Madagascar - Emergency Economic Recovery Programme (PURE)

Project Summary

Approval Date	05 Nov 2014
Signature Date	14 Nov 2014
Planned Completion Date	30 Jun 2015
Last Disbursement Planned Date	30 Jun 2015
Sovereign / Non-Sovereign	Sovereign
Sector	Multi-Sector
DAC Sector Code	11330
Environmental Category	3
Commitment	U.A 25,000,000
Status	Completion

Project General Description

The Emergency Economic Recovery Program (PURE) is part of a concerted effort by development partners expressed, after political standardization in 2014, to support the efforts of the new Malagasy authorities to address social needs and important economic and urgent issues stemming from the political crisis. It is a Budget Support in Response to Crises (CARL), the purpose of which is to respond to the pressing and priority needs of the Malagasy people who have suffered the weight of the long political crisis that paralyzed the country for five years (2009 -2013). The implementation of the ERP, despite its urgency and short duration, will be supported by the Institutional Governance Support Project (PAGI) approved in 2013 and the new institutional support project planned for 2015 to promote private investments. The articulation of these different projects will support the Malagasy structures in the implementation of reforms but also in the production of analytical studies in important areas whose conclusions would be used to prepare future operations. Thus, the PURE contributes to the institutional development of public administrations and the private sector. It is based on two mutually reinforcing components, namely: (I) strengthening budget management, and (II) supporting the promotion of economic recovery.

Project Objectives

The objective of the development of the PURE is to contribute to the restoration of the capacities of the State to provide first and foremost the basic social services and to the creation of the conditions of a sustainable growth and likely to allow Madagascar to leave progressively of its situation fragility, engendered by the political crisis. The PURE also aims at the following specific objectives: (i) to increase the mobilization of public resources, (ii) to improve the quality of public expenditure, through a reduction of petroleum subsidies and an important support to the basic social priority sectors, notably education and health, (iii) support public investment programs, and (iv) stimulate the private sector through the clearance of identified domestic arrears.

Beneficiaries

The Malagasy populations, who have been greatly affected by the adverse effects of the five years of socio-political crisis, will be the main beneficiaries of the PURE. The program, aimed at creating a necessary fiscal space for financing economic recovery, will not only stimulate economic growth, but also satisfy the urgent social needs in terms of education, health and social protection of the economy. most vulnerable populations. The payment of domestic arrears and the increase in productive public investment will mainly enable economic operators to benefit from business opportunities thus contributing to the creation of national wealth through productive investment and job creation, for the benefit of young people and women. The other indirect beneficiaries of the PURE are the mining companies and the oil companies.

Participating Organization

Implementing

GOUVERNEMENT DE MADAGASCAR MINISTERE DES FINANCES ET DE ECONOMIE DIR. TRESOR

Funding

Transition Support Facility

Information

IATI identifier	46002-P-MG-K00-010
Last Update	25 Mar 2023

Export

Contact Details

Name	Angelique UMUBYEYI
Email	a.n.umubyeyi@afdb.org

Geographic Location

Country	Madagascar

Coordinates	Location Name
-18.75 46.75	Antananarivo Province

Project Classification

Finance Type	Aid Loan Excluding Debt Reorganisation
Flow Type	ODA
Aid Type	General Budget Support

Commitments

U.A 25,000,000

Transition Support Facility

U.A 25,000,000

Disbursements

Repayments (Interest & Loan)

Document Type	Language	Document
Appraisal report	fr	Madagascar-Rapport d evaluation-Programme durgence pour la relance économique PURE - 11 2014
Appraisal report	en	Madagascar - Appraisal Report- Emergency Economic Recovery Programme PURE -11 2014
Evaluation Report	en	PN10656 SR EN
Evaluation Report	fr	viewer
Project Completion Report	fr	PR10693 SR FR
Project Completion Report	en	Madagascar - Economic Recovery Emergency Programme PURE
Project Completion Report	fr	MADAGASCAR - Programme durgence pour la Relance Eco PURE

Indicator	Indicator Measure	Target Year	Target Value	Actual Year	Actual Value
Domestic resources (as a percentage of GDP)	%	2014	11.0	2015	9,9
Country Policy and Institutional Assessment (CPIA) indicator 15: Strengthening of human resources (education, health and nutrition)	Score	2014	3.0	2015	2,5
Public investment rate (as a percentage of GDP)	%	2014	6,1	2015	4,8
Priority action plan (PAP) to increase domestic revenue	None	2014	Plan prepared, adopted in the Government Council, and implemented in 2014	2015	PAP prepared and adopted. Implementation is in progress
Gradual oil subsidy reduction plan over 12 months and support measures	None	2014	A plan is prepared, adopted in the Council of Ministers (CM) and implemented, leading to a drop in the level of subsidies to MGA 108 billion in 2014	2015	Plan prepared and adopted. At the end of 2014, oil subsidies stood at MGA 232 billion, including MGA 142 billion of suspended DTIs, and MGA 89.4 billion to be paid
Level of priority basic social expenditure (education and health) in the AFL 2014 relative to the FL 2014	None	2014	Education and health social spending increased by at least 30% and 80%, respectively, in the AFL 2014 relative to the IFL 2014 (or about 22.4% and 10.8% of the budget in the AFL 2014 for education and health, respectively)	2015	Relative to the IFL 2014, health spending in the AFL 2014 rose to 81.9% and education spending to 82.5%
Draft 2014 Amended Finance Law (AFL) with increased	None	2014	A draft AFL 2014 was adopted in the CM and transmitted to parliament in 2014 with at least a 40% increase in budget allocations for the public investment programme relative to the IFL 2014 (or about 29% of the budget in the AFL 2014)	2015	A draft AFL was adopted. A 134% increase was made in the AFL relative to the IFL 2014. At the end of 2014, the PIP budget was executed at 127%
Plan with a timetable for clearance of identified domestic arrears (VAT, supplier debts)	None	2014	A plan is prepared and implemented as from 2014, leading to a reduction in domestic arrears of 1.5% of GDP (or about MGA 395.9 billion)	2015	A plan was prepared. Agreements were signed between the State and most of the creditors
Identification and audit of arrears for extra-budgetary expenditure (committed and not authorized) between 2010-2013	None	2014	An identification and audit of arrears for extrabudgetary expenditure between 2010-2013 was made in 2015	2015	An inventory of payment arrears for extrabudgetary expenditure for the previous years was made in 2015