Poverty Reduction Support Credit (PRSC)

closed

Closed

The Poverty Reduction Support Credit (PRSC) Project pursues the Government's reform efforts, and seeks to enhance the Government's ability to manage Azerbaijan's natural resources efficiently, and stimulate balanced economic growth, and job creation, fundamental to poverty reduction. To this end, the proposed PRSC will support selected areas of the Government's reform agenda, as outlined in the PRSP, and closely aligned with the Country assistance strategy (CAS) objectives, as follows: 1) In order to manage the oil boom, adequate policies will be pursued, namely, to avoid the Dutch disease, and to improve efficiency and effectiveness of the public resource use. 2) To prod a sustainable non-oil growth, and job generation, the project will improve the environment for increased non-oil trade, private sector development and investment, and, improve financial intermediation, while enhancing corporate governance, and financial discipline in the financial and corporate sectors. 3) To improve social services and infrastructure the project will support improvements in utility services, by developing tariff policies, a modern regulatory framework, and, enforce payment discipline. Moreover, it will improve telecommunications, and transport services through restructuring activities, improving as well competitiveness aspects. The quality of basic and secondary education will be improved, as will access to, and quality of primary healthcare services, to include improved financing and allocation of resources in the health sector. Finally, effective pension and social protection programs, will be established. Notwithstanding, several risks exist, political, economic, and social, but most importantly, the volatility of energy prices, or unexpected delays in the operation of the Baku-Tbilisi-Cheyhan (BTC) pipeline and Shah Deniz gas projects, could seriously affect resource flows and public finances, and, delay implementation of poverty reducing measures. However, the PRSC support to prudent fiscal policy, and the formulation of a long-term oil revenue management strategy, and medium-term budget planning, will mitigate these risks.

FY17 - Education,FY17 - Energy and Extractives,FY17 - Health,FY17 - Industry, Trade and Services,FY17 - Public Administration

World Bank Group

Project

Power Transmission, Oil and Gas, Power Generation (CCGT), Government, Education