Social Protection System Modernization Project

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The Social Protection System Modernization Project of Croatia aims to improve the efficiency and effectiveness of Croatia’s social protection system. The project will tackle five thematic areas: four will be results areas supported by results-based financing (Component 1) and TA/Investment (Component 2), while one thematic area will be covered by TA/Investment (Component 2) alone, because it is at an early stage of development. The first component will use a results-based approach. Payments made under this Component will go to the MOF as reimbursement for expenditures made in the Eligible Expenditure Program (in this case, the GMB). The second component will use a regular Investment Project Financing (IPF) approach. It would support investments and TA that are necessary, but not sufficient, to support achievement of the DLIs in the four thematic areas supported by results-based financing. It will also support activities in the fifth thematic area: activation. The third component is a Project Implementation Unit (PIU) has been created in the MSPY. The PIU team will comprise: a Director, Head of Procurement, Procurement Assistant and two Financial Management staff. As a result experience with other results-based operations in the region has shown that this approach promotes a strong partnership through implementation that clients find helpful.