Benin - Economic Competitiveness Support Programme (PACEB) - PHASE II

The proposed operation concerns the extension of a loan of UA 3,497,974 and a grant of UA 1,544,303 from the resources of the African Development Fund (ADF) to the Republic of Benin for the financing of Phase II of its Economic Competitiveness Support Programme (PACEB-II). PACEB is a programme-based series comprising two consecutive General Budget Support (GBS) operations covering the 2018 and 2019 fiscal years. With overall financing of UA 13 million, PACEB aims to remove the major constraints on Benin's economic competitiveness and narrow the spatial disparities in energy access by supporting, on the one hand, the establishment of a legal and regulatory framework as well as appropriate infrastructure conducive to the development of a well-performing private sector and, on the other hand, strengthening energy sector governance with a view to closing the energy gap and making energy access more inclusive. Phase II of the Programme will continue with support for further reforms required to achieve the programme's goal and the specific expected results, including: (i) sustainable increase in private investment; creation of greater industrial value added and; (iii) increase in electricity supply and improved energy inclusion through increased installed generating capacity and promotion of off-grid electrification. The budget support resources supporting PACEB II will also contribute towards partially bridging the 2019 budget’s financing gap, which stands at CFAF 274.3 billion.