PMFORUM Breaking News

Reported by Getachew Alemu in Addis Ababa

The World Bank group has launched a new Country Assistance Strategy (CAS) for Ethiopia. The new CAS for Ethiopia announced on April 29, 2008 will cover a period from July 2008 - June 2011. It has an aim of scaling up the assistance that has been given to Ethiopia with regard to economic growth and protection of basic services.

According to the country director of World Bank, Ken Ohashi (pictured) “Ethiopia’s achievement on growth and basic services delivery is remarkable; at the same time, sustaining this good performance will require addressing several looming challenges. With this regard, the bank will support Ethiopia in all ways possible.”

The bank has planned to invest $635 million for the fiscal year 2008 in support of various projects. The Bank’s strategy will support the Governments’ Plan for Accelerated and Sustained Development to End Poverty (PASDEP) and will be focused around four main pillars:

• Fostering economic growth. The Bank will support the country’s macro-fiscal stability as well as agriculture and infrastructure (roads, energy, water) sectors. It includes a focus on regional cooperation on large-scale infrastructure and expansion in private investment.


• Improved quality of and access to basic services. The second pillar aims to help Ethiopia complete its move toward universal access to essential services in health, education, agriculture and water, and step up efforts to enhance the quality of such services. It also includes greater involvement of communities, citizens, and civil society in the decision making and monitoring processes.


• 
  Reducing Vulnerability. The Bank will continue to support Ethiopia in addressing food insecurity, help address environmental degradation and population pressures, and support greater economic engagement of women and youth.


• Fostering Improved Governance. The Bank will continue its strong emphasis on improving the effectiveness and quality of public administration, enhancing the accountability and responsiveness of government, and increasing empowerment and accountability.

The International Finance Corporation (IFC), the private sector arm of the World Bank Group, is expanding its reengagement in Ethiopia to support the development of the private sector. IFC has recently approved an investment in the cement industry, the IFC’s first investment project in Ethiopia in over 18 years.

The Bank’s program for Fiscal Year 2008 is based on an initial International Development Association (IDA) allocation of about $635 million at current exchange rates. The size of the lending program for the rest of the CAS period will depend on IDA’s 15th replenishment, which envisages significant funding increases for IDA borrowers. The annual IDA allocation reflects a country’s policy and institutional performance, portfolio quality, per capita income levels, and population. More could be found on www.worldbank.org.

Getachew Teklemariam Alemu International Correspondent - Ethiopia Getachew Teklemariam Alemu is an International Correspondent for PMForum and PM World Today based in Addis Ababa, Ethiopia.  Mr. Alemu is also an Infrastructure Projects Expert in the Development Projects Department of the Ministry of Finance and Economic Development, government of Ethiopia.  Getachew is responsible for monitoring, appraising and reporting on public sector infrastructure projects financed by the Ethiopian government and bilateral/multilateral donor agencies.  He has a Bachelor’s of Science degree in Land Resources Management and Environmental Protection from Mekelle University in Ethiopia.  More information about Getachew Teklemariam can be found at http://www.pmforum.org/pm%20forum%20team/index.htm#5.  Getachew can be contacted at getdem2006@yahoo.com.