Fourth Economic Reform Development Policy Operation

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The program development objective of Fourth Economic Reform Development Policy Operation Project for Kiribati is to: (i) strengthen public financial management; and (ii) improve the environment for inclusive growth. These two components correspond to the two pillars of the operation. The first pillar is supported through strengthening the management of public assets and liabilities, and improving public procurement. The second pillar is supported through improving oversight of joint ventures in the fisheries industry, improving the quality and expanding the coverage of essential public utilities, and facilitating competition and universal service provision in the telecommunications industry. The operation is aligned with the priorities identified in the Regional Partnership Framework (RPF). It is complemented by a number of other Bank engagements in contributing to achieve the objectives of the RPF. The World Bank has collaborated closely with the Asian Development Bank (ADB), Department of Foreign Affairs and Trade (DFAT) and Ministry of Foreign Affairs and Trade (MFAT) in the preparation of this operation. In keeping with the established practice in the region, this operation is based on a joint policy matrix agreed between the Government of Kiribati (GoK) and this group of development partners. This approach improves the feasibility of reforms by having the GoK and key development partners focusing on a small set of reforms, and coordinating the provision of their technical assistance in support of these reforms. This approach also reduces the transaction costs on the GoK, by harmonizing a number of the engagement and procedural aspects of budget support operations. With respect to the actions in the joint matrix, the World Bank provides technical assistance on the Revenue Equalization Reserve Fund (RERF) and telecommunications reform areas, the ADB provides assistance on the contingent liabilities and procurement reform areas as well as on broader SOE monitoring and reform, and MFAT provides assistance on the fisheries reform areas. The Bank, ADB, MFAT and DFAT also work together to provide assistance to Public Utilities Board (PUB). In addition, the Bank collaborates closely with the International Monetary Fund (IMF) and with the Pacific Financial Technical Assistance Centre (PFTAC) on macro-fiscal policy and Public Financial Management (PFM) issues.