The State-Owned Enterprises related Fiscal Management Project

Projetos

Home | Projetos

Record

Documents

Tenders

Project ID: P160796

The State-Owned Enterprises related Fiscal Management Project

Project Area

Business

MANAGEMENT UNIT

Special Projects Management Unit

Date of entry into force

31/05/2018

Closing Date

30/05/2023

State

Closed

Total Value

$30,000,000.00 (USD)

3.990.000.000,00 CVE

Initial Value

$20,000,000.00 (USD)

2.660.000.000,00 CVE

Additional Value

$10,000,000.00 (USD)

1.330.000.000,00 CVE

100%

% Execution

Objetive

The aim of the project is to strengthen fiscal management related to state-owned enterprises by building capacity to improve monitoring and reporting on the financial and operational performance of SOEs, stimulating reforms to reduce state support.

Description

This project is aligned with the growth agenda of the Government of Cabo Verde (GoCV) and supports a key pillar of the national program to support private investment and entrepreneurship. In this context, the World Bank Group's International Development Association (IDA) has provided funding of USD 20,000,000 (twenty million US dollars) for its implementation.

Components

Title Purpose Objetive Beneficiaries Amount in USD

Component 1: Results-Based Financing

This component aims to support the critical reforms in TACV that are need for public fundi

$16,000,000.00 (USD) 2.128.000.000,00 CVE

TACV Restructuring and Reduction of Public Funding

This subcomponent aims to reduce TACV's financial hemorrhaging through a series of restructuring actions, including a reconfiguration of the company's HR and reduction of 207 employees, leading to an improvement in the company's operating margin

$14,000,000.00 (USD) 1.862.000,00 CVE

Assessment and monitoring of tax risk

The objective of this subcomponent is to provide support to public enterprises through subsidies, guarantees, recapitalizations, loans

$2,000,000.00 (USD) 266.000.000,00 CVE

Component 2: Technical Assistance

This component aims to support in the preparation and implementation of the SOE reform pro

$10,500,000.00 (USD) 1.396.500.000,00 CVE

Improve fiscal management related to Public Enterprises

This subcomponent aims to improve the technical capacity of the ownership unit (UASE) to closely monitor the SOE's financial and operational performance through the preparation of an annual SOE analytical report

$2,000,000.00 (USD) 266.000.000,00 CVE

Improve the corporate governance of Public Companies

This subcomponent has the objective of providing technical assistance for the development of complementary regulations

$2,000,000.00 (USD) 266.000.000,00 CVE

Support investment promotion for more disinvestment

This subcomponent aims to support the promotion of investment for more disinvestment

$1.50 (USD) 199.500.000,00 CVE

Strengthening the regulatory capacity and control of fiscal risk in concession contracts and PPP's

This subcomponent aims to support the strengthening of regulatory capacity and control of fiscal risk in concession contracts and PPPs

$1.50 (USD) 199.500.000,00 CVE

Component 3: Project Management

This component aims to support UGPE in the Management and Coordination of the Project and

$500,000.00 (USD) 66.500.000,00 CVE

Component 4: IFH and the reform of the housing sector

This component aims to reduce the fiscal risks of the national housing agency.

$3,000,000.00 (USD) 399.000.000,00 CVE

Indicators

Project Objective Indicators

Strengthen SOE related fiscal management

Unit Baseline Final Target

Reduced public funding for public enterprises - including budget transfers and capitalization (% of GDP) percentage 10.90 6.00

CVA operating margin improvement percentage 144.00 80.00

Annual public revenues of state-owned enterprises (in tax payments, dividend award payments, and divestment revenues) US$, million 5.00 20.00

Project Component Indicators

Component 2: Technical Assistance

Unit Baseline Final Target

Comprehensive SOE policy adopted text The SOE framework law defines general rules for SOE corporate governance and government supervision and reporting The government adopts a policy on SOEs including clear performance targets and transparency obligations of SOEs

Implementation and use of the SOE's financial database text UASE operates a general excel sheet with basic aggregate information on the six (6) largest public companies A Database with comprehensive information on the financial and operational performance of the entire SOE portfolio

Enhanced legal framework for debt management with greater emphasis on contingent liabilities text Legislative framework for fragmented debt management A clear legal framework that is respected by SOEs and the Government

SOE Portfolio review and SOE structuring supervision/structuring text Some individual performance reviews conducted as part of the preparation of performance agreements Greater clarity on SOEs that need to be restructured, sold or partially privatized

Tax risk control reports on SOE portfolio published text Annual report on contingent liabilities of the 6 Comprehensive reports on all SOEs published on the MoF website, including analysis of financial and operational performance (including, benchmarking) and all financial transfers with the state (including all transfers, arrears, implicit subsidies, etc.)

Citizens' opinions on the public enterprise reform process with gender disaggregated data text No information on citizen opinion Information available on citizens' opinion on how well government has planned for, communicated and implemented SOE sector reforms

SOE restructured or privatized number 0.00 8.00

Improving SOE financial accountability and transparency percentage 0.00 100.00

Improving the capacity of SOE board members, including women percentage 0.00 100.00

SOE Board of Directors female members trained percentage 50.00 100.00

Improved climate benefits from SOE investment 50.00 100.00 100.00

Complaints received and handled through the GRM project within the specified timeframe percentage 0.00 100.00

Component 4: IFH and the reform of the housing sector

Unit Baseline Final Target

Collection of rent for improved social housing (class A) percentage 0.00 90.00

IFH business plan informed by adopted institutional, organizational and business review yes/no no yes

Increase satisfaction of Class A housing beneficiaries percentage not avaible Baseline + 50.00%

Satisfaction rate of female beneficiaries percentage not avaible Baseline + 50.00%

Beneficiary Entities

Partilhar

Projetos

Objetive

Description

Components​

Indicators

Beneficiary Entities

Components