Fiscal Sustainability and Energy Development Policy Operation

closed

Closed

The development objective of Fiscal Sustainability and Energy Development Policy Financing (DPF) Project for Madagascar are to: (i) strengthen the quality and transparency of fiscal decision-making; and (ii) improve the governance of the electricity sector. The first development objective of this operation contributes to ensuring the implementation of the planned investments in a fiscally sustainable manner, considering liabilities that are recorded both on and off budget. The second development objective supports the implementation of Jiro sy Rano Malagasy's (JIRAMA’s) business plan and is a necessary building block for increasing access to reliable and affordable energy. The DPF supports JIRAMA’s reforms by improving corporate financial governance, institutionalizing least-cost investment planning and competitive generation procurement, and reducing commercial losses. Improving the governance of the electricity sector is likely to signal an improvement in the business environment to investors and make JIRAMA more financially attractive as an off-taker, a key prerequisite to attract private sector involvement in generation.The DPF is complementary to the investment program and the budget support operation supported by the World Bank. This approach reflects lessons learned from implementation completion reports (ICR) for the reengagement and resilience DPFs that continuity in the policy dialogue can be promoted when the reforms are closely integrated with Investment Policy Financing (IPFs).

World Bank Group

Project

Power Generation (CCGT), Commercial, Government