Country

IMF Program

Loan Condition

Summary of Policy

ANGOLA

Staff-monitored program

Structural benchmark: Adjust electricity and water tariffs in accordance with formulas agreed with the World Bank. Reduce accounts receivables of the water and electricity companies to one month of sales revenue

Adjust water tariffs periodically to recover costs, including a reasonable return on capital.

BENIN

Poverty Reduction and Growth Facility

(PRGF)

Other measure: After the revision of regulatory framework, the government expects to complete the privatization before the end of the third quarter of 2001

Privatize the water and electric power distribution company (SBEE)

GUINEA-BISSAU

Emergency Post-Conflict policy

Structural benchmark: Transfer of electricity and water management to private company

Transfer of electricity and water management to private company

HONDURAS

Poverty Reduction and Growth Facility

(PRGF)

Other measure: Approve framework law for the water and sewage sector by December 2000

To facilitate private concessions in the provision of water and sewage services, approve the framework law by December 2000.

NICARAGUA

Poverty Reduction and Growth Facility

(PRGF)

Structural benchmark: Continue adjusting water and sewage tariffs by 1.5% a month. Offer concession for private management of regional water and sewage subsystems in Leon, Chinandega, Matagalpa, and Jinotega.

Adjust water and sewage tariffs to achieve cost recovery and offer concession for private management in key regions.

NIGER

Poverty Reduction and Growth Facility

(PRGF)

Other measure: Divestment of key public enterprises, including the water company, SNE.

Privatize the four largest government enterprises (water, telecommunication, electricity & petroleum) have been agreed with the World Bank with the proceeds going directly to pay Niger’s debt.

PANAMA

Stand-By Arrangement

Structural benchmark: Complete plan to overhaul IDAAN’s (state-owned water company) billing and accounting systems, allow to contract with private sector operators, determine need for tariff increase and possible rate differentiation among clients.

Overhaul the water company’s billing and accounting systems, allow it to contract with private sector operators, review the tariff structure.

RWANDA

Poverty Reduction and Growth Facility

(PRGF)

Put the water and electricity company (Electrogaz) under private management by June 2001.

Arrange private management of the water and electricity company (Electrogaz) as a prelude to its privatization.

SAO TOME AND PRINCIPE

Poverty Reduction and Growth Facility

(PRGF)

Structural benchmark: The new adjustment mechanism for public water and electricity rates will be brought into operation by decree. The price structure will cover all production and distribution costs as well as the margin of the water and electricity company. The accounts will balance consumption and resources without recourse to government subsidies.

In May 2000, the government conducted a study of alternatives for the future of the water and electricity company (restructuring, leasing, concession or full privatization), with assistance from the World Bank. By December 2000, it will select one of the options and adopt a financial restructuring plan, and strengthen the revenue collection procedures.

SENEGAL

Poverty Reduction and Growth Facility

(PRGF)

Other measure: Regulatory agency for the urban water sector will be created by end-2000. Transfer the recurrent costs of water pumping and distribution equipment to the communities. Increase the involvement of private sector operators.

Encourage the involvement of private sector operators in the water sector. Assess the possibility of private sector operation and financing of the infrastructure required to meet Dakar’s long-term water needs.

TANZANIA

Poverty Reduction and Growth Facility

(PRGF)

Condition for HIPC debt relief: Assign the assets of Dar es Salaam Water and Sewage Authority (DAWASA) to private management companies.

Assign the assets of Dar es Salaam Water and Sewage Authority (DAWASA) to private management companies.

YEMEN

Poverty Reduction and Growth Facility

(PRGF)

Structural benchmark: Implement adjustments in water, wastewater, and electricity tariffs to provide for full cost recovery.

Implement formulas for automatic adjustments in tariff rates to ensure full pass through of product prices and full cost recovery; establish regional water authorities with private sector participation and independence to set regional tariff structures.