February 27, 2008— Olivier Frémond, the World Bank Country Manager, recently fielded questions from the local press regarding the major concerns of Gabonese citizens. He addressed the ongoing problems associated with the institution’s mission, namely, poverty reduction. He also reviewed the World Bank's activities in 2007 as well as the various initiatives of the Bank's new President for 2008 and beyond.
The World Bank and Gabon
Mr. Frémond described cooperation between the Bank and Gabon as positive and encouraging. The institution wants to strengthen dialogue with the Gabonese authorities. Since it made a commitment to assist Gabon in 2005, its portfolio in that country has grown to more than US$50 million (CFAF 22.5 billion).
This portfolio consists of three operations:
A loan of US$25 million(approximately CFAF11.25 billion) for a local infrastructure development project in low-income neighborhoods in five cities in Gabon (Libreville, Port Gentil, Lambaréné, Mouila, and Oyem). Calls have been issued for bids and work on this infrastructure should begin very soon.
A budgetary assistance loan of US$15 million (approximately CFAF6.5 billion) to support the reforms undertaken by the Government in the forest sector (drafting of the forest code, better management of the award of forest permits, etc.).
A grant of US$10 million(approximately CFAF4.5 billion) for biodiversity management in national parks.
Olivier Frémond, World Bank Country Manager in Gabon, during a press interview
In 2008-2009, the World Bank will invest in the road sector through construction of a double-track road on the PK5- PK15 segment, a bus terminal, and a market.
An international seminar on the management of petroleum and gas resources is slated for April 2008. This seminar will bring together prominent figures from several African countries and international organizations.
New Instruments for Middle Income Countries
Another development of interest to Gabon is a new mechanism to facilitate access to financing bymiddle income countries, which was approved by the World Bank's Executive Board in September 2007.
This decision is the result of the promise made by President Zoellick to expand the assistance provided by the World Bank to this group of countries. The new measures cover, among other things, extending the deadlines for loan repayment from 18 to 30 years, along with enhanced facilities for access to financing and risk management instruments.
Two Major Events at the World Bank in 2007
In his interview with the local media, the World Bank's country manager mentioned that the major development at the Bank in 2007 was the appointment of the new President, Robert Zoellick, who unveiled six strategic themes at last year's Annual Meetings (see Box).
The major task is to make the expertise of the World Bank group available to developing countries. It will now play the role of think-tank with respect to the data derived from practical experience. The World Bank will propose, develop, and apply this expertise with or without financing and will review its work on an ongoing basis.
Focus activities on Africa in order to help it close its development gap by increasing aid and promoting sustainable and equitable development.
Encourage new partnerships with emerging countries such as China, India, Russia, and Brazil.
Create new partnership instruments for middle income countries.
Develop partnerships with the Arab world.
Help strengthen public resource management and good governance.
Position the World Bank, in a more effective manner, as a knowledge bank and an institution that disseminates information and know-how.
Transforming Words into Action
In order see his action program at work, Mr. Zoellick conducted a tour of Africa that led him to four countries (Mauritania, Liberia, Ethiopia, and Mozambique).
In Ethiopia, he delivered anaddressat the Tenth Summit of the African Union. President Zoellick reiterated the role that the World Bank intends to play in building and improving infrastructure in Africa, particularly in constructing road networks and power stations.
He also stressed the need to enhance good governance by strengthening the Extractive Industries Transparency Initiative.
He noted the need for the World Bank to strengthen and deepen its partnership with the African Union, particularly in the area of conflict resolution. Together, they should also support priority development programs in post-conflict countries. The development and financing needs of these countries are daunting.
In addition, the International Finance Corporation (the private sector arm of the World Bank Group) will expand its activities with a view to fostering greater private sector access to financing in Africa.
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