BORROWERGovernment of JamaicaCOUNTRYJamaicaEXECUTING AGENCYGovernment of JamaicaLOAN AMOUNT$100mnSUMMARY OF PROJECT DESCRIPTIONGOJ has enunciated a bold policy reform agenda designed to achieve fiscal and debt sustainability as critical first steps to improving the prospects for growth and reducing poverty. The Inter-American Development Bank (IDB), World Bank (WB), and CDB, are jointly supporting and co-financing GOJ's reform agenda through the provision of PBLs totalling approximately USD 1 billion (bn) over the three-year period 2009-11. IDB support will average $200 mn annually and will also support road infrastructure development and investment in the education sector. WB resources will be provided through three separate policy loans of $100 mn each. The specific objective of the PBL is to assist GOJ to implement policy reforms aimed at strengthening fiscal institutions, improving economic management systems and improving debt dynamics as important forerunners to sustained growth and poverty reduction. The Loan will be disbursed in three equal tranches; and disbursement will be based on an agreed set of policy reforms. To avoid conditionality burden, a common policy reform matrix will be adopted by CDB and WB. IDB's policy matrices, though similar in content, are separate and reflect the slightly different timing of their negotiations with GOJ in relation to broader development support. This notwithstanding, the bulk of the reforms has been identified by GOJ and are at varying stages of implementation. The ‘home grown' nature of the policy reform agenda is expected to translate into timely implementation of the reforms. This should enhance the efficacy and development impact of the programme.BENEFITSThe proposed loan will strengthen growth prospects, sustain income growth and improve social indicators through the orderly re-profiling of the Government's debt stock and the concomitant reduction in associated servicing costs. Improvements in the institutional arrangements that govern public sector investment; the introduction of rules-based fiscal policy; and the streamlining of public bodies will collectively redound to significant improvement in fiscal management, contain fiscal cost and release resources for critical public investment spending.BORROWERGovernment of JamaicaCOUNTRYJamaicaEXECUTING AGENCYGovernment of JamaicaLOAN AMOUNT$100mnSUMMARY OF PROJECT DESCRIPTIONGOJ has enunciated a bold policy reform agenda designed to achieve fiscal and debt sustainability as critical first steps to improving the prospects for growth and reducing poverty. The Inter-American Development Bank (IDB), World Bank (WB), and CDB, are jointly supporting and co-financing GOJ's reform agenda through the provision of PBLs totalling approximately USD 1 billion (bn) over the three-year period 2009-11. IDB support will average $200 mn annually and will also support road infrastructure development and investment in the education sector. WB resources will be provided through three separate policy loans of $100 mn each. The specific objective of the PBL is to assist GOJ to implement policy reforms aimed at strengthening fiscal institutions, improving economic management systems and improving debt dynamics as important forerunners to sustained growth and poverty reduction. The Loan will be disbursed in three equal tranches; and disbursement will be based on an agreed set of policy reforms. To avoid conditionality burden, a common policy reform matrix will be adopted by CDB and WB. IDB's policy matrices, though similar in content, are separate and reflect the slightly different timing of their negotiations with GOJ in relation to broader development support. This notwithstanding, the bulk of the reforms has been identified by GOJ and are at varying stages of implementation. The ‘home grown' nature of the policy reform agenda is expected to translate into timely implementation of the reforms. This should enhance the efficacy and development impact of the programme.BENEFITSThe proposed loan will strengthen growth prospects, sustain income growth and improve social indicators through the orderly re-profiling of the Government's debt stock and the concomitant reduction in associated servicing costs. Improvements in the institutional arrangements that govern public sector investment; the introduction of rules-based fiscal policy; and the streamlining of public bodies will collectively redound to significant improvement in fiscal management, contain fiscal cost and release resources for critical public investment spending. * Please note that amounts quoted are US dollars December 12, 2008 No. 41/08-BD CDB APPROVES USD100 MILLION POLICY-BASED LOAN FOR JAMAICA The Board of Directors of the Caribbean Development Bank (CDB) has approved a loan, equivalent to USD100 million to the Government of Jamaica. The policy-based loan will support the government's fiscal and debt sustainability initiatives. In Jamaica, the government has articulated a comprehensive reform agenda that is designed to effectively control debt generation outside of the budget, strengthen financial management in the public sector, consolidate and streamline revenue systems, and enhance private sector competitiveness. These reforms are intended to bolster the near to medium-term fiscal and economic growth outlook and gradually reduce the level of poverty in the country. This policy-based loan is part of a broader CDB assistance strategy for Jamaica which places emphasis on support for strengthening macroeconomic management and policy reform; bolstering economic growth prospects through the upgrade of critical economic infrastructure; and forging output expansion in key sectors, including agriculture. CDB also proposes to support human resources development, and to tackle poverty directly through direct poverty interventions. The CDB loan is a critical component of a wider intervention strategy that is supported by the World Bank and the Inter-American Development Bank.