default header
14 May 2004
World Bank Approves $49.8 Million for Reforms in FYR Macedonia
Projects in public administration, social protection, health sectors
The World Bank announced May 13 that it has approved $49.8 million to support projects in FYR Macedonia's public administration, social protection, and health sectors.
Following is a World Bank press release with details on the projects:
(begin text)
The World Bank
Washington, D.C.
May 13, 2004
WORLD BANK SUPPORTS REFORMS IN PUBLIC ADMINISTRATION, SOCIAL PROTECTION AND HEALTH SECTORS IN FYR MACEDONIA
The World Bank today approved a total of US$49.8 million for three projects for FYR Macedonia: the US$30 million Public Sector Management Adjustment Loan (PSMAL), the US$ 9.8 million Social Protection Implementation Loan (SPIL) and the US$10 million Health Sector Management Project (HSMP). These projects will assist the Government in the much needed reforms in sectors that affect the lives of all citizens of the country.
In their discussion of the project, the World Bank's Executive Directors considered that the recent Presidential elections demonstrated the growing strength of democratic institutions in FYR Macedonia, with all candidates committed to promoting reconciliation among all communities under the Framework Agreement.
They noted the wide support within FYR Macedonia for the country to join the European Union, and expressed the hope that this would help to underpin further reform efforts. Executive Directors emphasized that the World Bank remained ready to support FYR Macedonia's efforts to meet the conditions for the accession to the EU.
Executive Directors also recognized that the Macedonian Government had made significant efforts to maintain macro-economic stability, and to proceed with structural economic reform. As a result, they agreed that the World Bank would be able to move to a high-case lending program for Macedonia. In addition to the current loans, this will allow the Bank to lend up to a further $110 million over the next two years provided reform efforts continue.
Executive Directors noted, however, that further support from the World Bank would be critical to support a renewed effort by the Government to improve the business environment. Despite progress to date, additional reforms will be important if Macedonia is to attract the investment needed to promote growth and overcome persistently high levels of unemployment.
Building on the achievements of the existing program, the Government and the World Bank have designed a set of new Bank assistance projects aimed at further strengthening public resource management and tackling corruption.
Support of the public sector management reform program will be continued under the Public Sector Management Adjustment Loan (PSMAL) (US$30 million) which will support measures to consolidate improvements in budgetary planning and execution, such as the implementation of control over commitments by budget entities, the introduction of new audit and procurement practices, and assistance with civil service reform and with improving social sector expenditure management.
The Social Protection Implementation Loan (SPIL)(US$9.8 million) will support reforms aimed at improving the effectiveness and efficiency of FYR Macedonia's social protection system through better administration and long-term sustainability of the pension system and improved targeting and administration of social protection programs. The Health Sector Management Project (HSMP) (US$10 million) aims to upgrade the capacity in the Ministry of Health and in the Health Insurance Fund to formulate and effectively implement health policies, health insurance, financial management and contracting of health care providers as well as to develop and implement an efficient scheme of restructuring of hospital services with emphasis on day-care services and shifting to primary care.
"The ultimate goal of these projects is to support the country's efforts to improve the quality of life of its people," said Sandra Bloemenkamp, World Bank's Country Manager for FYR Macedonia. "Addressing systemic weaknesses in institutions and governance will remove critical obstacles to growth and opportunity, public accountability, and social security."
The three projects were initially outlined in the Country Assistance Strategy for FYR Macedonia, discussed by the World Bank's Board of Directors in September 2003, in which the efficient management of public resources, combating corruption and undertaking health and social protection reforms were identified as among the key issues for the development of the country.
Once the three projects are completed, the Macedonian people will benefit from a modern public administration system, and more efficient, equitable and cost-effective health, pension and social protection programs.
FYR Macedonia joined the World Bank in 1995. Since then, the World Bank has provided support to the country through 25 operations, totaling more than US$600 million.
(end text)
(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
