Poverty Reduction Support Loan


Project Summary

Approval Date 22 Oct 2003
Signature Date 05 Nov 2003
Planned Completion Date 31 Dec 2004
Last Disbursement Planned Date 31 Dec 2005
Sovereign / Non-Sovereign Sovereign
Sector Multi-Sector
DAC Sector Code 11330
Commitment U.A 34,546,022.95
Status Completion

Project General Description

The Poverty Reduction Support Loan (PRSL I) Project, worth UA 34.58 million, is the Bank’s first direct budget support loan to the Government of Ghana. Preceding the approval of this first Poverty Reduction Strategy Loan (PRSL I) in November 2003, the Bank Group supported the implementation of macroeconomic and structural reforms in Ghana with four successive policy-based operations. The decision to provide direct budget support was taken in response to a request from the GoG and after extensive discussion with a number of Ghana’s Development Partners (DP). PRSL was formulated and negotiated under the Multi-donor budget support (MDBS) Framework Memorandum, which nine participating DPs (namely, ADB, Canada, Denmark, European Union, Germany, Netherlands, Switzerland, the United Kingdom, and the World Bank) and GoG signed in March 2003. Drawing on lessons from previous policy-based operations, the objectives of MDBS are to harmonize DPs’ policies and procedures in order to minimize transaction costs for the GoG. This includes agreeing to common benchmarks against which performance is assessed; improving dialogue between DPs and the GoG; and basing funding commitments and disbursements on the achievement of agreed targets. This form of direct budget support represents a shift from a sectoral, project-driven approach to development assistance and from balance of payment support operations like Economic Reforms Support Operation (ERSO I) and ERSO II.

Project Objectives

The Poverty Reduction Support Loan Project (PRSL I) aims to assist the Ghanaian government in implementing its GPRS.

Beneficiaries

The main beneficiary of the loan project is the Ghanaian government.

Participating Organization

Funding
African Development Fund
Implementing
Ministry of Finance and Economic Planning

Information

IATI identifier 46002-P-GH-K00-007
Last Update 01 Feb 2023

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Geographic Location

Country Ghana
Coordinates Location Name
5.55602 -0.1969 Accra
8.1 -1.2 Ghana