AfDB: USD 15 million to Benin
I am pleased to inform you that the Board of Directors of the African Development Fund (ADF), the concessional window of the African Development Bank (AfDB) Group, has approved a loan and a grant totaling 15 million Units of Account (UA*), equivalent to US$ 22.19 million to finance the Second Poverty Reduction Strategy Support Programme (PRSSP II) in Benin.
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African Development Bank Group
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Benin: US$ 22 Million In Support of Poverty Reduction
Tunis, 24 July 2006 – The Board of Directors of the African Development Fund (ADF), the concessional window of the African Development Bank (AfDB) Group, has approved a loan and a grant totaling 15 million Units of Account (UA*), equivalent to US$ 22.19 million to finance the Second Poverty Reduction Strategy Support Programme (PRSSP II) in Benin.
The overall objective of PRSSP II is to reduce poverty through strong and sustainable economic growth. The ADF loan of 9.86 million UA (US$14.59 million) and grant of 5.14 million UA (US$ 7.60 million) will finance the implementation of the 2005-2006 Bank Group operational programs of the Poverty Reduction Strategy, in collaboration with other development partners.
The Programme will enhance the implementation of the country’s Poverty Reduction Programme (2005-2009) based on four strategic thrusts: Strengthening the medium-term macro-economic framework and the development of human capital and environmental management. It will also improve governance and institutional capacities and promote sustainable employment as well as enhance the capacity of the poor to take part in decision-making and production processes.
The key components of PRSSP II programme draw from the government’s Vision ‘Benin 2025’ and will be used for the preparation of the second PRSP in 2006. The components are in line with the strategic thrusts of PRSP which are:
· Accelerating economic growth;
· Improving the populations’ access to basic services and environmental protection;
· Improving and strengthening governance.
These objectives are in line with the priorities of PRSP 2005-2009, which has two strategic pillars, promoting the diversification of production; and improve access to the basic social services.
PRSSP II is the third budgetary support to Benin from the ADF after the Budgetary Support Program (BRSP) in 2000-2001, and the first phase PRSSP in 2004-2005.
The ADB Group began operations in Benin in 1972. To date, its commitments in the country stand at US$ 685.52 million in 71 operations.
* 1 UA = USD 1.47937 as at 24/07/2006