Contacts
In Washington: Aby Toure (202) 473 8302
akonate@worldbank.org; In Madagascar: Jocelyn Rafidinarivo (261-20) 225 6000
jrafidinarivo@worldbank.org WASHINGTON, August 3, 2006– The World Bank Board of Executive Directors today approved an International Development Association (IDA) additional financing* of US$18 million to support the Community Development Fund (FID IV) in the implementation of the Government’s Poverty Reduction Strategy Paper (PRSP) and the upcoming Madagascar Action Plan (MAP). The objectives of the additional financing for the Community Development Fund are to improve the use and satisfaction with project-supported social and economic services provided amongst participating rural and urban communities. The additional financing will allow FID to scale-up delivery of basic services to communes and communities while its future role under the upcoming Local Development Fund (LDF) is being defined. The LDF is a multi-donor fund that will consolidate the transfer of resources to communes in a sustainable way and would build their long term capacity. In addition, the additional financing will allow the FID to rehabilitate and/or reconstruct about 75 infrastructures damaged by the 2004 cyclones and which could not be included in its past annual work plans due to lack of funds. “This additional financing for the five components would help achieving the sustainability of FID sub-projects by ensuring maximum community involvement at implementation and post completion stages”, said Nadine Poupart, the World Bank Task Team Leader of the project. Beneficiaries are expected to contribute a percentage of the cost of each sub-project in kind (materials or labor) or in cash. “Following the agreement by major donors in November 2003 to harmonize their support to local development, the supplemental financing to FID will also contribute to the Local Development Fund (LDF). This is a key element of the Government’s policy on Decentralization and Deconcentration approved in December 2005, and aims at strengthening local governance with civil society participation in the communes and regions”, said James Bond, the World Bank Country Director for Madagascar. To date, the project has financed close to 1,800 community sub-projects such as schools, health facilities, feeder roads, potable water schemes, small scale irrigation, and markets. It has also financed the rehabilitation/reconstruction of about 3,744 facilities following the 2004 cyclones. The “Transfer-to-Communes” component successfully channeled funds to 120 communes which implemented 611 sub-projects. The FID has helped half of all rural communes in the country develop Communal Development Plans through a participatory process. In addition, the “Social Safety Nets” component has created approximately 16.2 million person-days of temporary labor. The additional financing will consolidate components and activities that were added over the life of the original project. In addition, it will finance capacity building activities requested by the Ministry of Decentralization and Regional Planning to support the implementation of the 2005 Decentralization and Deconcentration Policy. * 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 on the World Bank’s work in Madagascar visit www.worldbank.org/madagascar For more information about this project visit http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=356352&menuPK=356386&Projectid=P096296 |
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