Poverty Reduction Support Credit 4

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The project grant is the fourth sequential annual Poverty Reduction Support operation (PRSC4), financing one year of a medium-term program that supports the implementation of Uganda's Second Poverty Eradication Action Plan (PEAP) as summarized in the Poverty Reduction Strategy Paper (PRSP). The grant provides support to finance the implementation of long-term PEAP objectives through support for three-year outputs and the policy actions required to achieve these outputs. PRSC4 continues support for the service delivery and rural development reform program that was initiated under previous PRSCs, and it sharpens the focus on gender, infant and maternal mortality, and results- orientation. Currently, PRSC4 is the only source of Bank finance for education, health, and water and sanitation in Uganda. Like its three predecessors, PRSC4 has been developed in the expectation that the rolling medium-term reform program will continue t o be supported by subsequent PRSCs; this document thus describes both the reforms financed under PRSC4 and the planned program for possible financing by PRSCS and PRSC6. The PRSC supports reforms under the four pillars of the second Poverty Eradication Action Plan (PEAP): PEAP Pillar I: Creating a framework for economic growth and structural transformation. PEAP Pillar 2: Strengthening good governance and security. PEAP Pillar 3: Increasing the ability of the poor to raise their incomes. PEAP Pillar 4: Improving quality of life of the poor.