Download Report - Independent Evaluation Group - World Bank

More documents

Recommendations

Info

39 Annex BAnnex B: Actions Prior to SAC-I (Credit No. 2937)Actions taken for Project Preparation.1. The Government took key actions prior to discussions on the adjustmentoperation:• flotation of the FMG in 1994;• elimination of subsidies on flour and rice;• appointment of independent administrators to the two state-owned banks;• lowering the maximum tariff from 50 percent to 30 percent;• (reorienting expenditures to primary education, basic health services, and social fundcommunity projects;• inviting a formally-constituted private sector group to participate in policydiscussions and draft an incentives framework for private sector development; and;• appointing an <strong>Independent</strong> Commission for Privatization to draft the privatizationlaw.Conditions of Presentation of the Credit for Approval and Tranche Release2. The following conditions were met prior to Board presentation:• liberalizing entry, work permit and residence requirements for investors, and visas fortourists and abolishing exit visas for nationals and foreign residents;• granting foreign managerial and technical staff automatic work permits and rights ofresidence for their families subject only to a valid employment contract;• allowing foreign investors access to land tenure through 99-year mortgageable leasesto be approved within 2 months of application;• removing the requirement for prior authorization to invest and integrating the fiscalincentives of the investment code into the tax code;• abolishing prior approval for equity capital contributions by foreign investors (abovea threshold of 20 percent of a company's authorized capital);• appointing experienced negotiators to design and carry out the divestiture of the twostate owned commercial banks;• ending the monopoly in telecoms and selecting at least one company based on aninternational competitive bid for cellular operation;• liberalizing air access by allowing regional airlines from Eastern and Southern Africaand the Indian Ocean access to all Malagasy airports, allowing new airlines to operateon other international routes, canceling the designation of Air Madagascar as the sole
40 Annex Bbeneficiary of Malagasy air traffic rights and opening ground handling facilities forairlines to competition;• opening the petroleum sector to competition and taking the necessary steps to allowat least one oil company to compete with SOLIMA; issuing the legal instruments togive effect to the decree liberalizing the import, transformation, storage, transport anddistribution of all petroleum products and setting up an entity to be jointly managedby all oil companies to control storage, pipelines and unloading of oil;• adopting the legal framework for the divestiture of the hundred or so remainingpublic enterprises;• reorienting the 1996 budget and the 1996-99 PIP to strengthen the contribution ofGovernment expenditure to poverty reduction;• completion of an independent audit on the satisfactory implementation of the socialsafety net; and• submission of a signed Letter of Development Policy.
Page 1:
Document ofThe World BankReport No.
Page 5 and 6: iiiContentsPrincipal Ratings.......
Page 7: vSustainability....................
Page 11: ixKey Staff ResponsibleProject Task
Page 15 and 16: xiiiSummary1. This is the Project P
Page 17 and 18: xvcountry conditions that had been
Page 19 and 20: 2growth for the first time in decad
Page 21 and 22: 4Under Economic Management:• Tech
Page 23 and 24: 6Decentralization reform component
Page 25 and 26: 83.15 Decentralization. Assistance
Page 27 and 28: 10had characterized the Bank team a
Page 29 and 30: 124.6 Inflation and credit to GOM w
Page 31 and 32: 14Table 4.2: Budget Allocations to
Page 33 and 34: 16OBJECTIVES AND DESIGN5.2 The obje
Page 35 and 36: 18supervision, the Bank advised on
Page 37 and 38: 20SUSTAINABILITY5.16 Likely. There
Page 39 and 40: 22ownership of its non-oil operatio
Page 41 and 42: 24second after completion of 50 per
Page 43 and 44: 26the sale of SOLIMA and of its sub
Page 45 and 46: 28identifying weaknesses in tax adm
Page 47 and 48: 30showed commitment to pursuing ref
Page 50 and 51: 33 Annex AAnnex A. Basic Data Sheet
Page 52 and 53: 35 Annex APRIVATE SECTOR DEVELOPMEN
Page 54: 37 Annex ASECOND STRUCTURAL ADJUSTM
Page 59 and 60: 42 Annex CGENERAL CONDITIONS AND DE
Page 61 and 62: 44 Annex CADDITIONAL MEASURESAdditi
Page 63 and 64: 46 Annex DMr. Charles Andrianaivoja
Page 65: 48 Annex EComments from the Governm
show all

Download Report - Independent Evaluation Group - World Bank

Create successful ePaper yourself

Delete template?

Save as template?