Second Poverty Reduction Support Credit

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The Second Poverty Reduction Support Credit Project (PRSC 2) for Mozambique is a two-tranche operation that will support the Government's primary objective of reducing absolute poverty and achieving the Millennium Development Goals through implementing the Government's Action Plan for the Reduction o f Absolute Poverty (PARPA). The operation is designed as an exceptional two tranche PRSC in order to further harmonize with the other donors providing budget-support. This is the second operation within the framework of three operations that were designed as part o f the First PRSC approved in July 2004 (Report no. 29262-MZ). This two-tranche credit completes the support envisaged within the framework of the first PRSC. The PRSC 2 will continue to support the Government's reform agenda of promoting growth, accelerating human resource development, and strengthening governance and public sector management. The second tranche of the proposed PRSC 2 would focus on two pillars: (1) crosscutting actions to strengthen public sector performance by enhancing efficiency and effectiveness in the use of public resources, and (2) enhancing the investment climate.