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VENEZUELA COUNTRY STRATEGY UPDATE
Period of coverage The last Country Paper (now called a Country Strategy) covered the period 2001-2003 (document GN-2081-3) and was updated in 2008 through document GN-2477. It is estimated that the new Country Strategy with Venezuela, which is currently in preparation, will be presented to the Programming Committee early in the third quarter of 2010 for consideration. This Update therefore covers the period from January 2009 to June 2010.
Approvals during the effective period of the CS Update and their consistency with the areas of the CS The Country Strategy with Venezuela (2001-2003) focuses on four strategic areas: (a) social—poverty reduction and human capital development, through better access to basic social services; (b) economic—enhance the competitiveness of nonoil resources to diversify the economy (physical infrastructure, agricultural sector, financial sector, and environmental sector); (c) institutional—institutional strengthening in the public sector to improve the delivery of public services; and (d) science and technology—generation and use of knowledge to develop human capital and boost economic productivity. During the effective period of the present CS Update three SG operations have been approved that were consistent with the aforementioned areas of the CS. See breakdown in Annex I.8.
New sector and rationale No new sectors are expected to be incorporated under the CS Update.
Financial scenario The Government of Venezuela has requested from the Bank a program of SG operations for 2010 and 2011 in the amount of US$890 million. However, that level of approvals is restricted by the current financial capacity of the Bank.6 For the same period, approvals of nonreimbursable operations are estimated at approximately US$1.37 million, divided between public sector technical cooperation operations and "mini-MIFs".
According to document GN-2552, Venezuela received an initial allocation for disbursements in 2010 of US$440 million for its SG operations and, therefore, its level of approvals will be adjusted to respect that limit.
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Country systems The country does not have up-to-date studies on its country systems (evaluation of financial management under the PEFA methodology or of procurement under the OECD/DAC methodology). Nonetheless, in the framework of preparation of the 2010-2013 Country Strategy with Venezuela, the Bank, through its Country Office and the Productivity Development Policies (PDP), has been discussing with the country issues related to fiduciary processes and streamlining procedures for supervising operations. During the period covered by the future strategy, it is expected that coordinated activities will be included for studies and, if necessary, steps will be recommended for improving how country fiduciary systems operate.
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ANNEX I: OPERATIONS APPROVED DURING THE EFFECTIVE PERIOD OF THE CS UPDATE (As of 31 March 2010)
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Loans Operation number
Amount approved (US$)
14 Oct 2009
29 Jul 2009
03 Feb 2010
Enhancing the competitiveness of non-oil resources to diversify the economy VE-L1021
Comprehensive Institutional Development of CORPOELEC Supplemental Financing Loan for the Project â€œManuel Piar (Tocoma) Dam" Water Consumption Efficiency Program (PRAC)