Urban Water Supply - Supplemental

closed

This supplemental credit will provide financing to settle outstanding payments due to foreign and local contractors, under projects financed by the International Development Association (IDA). At project restructuring, uncertainties remained on the completion of the contracts signed before the war, which along with other factors, created a funding gap for the project. Therefore, the supplemental credit will provide additional resources allowing the Government of Sierra Leone settle the legitimate claims of foreign and local contractors, without jeopardizing the implementation of the Poverty Reduction Strategy. All contractors' claims have been duly reviewed, and, the Region's procurement staff visited the country to monitor such review, found satisfactory. The staff is also satisfied with current investigations regarding the mis-procurement of goods under the original credit, which is not connected to any contract, or contractors covered by the supplemental credit. Such settlement of arrears will help the Guma Valley Water Company (GVWC) improve its financial viability, and contribute to overall, the external creditworthiness of the country.