BR RGS ST.REF

closed

Closed

The diagnosis and framework for much of the fiscal adjustment of the reform program for the Rio Grande do Sul (RGS) State Reform Loan Project was developed in a prior sector study that presented options to address the state's debt crises. The objective of the State Reform Project is to improve efficiency in the government's service delivery through privatization and to improve the state's fiscal condition. The project is tailored to support successful implementation of RGS's more limited privatization and fiscal reforms. Its components comprise technical assistance, restructuring of public enterprises that adopt voluntary departure programs, and subprojects and programs to mitigate the reform program's costs, including priority investments and social assistance projects. Selected reforms include actions to privatize the Rio Grande do Sul telecommunications company and the state power company, and to award concessions of water and sewage services, port services, and road maintenance. The environmental targets set for the new utilities will be a critical factor determining both the economic feasibility and the environmental consequences of restructuring; thus, a consistent set of targets and obligations for the restructured utilities will have to be developed early in the process. Other components include reform-related studies, audits, and training; reform-related equipment and rehabilitation works; high priority investments in land management and rural poverty alleviation; highway, school, and hospital rehabilitation; severance pay to employees of reforming state enterprises; and transfers and non-transfers to municipalities and private institutions (to cushion the reform's impact) for incremental, recurrent expenditures in early childhood, public health, sanitation, and basic education.

FY17 - Industry, Trade and Services,FY17 - Public Administration,FY17 - Social Protection,FY17 - Water, Sanitation and Waste Management,Transportation

World Bank Group

Project

Road, Water Supply and Storage, Power Generation (CCGT), Waste Processing and Treatment, Hospital, Government, Education