TN-Governance, Opportunities and Jobs DPL-2

closed

This program document proposes a Second Governance, Opportunities and Jobs Development Policy Loan Program (GOJ-2 DPL) for the Republic of Tunisia, in the amount of US$250 million equivalent. The DPL will be the second in a programmatic series of three single-tranche multi-sector operations, to support the Tunisian Government in its efforts to implement a program of social and economic reforms that will complete the transition process leading to general elections at end 2014. The objective of this DPL is to help Tunisia establish the policy foundations for a more competitive business environment, a strengthened financial sector, more inclusive and account social services, and more transparent public governance. The first operation in the series (GOJ-1 DPL) was approved by the World Bank Board of Directors in November 2012. However, while the programmatic series was initially intended to have only two operations of US$500 million each, it is hereby proposed to split the second operation into two operations, increasing to three the total number of operations in the series, this reflects the impact of the difficult political situation, which characterized much of 2013 and led to a slower pace in the implementation of reforms, and efforts to chart a reform path in 2014 that is coherent with the overall political timetable. The resolution of the political crisis at end 2013, and the subsequent adoption of a new constitution and appointment of an independent, technocratic government that enjoys broad support among political and civil society stakeholders, provide an important opportunity to complete the transition while preparing the country for a new growth path. The World Bank Group (WBG) remains fully committed to supporting the finalization of the transition process in Tunisia, as the new Government's agenda focuses on strengthening the conditions for the economic recovery, while restoring the security situation.