Draft COMMISSION DECISION

Transcription

1 Draft COMMISSION DECISION of on the Annual Action Programme 2008 on Accompanying Measures on Sugar in favour of St. Kitts and Nevis to be financed under Article of the general budget of the European Communities THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Regulation (EC) No 1905/2006 of the European Parliament and of the Council of 18 December 2006 establishing a financing instrument for development cooperation 1 (hereafter "DCI Regulation"), and in particular Article 17.2 second subparagraph and 22 (3) thereof, Whereas: (1) The ACP Sugar Programming is by its very nature a sui generis programme, for which the implementation should continue to be done in analogy with geographic programming pursuant to Articles 18 (1) and 22 of the DCI Regulation. The analogy to geographic programmes derives from the fact that the accompanying measures to be adopted under the sugar programme are country specific and aim at supporting the country's adjustment process. This way of proceeding further reflects, and ensures seamless continuity with, established practice under Regulation 266/2006 establishing accompanying measures for Sugar Protocol countries affected by the reform of the EU sugar regime which expired at the end of 2006 and also with the principle of a single decision for all projects introduced by the new financial instruments for EC external assistance adopted by the Council for the period (2) The Commission has adopted the EC Multi-Annual Adaptation Strategy for the period for Saint Kitts and Nevis 2 and the Multiannual Indicative Programme for the period , point 1.3, which provides for the following priorities of fiscal sustainability, private sector development, skills development and institutional strengthening/public sector reform. (3) Commission Decision C(2007)4522 approving the Multi-annual Indicative Programme for St. Kitts and Nevis further provides that it constitutes the guiding framework for the drawing up of Annual Action Programmes OJ L 378, p.41 C(2006) 5530 C(2007) 4522 EN 1 EN

2 (4) The Government of SKN (GOSKN) has placed the promotion of sustained growth and development in the changing global environment high on its agenda. Having closed the sugar industry, the GOSKN main focus for the adaptation strategy is a shift from sugar production towards the diversification of the economy. This is demonstrated by the Country-led National Adaptation Strategy (NAS) which covers long-term comprehensive strategies addressing economic, fiscal, social, environmental and structural issues. (5) The European Commission (EC) has determined the eligibility of SKN to receive General Budget Support (GBS) under the 2008 Annual Action Programme (AAP) to support the NAS. (6) The objectives pursued by the Annual Action Programme are to support macroeconomic reform for a more stable macro-economic environment; to support PFM reform to enhance an efficient, effective and accountable public finance management system; to promote private sector development through diversification of the production base and increased productivity and to support social transformation through improved poverty reduction planning and policies, human capital development and the protection of the poorest and most vulnerable groups. (7) The present decision constitutes a financing decision within the meaning of Article 75 of Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities 4 and Article 90 of Commission Regulation (EC, Euratom) No 2342/2002 of 23 December 2002 laying down detailed rules for the implementation of the Financial Regulation applicable to the general budget of the European Communities 5 and article 15 of the Internal Rules 6 on the implementation of the general budget of the European Communities (Commission section). (8) The present decision covers any possible interest due for late payment on the basis of articles 83 of the Council Regulation (EC, Euratom) No 1605/2002 and 106(5) of Commission Regulation (EC, Euratom) No 2342/2002. (9) The Commission is required to define the term substantial change in the meaning of Article 90 (4) of Regulation (EC, Euratom) No 2342/2002 to ensure that any substantial change in this decision shall follow the same procedure as the initial decision. The measures provided for in this decision are in accordance with the opinion of the DCI Committee set up under Article 35 of Regulation (EC) No 1905/ OJEU L 248 of p. 1. Regulation last amended by Regulation (EC, Euratom) No1995/2006 (OJEU L 390, , p.1) and by Council Regulation (EC, Euratom) N 1525/2007 of 17 December 2007 (OJ L 343, , p.9.). OJEU L 357 of , p.1. Regulation last amended by Regulation (CE, Euratom) No 478/2007 (OJEU L 111, , p.13). Commission Decision C(2008)773 of EN 2 EN

