Guinea - Economic and Financial Reform Support Programme - Phase II (PAREF II)


Project Summary

Approval Date 23 Jun 2014
Signature Date 15 Sep 2014
Planned Completion Date 31 Dec 2015
Last Disbursement Planned Date 31 Dec 2015
Sovereign / Non-Sovereign Sovereign
Sector Multi-Sector
DAC Sector Code 15124
Environmental Category 3
Commitment U.A 6,390,000
Status Completion

Project General Description

PAREF II aims to modernize public resource mobilization, allocation and management systems, as well as promote private sector development. It will help to consolidate the gains of the previous programme (PAREF I), and support second-generation reforms designed to more effectively meet the challenges of inclusion. The guidelines underlying the design of this programme are as follows: (i) increase Government resources to enable it to support growth through public investment programming based on PRSP III development priorities; (ii) enable the Government to better play its role as public authority and major economic stakeholder in the private sector by improving the regulatory and institutional framework, as well as the conditions for electric power supply, which is a key factor in promoting the private sector and improving the living standards of the population. In this regard, the programme will have two components: (i) strengthening of public management; and (ii) improvement of the business climate and governance in the electricity sector.

Project Objectives

The expected outcomes are: (i) enhanced financial governance, with increased budgetary resources, especially from the extractive sector, generating financing to support growth; (ii) better allocation of resources to finance public investment and cover capital expenditures in priority sectors; (iii) a private sector revitalized through improvement of the business regulatory and institutional framework, as well as adoption of a national policy paper on SME development, in particular, including a multi-year action plan; (iv) improved electricity sector governance, coupled with institutional strengthening in management so as to ease one of the constraints on the private sector. These outcomes will benefit the Guinean population as a whole and, in particular, the most vulnerable groups (women and children), economic and financial services, and national and foreign economic operators who, following the improved business regulatory and institutional framework, will be more likely to invest in the country, and thereby create more wealth and jobs for graduates whose unemployment rate has now reached 61%.

Beneficiaries

The entire Guinean population will benefit from this Programme, which aims to increase State resources, thereby enabling the latter to create fiscal revenue to support growth and meet the social demands of the poorest social groups through the policy of securing budgetary resources for this purpose. In addition, the public-private partnership formula adopted is one of the flagship measures of the Programme, opening a wide range of opportunities for foreign investment. Such opportunities will focus on the construction of infrastructure (roads and railways) that will foster the exploitation of the country’s huge mineral deposits and facilitate trade between the regions and communities they pass through. Other measures relating to the electricity sector will bring relief to the people who suffer frequent power cuts that are a source of insecurity and discomfort in their daily lives. Finally, improving the business environment will encourage foreign and domestic economic operators to invest in the country and create jobs for the young unemployed graduates.

Participating Organization

Funding
African Development Fund
Implementing
MINISTERE DE L'ECONOMIE ET DES FINANCES

Information

IATI identifier 46002-P-GN-KA0-005
Last Update 26 Jan 2023

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Contact Details

Name BANDIAKY Julien
Email j.bandiaky@afdb.org

Geographic Location

Country Guinea
Coordinates Location Name
9.53795 -13.67729 Conakry
10.83333 -10.66667 Guinea