Côte d'Ivoire: Private Investment and Productive Jobs - First Development Policy Financing (DPF1)

OBJECTIVE

To preserve the fiscal space required to sustain the implementation of the reform agenda aimed at scaling up private investment and creating more productive jobs, in the context of the Middle East conflict.

DESCRIPTION

The DPF1 is proposed as a Policy-Based Co-financing (PBCF) operation under AIIB’s Energy, Food Security and Economic Resilience Facility to provide fast-disbursing budget support to the Republic of Côte d'Ivoire.

The DPF1 will co-finance the World Bank (WB) first operation in its programmatic Development Policy Financing series (the Program). It supports ten prior actions under two pillars. Pillar 1 focuses on unlocking critical sectors for structural transformation. Pillar 2 aims at strengthening the business climate and workforce readiness. The DPF1 is aligned with Côte d’Ivoire’s new National Development Plan.

ENVIRONMENTAL AND SOCIAL INFORMATION

Applicable Policy and Categorization. AIIB’s Environmental and Social Policy (ESP), including the Environmental and Social Exclusion List (ESEL), apply to this DPF1. The provisions on environmental and social (E&S) categorization in the ESP do not apply to PBCF operations. AIIB has conducted a streamlined Environmental and Social Due Diligence (ESDD), based on the government and WB’s analytical work, review of the supported prior actions, and government systems relevant to managing potential E&S impacts. E&S information will be disclosed timely in an appropriate manner.

Environmental and Social Aspects. Based on AIIB’s streamlined ESDD, informed by WB’s analytical work, the DPF1’s policy actions mainly support fiscal, institutional, and regulatory reforms and are not expected to have significant adverse impacts on E&S. The supported reforms are expected to generate predominantly positive environmental outcomes, including increased renewable energy generation, improved resource efficiency, climate-smart agriculture, sustainable land management, and enhanced resilience to climate change. Supported reforms are aligned with Côte d’Ivoire’s climate and sustainability objectives, including greenhouse gas emissions reduction and forest preservation efforts. Positive social outcomes are also expected through improved access to energy, digital connectivity, water and health services, strengthened land tenure security, enhanced skills development, and expanded economic opportunities, particularly for low-income and vulnerable populations. Several policy actions incorporate gender-relevant measures aimed at strengthening women’s access to productive resources, improving women’s land tenure security, supporting female entrepreneurship, and expanding women’s access to skills development opportunities.

Grievance Redress Mechanism (GRM) and Monitoring Arrangement. Individuals and communities who believe that they are adversely affected by the DPF1 may submit complaints to the responsible government authorities and the appropriate local/national grievance mechanisms. The Ministry of Economy, Finance, and Budget (MEFB) will be responsible for managing the operation. Day-to-day monitoring of the DPF1, including tracking of outcome indicators, will be carried out by an inter-ministerial economic team appointed by the MEFB. The Government will provide AIIB and WB with biannual progress reports based on the indicators of the results framework. Throughout the implementation period, AIIB will coordinate closely with WB to monitor progress and ensure that the prior actions remain in effect.