3 HAS DECIDED AS FOLLOWS: Article 1 The Annual Action Programme on Accompanying Measures on Sugar in favour of St. Kitts and Nevis, constituted by the action General Budget Support, the text of which is set out in the attached Annexes II and III, is approved. Article 2 The maximum contribution of the Community to the Annual Action Programme is set at EUR 9,433,000 to be financed from budget line of the general budget of the European Communities for This decision shall also cover any possible interest due for late payment. Done at Brussels, [ ] For the Commission [ ] Member of the Commission EN 3 EN

4 ANNEX 2008 ANNUAL ACTION PROGRAMME OF ACCOMPANYING MEASURES FOR SUGAR PROTOCOL COUNTRIES IN FAVOUR OF ST KITTS AND NEVIS IDENTIFICATION Title Total cost Aid method / Management mode Annual Action Programme on Accompanying Measures for Sugar Protocol Countries for St. Kitts and Nevis for 2008 EC contribution: 9,433,000 of which 8,773,000 is budget support and 660,000 is complementary support General budget support for economic diversification and poverty reduction/ centralised management. The complimentary support will be realised in partially decentralised management. DAC-code Sector Budget Support 1. RATIONALE AND COUNTRY CONTEXT The European Commission (EC) has determined the eligibility of St. Kitts and Nevis to receive General Budget Support (GBS) under the 2007 Annual Action Programme (AAP) to support the National Adaptation Strategy and aims at addressing the problems of the closure of the sugar industry with its social and environmental consequences and at promoting the wider diversification of the economy Country Context and National Policy and Strategy Economic and social situation and poverty analysis St. Kitts & Nevis (SKN) is a small, open, middle-income country that is highly vulnerable to shocks. The closure in 2005 of the sugar industry-the historical mainstay of the economy- set the stage for a new economic course. The key challenges now facing the economy include: coping with the transition of the economy out of sugar- putting land and labour released from the sugar sector to more productive uses; addressing the debt burden which amounted to about 169% of GDP by end-2007 and its vulnerability to external shocks- particularly natural disasters and shifts in tourism demand. The country has the second highest per capita income (US$9,723) in the Eastern Caribbean Currency Union (ECCU) and ranks third among Caribbean nations in the UN Human Development Index (HDI). However, the spread of HIV/AIDS and diabetes is becoming a concern. The 2001 Survey of Living Conditions which is the latest data available on poverty pointed to a poverty level of 31.2% including 14% indigence. A new Country Poverty Assessment (CPA) began in 2007 and is expected to be completed in the third quarter of The 2001 survey found that poverty was most severe among youth 62% and women 59%. Some of the factors identified as being closely associated with poverty included low educational certification among youth and women, and workers household heads which trapped them in low skilled, low paying jobs and female headed households which women cared for children on their own. It reported that 57% of the poor in the labour force had no educational certification National Development/ Cooperation Policy and Strategy The Government of SKN (GOSKN) has placed the promotion of sustained growth and development in the changing global environment high on its agenda. Having closed the sugar industry, the GOSKN EN 4 EN

