89739

                                                          Republic of Tunisia
                               Urban Development and Local Governance Program
                                                               Chair Summary
                                                                July 24, 2014
 
        The Executive Directors approved a loan in the amount of EUR 217 million (US$300
million equivalent) to the Republic of Tunisia for the Urban Development and Local Governance
Program on the payment terms and conditions set out in the President’s Memorandum.
 
        Directors supported this first Program-for-Results operation in Tunisia, which aims at
strengthening Local Governments’ performance to deliver municipal infrastructure, and
improving access to services in disadvantaged neighborhoods. Directors noted the importance of
supporting Tunisia’s ongoing transition and decentralization agenda and appreciated the
operation’s contribution to the World Bank’s effort to scale up its engagement with Tunisia. In
order to promote stability and longer-term economic prospects, the importance of inclusiveness,
equality, transparency, strengthened governance, and ownership was emphasized.
 
        Directors welcomed the selectivity and innovation demonstrated in the project,
appreciated the operation’s support to key reforms aimed at empowering Local Governments,
and underscored the need for knowledge sharing and capacity building for Local Governments,
particularly with regard to public financial management. They supported the independent
performance assessment of municipal performance introduced under the Program and its
potential to provide incentives to Local Governments to improve their institutional performance
and increase transparency and accountability to citizens. Directors welcomed the efforts by the
Government to increase the participation of local communities, particularly women and youth, in
the decision making and planning for meeting local service delivery and investment priorities. In
this regard, appropriate use of information and communications technology was encouraged.
Directors stressed the importance of shared benefits, including job creation for youth.
 
        Directors acknowledged the overall high risk of the operation, and underscored the need
to carefully monitor risk management, execute the Program Action Plan, mitigate regional
disparities, and support the Government’s overall risk mitigation efforts. They encouraged the
Bank to work closely with the Independent Verification Agent to closely monitor
implementation progress and results indicators, to ensure success of the program. Finally, they
emphasized the importance of greater coordination among donors, including on urban
development.




                                                            
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  This summary is not an approved record.