This additional financing will fill the financing gap created by the reallocation of resources for COVID-19 response and contribute to supporting the recovery of the tourism and agribusiness sectors in Madagascar.
WASHINGTON, December 10, 2020 – The World Bank Board of Directors approved today a $33 million International Development Association (IDA) credit in support of the Integrated Growth Poles and Corridor Sop-2 Project (PIC 2.2). This additional financing will fill the financing gap created by the triggering of the Immediate Response Mechanism (IRM) to contribute to the financing of Pillar 3 of the government’s multisectoral emergency plan (PMDU), which aims to support economic resilience and the private sector.
This replenishment of funds for the PIC2.2 project is important to ensure that originally planned project activities will be financed and implemented. These activities include support to micro, small and medium enterprises (MSMEs) in the tourism and agribusiness sectors that will become even more important, now, in the recovery phase of the crisis. Due to the crisis and its long-term impact, a restructuring has been included in this additional financing to – among other things - adjust targets for key indicators, to reflect the impact of the crisis on economic activity and to fine-tune project support instruments to enhance their effectiveness and relevance for the recovery phase.
“The tourism sector has been hardest hit by the pandemic in Madagascar. In the COVID-19 context, the continuity of PIC 2.2, which supports tourism and agribusiness, is a priority and will contribute to responding to and alleviating the economic impacts of the ongoing crisis in the two targeted sectors. The replenishment of these funds is, thus, important, given the severity and longevity of the current crisis,” said Marie-Chantal Uwanyiligira, World Bank Country Manager for Madagascar.”
World Bank Group COVID-19 Response
The World Bank Group, one of the largest sources of funding and knowledge for developing countries, is taking broad, fast action to help developing countries strengthen their pandemic response. It is supporting public health interventions, working to ensure the flow of critical supplies and equipment, and helping the private sector continue to operate and sustain jobs.
The World Bank Group is making available up to $160 billion over a 15-month period ending June 2021 to help more than 100 countries protect the poor and vulnerable, support businesses, and bolster economic recovery. This includes $50 billion of new IDA resources through grants and highly concessional loans and $12 billion for developing countries to finance the purchase and distribution of COVID-19 vaccines.