67826
     Democratic Republic of São Tomé and Príncipe: First Governance and Competitiveness
                                Development Policy Operation

                                    SUMMARY OF DISCUSSION

                                  Meeting of the Executive Directors

                                              March 29, 2012


        The Executive Directors approved the First Governance and Competitiveness Development
Policy Operation to the Democratic Republic of São Tomé and Príncipe (STP) in the amount of SDR 2.8
million (US$4.2 million equivalent) on the payment terms and conditions set out in the President’s
Memorandum (IDA/R2012-0066).

         Directors broadly supported the proposed operation and took note of its selective and realistic
approach, especially in light of the serious capacity constraints and the vulnerability of STP to external
shocks. They welcomed the authorities’ commitment to promote good governance by strengthening
public financial management, improving transparency and accountability, and strengthening the fiscal and
debt policy framework. They welcomed the focus on improving the investment climate to support
regional integration, economic diversification, and job creation. Directors encouraged continued attention
to macroeconomic stability, sound public financial management, poverty reduction, data, and
competitiveness issues, and stressed the importance of close monitoring. Finally, Directors also noted the
importance of ongoing close coordination between the Bank and IFC, IMF, and other development
partners.





    This summary is not an approved record.