Cape Verde Receives EC Budget Aid

The Cape Verde government will be employing its own tendering procedures for the European Commission-supported initiatives in the country.

The EC has decided to channel its funding for the national indicative program through general budget support, a delegation official confirmed. This means that the funds will go directly into the government treasury and will be disbursed according to the country's public financial management system. National procurement rules will be followed as well.

It was originally indicated in the EC strategy paper that 32.6 million euros will go to budget support for poverty reduction and good governance. Meanwhile, some 11.5 million euros, earmarked for strengthening EU-Cape Verde partnership, would be implemented through both budget aid and project approach.

In a Devex interview, however, the EC official said that the commission will allocate the entire amount to general budget support.

A country has to meet a number of eligibility conditions before receiving budget aid. These involve having a national or sectoral development policy, a stability-oriented macroeconomic framework, and improvements in public financial management.

About the author