NE - PEAC II - (Pub.Exp.Adj.Cr.)

closed

The Second Public Expenditure Adjustment Credit Project for Niger is designed to help implement the Government's economic reform program during 2003-2004 and Niger's January 2002 Poverty Reduction Strategy Paper (PRSP) by supporting key policy measures aiming at: (i) consolidating sound macroeconomic and financial policies; (ii) strengthening the public expenditure management reform program; and (iii) supporting the ongoing implementation of key social and structural reforms. The proposed operation is expected to help the implementation of the poverty reduction program by: (i) fostering macroeconomic and financial stability; (ii) improving budgeting and public expenditure management and basic service delivery (health, education, and water services); and (iii) improving the environment conducive to private-sector development. Four main risks could influence the expected outcomes of the proposed credit: (i) domestic political unrest and or external factors, including a shortfall in donor support, adverse climatic conditions, and social and political upheavals in neighboring countries; (ii) weak institutional, managerial and administrative capacity; (iii) slippages in key reforms; and (iv) growth and macroeconomic scenarios may not materialize. These risks are mitigated by the strength of the Government's ownership and commitment to implement the proposed measures, by an active policy dialogue between the Bank and the Government, and by donor's efforts to provide technical assistance to improve capacity-building , The project will be released in two tranches.