Togo Second Fiscal Management and Infrastructure Reform DPF

closed

Closed

The development objectives of the Second Fiscal Managements and Infrastructure Development Policy Financing in Togo are structured around two pillars: (i) enhancing fiscal and debt management; and (ii) Improving financial viability and service delivery in energy and water sectors. The Development Policy Financing (DPF) addresses critical bottlenecks to sustained inclusive growth. Pillar 1 enhances fiscal and debt management, creating fiscal space for increased public investment and social spending. The reforms cover: (i) strengthening tax revenue mobilization by improving the design and management of tax expenditures (including value-added tax (VAT) exemptions) and increasing revenues from property taxes; and (ii) improving public investment and debt management. Pillar 2 supports reforms to improve financial viability and service delivery in the energy and water sectors. The reforms aid the financial performance of the public electricity utility of Togo Electric Power Company and promote increasing energy efficiency. This is done through the policy of installing smart meters for central government entities and pre-paid meters for local public entities; the establishment of a new methodology for setting and periodically adjusting electricity tariffs to ensure financial equilibrium; and a 2021-2025 renewable energy development plan with clear targets to increase renewable energy generation. It also supports reforms to improve the financial sustainability of the public water utility and access to water resources through: (i) revising the taxation of surface and groundwater extraction by large commercial and industrial consumers; and (ii) spreading out the payment of connection fees of vulnerable households over three years.

World Bank Group

Project

Water Supply and Storage, Power Transmission, Manufacturing (Industrial), Waste Processing and Treatment, Power Generation (CCGT), Government, Commercial