Media Contact: In Washington: Dina El Naggar (1-202) 473-3245 e-mail: Delnaggar@worldbank.org In Sana’a: Samra Shaibani (967-1) 413 710 e-mail: sshaibani@worldbank.org WASHINGTON, December 6, 2007 – The World Bank Board of Directors today approved a grant of US 50 million to support the Institutional Reform Development Policy Project. “The Institutional Reform Development Policy Grant aims at supporting the implementation of key elements of the Government’s reform program. This project is in line with the Country Assistance Strategy (2006-2009) that we have agreed with our Yemeni counterparts.” said Emmanuel Mbi, World Bank Country Director for Egypt, Yemen and Djibouti. “As specified in the CAS, the grant focuses on two pillars: (i) increasing non-oil growth with a special focus on improving the investment climate and (ii) strengthening governance and public financial management” he further added. Yemen faces daunting challenges as oil and water resources continue to deplete even as the population grows briskly at 3 percent annually. High oil prices underpinned the favorable macroeconomic outcomes in recent years. GDP growth has been sustained at about 4 percent per year-higher than the population growth rate of about 3% - despite falling oil production because of offsetting growth in non-oil sectors. However inflation and long-term fiscal sustainability have emerged as key policy concerns. In response to this urgent situation, the government has indicated its commitment to carry out difficult reforms to restore fiscal sustainability and spur alternative sources of growth in its national reform agenda. Overall implementation, coordination and monitoring of the project will be carried out by the Ministry o f Planning and International Cooperation (MOPIC). Expected outcomes of the project include rationalizing the tax incentive framework for investors, supporting the enforcement of property rights through improved land registration and procurement reforms that will reinforce transparency and accountability. For more information about the World Bank’s work in Yemen, visit: www.worldbank.org/ye For more information about this project, visit: http://www.worldbank.org/projects |
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