Institutional Reform Development Policy Grant

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The Institutional Reform Development Policy Grant (IR DPG) will support the Government's Reform Strategy, as discussed in the country assistance strategy (CAS). It emphasizes two key elements: 1) Supporting non-oil growth through investment climate reforms through: a) Rationalizing the incentive framework (by harmonizing treatment of income, expenses and investment with international standards); b) Strengthening property rights (by reducing ambiguity of land titling and improving public management of land registration); and 2) Strengthening governance and public financial management through: a) Reforming procurement as part of public financial management reforms to increase transparency and accountability and to separate the policy-making functions from the administrative function; b) Supporting the public administration reform strategy, in particular through wage policy, retrenchments and a biometric database on public employees as part of broader civil service reform; and c) Increasing revenue transparency through Yemen's accession to the Extractive Industries Transparency Initiative (EITI). The project will contribute to accelerate growth, poverty alleviation and improved governance through its provisions, which comprise key parts of the Government's overall growth strategy.