ADF Supports the Modernization of Public Expenditure Control in Benin

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Tunis, 29 June 2005 – The Board of Directors of the African Development Fund (ADF), the concessional window of the African Development Bank (AfDB) Group, on Wednesday in Tunis approved a loan to Benin  of 2.5 million Units of Account (UA*) equivalent to US$ 3.7 million to finance the Control Institutions Support Project (PAIC).

The main goal of the project is to enhance the management of public spending in order to contribute to poverty reduction. More specifically the project aims to strengthen, rationalize and improve the efficiency of internal control through simplified procedures and a better definition of the roles of the different control structures, as well as the efficacy of external control and finally enhance the technical capacities of parliamentary control over the Government’s management.

The project has three components:

-  A priori support to internal control Institutions

-  A posteriori support to internal control Institutions

-  Strengthening of external control institutions

The project will respond to the urgent need for capacity building and modernization of public expenditure control instruments expressed by certain ministries and local institutions to enhance the country’s socio-economic development. The primary beneficiaries of the ADF initiative are the Directorates of Financial Control and their

Branches in the country’s districts, the General Inspectorate of Finance, the Departments of inspection and internal audit,  the Supreme Court (Audit Bench) and the National Assembly (Finance and Trade Committee and

the General Secretariat ).

The implementation of the project will enable Benin to have enhanced and modern managerial skills and tools. As such, the Project should lead to sustainable improvement of the quality of the State’s financial and economic management, and the gradual disappearance of fraudulent practices among various managers in ministries as well as public bodies. Moreover, by strengthening the capacities and efficiency of control organs the project should promote comprehensive implementation of the government’s programmes devoted to the social sectors and consequently make positive economic and social impacts in the country.

The Bank Group's operations in Benin started in 1972. To date, the cumulative commitment of the ADB Group in the country amounts to about US$ 615 million for 70 operations.

Project Information Sheet

-  Sources of financing: ADF, Denmark & Government of Benin

-  Estimated start-up date and duration: Jan. 2006 -  36 months

-  Executing Agency: Coordination of reform actions (CAR) Ministry of Finance and the Economy Tel: (229) 300217 Fax: (229) 301851

-  Procurement of Goods and Services: The Consultant will be recruited through competition on the basis of a shortlist in accordance with Bank Group Rules of Procedure.

*1UA = US $ 1.47495 as at 01 /06/05