World Bank signs US$7 million agreement to support Sierra Leone’s economic reforms
FREETOWN – The World Bank yesterday signed the agreement of a supplementary financing to the Government of Sierra Leone in support of the Third Governance Reform and Growth Credit worth US7 million under its IDA pilot Crisis Response Window.
The credit is aimed at helping to implement the country’s Poverty Reduction Strategy in the context of a multi-donor budget support framework.
This one-tranche credit provides supplemental financing to the third in a programmatic series of three development policy operations by the World Bank in support of Sierra Leone’s transition from post-conflict recovery to sustainable development. The IDA pilot Crisis Response window is designed to assist countries to cope with the effects of the global economic downturn.
The operation will contribute to the government’s efforts to maintain poverty reducing spending and promote sector growth while safeguarding macroeconomnic stability despite the impact of the global recession. Specifically, it will support the government’s efforts with reform measures to: (i ) preserve the fiscal space needed for poverty reduction; (ii) promote efficiency, transparency and accountability in the use of public resources through enhanced public financial management and governance, and (iii) improve the investment climate by ensuring the provision of electricity in a fiscally sustainable manner.
The measures supported by this credit are expected to have a positive impact on poverty reduction. Strengthening the public financial management system to enhance efficiency, transparency and accountability will contribute to better basic service delivery. The support provided to the decentralization of public services should contribute to reduced inequality. Higher electricity sector revenues will help reduce the crowding out of basic services by fuel procurement necessitated by the 2008/2009 emergency power program.
According to the County Director for Sierra Leone, Mr. Ishac Diwan, “this credit supports the positive and broad based progress that Sierra Leone is making across a range of reform areas.”
The World Bank
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