Cabo Verde: Technical Assistance Report-Climate Public Investment Management Assessment (C-PIMA)

TECHNICALASSISTANCEREPORT CABOVERDE ClimatePublicInvestmentManagementAssessment(C-PIMA) April2023 PreparedBy NicolettaFeruglio,RuiMonteiroandJuanaAristizabalPinto AuthoringDepartments: FiscalAffairsDepartment DISCLAIMER ThecontentsofthisreportconstitutetechnicaladviceprovidedbythestaffoftheInternationalMonetaryFund(IMF)totheauthoritiesofCaboVerde(the"TArecipient")inresponsetotheirrequestfortechnicalassistance.Thisreport(inwholeorinpart)orsummariesthereofmaybedisclosedbytheIMFtoIMFExecutiveDirectorsandmembersoftheirstaff,aswellastootheragenciesorinstrumentalitiesoftheTArecipient,andupontheirrequest,toWorldBankstaffandothertechnicalassistanceprovidersanddonorswithlegitimateinterest,unlesstheTArecipientspecificallyobjectstosuchdisclosure(seeOperationalGuidelinesfortheDisseminationofTechnicalAssistanceInformation— http://www.imf.org/external/np/pp/eng/2013/061013.pdf).Disclosureofthisreport(inwholeorinpart)orsummariesthereoftopartiesoutsidetheIMFotherthanagenciesorinstrumentalitiesoftheTArecipient,WorldBankstaff,othertechnicalassistanceprovidersanddonorswithlegitimateinterestshallrequiretheexplicitconsentoftheTArecipientandtheIMF’sFiscalAffairsDepartment. MEMBERS/PARTNERS Thistechnicalassistance(TA)wasprovidedwithfinancialsupportfromtheGovernmentofJapan. MEMBERS/PARTNERS Japan TableofContents AcronymsandAbbreviations4Preface5ExecutiveSummary6 I.CLIMATECHANGEINCABOVERDE:CONTEXT12 A.Climatechangeandpublicinfrastructure12 B.Climatechangeobjectivesandstrategies15 II.ClimatechangePUBLICINVESTMENTmanagementassessment16 A.TheClimateChangePIMAframework16 B.Detailedassessmentandrecommendations17 C.Cross-CuttingIssues28 FIGURES 0.A.InstitutionalStrengthofC-PIMAInstitutionsinCaboVerde7 1.A.DisasterRiskandPeerCountries13 1.B.CompositionofVulnerabilitybySector13 1.CTourismReceiptsandPeerCountries(Percentoftotalexportreceipts)14 1.DDisasterRiskVulnerabilityandPeerCountriesfC14 1.E.CountryGHGEmissions14 1.F.EnergySupplybySource14 1.G.EmissionTrends15 2.A.PIMAandC-PIMAInstitutions16 TABLES 0.A.SummaryAssessment9 0.B.ActionPlan10 2.A..KeyInstitutionsandResponsibilitiesinClimateChangeMitigationandAdaptation20 2.B.LegalandStrategicFrameworkunderlyingClimateChangeandPIMinCaboVerde29 BOXES 2.A..UsingclimatecriteriaforEIApre-screening23 2.B..Therelevanceofassetmaintenance26 ANNEXES I.C-PIMAQuestionnaire32 II.C-PIMADetailedScoresforCaboVerde35 AcronymsandAbbreviations AAC CivilAviationAgency MOF MinistryofFinanceandBusinessDevelopment ANMCV NationalAssociationofMunicipalitiesinCaboVerde MW Megawatts Capex CapitalExpenditure NAP NationalAdaptationPlan Cat-DDO CatastrophicDeferredDrawdownOption NAPA NationalActionProgramforAdaptationtoClimateChange CNPC NationalCouncilforCivilProtection NDC NationallyDeterminedContribution C-PIMA ClimateChangePublicInvestmentManagementAssessment ND-GAIN NotreDameCountryIndex CTE TechnicalBuildingCode Opex OperationalExpenditure CVE CapeVerdeanEscudo PCs PublicCorporations DGPCT GeneraleDirectorateofPublicAssets PD DetailedPlans DGT GeneralDirectorateofTreasury PDM MunicipalMasterPlans DNA NationalEnvironmentDirectorate PEDS NationalSustainableDevelopmentPlan DNOCP NationalDirectorateofBudgetandPublicAccounts PEMDS StrategicPlansforSustainableDevelopment DNP NationalDirectorateofPlanning PEs PublicEnterprises ECV RoadsofCaboVerde PIM PublicInvestmentManagement EFS SovereignEmergencyFund PIMA PublicInvestmentManagementAssessment EIA EnvironmentalImpactAssessment PIP CapitalInvestmentPlan ELECTRA ElectricityandWaterCompany PNOTU NationalPolicyonLandUsePlanningandUrbanism ENAPOR CaboVerdePortAuthority PNOTU NationalPolicyofLandManagementandUrbanPlanning ENRRD NationalDisasterRiskReductionStrategy POOC CoastalOrdinationPlan FAD FiscalAffairsDepartment POT TourismOperationalPlan FEED SpecialFundforStabilizationandDevelopment PPP Public-PrivatePartnership FMIS FinancialManagementInformationSystem SANRAL SouthAfricanNationalRoadsAgency FNE NationalEmergencyFund SGR RiskManagementService FY FiscalYear SIDS SmallIslandDevelopingStates FSE SovereignEmergencyFund SIGOF FinancialManagementInformationSystem GCF GreenClimateFund SNG SubnationalGovernments GDP GrossDomesticProduct SOE StateOwnedEnterprise GHG GreenhouseGas TC SupremeAuditInstitution GPSS GlobalSaferSchoolsProgram TOR TermsofReference ICV CaboVerdeInfrastructure UASE UnitSupportingPublicEnterprises IMF InternationalMonetaryFund UNFCCC UnitedNationsFrameworkConventiononClimateChange INGT NationalInstituteofTerritorialManagement UTIC Technologies,InnovationandCommunicationUnit INMG NationalInstituteofMeteorologyandGeophysics WB WorldBank INTOSAI InternationalOrganizationofSupremeAuditInstitutions WDI WorldDevelopmentIndicators LBOTPU LawofLandManagementandUrbanPlanning LuxDev LuxembourgAgencyfordevelopmentCooperation MAA MinistryofAgricultureandEnvironment Preface AttherequestoftheMinistryofFinanceandBusinessDevelopment(MOF)ofCaboVerde,ateamfromtheIMF’sFiscalAffairsDepartment(FAD)undertookaClimatePublicInvestmentManagementAssessment(C-PIMA)from21-