BURUNDI- ERC

closed

The Economic Rehabilitation Credit Project is an integral part of the Bank's Transitional Support Strategy, in the process, and implementation of the Government's reform program. It will help build the foundation for a) the improvement of public service delivery, and basic social services, through promotion of accountability, and transparency in the use of public funds, including external assistance; b) the Government's efforts to deepen institutional, and structural reforms for sustained economic recovery, and poverty reduction; and, c) the establishment of a track record for early access to relief, under the Enhanced Highly Indebted Poor Country (HIPC) Initiative. By focusing on public expenditure management, rural development, private sector development, and pro-poor sectoral policies, it is expected the project will help move the poverty reduction agenda forward. Nonetheless, main risk factors include the internal conflict, the Great Lakes regional conflict, the uncertainty of the transition Government's capacity, and readiness to implement reforms, and fund the transition process, as well as the remaining uncertainty regarding the amounts, and timing of inflows of international assistance. These risks will be mitigated largely by the project design, which emphasizes donor coordination, and policies that support national reconciliation, to facilitate progress towards a cease-fire.