RWANDA - INSTITUTIONAL REFORM CREDIT

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The Institutional Reform Credit Project for Rwanda is a precursor to a Poverty Reduction Support Credit (PRSC) and provides quick disbursing finance to support the implementation of the Government's poverty reduction strategy as elaborated in the PRSP. Over the next three years, the Government intends to reinforce its poverty reduction efforts with public and institutional measures to strengthen the budget process, improve public sector capacity and governance, promote private sector investment, production and employment creation, and develop human resources. Theis project continues support for reform efforts provided by the Economic Recovery Credit (report no. P7292). This project's main components are public expenditure reform, including the strengthening of financial accountability, private sector development including the financial sector, and privatization of state-owned enterprises and human development including gender reforms. The Credit will be disbursed in three tranches. Expected benefits include: 1) improving public social and other key services; 2) increasing rural production and incomes through enhanced secrity of land tenure, improved incentives for producers of coffee and tea and a sustainable framework for distribution and market ing of agricultural inputs; 3) stimulating private sector activity; and 4) improving economic opportunities and incomes in order to reinforce efforts for national reconciliation.