Guinea Bissau - Public Administration and Finance Reform Programme (PRAFP), Phase I

Management submits the following proposal and recommendation for the award of a Transition Support Facility (TSF) grant of UA 5 million to the Republic of Guinea-Bissau to finance the first phase of the Public Administration and Finance Reform Programme (PRAFP-I). PRAFP-I is the first phase of a programme-based budget support operation covering the 2024 and 2025 financial years, with an indicative budget of UA 10 million. The proposed operation is a response to the Government's request for financial assistance in the form of budget support to bridge part of the financing gap for the 2024 and 2025 financial years. The request was made against a backdrop of declining economic activity and deteriorating public finance due to the adverse effects of the COVID-19 pandemic, and multiple shocks. It was also in line with the Government’s fiscal consolidation efforts supported by the IMF's Extended Credit Facility (ECF).