Second Economic and Financial Management Project-Supplemental Credit

closed

The Second Economic and Financial Management Project (EFPMII) was developed in the context of the Government's commitments to fiscal improvements and poverty eradication. After registering considerable success in macro-economic reform, and structural reform, major challenges of the Government however, relate to longer-term fiscal sustainability, improvements in public expenditure management, and the sustained effort to eradicate poverty. In particular, weaknesses in processes, and systems for service delivery are still a major challenge to the Government in the implementation of the Poverty Eradication Action Plan. To this end, this proposed supplemental credit would assist in financing the completion of the roll out of the Integrated Financial Management System (IFMS), and the cost overrun of the Uganda Bureau of Statistics (UBOS) building, being financed under the ongoing credit. Without the supplemental credit, the key development objectives of the EFPMII will not be achieved. The proposed supplemental credit is consistent with the project development objective (PDO), which is to improve the effectiveness of public expenditure management processes. During the Mid-Term Review of September 2002, it was concluded that EFMPII is making sound progress, with a strong likelihood that the PDO will be achieved at the completion of the project, which continues to be both relevant, and achievable in relation to the specific key performance indicators set at the beginning of the project. The proposed supplemental credit would be on standard IDA terms, with a maturity of 40 years.