TG-Economic Recovery and Governance Grant

closed

Closed

The objectives of the Economic Recovery and Governance Grant (ERGG) for Togo are to: (i) facilitate the clearance of Togo's arrears to International Development Association (IDA), which is required to restore normal relations between the country and the World Bank; and (ii) support Togo in its economic and social recovery. Given the complex and still fragile socio-political environment and governance and transparency issues facing the government, the second objective is pursued by supporting government-owned reforms to improve governance, transparency and efficiency in public expenditure management as well as advance structural reforms aimed at strengthening governance and transparency in the key sectors of the economy (phosphates, energy, cotton and financial sectors). This program will lead over time to strengthened fiscal sustainability, enhanced transparency of state institutions and processes, improved economic governance and increased economic growth. Based on current projections of debt ratios for end-2007, Togo will qualify for debt relief under the enhanced heavily indebted poor countries (HIPC) initiative. The operation will then pave the way for HIPC debt relief with attainment of the decision point expected, assuming continued program performance, toward the end of CY2008. The ERGG is expected to have a positive impact on poverty reduction. Specifically, efforts to improve the capacity of the state to implement its budget priorities and strengthen public financial management will enhance efficiency, transparency and accountability in public resource use, and increase the country's absorption capacity for external resources. Strengthening governance, transparency and efficiency in the phosphates sector will help improve government revenues and contribute to a more transparent utilization of resources in this sector. Strengthening governance and transparency in the cotton sector will facilitate a rebound in cotton production in the short term, there by improving the livelihood of an important segment of the population (which relies on this cash crop as dominant source of earnings). Improving governance and efficiency in the energy sector will help stimulate economic activity and reduce government expenditures (the savings can be used for increased expenditures for basic social services). Reforming the financial sector will help strengthen the financial situation of institutions affected by the crisis and improve the soundness of the banking sector, as well as of microfinance institutions which benefit the poorer and more vulnerable part of the population. The grant will also help fund the provision of basic public services with a beneficial impact on the poor in the period immediately after arrears clearance.

FY17 - Energy and Extractives,FY17 - Financial Sector,FY17 - Industry, Trade and Services,FY17 - Public Administration

World Bank Group

Project

Fertilizers, Raw Materials, Government