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Myanmar: World Bank extends partnership framework with $1.2b from IDA
The World Bank Group (WBG) and Myanmar government have agreed to a two-year extension of the Country Partnership Framework (CPF) with up to US$1.2 billion in financing, according to a press statement from the World Bank on June 23, 2017. The focus would be on rural growth, social services, health care and job creation.
Over the next two years, the financing will come from the International Development Association (IDA), a member of the WBG which offers concessional loans and grants to developing economies.
The International Finance Corporation (IFC), a WBG member, and the Multilateral Investment Guarantee Agency (MIGA), will continue their support to private lenders and investors based on demand.
The two-year extension of the CPF will help Myanmar strengthen its programs and reforms which will promote growth in rural areas, invest in basic social services. This will include the provision of better health, nutrition and education facilities and building infrastructures, which will in turn create more and better employment opportunities in the next two years.
The Performance and Learning Review of the CPF noted progress in three areas of partnership, which will continue to be the priorities of the extension: reducing rural poverty, investing in people and effective institutions, and supporting a dynamic private sector to create jobs.
According to the review, better schools, roads and other infrastructure have benefited some 5.4 million people since 2015 in the country. Stipends have helped 150,000 more students receive education.
Similarly, families in remote villages nationwide have benefited from community investments in schools, clinics, clean water, sanitation, electricity for lighting, refrigeration, and running businesses through World Bank-financed development projects.
Over $1.5 billion of private sector financing was mobilised through loans, equity, and guarantees by the IFC and the MIGA, along with technical assistance and advisory services.
Kyaw Soe Lynn, communications officer at the World Bank, told The Myanmar Times that there will be three key areas for the extended partnership framework.
Rural poverty reduction will be prioritised with agriculture receiving $100 million from the IDA.
The second key area will be investing in people and effective institutions, which will cover health, maternal, new born and child-care, nutrition, and facilitating development policy operation lending for the public sector.
The third priority will be supporting a dynamic private sector to create jobs, strengthening the competitiveness of the private sector.
The CPF, approved in 2015, is the World Bank’s first full strategy for Myanmar since 1984.
“With the CPF, the WBG has been focusing to support rural development through agriculture and community-driven development programs, build human capital and institutions accountable to people by expanding access to better health and education, and strengthening public finance management; boost private sector-led jobs, by improving access to electricity, and supporting macroeconomic stability and business climate reforms,” Kyaw Soe Lynn explained.
“The extended World Bank Group’s Country Partnership Framework closely aligns with our economic policy,” U Kyaw Win, Union Minister for Ministry of Planning and Finance, said.
“It will help us to consolidate progress and advance toward achieving our key development priorities such as rural development and fostering human capital, through efforts to improve nutrition, infrastructure development, and creation of jobs, in order for all of Myanmar to benefit from the country’s development,” he added.
Source: http://www.mmtimes.com/index.php/business/26561-world-bank-extends-partnership-framework-with-1-2b-from-ida.html