[{"bbox": [72, 147, 683, 180], "category": "Section-header", "text": "# 4. IMPLEMENTATION ARRANGEMENTS"}, {"bbox": [116, 210, 394, 240], "category": "Section-header", "text": "## 4.1 Financing Agreement"}, {"bbox": [84, 279, 1144, 306], "category": "Text", "text": "In order to implement this action, it is envisaged to conclude a financing agreement with the Republic of Cabo Verde."}, {"bbox": [116, 325, 522, 355], "category": "Section-header", "text": "## 4.2 Indicative Implementation Period"}, {"bbox": [84, 396, 1145, 475], "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 72 months from the date of entry into force of the financing agreement."}, {"bbox": [84, 476, 1145, 529], "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": [116, 573, 713, 603], "category": "Section-header", "text": "## 4.3 Implementation of the Budget Support Component"}, {"bbox": [131, 616, 745, 645], "category": "Section-header", "text": "### 4.3.1 Rationale for the Amounts Allocated to Budget Support"}, {"bbox": [84, 680, 1145, 733], "category": "Text", "text": "The amount allocated for the budget support component is EUR 17 800 000. Complementary support will be provided under the support measures as foreseen in the MIP/ AAP 2021. EUR 100 000 is foreseen for evaluation and audit."}, {"bbox": [84, 759, 1145, 837], "category": "Text", "text": "Annual disbursements of EUR 6 000 000 will represent about 0.84 % of the national budget and 0.34 % of the GDP. In terms of the impact of current fiscal revenue the annual disbursements will represent around of 1.7 % of the 2020 fiscal revenue."}, {"bbox": [84, 866, 1145, 1051], "category": "Text", "text": "In view of the current recession and the peaking public debt the amount provided will provide critically needed fiscal space for the Government to continue its mitigation measures and finance the recovery. It will also have a significant impact in moderating the increase of the debt burden, which is one of the major challenges the national economy is currently facing. As it was the case in the previous programming cycle, which included a Good Governance and Development Contract, budget support and the related high level policy dialogue will be instrumental for the EU engagement with Cabo Verde on EU developmental and political priorities. The prominent role of the EU within the Budget support Group can be maintained which facilitates direct access to critical information."}, {"bbox": [131, 1114, 635, 1143], "category": "Section-header", "text": "### 4.3.2 Criteria for Disbursement of Budget Support"}, {"bbox": [84, 1179, 215, 1204], "category": "Section-header", "text": "#### a) Conditions."}, {"bbox": [84, 1206, 726, 1231], "category": "Text", "text": "The general conditions for disbursement of all tranches are as follows:"}, {"bbox": [157, 1232, 1145, 1285], "category": "List-item", "text": "- Satisfactory progress in the implementation of the Plano Estratégico de Desenvolvimento Sustentável – PEDS and continued credibility and relevance thereof or of the subsequent policy."}, {"bbox": [157, 1286, 1145, 1338], "category": "List-item", "text": "- Maintenance of a credible and relevant stability-oriented macroeconomic policy or progress made towards restoring key balances."}, {"bbox": [157, 1339, 1145, 1419], "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": [157, 1420, 1145, 1472], "category": "List-item", "text": "- Satisfactory progress with regard to the public availability of accessible, timely, comprehensive, and sound budgetary information."}, {"bbox": [84, 1499, 1145, 1552], "category": "Section-header", "text": "#### b) The performance indicators for disbursement to be used for variable tranches may focus on the following policy priorities:"}, {"bbox": [84, 1578, 1145, 1631], "category": "Text", "text": "* Inclusion policies notably in support of the social response, recovery and development plan and the national care programme ('programa de cuidados')."}, {"bbox": [84, 1631, 738, 1657], "category": "Text", "text": "* The renewable energy elements of the National Electricity Master plan."}, {"bbox": [1041, 1662, 1158, 1685], "category": "Page-footer", "text": "Page 24 of 28"}]