Macroeconomic & Fiscal Management Operation

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The development objectives of First Macroeconomic and Fiscal Management Operation Project in Guinea are to support the post Ebola recovery as well as to improve public finances, mining sector transparency, and the financial health of the energy sector. The First Macroeconomic and Fiscal Management Operation is the first of two operations in a series and is broadly supportive of key elements of the country’s post Ebola recovery strategy and aims at strengthening transparency in priority sectors. The operation is fully compatible with the Bank’s assistance to Guinea as defined in the FY14–17 Country Partnership Strategy (CPS). It addresses poverty reduction and shared prosperity by supporting improved governance systems, fostering accelerated, equitable and diversified growth in Guinea and accompanying improvements in human capital. Through the operation and the focus on health, mining, public finance, and energy, the Bank will continue to be a key partner in building systems to improve lagging human development indicators for absolute poverty reduction, through more efficient and transparent allocation of resources. On September 16, 2014, a 105 million US dollars was granted to finance Ebola-containment efforts underway in Guinea, Liberia, and Sierra Leone, help families and communities cope with the economic impact of the crisis, and rebuild and strengthen essential public health systems in the three worst-affected countries to guard against future disease outbreaks. There was collaboration at the strategic level with the World Health Organization, the Center for Disease Control, and others on the Ebola health side in the design of the Bank operation. The operation will continue to be implemented within the framework of the general budget support, which has been in place since 2005. Together with the International Monetary Fund (IMF), the Bank team had agreed on a robust program of revenue mobilization and tax reform. Additional finance of 40 million US dollars is sought to: 1) Support Post Ebola Recovery; 2) Improve Public Finances; and 3) Reduce Fiscal Burden of Energy Sector.