[{"bbox": [129, 161, 756, 195], "category": "Section-header", "text": "# 4 IMPLEMENTATION ARRANGEMENTS"}, {"bbox": [129, 227, 428, 258], "category": "Section-header", "text": "## 4.1 Financing Agreement"}, {"bbox": [141, 274, 1057, 327], "category": "Text", "text": "In order to implement this action, it is envisaged to conclude a financing agreement with the partner country."}, {"bbox": [129, 368, 557, 399], "category": "Section-header", "text": "## 4.2 Indicative Implementation Period"}, {"bbox": [141, 414, 1094, 494], "category": "Text", "text": "The indicative operational implementation period of this action, during which the activities described in section 3 will be carried out and the corresponding contracts and agreements implemented, is 24 months from the date of entry into force of the financing agreement."}, {"bbox": [141, 520, 1073, 574], "category": "Text", "text": "Extensions of the implementation period may be agreed by the Commission's responsible authorising officer by amending this Financing Decision and the relevant contracts and agreements."}, {"bbox": [129, 614, 744, 646], "category": "Section-header", "text": "## 4.3 Implementation of the Budget Support Component"}, {"bbox": [129, 659, 719, 688], "category": "Section-header", "text": "### 4.3.1 Rationale for the Amounts Allocated to Budget Support"}, {"bbox": [141, 703, 1136, 783], "category": "Text", "text": "The amount allocated for the budget support component is EUR 58 500 000, and for complementary support is EUR 1 400 000. This amount is based on lessons learned from previous budget support operations and on the Government's financing needs to implement policy priorities."}, {"bbox": [141, 794, 1136, 981], "category": "Text", "text": "In this action, budget support is complementary to other implementation modalities and it adds value by allowing for a high-level results oriented policy dialogue between the EU, Ministry of Finance and Planning, the Ministry of Education, the Ministry of Health and their affiliated agencies. Thus, the action will bring different stakeholders together to discuss and advance ongoing policy development and reform in order to support the Government to progress on its social and economic development objectives under the 8NDP. It also incentivizes continued improvements in budget transparency, public sector accountability and macro-economic stability."}, {"bbox": [141, 991, 1136, 1126], "category": "Text", "text": "Following the 2021 general election, the political engagement with Zambia's national authorities has improved considerably. The debt default pronounced in November 2020 left GRZ with an extremely tight fiscal space. The IMF and the World Bank have stepped-in to provide GRZ with additional liquidity during GRZ's debt restructuring negotiation with its creditors. The budget support is the government's preferred implementation modality."}, {"bbox": [141, 1136, 1136, 1430], "category": "Text", "text": "In Zambia, Cooperating Partners' exit from budget support operation was a gradual process that occurred in response to declining performance and corruption scandals. All budget support operations stopped in 2018. With a reformist government, results oriented, genuinely committed to reforming the public service and fighting corruption, while working towards restoring macroeconomic stability with the support of the IMF, the conditions are met for the EU to resume its budget support operations. Considering past experiences, the action has been designed as a pilot which, if successful, could open the way to a larger proportion of the country allocation to be delivered through budget support in the second phase of the MIP (2024-2027). The proposed Resilience Building Contract for Zambia, will focus on key GRZ priorities and include a performance contract, where budget support blends with other modalities and is highly complementary, to drive a specific set of reforms that require strong political commitment and cooperation of different government actors."}, {"bbox": [141, 1441, 1136, 1522], "category": "Text", "text": "The following disbursement calendar and profile proposed for the action is indicative. The actual disbursement calendar and profile will be set out in the financing agreement and may remain subject to change."}, {"bbox": [211, 1535, 798, 1562], "category": "List-item", "text": "* Year 1 disbursement in 2024 fixed tranche after signing FA"}, {"bbox": [211, 1564, 1136, 1616], "category": "List-item", "text": "* Year 2 disbursement in 2025, mixing fixed tranche and variable tranche, based on eligibility assessment of 2024 (n-1)"}, {"bbox": [1027, 1680, 1145, 1705], "category": "Page-footer", "text": "Page 27 of 33"}]