The African Development Fund supports economic reforms and governance in Burundi
The government's economic reform programme comprises the following components: reintegrating conflict victims and disadvantaged groups into the economic system; reforming the macroeconomic framework; disengaging the government from the productive sector; and strengthening good governance.
This Programme has obtained the support of the Board of Directors of the African Development Fund (ADF) which has approved on December 8th in Tunis a loan amounting to 6.720 million Units of Account (UA)*, equivalent to US $ 10.08 million, and a grant of UA 1.5 million, equivalent to US$ 2.25 million, for an overall amount of US$ 12.33 million.
PAREG will be financed by the ADF resources for the 2005-2006 period, and will enable the reform of the macroeconomic framework, by implementing appropriate measures in the areas of fiscal, monetary and exchange rate policies; the fostering of good governance by reforming the public service and the institutions responsible for internal and external oversight of public resources management.
To help the government of Burundi implement this programme, an institutional support mechanism, financed by an ADF grant, will be established to reinforce technical capacity and efficiency in the institutions that help promote good governance.
ADB Group operations in Burundi started in 1974. To date, the Group has committed in the country a total amount of US $ 375 million for 43 operations.
- Name of programme: Economic reform and good governance support programme (Programmed’Appui aux Réformes Économiques et à la Gouvernance ) —PAREG 2005-2006.
- Executing Agency: Ministry of Finance
- Sources of finance: ADF, IMF, IDA, France, European Union
- Procurement of goods and services: The ADF loan will be used to finance the import of eligible goods and services. The import of goods under the loan will be done in accordance with the ADF regulations and procedures;
o All goods and services imported by the private sector and by business oriented public enterprises will be governed by business standards accepted in Burundi and acceptable to the ADF.
o Imports for the public sector that are valued at UA 500,000 or more will be subject to an international competitive bidding process; whereas imports of a lesser value than this threshold will be subject to international shopping.
o With respect to grant resources, the procurement of goods and services will be subject to ADF Rules of Procedure.
* UA 1 = US$ 1.49878 as at November 1st, 2004