Aby Toure (202) 473 8302
Kadiatou Pate Toure (226) 30 62 37
WashingtonDC, May 3, 2005 – The World Bank Board of Executive Directors today approved an International Development Association (IDA) credit of US$46.1 million and an IDA grant of US$13.9 million to assist the Government of Burkina Faso in the implementation of the 2005 budget.
The Fifth Poverty Reduction Support Operation is the second in a series of operations supporting the implementation of the revised Poverty Reduction Strategy Paper (PRSP-2) in 2004-2006. It aims to accelerate broad-based growth, promote access to social services, increase employment and income-generating activities for the poor, and improve governance with an emphasis on public sector and budget management reforms.
“The operation will provide incentives to implement key economic, social and institutional reforms to strengthen the overall performance of the economy and contribute to poverty alleviation”, said Abdoulaye Seck, the World Bank’s Task Team Leader for the operation. “Government is also expected to achieve a 6 percent reduction of poverty incidence over the implementation of PRSP-2, increase private sector participation in the cotton, telecommunication and energy sectors thus accelerating growth through higher investment and improved competitiveness.”
The operation will help the government in making progress toward reaching some key Millennium Development Goals (MDGs), namely, increase school enrollment and literacy rates, reduce child and maternal mortality, increase access to safe water, and strengthen the sustainability of development efforts.
Achievements under the previous Poverty Reduction Support Credits are positive as illustrated by an 8 percent reduction of poverty incidence between 1998 and 2003. Against the backdrop of the difficult initial conditions and environment, Burkina Faso has demonstrated great resilience and a remarkable track record of sound policy implementation. The political environment in Burkina Faso has remained stable, and the country has made considerable progress in macroeconomic stabilization under successive program supported under the IMF’s Poverty Reduction and Growth Facility.
Lastly, the newly revised PRSP-2 – supported by this financing – builds on the achievements of the first PRSP while improving the latter on several dimensions. It is grounded on a stronger participatory basis, has more effective monitoring and evaluation systems, and benefits from improved donor coordination through the adoption of a unified budget support framework.
* The credit is provided on standard International Development Association (IDA) terms, with a commitment fee of 0.35 percent, a service charge of 0.75 percent over a 40 year period of maturity which includes a 10-year grace period.
For more information on the World Bank’s work in Africa visit: http://www.worldbank.org/afr/
For more information on the World Bank’s work in Burkina Faso visit: http://www.worldbank.org/bf
For more information about this project visit:
Burkina Faso: Poverty Reduction Support Credit