• Reference: P-ET-K00-011
• Approval date: 18/07/2012
• Start date: 22/01/2013
• Appraisal Date: 11/05/2012
• Status: OngoingOnGo
• Implementing Agency: GOVERNMENT OF ETHIOPIA
• Location: Ethiopia

PBS supports the Government's commitment to strengthen decentralised service delivery and enhance local transparency and accountability mechanisms that support those service delivery objectives. In this regard, the programme has two components, namely:

(i) Basics services grants supporting the decentralised delivery of basic services in agriculture, education, health, rural roads and water supply and sanitation, by sub-national governments across Ethiopia, and.

(ii) Support to strengthening of a decentralised system of economic governance that the Government has established and developed, covering information, resource and accountability.at the decentralised level. The latter is divided into two sub-components:

(i) Public Financial Management (PFM) and;

(ii) citizens' engagement at the sub-national level. A distinguishing feature of this third PBS program is the way in which it aims to strengthen the linkages between the demand and supply side of governance, by better mainstreaming social accountability mechanisms and supporting government systems to be more responsive to citizens' needs. .

The objective of the operation is to support the GoE in its efforts to reduce poverty and improve the standards of living of Ethiopians. In this context, the operational policy objectives focus on:

(i) expanding access and improving the quality of decentralised basic services in education, health, agriculture, water supply and sanitation and rural roads by contributing to block grants and;

(ii) strengthening local systems by supporting improved financial transparency and accountability systems and social accountability

PBS III has been designed to support GoE in achieving the GTP objectives. The operation is fully aligned with the Bank CSP (2011 -2015) strategic objectives, which are articulated around two pillars:

(i) support for improved access to infrastructure; and

(ii) support for enhanced access and accountability in basic services and improving the business climate. The financing will provide needed resources to safeguard and scale up expenditures on pro-poor basic services. In addition, it will help in maintaining macroeconomic stability by easing pressure on domestic borrowing. The programme will also contribute to consolidating the gains made under the Bank's previous programmes PBS I and II thereby contributing towards reaching MDG goals.

Key results expected from the programme include:

(i) primary completion rate increase from 49.4% to 64%;

(ii) maternal mortality ratio down from 470 to 367;

(iii) agricultural productivity for major food crops increased from 15 quintal per hectare to 20;

(iv) average time to nearest all-weather roads reduced from the current 4.5 hours to 1.6 hours;

(v) access to potable water supply increased from 71.3% to 92%;

(vi) budget and financial reports generated using IBEX increased to 300 from 0; (vii) increased external audit coverage at woreda level from 24% to 40%; (viii) procurement performance and compliance audits have been rolled out in 50% of woredas; (ix) citizens who are informed about woreda budget increased from 19% to 23%, and; (x) citizens who report that woreda officials have sought the views of people on improving quality of basic services increased to 50% from 48%..

NDISALE Victor Charles - OSGE2

Finance source	Amount
ADF	UAC 166,000,000
Government	UAC 1,146,160,000
Co-financier	UAC 926,140,000
Total	UAC 2,147,483,647