The Bank’s Country Strategy for Mauritius
The Bank Group’s Country Strategy Paper (CSP) for Mauritius (2009–2013) approved by the Board in September, 2009 (ADB/DB/WP/2009/146) expires at the end of 2013. Designed to help the economy respond to the global economic downturn while supporting the country’s development priorities, it is anchored on two pillars: (i) reducing structural bottlenecks to competitiveness and trade and (ii) enhancing public sector efficiency and social service delivery. Preparation of a new Country Strategy Paper (CSP) for period 2014–2018 is underway. It coincides with the approval in 2012 of a new three-year government program designed within the context of the country’s long-term Vision 2020 to fast track its transition to a High Income Country (HIC). It is envisaged that the new CSP will be anchored on two pillars (i) investing in infrastructure and (ii) enhancing regional integration. The 2014-2018 CSP is being designed in line with the Bank’s Strategy for 2013–2022 to support Mauritius reinforce its ongoing efforts for a more inclusive growth and a greener economy.
Bank’s Commitments in Mauritius
The Bank’s operational framework in Mauritius is designed to respond to the country’s needs as an upper Middle Income Country (MIC). It focuses on supporting policy reform, technical assistance and capacity building and knowledge work. To this extent the operational framework is dominated by a development policy lending in the public sector with a US $0.7 billion budget support operation which has been extended up to 2015 to support the Government’s US $10 billion infrastructure program. In addition, about UA 1.8 million in MIC grant financed operations are ongoing to support capacity building in the area of public debt management, statistical management, public sector investment program and urban planning. Country dialogue has also focused on enhancing engagement with the Mauritian private sector with two potential lines of credit envisaged with the Mauritius Commercial Bank and Bank One Limited. In January 2012 the Bank established a liaison office in Mauritius to better respond to the needs of the country. A resident Chief Investment Specialist has been posted to Mauritius to play an advisory role on infrastructure as requested by the Government. The Indian Ocean Flagship Report prepared in 2012 is expected to contribute to knowledge around key constraints and opportunities for competitiveness and growth for the five island states of Mauritius, Madagascar, Seychelles, Comoros and Reunion.
Bank’s Active Portfolio
Since its first project in 1975, the Bank Group has provided significant and diversified support to the country’s development efforts, approving a total of 37 operations comprising 26 projects, three policy- based operations, three economic sector studies and five lines of credit with an estimated total committed amount of US $1.2 billion. 60.9% of these resources have financed operations with a multi-sectoral dimension with the rest having the following sectoral distribution: agricultural and rural development (4.5%); water and sanitation (4.5%); transport (6.2%); power supply (1.2%); social (4.9%); industry, mining and quarrying (4.5%); and finance (13.3%).
The Bank’s active portfolio in Mauritius has a total net commitment of UA 442.6 million, comprising the Competitiveness and Public Sector Efficiency (CPSE) budget support loan and five MIC grant financed operations in the governance, transport and water and sanitation sectors. With no projects at risk and an overall portfolio rating of 2.54, the 2013 Country Performance Portfolio Review (CPPR) shows a satisfactory performance compared to the 1.93 rating in 2008. Nonetheless given the size of the portfolio the current average disbursement rate for the portfolio is relatively low.