5 main focus for the adaptation strategy is a shift from sugar production towards the diversification of the economy. This is demonstrated by the Country-led National Adaptation Strategy (NAS) which covers long-term comprehensive strategies addressing economic, fiscal, social, environmental and structural issues. The policy focus of the NAS includes: a) macro-economic policies to reduce vulnerability and encourage and facilitate investment; b) improved competitiveness in the production and export of goods and services; c) social policies to support economic development and protect the most vulnerable; d) an environmentally sustainable development agenda; and e) successful economic restructuring and transformation through better organisation. These policy objectives have been incorporated in the policies and programmes of the relevant Ministries. The general budget support of million euro is equivalent to EC$39.6 million which is 7.4% of the GoSKN annual budget estimates of EC$537.6 million in Recurrent revenue for fiscal year 2008 has been estimated at EC$425.5 million which represents an increase of 3.5% over the 2007 revenue estimates. Recurrent expenditure for 2008 has been estimated at EC$412.1 million representing a 12.7% increase over the 2007 estimate. The commitment to social spending has continued with 21.1% of the total budget allocated to education, health and social and community development which is consistent with the NAS. The authorities introduced elements of performance based budgeting in the 2008 FY budget which should improve the linkage between the national strategy and budget allocations and expenditure Eligibility for budget support The European Commission (EC) has determined the eligibility of SKN to receive General Budget Support (GBS) under the 2008 Annual Action Programme (AAP) to support the NAS based on the following: The Government continues to implement its fiscal stabilization programme with the aim of maintaining a primary surplus of at least 3.5% of GDP and putting debt on a solid downward trajectory. The authorities have already taken important steps towards this goal, including strengthening tax administration; introducing an electricity fuel surcharge; adopting an automatic fuel pricing mechanism; and moving towards the introduction of VAT and a market-valuation-based property tax. Strong social outcomes are a priority of Government. The recent adoption of the Finance and Administration Act (FAA) is a positive step towards improving oversight of public enterprises and the Government is making efforts to strengthen debt management capacity including the undertaking of a comprehensive review of its debt in The Government is also receiving policy based assistance from the Caribbean Development Bank (CDB) (policy matrix described in Annex 1) ensuring that there is a conducive environment in which to provide budget support. Under this AAP a PFM steering Committee will be established as a monitoring mechanism for implementation of the reforms identified in the GoSKN PFM action plan. An update of the PFM situation was carried out in April 2008 which concluded that reforms had been undertaken since the PEFA in 2007 which included the enactment of a new FAA in June of 2007; improved presentation of the 2006 financial statements; the control of the use of advance accounts; effective monitoring of public enterprises through the creation of a Government Entities Oversight Board; introduction of an integrated budget for FY 2008 which also included elements of performance reporting; completion of valuation of properties in accordance with the new Property Tax Act and the re-establishment of the Co-ordinating Public Sector Investment Programme(PSIP) committee chaired by the Prime Minister which is intended to improve the planning and control of capital expenditure. It was recognised that there are still weaknesses in the PFM system in particular in the areas of procurement, cash management, internal and external audit. The Government has formulated a PFM action plan which embodies their commitments to strengthening the PFM environment and provides for capacity building to sustain the reform efforts. A well defined national policy is provided by the NAS which addresses the GoSKN response to economic/fiscal and structural issues and maps out economic diversification programmes and activities related to non-sugar agricultural diversification, social protection, poverty reduction and EN 5 EN

