Ethiopia and World Bank Signs Financing Agreement to Bolster Basic Social Services
Today, June 4, 2021, the Federal Democratic Republic of Ethiopia signed a Financing Agreement amounting to USD 250 Million in the form of a Loan (approximately 10.895 billion ETB) with the World Bank at a ceremony held in the Ministry of Finance (MoF).
The objective of the Enhancing Shared Prosperity through Equitable Services Program (ESPES) aims to improve equitable access to essential services for the whole population of Ethiopia by improving results in health, education, and agriculture services in the most poorly performing woredas and strengthening the overall decentralized service delivery system.
This project focus on promoting the delivery of services such as basic education, primary health care, agricultural extension advice, water, and rural roads through a highly decentralized system. The choice was made based on a due consideration of the gap in Basic Service Delivery and analysis examining how a decentralized government might respond better to diverse local needs and provide public goods more efficiently than a centralized government. Building on the lessons learned from previous phases, the program will continue to support the ongoing government efforts to deliver basic services.
ESPES program aims to leverage the government’s broad program of service delivery to promote equity, enhance quality and institutionalize critical systems, especially at the woreda level. This additional financing was approved by the World Bank Board of Directors in May 2021.
H.E. Mr. Ahmed Shide, Minister, Ministry of Finance, and Mr. Ousmane Dione, Country Director for Ethiopia, Eritrea, Sudan, and South Sudan, World Bank signed the agreements on behalf of the Ethiopian Government and the World Bank, respectively.