FYI: New World Bank Package for DR


Mar 23, 2004
While I am still neutral in my observation whether DR is going forward or stalling I here is yesterday's Press Release from

World Bank to Provide Up to US$360 Million Over Four Years to Restore Economic
Growth and Improve Human Development in the Dominican Republic

WASHINGTON, May 19, 2005 - The World Bank Group's Board of Directors today
discussed the institution's new Country Assistance Strategy (CAS) for the
Dominican Republic, which projects financial assistance of up to US$360 million
between 2006 and 2009, as well as technical and advisory services.

"After emerging from a period of crisis, the Dominican Republic's medium-term
growth prospects are generally good, but the country still faces a number of
challenges to ensure that all Dominicans can benefit from growth and
development, especially the poorest," said Caroline Anstey, the World Bank's
Country Director for the Caribbean. "The new assistance strategy will support
the Government's program with lending and analytical assistance to improve
growth and competitiveness and achieve greater social equity."

After two years of deep crisis, the Dominican Republic has begun to turn a
corner. The peso has appreciated, inflation has come down, and economic growth
has resumed. Despite these achievements, challenges mostly related to weak
governance, fragile public institutions, entrenched inequality, high rural
poverty, youth unemployment, and social exclusion remain. The Dominican
Republic is on track for meeting many of the Millennium Development Goals, but
it is unlikely to achieve the goals related to the eradication of hunger,
improvement of child and maternal health, and environmental sustainability.

The Bank's new assistance strategy for the Dominican Republic is the result of
close collaboration with the Government and has benefited from wide
consultations with civil society, including youth groups, and private sector
representatives, as well as with other donor agencies and academia. The CAS has
three scenarios with different World Bank lending volumes and number of
operations - low, base and high. The base case lending scenario includes seven
loans for a total of US$260 million over four years:

* Institutional Strengthening Technical Assistance Project (US$10 million)
* Social Sectors Investment Project (US$50 million)
* Community Development Project (US$30 million)
* Urban Territorial Development Project (US$20 million)
* Water and Sanitation Adjustable Program Loan (US$20 million)
* Energy Investment Project (US$30 million)
* Power Sector Development Policy Loan (US$100 million)

The high case lending scenario consists of these seven loans plus a Development
Policy Loan of US$50 million to support public sector modernization, and an
investment loan of US$50 million to support the second phase of the Water and
Sanitation Investment Program, bringing the total lending envelope to US$360
million. In the low case scenario, resulting from a deterioration of portfolio
performance and/or a deterioration of key macroeconomic indicators, the Bank
would support the first four projects from the list above for a total lending
of US$110 million.

As part of the assistance program, the Bank will undertake analytical work that
addresses issues of governance and institutional strengthening, and which
provides valuable input to the policy dialogue. The analytical work will
include a Country Economic Memorandum (jointly with the United Nations
Development Programme and the Inter-American Development Bank), a Poverty
Assessment, a study on Transport for the Urban Poor, a Financial Sector
Assessment Program, a regional study on Crime and Violence, and a review of the
Country Regulatory Framework, among

The Bank's assistance program will be complemented by support from the
International Finance Corporation (IFC), focused on investing in tourism,
mining, free trade zone, and human resources development (health and
education). In addition, the Multilateral Investment Guarantee Facility (MIGA)
will work with project sponsors who are exploring long-term investments in the