Policy Reform for Economic Development Program Grant Agreement

The program aims to promote economic development in Mali by supporting the government's efforts to create an environment conducive to increased growth and employment generation in the private sector. The program has two main components: non-project and project components. The non-project component involves sustained action in support of the private sector, while the project component focuses on building public-sector financial management capacity. The project component includes the provision of technical assistance and training to key elements of the Ministry of the Economy and Finance (MEF) to improve the government's ability to manage public finances and promote growth. The program will be implemented by the MEF, with continuous monitoring and support provided by the Program Coordination Unit (PCU) in the Ministry of Economy and Finance. Funding for PCU operations and other project activities will be provided through the project component, which consists of the financing of goods, services, and operational costs. The grant agreement specifies that funds disbursed under the program will be deposited in a separate dollar account in a United States bank, which will be established solely for such funds. The Grantee will hold the funds in an interest-bearing account pending actual utilization of the funds. The local currency will be deposited to a GRM special account in the Banque Centrale des Etats de l'Afrique de l'Ouest (BCEAO), reserved for this purpose. The Grantee is required to submit reports on the special account to AID on a quarterly basis, indicating amounts deposited in and disbursed therefrom. The Grantee shall also request the BCEAO to send copies of all statements covering the special account to AID. The special account shall be audited by the U.S. Government or its agents when specified by AID. Prior to disbursement under the grant, the Grantee must furnish to AID certain documents, including an opinion of counsel, a statement representing and warranting the authority of the Grantee's representatives, evidence of the signing of the Project Grant Agreement, and notification of the number of the special account to be established in the Bamako branch of the BCEAO. The Grantee must also provide evidence that all export taxes have been abolished. After satisfaction of the conditions precedent, the Grantee may request in writing that AID make an initial disbursement of funds under this grant to support the GRM's structural adjustment program. AID will promptly disburse funds to the separate dollar account established by the Grantee.