A $15 million grant has been approved to improve public investments management, domestic revenue mobilization, public accountability and monitoring mechanisms for better service delivery in priority sectors
WASHINGTON, October 3, 2017— The World Bank today approved a $15 million International Development Association (IDA)* grant (about CFAF 8 billion) to help Togo address critical economic governance and public financial management challenges, including low efficiency, inadequate budget preparation and execution as well as the narrow tax base.
The new Economic Governance Project --EGP will help improve public investment management, domestic revenue mobilization and public accountability and monitoring mechanisms for better service deliver in the priority sectors of education, health and water.
“Despite government’s efforts, Togo continues to suffer from persistently limited public service delivery outcomes, resulting in part from inadequate accountability mechanisms, with consequences for societal well-being and equality of opportunity for citizens. The new project seeks to enhance government effectiveness and citizen engagement by improving public investments management, tax collection and strengthening citizen engagement in the budget process and service delivery,” said Pierre Laporte, World Bank Country Director for Togo.
The new project will help strengthen inter-ministerial coordination and appraisal methodologies necessary to improve the alignment between public investments planning and revenue estimates, improve the quality of preparation of priority public investment projects, and strengthen the contract management and monitoring and evaluation mechanisms for public investments at both sectoral and government levels. It will strengthen capacity for tax policy formulation and enhance the operational capacity of the Togo’s revenue collection authority (Office Togolais des Recettes – OTR) to improve taxpayer compliance and widen the tax base, One important aspect of the EGP is the involvement of civil society organizations to help increase public accountability and citizen engagement in the budget preparation and execution process, and citizen feedback on the quality and accessibility of public services in the priority sectors of primary education, maternal and child health, and urban water supply.
“EGP is positioned in a context of solid engagement and effective coordination among donors to address Togo’s critical economic governance challenges. It complements other operations that address fiscal consolidation and public debt management. In addition, the European Union is co-financing the project with an additional amount of 5 million euros,” said Laporte.
The EGP will be implemented over a five-year period. It is consistent with the strategic objectives of the Government’s national development plan, and is equally aligned with the World Bank Group’s new partnership strategy which highlights the importance of investing in both demand and supply side governance to enhance public service delivery.
* The World Bank’s International Development Association (IDA), established in 1960, helps the world’s poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives. IDA is one of the largest sources of assistance for the world’s 77 poorest countries, 39 of which are in Africa. Resources from IDA bring positive change to the 1.3 billion people who live in IDA countries. Since 1960, IDA has supported development work in 112 countries. Annual commitments have averaged about $19 billion over the last three years, with about 50 percent going to Africa.