US$308 Million Grant to Côte d’Ivoire Clears Arrears to the World Bank Group and Triggers Strong Re-engagement

The World Bank Board of Executive Directors approved a grant for US$308 million to the Republic of Côte d’Ivoire to clear its arrears dating from 2004 to the World Bank Group and provide US$35 million in budget support.  This operation paves the way for a strong re-engagement by the World Bank with a further US$226.5 million to support Côte d’Ivoire’s post-conflict reconstruction efforts, especially in the areas of economic reform, governance, community rehabilitation, and the provision of basic social services.
 
“The clearance of IBRD and IDA arrears constitutes a landmark in our collaboration with the Government of Côte d’Ivoire, opening the way not only for the Bank to resume funding support for medium- and long-term economic development and reconstruction efforts, but also for other donors to contribute towards the government’s goal of stabilizing and re-building this very important country that was a regional leader in Africa before the conflict,” said Obiageli Ezekwesili, the World Bank Vice-President for Africa.
 
The key objectives of the Bank’s re-engagement will be threefold: (i) support the stabilization of the country by assisting in the implementation of the Ouagadougou peace agreement; (ii) assist war affected populations through community rehabilitation and support to the provision of basic social services; and (iii) assist economic recovery by focusing on economic governance reforms, institutional building and supporting economic production.
 
A US$120 million pre-arrears clearance grant for Post Conflict Assistance was approved in August 2007.  In addition to the grant approved on April 1, Côte d’Ivoire now has access to US$122.5 million of new grants to fund an Emergency Urban Infrastructure Project (US$90 million), a US$20 million project to combat the HIV/AIDS pandemic, a Governance and Institutions Program (US$10 million) and US$2.5 million to help protect a national park.  Four existing projects in education, rural development and the transport sector, on which US$104 million remains to be disbursed, will also be reactivated.
 
 “The full re-engagement of the Bank, as well as the increased support anticipated from other development partners, should help set Côte d’Ivoire solidly on the road back to economic recovery, reconstruction and stabilization,” said Bernard Harborne, the World Bank Country Manager for Côte d’Ivoire.

The World Bank