Contacts In Washington : Herbert Boh (202) 473 3548 hboh@worldbank.org; In Brazzaville: Clementine Maoungou (242) 81 33 30 cmaoungou@worldbank.org  WASHINGTON , May 8, 2007 – The World Bank Board of Executive Directors today provided US$15 million in additional grant financing for an extension of the Transparency and Governance Capacity Building Project for the Republic of Congo. Additional government finance will also be provided in support of the project in the amount of US$5.6 million.  The first funding for this project - US$7.665 million - was approved by the Board on 2 February 2002 and was initially scheduled to close on 31 December 2007. With this fresh funding, the closing date will be extended by two-and-a-half years to June 30, 2010.  The aim of the project is to enhance governance, transparency and effectiveness in public sector financial management, including the oil sector and this extension will ensure continued support by the Bank to the Government of Congo in the implementation of the HIPC Action Plan, which prioritizes governance, transparency and anti-corruption reforms following access by Congo in March 2006 to the HIPC decision point – when debt relief is provided on a revocable basis.  The project will also assist the Republic of Congo in putting in place the necessary systems and capacities to ensure the effective management o f surplus budget resources generated by windfall oil revenues.  So far the project has achieved a number of results, including: (i) the conduct of audits of the Société Nationale de Pétrole Congolaise (SNPC); and the design and (partial) implementation of an Action Plan for the improvement of its operations; (ii) the establishment and institutional development of the Oil Sector Monitoring Unit in the Ministry of Finance; and (iii) the design and implementation of reforms in the tax and customs administration and the initiation of reforms in the overall budget management system.  The new project introduces adjustment to existing components, including: (a) a revision of the oil sector governance component, and a move of its focus from initial transparency measures (audits, revenue certification etc.) to more complex and sustainable reform measures, such as the development of an integrated and generally accessible database on all aspects of oil sector management, the implementation of oil marketing reforms, etc., (b) support for the government’s anti corruption efforts, and; (c) a focus on enhancing public investment management systems and improving budget management practices, including through the introduction of IT systems.  Bank officials also discussed progress toward achieving the HIPC Completion Point. In relation to this, progress on forestry was highlighted as a key achievement, suggesting that if it gets a good follow up, this could set an example for other countries. They also noted progress on social sector reforms while expressing regret over the limited progress on oil sector governance, anti-corruption and public investment management reform.
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