Macro-Economic Stabilization and Reform (MESR) Activity Year One Work Plan

The project is designed to support Government of Egypt (GOE) reform efforts included in the GOE's agreement with the International Monetary Fund (IMF). The reforms to be implemented through the IMF program are intended to address the macroeconomic imbalances that negatively impact on the ability of enterprises to grow and become more competitive. The MESR project has two primary objectives: Objective One, Improved Public Investment Planning, Implementation, and Monitoring to Enhance the Productivity of Public Capital Assets and the Efficiency and Effectiveness of Public Services; and Objective Two, Upgraded Effectiveness of Public Financial Management to Improve Fiscal Management, Budgeting, and Expenditure Control, and Promote Greater Budget Efficiency, Transparency, and Accountability. Primary counterparts to the MESR project are the Ministry of Planning, Monitoring and Administrative Reform (MPMAR) and the Ministry of Finance (MOF). The project will engage with other stakeholders and counterparts, including business associations, civil society organizations (CSO), other private sector representatives, as well as other GOE agencies and international organizations working in activities related to macroeconomic stabilization. The project organization has been aligned to best address each of the primary objectives, with workplan activities developed to recognize the need for coordination and leveraging of one another to gain momentum for reforms and maximize the potential for success and sustainability. The MESR project strategic approach builds on lessons learned from similar programs and incorporates four mutually reinforcing principles to achieve sustainable reform. The first principle is to build sustainability through local ownership, where local champions lead to ensure the sustainability of reforms. The second principle is to promote continuous improvement, where MESR goes beyond assisting with reform implementation and helps create continuous improvement systems. The third principle is to design and implement adaptive programming, where project resources are focused on activities that produce results and redirected as needed to maximize the return on investments. The fourth principle is to support inclusive reform, where MESR assesses the impact of macroeconomic policies and reforms and public investments on the most vulnerable populations. The project will focus on several key areas, including improving public investment planning, implementation, and monitoring; upgrading the effectiveness of public financial management; and promoting greater budget efficiency, transparency, and accountability. The project will also engage with other stakeholders and counterparts to leverage resources and expertise and to maximize the potential for success and sustainability. The Ministry of Planning, Monitoring and Administrative Reform (MPMAR) and the Ministry of Finance (MOF) will play a critical role in the implementation of the project. The MPMAR will be responsible for implementing the public investment management reforms, while the MOF will be responsible for implementing the public financial management reforms. The project will also engage with other GOE agencies and international organizations working in activities related to macroeconomic stabilization. The project will use a range of tools and approaches to achieve its objectives, including technical assistance, training, and capacity building. The project will also use a range of indicators to measure progress and impact, including key performance indicators (KPIs) and monitoring and evaluation (M&E) frameworks. The project will also engage with stakeholders and counterparts to ensure that the project is responsive to their needs and priorities. The project will be implemented over a period of five years, with the first year focusing on setting the foundation for the project and laying the groundwork for the reforms to be implemented in subsequent years. The project will be implemented in a phased manner, with each phase building on the previous one and with a focus on achieving sustainable reform.