|Approval Date||29 Apr 2009|
|Signature Date||14 May 2009|
|Planned Completion Date||31 Dec 2010|
|Last Disbursement Planned Date||31 Dec 2010|
|Sovereign / Non-Sovereign||Sovereign|
|DAC Sector Code||15124|
The proposed intervention concerns the third phase of the Growth and Poverty Reduction Strategy Support Program (PASCRP III) in Benin. It consists of a loan of UA 11 million and a grant of UA 11 million from ADF XI resources, in the form of General Budget Support covering the 2009-2010 period. This operation is in response to the request of the Government of Benin dated March 19, 2009 as contained in its development policy letter. The program was evaluated in January 2009, immediately after the annual joint review of the Technical and Financial Partners (TFPs), carried out in September 2008, under the Joint Budget Support Group Memorandum of Understanding concluded between the Government of Benin and the development partners in 2007. It is part of the Growth and Poverty Reduction Strategy (GPRS II) adopted by the Government in 2007. It remains consistent with the Bank Group's assistance strategy for Benin over the 2005-2009 period. The design of the Program took into account the principles of good practice in conditionality and the provisions of the Bank's policy on non-concessional debt accumulation. The choice of these components is the result of recent studies and evaluations in the areas of public financial management and the business climate in Benin, as well as lessons learned from the completion reports of the Bank Group's last two budget support operations in favor of Benin (PRSP I and PRSP II). These studies and completion reports have revealed persistent shortcomings in the implementation of the reforms undertaken by the Government in these areas.
The overall objective of the Program is to contribute to the implementation of the Government's Growth and Poverty Reduction Strategy. Its specific objectives are (i) strengthening good governance through effective and efficient financial management; and, (ii) building a solid foundation for accelerated growth. It is structured around two components, namely: (i) strengthening public financial management and; (ii) improving the business environment.
The main beneficiary of the Program will be the Beninese population, and more particularly the poorest segments of the population, to the benefit of which the Government will devote substantial expenditures by, on the one hand, maintaining a good pace of implementation of budget allocations for the CPRS priority sectors (Agriculture, Health, Education, Water and Sanitation); and, on the other hand, improved management of public resources. In addition, the improvement of the business climate through more flexible procedures for business creation, easier access to land, the fight against corruption, and the granting of tax incentives will benefit economic operators, who will be increasingly encouraged to invest in wealth and job-creating activities. The other beneficiaries are the State's financial administrations, whose operational capacities will be strengthened through the implementation of reforms in the public financial management system. The State will also benefit from the improvement in public finances thanks to the arrival on the formal market of companies and operators who have hitherto operated outside the organized circuit of the economy.
African Development Fund
La Cellule de Suivi des Programmes Economiques et Financiers (CSPEF) au sein du Ministère de l’Economie et des Finances
|Last Update||06 Dec 2022|