Sustainability and Competitiveness DPL 2

closed

The objectives of the Second Sustainability and Competitiveness Development Policy Loan Project in the Republic of Seychelles are to enhance competitiveness and improve fiscal sustainability. This project is the second operation in a programmatic series of three planned annual operations from FY12-15 in support of the government’s economic reform program. To achieve the development objectives, five components will create the basic institutions to support the reform processes. First, the project will improve the business climate by simplifying the processes of registering a business and obtaining a license, updating outdated legal framework governing business entry, and introducing electronic payment facilities for business and tax services. Second, fiscal transparency will be enhanced by removing legislative impediments to business and investment. Third, public financial management will improve through the creation of an independent commission for supervising public enterprises. Fourth, targeting social assistance will improve economic reform through the merging of the Social Welfare Agency and the Social Security Fund. Fifth, the project will increase fiscal oversight and controls over public enterprises by improving expenditure efficiency, targeting automation and monitoring the evaluation framework of the social protection system, and ensuring the cost recovery and the long-term financial sustainability of public utilities.