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PRESS RELEASE

World Bank Group Approves a US$50 Million Grant to Chad within a New Partnership Framework

December 10, 2015


WASHINGTON, December 10, 2015 —The Executive Board of the World Bank Group discussed today a new Country Partnership Framework (CPF) for Chad to support the country’s five-year development plan (2016-2020) and approved a US$50 million budget support grant for the Fiscal Consolidation Program Support. The CPF succeeds the Interim Strategy agreed with the Government between June 2010-June 2012 and was developed in close dialogue with the Chadian authorities, and through extensive consultations with civil society and development partners.

This CPF focuses on strengthening the management of public resources; improving returns to agriculture and building value chains; and building human capital and reducing vulnerability. These themes draw on the Bank’s comparative advantage in responding to key poverty reduction constraints as highlighted by the Systematic Country Diagnostic, and are aligned with the Government’s goals of improving governance, increasing productive capacity, developing human capital and fighting against inequality.

’The approved areas of engagement address the World Bank Group’s twin goals by recognizing that the elimination of extreme poverty in Chad will require public and private resources to be more effectively managed in favor of the 92 percent of the poor living in rural areas, and that basic health, education and social protection programs laid on the heart of the equitable allocation of public resources required to share prosperity more broadly’’ said Paul Noumba Um, World Bank Country Director for Chad, Mali, Niger and Central African Republic.

The Fiscal Consolidation Program Support is an International Development Association (IDA)* grant which will help maintain stability in the fiscal and macroeconomic sectors, protect critical Government programs, and set the basis for medium term reforms. This grant within the CPF constitutes the first Bank Group’s Development Policy Operation (DPO) for Chad in 10 years, and represents an important milestone for World Bank engagement in the country, following the achievement of the HIPC completion point on April 28, 2015.

“Chad’s macroeconomic outlook will be influenced by regional security issues, and climatic and oil price shocks, with little fiscal buffer to mitigate them. The approved DPO focuses on policies and actions aimed at broadening the tax base, improving payroll management, strengthening public procurement, reinforcing budget transparency and improving business registration. It will contribute to lessen vulnerability and reduce the impact of structural exogenous shocks on Chad’s economy.” said Samba Ba, Task Team Leader of the operation.

Adama Coulibaly, Country Manager for Chad, added that "As Chad prepares to launch its five-year Development Plan 2016-2020, our Board's approval of this CPF FY16-20 is a testimony of the World Bank commitment to maintaining a strong partnership with this country, leveraging the value-added of other development partners and Donors." 

* 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 for 2.8 billion people, the majority of whom live on less than $2 a day. Since 1960, IDA has supported development work in 112 countries. Annual commitments have averaged about $18 billion over the last three years, with about 50 percent going to Africa.

Media Contacts
In Washington
Aby Toure
Tel : (202) 473-8302
akonate@worldbank.org
In N’Djamena
Edmond B. Dingamhoudou
Tel : (235) 6612 7334
edingamhoudou@worldbank.org



PRESS RELEASE NO:
2016/212/AFR

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