The Gambia Second Fiscal Management, Energy and Telecom Reform Development Policy Financing

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The development objectives of the Second Fiscal Management, Energy and Telecom Reform Development Policy Financing in Gambia are to: (i) improve debt and public investment management; (ii) improve financial viability and service delivery in the energy and telecom sectors; and (iii) enhance the transparency and governance framework of State-Owned Enterprises (SOEs). It supports the authorities’ efforts to address critical bottlenecks to sustained inclusive growth and supports three key pillars. Pillar 1, debt and public investment management supports: (i) strengthening fiscal risks and debt management by introducing a framework to manage government loan guarantees and issuing an annual borrowing plan; (ii) strengthening public investment management by improving project selection and appraisal; and (iii) implementing the procurement act to ensure consistent use of competitive bidding and proper oversight of the procurement process. Pillar 2, financial viability and service delivery in the energy and telecom sectors supports strengthening the overall financial position and governance framework of the National Water and Electricity Company through a new tariff compensation mechanism, and the introduction of performance contract and quarterly performance monitoring framework. Pillar 3, transparency and governance framework of SOEs supports: enhancing fiscal transparency, reducing fiscal risks, and improving the corporate government of SOEs through establishing an oversight institution to ensure greater accountability of financial operations.