WASHINGTON, May 31, 2017—The World Bank will provide a $29 million IDA* credit to Senegal to strengthen the country’s institutional capacities to negotiate complex agreements in the extractive industries. This technical assistance from the World Bank will help ensure Senegalese oil and gas development projects take place in an environment conducive to private sector investments aligned with the public interest.
“Recent oil and gas discoveries off the coast of Senegal have the potential to put the country on a more sustainable and inclusive growth path. Enhancing the governance of the extractive sector, strengthening the regulatory and fiscal framework and promoting greater accountability between government and citizens will be essential to ensure everyone benefits from natural resource endowments,” says Louise Cord, the World Bank Country Director for Senegal.
“The period between the time when resources are discovered to the moment a decision is made on whether and how to develop the resources is critical,” says Riccardo Puliti, Head of the Energy and Extractives Global Practice at the World Bank Group. “Through this technical assistance the World Bank will bolster the government’s capacity to negotiate fair deals and drive negotiations toward successful investment decisions.”
Actively engaging with citizens throughout the process will also be critical to ensure inclusive development and promote transparency and accountability from both the government and the oil and gas industry. The proposed technical assistance will therefore strengthen the government’s capacity to engage effectively with citizens and other key stakeholders on issues relevant to gas and oil development projects.
* 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.