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World Bank Provides US$1.45 million to Support Growth and Social Protection in the Commonwealth of the Dominica

Press Release No:2007/256/LAC
Contacts:
In Washington : Stevan Jackson (202) 458-5054
sjackson@worldbank.org

WASHINGTON , February 27, 2007 - The World Bank Board of Directors today approved a US$1.45 million credit to finance a technical assistance project for growth and social protection in Dominica. The credit will support the Government’s efforts to reinforce the institutional capacity of key public agencies in delivering goods and services, and increase the private sector competitiveness.

 

“By helping the Government of Dominica fortify its public and private sectors in order to ameliorate the delivery of public goods and services and attract more investment, this project is laying the foundations for a more sustainable growth and poverty reduction in Dominica,” said Caroline Anstey, World Bank Country Director for the Caribbean.

 

To avoid a fiscal crisis in 2003, caused by a high deficit representing 10.9% of its GDP by 2001 and a public debt at 130.8% of its GDP in 2003, the Government of Dominica developed a two-stage adjustment strategy to (1) re-establish macroeconomic stability through debt restructuring, and (2) build a favorable investment environment for a sustainable growth and poverty reduction led by the private sector.

 

This project is in line with Dominica ’s adjustment strategy and will provide technical assistance to the Government in improving the delivery of public goods and services and increasing its private sector competitiveness and productivity in order to attract more investment.

 

The project mainly comprises of the following components which focus on:

 

(i)                   Making the public sector more efficient and effective, by technically assisting the Government in lowering costs and empowering the public sector to take control over public finance, to operate in more transparency and efficiently manage public procurement.

    

(ii)                 Improving Dominica’s investment climate, by strengthening the regulatory and institutional environment to attract more investment.

 

(iii)                Reforming the energy sector regulatory framework, by liberalizing and regulating the production and distribution of electricity, and supporting the Government in creating a legal framework for the development of alternative sources of energy.

 

(iv)                Improving social protection, to increase the effectiveness of existing social safety net programs.

 

The total cost of the project is US$2.60 million. In addition to the World Bank credit, the project will also receive financial support from the Government of Dominica as well as the European Union, and will be fully implemented by June 30, 2010.

 

Dominica, a country member of the Organization of Eastern Caribbean States, joined the World Bank in 1980 .

 




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