Gabon

                       Second Gabon Fiscal Consolidation and Inclusive Growth
                                  Development Policy Financing

                                           Chair Summary*

                                           February 19, 2019

        Executive Directors approved a Development Policy Financing operation for the Gabonese
Republic for an amount of Euro 175.9 million (US$200 million equivalent) on the terms and conditions set
out in the Memorandum and Recommendation of the President. Mr. Bethel wished to be recorded as
opposing and Mr. Schoenleitner wished to be recorded as abstaining.

        Directors expressed support for the operation as the World Bank’s contribution to the concerted
international response to the CEMAC crisis. They welcomed the three pillars of the operation: (i)
Strengthening Fiscal Sustainability and Efficiency in Public Sector Management; (ii) Enhancing
competitiveness; and (iii) Protecting the poor. They noted that the reforms and policy actions under these
three pillars are at the very core of macroeconomic stability, fiscal balance, diversified growth, and
improved service delivery for the poor.

        Directors took note of the political and governance, macroeconomic, institutional capacity,
fiduciary, and regional risks associated with the operation. They emphasized the need for close and pro-
active monitoring of regional and country macro-fiscal developments, domestic resource mobilization, debt
management and transparency, and external and domestic arrears’ payment, in coordination with the IMF.
They expected IFC and the private sector to play a greater role in supporting the country’s development
agenda.

        Directors inquired about the rationale behind the supported health reforms and raised concerns
regarding the high poverty levels in this middle-income country. They requested that the forthcoming
Systematic Country Diagnostic reflect these challenges.




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*This Summary is not an approved record.