Contacts: In Washington: Tim Carrington (202) 473 8133
tcarrington@worldbank.org In Senegal: Mademba Ndiaye (221) 8495000
mademba@worldbank.org WASHINGTON, March 29, 2006 – The World Bank Board of Directors today approved an International Development Association (IDA) credit [1] for US$30 million to support the implementation of Senegal’s poverty reduction strategy and strengthen the Government’s capacity to design and carry out its own development and poverty reduction programs. The Poverty Reduction Support Credit (PRSC II) aims to improve the effectiveness and transparency of the national budget process and expenditure management, promote the delivery of public services by local governments, and support poverty reduction in terms of improved living conditions of the people of Senegal with a focus on better health services. The Credit will also promote shared-growth by supporting ongoing reforms in the labor market and improvements in the judiciary system, as well as helping implementation of the new national social protection strategy. In doing so, the Credit will strengthen the basic elements of the country’s investment climate and reinforce its efforts to improve the lives of the poorest segments of the population. “This operation will help Senegal maintain economic growth and improve living conditions for its people, while also enhancing the Government’s ownership and functionality in policy planning and budget management thereby helping it make progress towards achieving the Millennium Development Goals,” said Jacques Morisset the World Bank Task Team Leader of the project. Morisset also added that “the Credit is expected to promote coordination and collaboration within the Government and among donors, and lead to improvements in the delivery of basic infrastructure and social services in the country.” According to Madani M. Tall, Country Director, this credit highlights the “quality of the relationships with Senegal.” He particularly underlined the multiform support given by the World Bank to Senegal to insure a better shared economic growth to allow poor people to have access to the basic social service as potable water and energy. Mr. Tall added that’s why “the Bank is supporting Senegal to have maximum benefit form the international trade rules in order to enhance the competitiveness of its economy and to develop its private sector.” With a population estimated at about 10 million, Senegal’s economy is dominated by a few strategic sectors, including agricultural production, fisheries and services. Over the past years, Senegal has enjoyed a stable political climate, and has remained largely unaffected by regional instability. Economic prospects for the 2005-2007 period are positive: GDP growth rate is expected to average 6 percent with an inflation rate under 2 percent while the current account deficit is projected to be financed by significant official and private capital inflows. [1] The credit is provided on standard International Development Association (IDA) terms, with a commitment fee of 0.35 percent, a service charge of 0.75 percent over a 40 year period of maturity which includes a 10-year grace period. ### For more information on the World Bank’s work in sub-Saharan Africa visit: www.worldbank.org/afr For more information about World Bank’s activities in Senegal visit: www.worldbank.org/Senegal For more information about this project visit: http://web.worldbank.org/external/default/main?pagePK=64027221&piPK=64027220&theSitePK=296303&menuPK=296336&Projectid=P091051 | 
