EC Continues Co-Financing of PPSC

The European Commission (EC) has granted € 8million to co-finance the World Bank 4^th Poverty Reduction Support Credit (PRSC4).

 

The Vice Minister of the Ministry of Planning and Investment, Cao Viet Sinh co-signed the Financing Agreement of the European Commission’s “Support to Vietnam's Poverty Reduction and Support Strategy under PRSC-4” on September 27.

The EC is providing 8 million EUROin grant contribution to co-finance the World Bank’s 4^th Poverty Reduction Support Credit (PRSC 4), totalling 184.5 million Euro. The purpose is to support the implementation of the Vietnam’s Government (GOV) Comprehensive Poverty Reduction and Growth Strategy (CPRGS), with the ultimate objective of fostering growth and reducing poverty in Vietnam.

The EC is pleased to continue providing un-earmarked budget support through this instrument with a growing number of donors. Following the EC’s first participation to PRSC 3 last year, this 8 million EURO grant contribution to PRSC 4 is part of 63.7 million EURO, or 34.5 per cent of the total operation, that is contributed by the EC and 5 EU member states.

The operation takes a partnership approach to strengthening the preparation and implementation of a broad GOV policy reform agenda, in turn helping to achieve a broad set of concrete development outcomes. The approval of this operation is testimony to the assessed progress particularly in Public Financial Management and Transparency and accountability, and more broadly in areas including Health, Education, Transport, Public Financial Management, Planning systems, and Public Administration Reform.

Through its contribution to the PRSC, the EC actually delivers on its commitments regarding the Aid Effectiveness Agenda in Vietnam, and implementing the Hanoi Core Statement. It contributes to a fruitful dialogue and co-ordination between the donor community and the Government on the broad policy reform agenda; it aligns donor policies with a government owned Poverty Reduction Strategy; and cuts transaction costs for Government in particular by using existing Government systems for planning, implementation and evaluation of activities.