STATE OWNED ENTERPRISES RELATED FISCAL MANAGEMENT PROJECT

closed

The objective of the State Owned Enterprises Related Fiscal Management Project for Cabo Verde is to strengthen SOE related fiscal management. There are three components to the project, the first component being results-based financing. This component aims to support some critical reforms in TACV that are needed to improve performance and prepare the company for privatization and thereby eliminate its needs for public financing for its operations. This component includes two subcomponents: fiscal risk assessment and monitoring, and TACV restructuring and reduced public financing. The second component is the technical assistance. This component will provide technical support for the implementation of the Government SOE reform program and to strengthen the overall capacity of the MoFP for macro-fiscal monitoring and SOE oversight and monitoring. It aims to strengthen the GoCV’s capacity as an active and informed owner of SOEs, including its ability to independently analyze and assess SOE activities, operational and financial performance, business plans, audits, and to prepare comprehensive and in-depth analytical reports on the SOE portfolio under its purview and ability to increase private sector participation in SOEs. This component includes two subcomponents: improved SOE-related fiscal management, and improved corporate governance of SOEs. Finally, the third component is the project management support. This flexible component will support project management and implementation needs including the financing of the project coordination, procurement, financial management, audit, legal and monitoring and evaluation (M&E) (independent verification agent). It will also finance some activities that are not included or anticipated in the original design of the project, but are necessary elements as the project unfolds.