PUBLIC ENTERPRISES

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This project aims at assisting Benin in rehabilitating its public enterprise sector. At the sector level, the project will support the Government in implementing an agreed program of reforms aimed at (a) improving the management and operation of the public enterprise sector and (b) curtailing State involvement in the economy. This program will encourage private sector participation and more careful screening of new public undertakings to ensure their economic and financial viability. At the enterprise level, (a) diagnostic studies will be conducted for selected state-owned enterprises to assess their potential viability, and liquidation plans will be prepared for those enterprises found uneconomic. Additionally, (b) rehabilitation will be undertaken in two stages for those enterprises diagnosed as viable. In the first stage of rehabilitation, an emergency program will be implemented to arrest their further deterioration. In the second stage, a full rehabilitation program setting specific conditions for efficient and profitable operation, will be carried out. To accomplish this, the project will comprise technical assistance, a credit component for enterprise rehabilitation, and financing of training and redeployment of staff laid off.