,000 NPA NPA Ecobank Domestic 2,500,000 19-Dec-19 11.00% 6months 1yrs 2,500,000 10

ADDITIONAL DETAILS ON DEBTS REPORTING IN FY2020/2021 ADDITIONAL DETAILS ON DEBTS REPORTING IN FY2020/2021 External and Domestic Debt Payments External and Domestic Debt Payments Principle Principle Interest Interest Total Total Outstanding Balances Outstanding Balances SOE Name SOE Name LEC LEC LAA LAA- -RIA RIA NPA NPA NOCAL NOCAL LTA LTA LWSC LWSC NIR NIR LIBTECO LIBTECO 11

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