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Tanzania - Good Governance and Private Sector Development Programme (GGPSDP) - Appraisal Report

16-Aug-2018

Management submits the following Report and Recommendation for a proposed ADF loan of UA 40 million, to the United Republic of Tanzania, to finance the first phase of the Good Governance and Private Sector Development Program (GGPSDP) for the fiscal year 2017/18. The GGPSDP is designed as a programmatic series of two consecutive general budget support operations (GBS) covering the two-year period 2017/18 and 2018/19, for a total indicative financing package of UA 80 million. In line with the Bank’s Policy on Program-Based Operations (PBOs), this intervention is proposed for approval against the achievement of key Prior Actions derived from Government of Tanzania’s (GOT’s) implementation of reforms to enhance good governance and promote private sector development. In its design, the GGPSDP presents the two-year overall reforms framework, including setting out indicative triggers for the second phase (GGPSDP II). This format is in line with provision of predictable financing within a medium-term framework for engaging GOT in policy dialogue with the Bank, development partners and major stakeholders, including civil society and the private sector. The program is a response to a request from GOT, in March 2018, for the Bank to support its governance, business enabling environment for private sector development and PFM reform agenda. The operation builds on the Bank’s Governance and Economic Competitiveness Support Program (GECSP) Supplemental financing operation of 2013, as well as the programmatic Power Sector Reforms and Governance Support Program implemented during 2015 to 2017. The GGPSDP also has complementarities with the Bank’s Institutional Support Projects for Good Governance (ISPGGs) and Domestic Resources Mobilization and Natural Resources Governance Project interventions in Tanzania.

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