WASHINGTON, August 1, 2006: The World Bank Board of Executive Directors today
approved an International Development Association (IDA) grant of US$60 million
to assist the Government of Burundi in the implementation of the 2006 economic
reform program and the Interim Poverty Reduction Strategy Paper.

The Economic Reform Support program aims to accelerate growth in the country,
improve public expenditure management and its impact on the poor. It will
help revive agriculture export sectors (coffee, tea and cotton) and ensure
better revenue distribution. The project will also stimulate the private
sector by improving the investment climate, and help accelerate state
divestiture and settle the government domestic arrears to the private sector.

The operation will improve services for the poor and greater well being of the
population, said Claude Leroy-Themeze and Jean-Pascal Nganou, the World Bank
Task Team Leaders of the project. It will increase income-generating
activities, create employment opportunities through private sector development
and state disengagement while increasing producer income through coffee, tea
and cotton sector reform, they added.

The project will deepen the reform of public finance management and increase
the volume of high quality pro-poor spending. It will strengthen the
programming, management and control of public expenditure so as to reduce the
fiduciary risk and improve efficiency through budget alignment on development
and poverty-reducing objectives.

In addition to assisting with ongoing Government’s efforts for economic and
social recovery, the Economic Reform Support program will support a number of
policy and institutional reforms to consolidate the progress made under
previous Bank operations, building the base for economic diversification,
sustained growth and poverty reduction.