Cabo Verde DPO (WB-P165631)

Countries
  • Cape Verde
Where the impacts of the investment may be experienced.
Financial Institutions
  • World Bank (WB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
U
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Aug 30, 2018
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
REPUBLIC OF CABO VERDE
The holder of the loan, grant, or other investment.
Sectors
  • Finance
  • Law and Government
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 20.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 20.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ WB website

Updated in EWS Jan 16, 2019

Disclosed by Bank Apr 26, 2018


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Project Description

According to bank documents, the project objective is to reduce fiscal risks and enhance fiscal management in support of sustainable private-sector led growth. The design of the DPF series responds directly to the macro-fiscal vulnerabilities which weigh on the government’s efforts to boost growth and shared prosperity. This operation supports the authorities in their efforts to stem the debt generation process – both in the central government and state-owned enterprises (SOEs) - by revisiting the role of the State in the provision of infrastructure services, improving the legislative framework supporting budget and debt management, and enhancing the alignment of national investment planning with growth objectives. Support to engender greater private sector activities in the country features strongly in the DPF series, notably through important reforms in the transport sector. This selectivity was based on the combination of the government’s priorities, the findings of the recent Systematic Country Diagnostic and other analytical work in Cabo Verde.

To support the government’s reform agenda in the areas of fiscal risks management and strengthening efficiency and accountability in support of fiscal consolidation, the series is organized around two pillars:

  1. Pillar A covers key reforms to reduce fiscal risks from SOEs while supporting private sector-led provision of infrastracture services. The government aims to reduce capitalization, direct subsidies and transfers to SOEs. Concurrently, direct guarantees to the sector will also be reduced, limiting central government’s exposure to the sector. Notable reforms include introducing greater private sector participation in the transport sector as well as improving the management of government companies and assets.
  2. Pillar B covers reforms to strengthen efficiency and accountability in fiscal management in support of fiscal consolidation. The government aims to:
    1. boost tax revenues through streamlining tax exemptions and revoking undue exemptions;
    2. rationalize expenditure;
    3. enact new legislation to create the enabling environment for modern debt management to strengthen the existing budget management practices; and,
    4. enact legislation which strengthens the powers of the Court of Accounts to improve transparency and accountability.
Investment Description
  • World Bank (WB)
Contact Information

World Bank:
Contact: Rohan Longmore, Christine Richaud and Kjetil Hansen
Title: Senior Economist, Lead Economist, Senior Public Specialist
Tel: +1 202 458 7694
Email: rlongmore@worldbank.org, crichaud@worldbank.org, and khansen1@worldbank.org

Borrower:
Contact: Ms. Carla Cruz
Title: Director of Planning
Tel: +238 260 7611/7521
Email: Carla.Cruz@mf.gov.cv

Implementing Agency:
Ministry of Finance
Republic of Cabo Verde

ACCOUNTABILITY MECHANISM OF WORLD BANK

The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. You can learn more about the Inspection Panel and how to file a complaint at: http://ewebapps.worldbank.org/apps/ip/Pages/Home.aspx.