Sierra Leone

Sierra Leone to receive assistance for economic rehabilitation and recovery

Press Release No:2005/520/AFR

Washington, June 16, 2005 -- The World Bank Board of Executive Directors today approved an International Development Association (IDA) grant of US$15 million to help the Government of Sierra Leone make the transition from post-conflict recovery to equitable and sustainable development.

The Fourth Economic Rehabilitation and Recovery grant will be a one-tranche quick disbursing development policy grant to support the Government’s 2005 budget, covering the period of April 2005 through March 2006. The operation is designed to consolidate Sierra Leone’s transition from peace-keeping and relief to equitable and sustainable development in the context of Sierra Leone’s new Poverty Reduction Strategy that was issued in March 2005.

The grant will provide critical resources to consolidate and deepen the agenda set by the Economic Rehabilitation and Recovery Credit series including progress made in governance, decentralization of government, management of public resources, human resource development and private sector-led economic growth.

The grant will contribute to economic recovery and growth by providing foreign exchange resources for imports of essential commodities, by providing financial resources to the Government budget to finance priority public expenditures and by supporting reforms to attract private investment. By helping to close the financing gap in 2005, it will also contribute to maintaining macroeconomic stability and low inflation.

Media Contact:

In Washington:

Aby Toure (202) 473 8302

In Freetown:

Mohamed Sidie Sheriff (232-22) 22 55 05