MOGDISHU(Halbeeg News)-The government of Somalia and World Bank has today signed 80 million grant agreements in Mogadishu.
The finance minister of federal government of Somalia, Abdirahman Duale Beyleh welcomed the World Bank regional director, Bella Bird and other officials who paid visit to Somalia today.
The director had discussions with finance minister on the ongoing successes of the fiscal reforms by the federal government.
The minister of finance of federal government of Somalia, Abdirahman Duale Beileh said his ministry will soon start the implementation
“We are really proud to sign the first half of the World Bank’s project of 140 M, and I can say that it was an endorsement of the work on debt relief. Today, we have signed the first 80 million and we will start the implementation of the eighty million” said the minister.
Speaking the signing of the agreement, World Bank regional director, Bella Bird said the World Bank is ready to support the government of Somalia in it is efforts to increase revenue collection across the country to ensure that the systems are place so as to utilize and monitor the expenditures of the government.
“In fact, we have two projects today, one that the minister has explained is focusing on domestic revenue mobilization and public financial management and on that project I am delighted to see that we as the World Bank, we are able to support the government Somalia to build on the progress that has been made in about raising the revenue in an efficient way”
The World Bank has also launched another project, recurrent cost financing project which supports the development of payrolls in central government and building the capacities across government.
“The World Bank is about working the government like the Somali government and governments across the world to support the development of the capacities and their capability to deliver services to their citizens” said the director.
The Word Bank has approved $80m in loans to Somalia to assist with public finance reforms, marking the first funding for the government in more than 30 years.
The Washington-based lender suspended its ties with Somalia when war broke out in 1991 and resumed support in 2013 – with a focus on HIV and livestock programmes – but has not approved any direct lending to the government until now.
Its board approved financing of $60m for the Recurrent Cost and Reform Financing Project and $20m for the Domestic Revenue and public financial management Capacity Strengthening Project.
These will support the government in mobilizing and redistributing the resources needed to rebuild the country after three decades of conflict.