Sixth Poverty Reduction Support Credit (PRSC6)

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The Sixth Poverty Reduction Support Credit Program (PRSC-6) is an integral part of the Bank's strategy to support the implementation of Mozambique's 'Second Action Plan for the Reduction of Absolute Poverty' (known as PARPA II by its Portuguese acronym), aided by the performance assessment framework (PAF) agreed by the government and the nineteen external partners (the G19) providing general budget support (GBS). While the PRSC operations will provide financial support for implementing the whole PARPA, they are to be disbursed against the upfront completion of a number of specific reform measures identified in the PAF. The operation is the first in a new PRSC series of three annual single-tranche operations to be delivered over FY10-12. This program document also provides an indication of the triggers for the subsequent two operations in the PRSC series. The PRSC series is a key component of the country partnership strategy (CPS) approved by the Board in May 2007, and closely aligned to the government program. Bank support to the PARPA II is through the FY08-11 CPS. As government policies and budget are the key instruments for implementing the PARPA, the Bank is committed to supporting and aligning with the budget process. The indicative lending scenario of the CPS envisages programmatic support through consecutive PRSC, with a focus on supporting Mozambique's efforts in increasing accountability and public voice and fostering sustainable and broad-based growth. In line with the government program, and as projects ('mega-projects') reflected in the CPS, the program supported by the PRSC series recognizes the centrality of the growth agenda and the importance of enhanced public financial management reforms.