Programmatic Support for Institution Building III

The objective of this operation is to deepen and sustain the reforms underway in the areas of public administration and fiscal management. The success of these reforms is essential for building an accountable and effective state and is critical for successful poverty reduction. The operation also supports the implementation of reforms that lead to a more efficient allocation of fiscal resources in the areas of human development and private sector development. It complements separate investment and technical assistance operations that, together, support the implementation of comprehensive sectoral reforms. It is also closely coordinated with other donors' support. The proposed operation is the last in a series of three and is designed to make a transition to a successor program. The focus of the Government's program is now shifting toward building capacity to deliver services throughout the Government. The PSIB program is expected to transition to a new program supporting an extension of reforms from the center to line ministries and provinces, with an emphasis on accountability. This new series would support the full ANDS, which GoA expects to finalize by mid-2008.