GY Poverty Red. Support Credit I (PRSC)

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The Poverty Reduction Support Credit (PRSC) Project is envisaged as the first, of a possible series of PRSCs to support the implementation of Guyana's Poverty Reduction Strategy (PRSP). The reforms supported by the project include: support for the implementation of a new education sector strategy; an expanded effort to combat HIV/AIDS; reforms in the public sector, covering procurement and financial management; tax reform, including improvements in local government tax administration; reforms in the water sector, including introduction of private management; and, restructuring of the sugar sector, including investments designed to lower costs, and restructuring and redundancy efforts, focused on increased productivity. Regardless of project benefits, risks include political factors which could divert attention from the reform policy, limited implementation capacity, limited external resources, and, a high dependency on few export products. However, risks will be mitigated by the continued Bank dialogue with the donor community, and civil society, focused on redressing social concerns through improved governance, and strengthened key institutions.