IDB, Government of Suriname reached important milestones in 2011

News Releases Jan 5, 2012. The Government of Suriname (GoS) and the Inter-American Development Bank (IDB) agreed a new strategy to lend a record amount of around US$300 million in the period 2011-2015. The Bank also approved financing and disbursements of US$80 million this year. 

“Less than a year after the Central Bank’s President and IDB Governor, and the Minister of Finance of Suriname concluded an agreement with IDB Vice President Roberto Vellutini to revitalize the partnership between the Government and the Bank, many good results were already achieved,” said IDB Representative in Suriname, Marco Nicola. 

“In the wake of the Government’s ambitious reform agenda to structurally transform the economy the IDB is poised to become a more significant development partner,” added Nicola. “Throughout 2011, Government and IDB officials have worked to deliver important milestones that will contribute to an improved outlook for Suriname.” 

Suriname will also host in Berg en Dal in February 2012, the “First IDB Caribbean Governors Meeting”, for regional ministers to hold discussions before the next IDB Annual Meeting in Uruguay in March. 

Country Strategy with Suriname

The Government of Suriname and the IDB finalized 2011 with a new Country Strategy, which aims to provide financing in seven areas: agriculture, education, energy, financial sector, public capital investment, social protection, and transport infrastructure. Lending expected to be approved in 2011-2015 represents more than double the total financing for the previous five year period. 

Lending and Disbursements 

Financing approved this year already totaled US$80 million, and a similar amount was disbursed, making it one of the most successful since the IDB began operating in Suriname. 

The Government of Suriname started its reforms to the financial sector and its management of public capital investments with IDB support. These programs have contributed to the strengthening of the Central Bank, improvements in key legislation and regulations, the development of medium- term financial planning tools, enhanced transparency and efficiency of public expenditure processes. 

The IDB also recently approved two investment loans to bolster the efficiency and relevance of Suriname’s social protection programs, in addition to financing the upcoming census and household budget surveys for 2012 and 2013. 

These programs have been added to a robust set of activities in the portfolio, that include the Meerzorg-Albina road rehabilitation program, housing, education, trade, water, and environmental projects. 

Grants 

In addition to its lending, the IDB has provided US$1.6 million in grants to complement the initiatives associated with the lending program for 2011. Specifically, grant resources funded capacity building for the Central Bank, the Ministry of Social Affairs, and the newly established Public Procurement Unit in the Ministry of Finance. 

A Modern Approach

These results have been achieved due to improved local capacity on the part of both the Government of Suriname and the IDB. The Government established a highly efficient channel for external support in the Joint Desk, which consists of officials from the Central Bank and the Ministry of Finance. Improved execution capacity in various line ministries has also contributed to the success of the partnership. 

Meanwhile, the local IDB office, under a newly appointed Representative, added several new Surinamese and international specialists to ensure support to the ambitious collaboration. 

To strengthen their partnership, the Government of Suriname and the IDB have drawn upon the experience and advice of local civil society and private sector institutions through its Civil Society Consulting Group, which was also reinstated in 2011.x

Suriname. Financial Sector Strengthening I

The program will support the preparation and implementation of measures to improve the legal, regulatory, institutional and public policy framework for the financial sector. Areas, which could be addressed, include (i) consolidated and non-bank supervision; (ii) monetary policy management; (iii) public bank reform; and (iv) pension reform.

SU-L1023: Financial Sector Strengthening I

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Suriname will improve social protection system with IDB support

News Releases.Dec 7, 2011. The Inter-American Development Bank (IDB) has approved a $15 million loan for the Social Protection Support Program in Suriname. The project will support the efforts of the government of Suriname to enhance the effectiveness of spending on social protection programs. A key goal is to improve the efficiency of the targeting of low-income households so as to break the intergenerational transmission of poverty through the development of the human capital of children.

The current social protection system in Suriname consists of both targeted and untargeted transfer programs, including a cash transfer program for poor households, child allowances, disability grants, school supply grants, and health care services to the poor.