6 environmental challenges. The institutional arrangements for managing the adaptation process of the GSKN were established in The three main structures include a Cabinet Committee on Finance & Economy, an Inter-Ministerial Technical Committee on National Transformation; and a Coordination and Programming Unit. The institutional support through the EC 2006 project Accompanying Measures for Sugar protocol countries should be in place by August Under this AAP a three-year rolling performance assessment framework with performance monitoring indicators will be developed Lessons learnt SKN has experienced slow disbursement of the resources committed for the implementation of the 2006 Institutional Strengthening Project which has negatively affected the implementation of the NAS, the 2006 project and the 2007 general budget support programme. The slow implementation of the 2006 project was caused by administrative delays. Most of the bottlenecks have been dealt with and the institutional support is expected to be in place by August The Ministry has also received an increased budgetary allocation in the 2008 budget and recruited new staff to assist in the implementation of programmes under AMSP. The primary lesson from the 2006 project is the importance of the institutional support structures being in place prior to the start-up of the project or early enough in order to support implementation. The implementation of the 2007 AAP has highlighted the need for strong donor coordination and the need to further develop strong policy dialogue on macro-economic and public finance management issues with the EC. This will be addressed through the establishment of a PFM steering Committee for monitoring the implementation of PFM reforms. The development of a performance assessment framework with performance monitoring indicators should improve the foundations for policy dialogue and implementation of the NAS Complementary actions It was agreed that SKN would receive general budget support for the first time in the 2007 AAP. As part of the EC Response Strategy and implemented during the period , the AMSP 2006 project aims to strengthen the capacity of the Ministry of Finance & Sustainable Development (MoFSD). It aims to coordinate a range of macro, sectoral and cross cutting areas associated with the transition process and national development. The 10 th EDF Country Strategy Paper (CSP) identifies Public Safety and Security as the focal sector with special attention to capacity building, training and provision of programmes for police and other security staff. As the EC sugar-related response strategy seeks to respond to challenges in the areas of human resource development, institution building, public administration reform, these are all relevant to the CSP s focus on reform of a particular area of the public sector. Details of other donor programmes are outlined in Section 3 of the Memorandum Donor coordination National responsibility for donor co-ordination is vested with the MoFSD. In 2008 SKN hosted the first consultation of the Eastern Caribbean Donor Group (ECDG) which is a group of donor and development organisations in Barbados and The Eastern Caribbean with an overall mandate to strengthen aid coordination and delivery collaboratively. The EC intends to increase harmonisation with other donors through the ECDG but it is difficult due to diverging planning periods, assistance volumes and methodologies. The proposed GBS programme will be closely aligned with the CDB policy based assistance to harmonise on a single framework of reforms, performance criteria and indicators. In the absence of an IMF programme the policy-based loan of the CDB provides a set of macro and fiscal conditions, consistent with the fiscal strategy and overall macro-economic policy of the GoSKN. The Commission coordinates its support measures with those of the other interested donors (who include EN 6 EN

7 the CDB together with CIDA, CARTAC and USAID). The EC collaborated with the World Bank and CARTAC recently to harmonise approaches to PFM in the region. In terms of ongoing policy dialogue with the GoSKN, the Commission relies on the leadership of the IMF and the CDB. This dialogue is structured through the submission of quarterly reports and the annual IMF article IV mission. Considering that Government generally faces difficulties to ensure adequate co-ordination and policy dialogue, a mechanism is proposed to ensure that the donors can articulate their common interests and objectives in an annual policy dialogue. This mechanism should provide for Government to host an annual meeting with the donors to discuss its progress in the implementation of its NAS and to establish a steering Committee for monitoring implementation of PFM reforms. 2. DESCRIPTION This programme is the second of a multi-annual GBS as decided in the MIP In coherence with the EC Response Strategy, the overall objective of the multi-annual GBS decided in the MIP is to support the GoSKN to implement specific components of the NAS in order to improve the quality of life for the people of the Federation of St Kitts and Nevis by reducing poverty through economic growth and relevant social development interventions. The specific objectives of this AAP are (i) to support macroeconomic reform for a more stable macroeconomic environment; (ii) to support PFM reform to enhance the efficiency, effectiveness and accountability of public financial management systems; (iii) to promote private sector development through diversification of the production base and increased productivity; and (iv) to support social transformation through improved poverty reduction planning and policies, human capital development and protection of the poorest and most vulnerable groups Expected results The key results anticipated from the 2008 framework are: 1. Strengthened fiscal policy arrangements to achieve and maintain sustainable fiscal and debt outturns. As SKN addresses the financial requirements of its NAS, EC Budget Support will contribute to finance fiscal and external deficits. The total present support covers about 7.4 % of the annual national budget and up to 39.5% of the Government s present annual financing requirement (difference between total expenditure and domestic revenue). 2. Improved public financial management, including transparency and accountability of Government to its citizens. Budget support strengthens Government s own accountability mechanisms since the funds flows through the government accounts and budget. In addition, through the policy dialogue, general conditions of the budget support programme and the establishment of a steering committee for monitoring the implementation of the public financial management action plan. 3. Strengthened policy environment through the development of a Poverty Reduction Strategy in response to the findings of the Country Poverty Assessment and an action plan for the implementation of labour market assessment. EC Budget Support will support the development of policies in these key areas. Increased resources, provided through the variable tranche mechanism and policy dialogue (notably through the budget support reviews) will contribute to attaining improvements in the policy environment. 4. GoSKN institutions strengthened and capacity built- by using Government systems rather than parallel project systems, EC Budget support aims to reinforce capacity. In particular, it is expected to provide resources and expertise to strengthen the implementation of its PFM EN 7 EN

