Second Economic Reform Development Policy Operation

Projenin amacı

This proposal is for the second in a series of two programmatic development policy operations. The objective of the operations is to support the Government of Kiribati in a range of key economic and fiscal reforms to move towards long-term fiscal sustainability in the context of declining revenues and successive unsustainable drawdowns from the Revenue Equalization and Reserve Fund. The operation will provide financing to reduce reliance on unsustainable drawdowns, while supporting reforms to improve revenue performance and expenditure quality over the medium-term. Reforms supported by the operation will be focussed on the following areas: i) fiscal policy, including revenue, debt management, and trust fund management; and ii) structural reforms, including SOE reform and telecommunications liberalization. The program has been discussed extensively with Government and development partners. The first operation was successfully delivered and is soon to disburse. ADB will be providing additional budget support aligned with the Bank operation and a joint donor policy matrix. Project preparation will be financed by PREM PF3 funds.

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