Those programs, as currently designed, are not effectively achieving the government’s objective of protecting the poor as they are either poorly targeted or too small in the coverage or in the size of the cash transfer. In addition, they are not sufficiently focused on promoting human capital development of the next generation as they are skewed toward the elderly.

The main component of the project will finance grants to be provided to poor pregnant and lactating women and the mothers of poor children, in a form of Conditional Cash Transfer (CCT) for up to 15,000 households by 2015. Human capital development will be promoted through health programs aimed at improving timely utilization of maternal and child health care services and education programs designed to reduce school repetition rates and increase secondary school enrollment and graduation. All cash-transfer recipients are expected to get regular health check-ups, participate in nutrition education and take nutrition supplements, and attend school regularly in order to receive monthly payments that will vary according to the age of the beneficiary and the region of residence.

The program is expected to substantially increase enrollment rates, especially in secondary schools. Expected health outcomes include improved maternal health due to regular prenatal checkups and an increase in the number of children who are immunized against preventable diseases.

In order to maximize the effectiveness of the CCT Program, the project also aims to improve and expand the supply of education and health services in order to meet additional demand generated through the cash transfer program. Beneficiaries will receive fee waivers from public schools, free school meals, and free health care services at public facilities through government subsidies.

The project will also strengthen the institutional capacity of the Ministry of Social Affairs and Public Housing to more effectively and efficiently plan, implement, monitor, and evaluate targeted non-contributory social protection programs, such as CCT.

“The program targets children in poor families, and aims to induce a behavioral change by involving the parents through two key co-responsibilities: children’s regular health check-ups and school attendance. This will reduce poverty and vulnerability of the next generation” said Donna Harris, IDB social protection specialist and the project team leader.

The IDB loan of $15 million is for a term of 20 years, with an interest rate based on Libor. It has a grace period of 5 years, and a disbursement period of 5 years.c

Suriname.Social Protection Support Program

The program will support the consolidation of existing cash transfer programs and their reconfiguration into a CCT program;strengthen the institutional capacity of MOSAPH to plan, implement, monitor, and evaluate targeted non-contributory social protection programs; and strengthen locally the supply of social services (health and education) in order to meet additional demand.

Component 1: This component will strengthen non contributory social protection programs to improve the effectiveness of spending on those programs. generated through the CCT.  This component will finance: institutional strengthening; technical assistance to implement the CCT; development of a MIS that will incorporate all the CCT modules; dissemination and public awareness activities; limited amount of rehabilitation of MOSAPH central and district offices; development and implementation of mechanisms for determination of disability consistent with international standards and practice; and an assessment of MOSAPH social care services and development of an action plan for strengthening social care services.

Component II: will finance the grants to be provided to beneficiaries as part of the CCT.Component III: Strengthening Health and Education Services to reduce supply-side constraints that can hinder compliance with program conditions.Component IV: Monitoring and Evaluation

IDB.SU-L1013:Social Protection Support Program

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Suriname.IDB reaffirms its commitment to strengthen support to Suriname and approves new 2011-2015 Country Strategy

IDB.News Releases. Nov 21, 2011. The Inter-American Development Bank (IDB) announced the approval by the Board of Executive Directors of the 2011-2015 Country Strategy with the Republic of Suriname, which aims to support the country’s efforts to modernize its public sector, diversify the economy and ensure adequate protection and future investment in human capital.

“This is a unique opportunity to strengthen the IDB support to the country’s development agenda, as the main multilateral partner that is ready and able to provide technical and financial support for the reform and capital investment plans of the Government of Suriname,” said IDB Representative in Suriname, Marco Nicola.

“Lending during this new five-year strategy is expected to increase notably to around US$300 million, from US$103 million in the previous strategy,” added Nicola.

The new Country Strategy is the result of the close cooperation with the authorities to support the priority areas of agriculture, energy, education, financial sector development, public investment management, social protection and transport. Moreover, the IDB will support data generation to facilitate policy making and allocation of resources.

Dialogue will also continue with the Government of Suriname for possible additional lending to strengthen the sectors of water and sanitation, disaster risk management, tax administration, health, private sector development, and natural resources and environmental management.