Public finances and structural reforms : New aid package from World Bank

27/05/2012
Public finances and structural reforms : New aid package from World Bank

A new budget support operation allocated to Togo will help implement government-owned reforms to improve public financial management and to carry out structural reforms in cotton, energy, telecommunications and banking.

The World Bank’s Board of Directors today approved a credit amounting to US$14 million for the Republic of Togo for the Fifth Economic Recovery and Governance Credit (ERGC-5).  This operation provides general resources to government’s budget. The resources are provided in support of economic governance reforms initiated under the previous four grants allocated respectively in 2008, 2009, 2010, and 2011.

ERGC-5 focuses on public financial management and structural reforms in key sectors of the economy. With respect to public financial management the emphasis in on enhanced transparency and budget oversight. In the cotton sector the operation supports measures that enhance insight in the cost structure of the national cotton company (“Nouvelle Société Cotonnière du Togo – NSCT”) and that lay the foundation for attracting private investors. The operation supports reforms to enhance competition in the telecommunications sector and helps to improve management at the national electricity company (“Compagnie d’Energie Electrique du Togo – CEET”). ERGC-5 also supports the privatization of four state owned banks.

Key results expected from ERGC-5 include, inter alia: (i) improved access to budget information; (ii) simplification of procurement processes; (iii) payment of a predetermined share of the world market price to cotton farmers; (iv) a reduction of the cost of mobile telephony; (v) government’s disengagement from banking; and (vi) strengthening management of the national electricity company.

Upon approval of the new credit, Madani M. Tall, Country Director for Togo, commended the Togolese authorities for the efforts made to implement the main economic and structural reforms supported by the Bank since 2008: “A lot of efforts have been made, and we strongly encourage government to keep the pace of reform. The World Bank remains committed to support Togo and is convinced that an efficient and effective use of these resources will help bring about accelerated and inclusive growth, which is the key to poverty reduction”.

ERGC-5 is aligned with Togo’s poverty reduction strategy.  It is also an integral part of the World Bank Interim Strategy for Togo, and it is closely aligned with the World Bank’s Africa Strategy. The new operation is coordinated with other World Bank operations as well as with other partners’ (International Monetary Fund, European Union, Africa Development Bank, and French bilateral aid).

Commentaires

Loading comments ...

Loading comments ...

IL NE FALLAIT PAS MANQUER

Akwaba !

Sport

4.000 sportifs et artistes venus de près de 80 pays participent à partir de vendredi aux VIIIe Jeux de la Francophonie à Abidjan.

Grand Prix de la Kozah : victoire de Hamza Assoumanou

Sport

La première édition du tour cycliste  'Grand Prix de la Kozah' a été remportée jeudi par Hamza Assoumanou de l’équipe Bike Aid (Kpalimé).

Baisse significative de l'incidence de la pauvreté

Développement

Le Premier ministre a présenté mercredi à New York le rapport intermédiaire du Togo sur les ODD.

L'Allemagne laboure le Togo

Coopération

Depuis la reprise de la coopération avec le Togo, l’Allemagne est particulièrement active dans le secteur de l’agriculture.