BF - DPO series on Energy and PFM

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This program document proposes the first operation in a programmatic series of two Development Policy Financing (DPF) operations designed to support energy and fiscal reforms in Burkina Faso. The proposed first DPF is a single-tranche disbursement of US$100 million equivalent, 45 percent in the form of an IDA grant and 55 percent as an IDA credit. The policy program supported by the DPF aims at: (i) improving the fiscal stance of the Government; and (ii) strengthening the financial health of the energy sector to deliver secure, affordable and reliable electricity. The series of DPF operations aims at supporting the Government in its effort to improve the performance of the energy sector and to improve fiscal management. It is designed around three pillars: the objective of the first pillar is to re-establish financial stability in the energy sector through a set of complementary measures; the DPF series will support the improvement of the institutional and legal framework conducive to the timely implementation of the strategy aimed at leveraging private participation to shift the energy mix towards affordable imports and renewables; and actions under pillar three aim at increasing tax revenue through reforms in tax policy and administration. Emphasis is also on procurement procedures, with the adoption of a new Code and decrees that will lead to a more comprehensive, efficient and transparent public procurement system.