Programme to Support Decentralisation and Local Development - FADEC III (basket financing)

completed

Despite significant progress in the implementation of the national decentralization and deconcentration policy (Politique Nationale de Décentralisation et de Déconcentration, PONADEC) in general and fiscal decentralization in particular, the inadequate financial resources and performance of the municipalities (core problem) remain a major challenge. The aim of the FC module is to improve the national budget transfer mechanism Fonds dAppui au Développement des Communes (FADeC), in particular the control of the use of funds, and its use by all municipalities in Benin to provide sustainable municipal investments while respecting the principles of good governance. The target group of the project is the entire population of Benin (approx. 10 million people). The FC measure includes an investment component to co-finance the FADeC for non-sector-related municipal investments (FADeC non affected) and an investment-accompanying component to strengthen control of the use of funds and to support the FADeC's steering unit, the Permanent Secrétariat of the Commission for Local Finances (Commission Nationale des Finances Locales, CONAFIL).