| Burundi: World Bank Approves US$25 Million Grant to Support Economic Reforms |
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31/10/2009 12:49 (21 Day 03:58 minutes ago) | |||||
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The FINANCIAL -- The World Bank ’s Board of Directors on October 30 approved a grant in the amount of SDR 16 million (US$25 million equivalent) to the Republic of Burundi to help finance a Third Economic Reform Support Grant (ERSG III).
ERSG III is the second grant in a programmatic series of two annual operations designed to assist the Government of Burundi in implementing policies and institutional reforms to promote growth and achieve sustainable reductions in poverty. It proposes to continue to support efforts aimed at reforming public finance management and improving fiscal transparency and accountability. It will also help support reforms in the business legal and institutional environment in order to foster private sector-led growth, as well as reforms in the coffee and domestic petroleum sectors.
“This programmatic series was designed to assist the Government of Burundi to transform the country’s economy from a post-conflict context to an environment focused on accelerating growth and human development, including through private sector development. Moreover, it is aligned with the Bank's Country Assistance Strategy (CAS), which is based on the Burundi's PRSP,” said John M. McIntire, Country Director for Burundi, Uganda, and Tanzania.
In particular, the grant is expected to translate into maintaining rates of budget allocation and execution in priority sectors at satisfactory level through reduction of security expenditures; planned budgets more in line with PRSP objectives and sector strategies; reliable financial management information system; effective procurement institutions and systems; modernized legal and institutional business environment; more efficient and productive coffee sector and more flexible price fixing mechanisms for petroleum products.
“This grant proposes to consolidate reforms already underway in public finance management and to reenergize the reform process in private sector development,” said Jean-Pascal N. Nganou, Task Team Leader/Country Economist for Burundi. “In addition, it proposes to continue diagnostic studies and to support the development of a strategic approach in areas where action is needed but knowledge is too limited.”
At the conclusion of this programmatic series, tangible progress is expected, including: (i) measurable improvements in public finance management, (ii) measurable improvements in the environment for private sector development, and (iii) progress in the execution of the reform program in the coffee and domestic petroleum sectors.
The first grant of the programmatic series (ERSG II) was approved by the Board of Directors on August 4, 2008 in the amount of SDR 18.5 million (US$30 million equivalent).
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