Contacts: In Nicaragua: María Teresa Norori Paniagua (505) 270-0000 mnorori@worldbank.org In Washington: Gabriela Aguilar (202) 473-6768 gaguilar2@worldbank.org WASHINGTON, September 25, 2008— The World Bank’s Board of Directors approved today a US $20 million one-tranche Development Policy Credit operation, to support the implementation of the initial phase of the Nicaraguan government’s new development program. “This operation aims to support the measures and policies of the Nicaraguan Government on poverty reduction and is expected to have a significant impact on social indicators,” said Laura Frigenti, World Bank Director for Central America. “Specifically, we expect an increased number of births taking place in health institutions, implementation of a system to monitor growth of children under 2, an increased coverage of potable water in urban areas, and an increased number of accredited civil servants, among other outcomes,” added Frigenti. This new Development Policy Credit (DPC) is part of the Nicaragua Country Partnership Strategy (CPS) for 2008-12, and is anchored in a series of annual budgetary support operations to engage the government on key policy reforms. The lines of action supported under the proposed DPC are expected to contribute to specific CPS outcomes in the areas of improved civil service, access to education and health services for women and children, access to better quality water and sanitation, reduction of chronic malnutrition in children, and increased public sector accountability. The new DPC has two main objectives: · Strengthen public sector management through the modernization of public financial management and the creation of a stable professional civil service and, · Improve the quality of social services through (i) a better capacity to monitor and evaluate social service delivery with the publication of student learning achievements results and development of new instruments to monitor child malnutrition, (ii) the adoption of new procedures to reduce maternal mortality, and (iii) the implementation of a strengthened institutional framework for water and sanitation sector development. The total amount of the credit is 12.2 million Special Drawing Rights (US$20 million equivalent) and will be disbursed as soon as the credit has been declared effective. No co-financing is entailed.
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