[{"bbox": [85, 130, 698, 162], "category": "Section-header", "text": "# 4. IMPLEMENTATION ARRANGEMENTS"}, {"bbox": [85, 196, 370, 226], "category": "Section-header", "text": "## 4.1 Financing Agreement"}, {"bbox": [97, 242, 1088, 269], "category": "Text", "text": "In order to implement this action, it is envisaged to conclude a financing agreement with the partner country."}, {"bbox": [85, 283, 498, 314], "category": "Section-header", "text": "## 4.2 Indicative Implementation Period"}, {"bbox": [97, 329, 1134, 410], "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 60 months from the date of entry into force of the financing agreement."}, {"bbox": [97, 436, 1134, 489], "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": [85, 537, 685, 568], "category": "Section-header", "text": "## 4.3 Implementation of the Budget Support Component"}, {"bbox": [85, 586, 719, 616], "category": "Section-header", "text": "### 4.3.1 Rationale for the Amounts Allocated to Budget Support"}, {"bbox": [97, 630, 1134, 711], "category": "Text", "text": "The proposed amount for budget support is EUR 65 000 000. The amount remains modest in view of actual needs and the current fiscal deficit. However, the amount will give the EU sufficient leverage to engage in policy dialogues and foster PFM reforms."}, {"bbox": [97, 736, 1134, 950], "category": "Text", "text": "The budget support component will create much needed fiscal space as the development needs are significant. On the expenditures side, the non-discretionary expenditures (including the wage bill and interest charges) account for the majority of recurrent expenditures. On the revenue side, whilst there is untapped potential, empirical experience in the region evidences that actual revenue collection can only increase gradually. Furthermore, the authorities need to strike a difficult balance between the objective of sustaining economic activity and that of restoring fiscal sustainability. As for financing, Sierra Leone being at high risk of debt distress it needs to gradually reduce its debt burden. Consequently, grants -such as the present budget support operation, but also the proposed TALD approach- are instrumental to contribute to ease the tight fiscal constraint."}, {"bbox": [97, 975, 1134, 1025], "category": "Text", "text": "During previous budget support operation yearly tranches of approximately EUR 20 000 000 were absorbed in full."}, {"bbox": [85, 1068, 555, 1096], "category": "Section-header", "text": "### 4.3.2 Criteria for Disbursement of Budget Support"}, {"bbox": [97, 1112, 228, 1136], "category": "Section-header", "text": "#### a) Conditions."}, {"bbox": [97, 1138, 741, 1164], "category": "Text", "text": "The general conditions for disbursement of all tranches are as follows:"}, {"bbox": [171, 1165, 1134, 1218], "category": "List-item", "text": "- Satisfactory progress in the implementation of the national development plan (MTNDP) and continued credibility and relevance thereof or of the subsequent policy."}, {"bbox": [171, 1218, 1134, 1271], "category": "List-item", "text": "- Maintenance of a credible and relevant stability-oriented macroeconomic policy or progress made towards restoring key balances."}, {"bbox": [171, 1271, 1134, 1352], "category": "List-item", "text": "- Satisfactory progress in the implementation of reforms to improve public financial management, including domestic revenue mobilisation, and continued relevance and credibility of the reform programme."}, {"bbox": [171, 1352, 1134, 1405], "category": "List-item", "text": "- Satisfactory progress with regard to the public availability of accessible, timely, comprehensive, and sound budgetary information."}, {"bbox": [97, 1457, 1134, 1538], "category": "Text", "text": "#### b) The performance indicators for disbursement to be used for variable tranches may focus on the following policy priorities: decentralisation, public service delivery, education, social protection measures (for instance school feeding), rural development and environmental protection."}, {"bbox": [97, 1563, 256, 1587], "category": "Section-header", "text": "#### c) Modifications."}, {"bbox": [97, 1590, 1134, 1643], "category": "Text", "text": "The chosen performance indicators and targets to be used for the disbursement of variable tranches will apply for the duration of the action. However, in duly justified cases, the partner country and the Commission may agree on"}, {"bbox": [1027, 1681, 1143, 1706], "category": "Page-footer", "text": "Page 26 of 33"}]