Seychelles - Governance and Economic Reforms Support Program (GERSP) - Phase II

The proposed operation is an ADB loan of US$25 million to the Republic of Seychelles to finance the Second Phase of the Governance and Economic Reforms Support Program (GERSP-II). The GERSP was designed to support Seychelles’ post-COVID19 economic recovery in a 3-year programmatic series, for the years 2021, 2022 and 2023. Phase I of the GERSP was approved by the Bank Group’s Board of Directors on 7 July 2021 and the resources (UA 15.04 million, equivalent to USD 20 million) supported the Government to bridge the financing gap in 2021 and implement the programme. GERSP-II aims to consolidate and expand these efforts to further strengthen economic resilience and inclusive post-COVID-19 pandemic economic recovery across several areas of the Seychelles economy. These include supporting continued effort to advance fiscal sustainability by improving tax revenue performance; enhancing governance in the public sector, including state-owned enterprises (SOEs); and strengthening AML/CFT financing framework. The project primarily contributes to climate adaptation results. As such, 33% of the total approved amount is attributed as climate finance, of which 8 million USD is dedicated to adaptation.