Benin - The Third Growth and Poverty Reduction Strategy Support Program (GPRSSP-III)

The proposed intervention concerns the third phase of the Growth and Poverty Reduction Strategy Support Program (PASCRP III) in Benin. It consists of a loan of UA 11 million and a grant of UA 11 million from ADF XI resources, in the form of General Budget Support covering the 2009-2010 period. This operation is in response to the request of the Government of Benin dated March 19, 2009 as contained in its development policy letter. The program was evaluated in January 2009, immediately after the annual joint review of the Technical and Financial Partners (TFPs), carried out in September 2008, under the Joint Budget Support Group Memorandum of Understanding concluded between the Government of Benin and the development partners in 2007. It is part of the Growth and Poverty Reduction Strategy (GPRS II) adopted by the Government in 2007. It remains consistent with the Bank Group's assistance strategy for Benin over the 2005-2009 period. The design of the Program took into account the principles of good practice in conditionality and the provisions of the Bank's policy on non-concessional debt accumulation. The choice of these components is the result of recent studies and evaluations in the areas of public financial management and the business climate in Benin, as well as lessons learned from the completion reports of the Bank Group's last two budget support operations in favor of Benin (PRSP I and PRSP II). These studies and completion reports have revealed persistent shortcomings in the implementation of the reforms undertaken by the Government in these areas.