8 action plan and a monitoring system for the implementation of the NAS with a view to develop a Performance Assessment Framework. 5. Reduced Government and donor aid transaction costs- this result will be attained providing for an effective policy dialogue on the macro-economic management reforms through the harmonisation of requirements with the CDB PBL, and by minimising separate information demands on Government. 6. Increased access to land for commercial/ small scale agriculture - The GoSKN are freeing up lands formerly under sugar cultivation for alternative uses and the development of non-sugar agriculture is considered a viable alternative not only for the productive use of sugar lands but also as a means of targeting food security, creating employment and maintaining stability with in the small rural communities most affected by the closure of the sugar industry. 100 acres of land is being allocated to facilitate the development of the agriculture sector Stakeholders The MoFSD is lead ministry for the implementation of the NAS and consequently for this budget support programme. Monitoring of the implementation of the EC Response Strategy as specified in the MIP will therefore be carried out within the institutional structures described in the NAS e.g. a Cabinet Committee on Finance & Economy; an Inter-Ministerial Technical Committee on National Transformation; and a Co-ordination and Programming unit. The GoSKN has also established a Non-State Actors Panel which will be the forum for regular consultations on implementation of the strategy. The beneficiaries of this programme are the former sugar workers, their families, and other vulnerable strata of the population who should reap the benefits derived from a higher growth momentum resulting from the reform measures. The improvement of the investment climate will stimulate private sector growth and therefore create employment opportunities throughout the economy as a whole Risks and assumptions The success of the policy reforms being supported by the programme faces a number of risks, including (i) vulnerability to natural disasters; (ii) adverse exogenous shocks (high oil and food prices) affecting earnings, economic activity and government revenue; and (iii) institutional and human capacity weaknesses in the public sector that limit the capacity to manage the budget support programme and public finance management reforms. These risks can be mitigated in two ways. Firstly, through a strong focus on fiscal prudence and on fiscal discipline, the maintenance of which may be monitored by implementation of the policy reforms foreseen in the CDB PBL. Secondly, through the provision of adequate and appropriate technical assistance to support the GoSKN in implementing the public finance management action plan and the NAS Crosscutting issues The programme has clear positive implications in the sphere of good governance. It is expected to be neutral in respect of gender equality and human rights. The NAS sets out the very strong commitment by the GoSKN to sustainable environmental principles. This is demonstrated in all of the country s ongoing and planned development programmes including those being funded under the AMSP such as the Land Management Unit which is a direct response to the environmental management deficit left by the closure of the sugar industry. SKN is also actively pursuing several alternative energy options including wind, geothermal and biofuels as part of the US/Brazil Biofuels initiative. SKN is consistent in its promotion of gender equality in the public sphere, while continuing to combat residual paternalistic attitudes through education and other awareness raising techniques. Many of the country s social development strategies are now focusing on the plight of socially disadvantaged EN 8 EN

9 young males who are clearly at risk due to low educational achievement and involvement with the criminal justice system. 3. IMPLEMENTATION ISSUES The timetable of implementation of EC Budget Support covers 2009, and as such it will cover one fiscal year (calendar years and fiscal years are the same in SKN). The total amount allocated to this programme is 9,433,000 of which a maximum of 8,773,000 is for Budget Support. The complementary support, totalling 660,000 consists of 500,000 for the provision of technical assistance and 100,000 as provision for monitoring and evaluation, 40,000 for audit of the complimentary support and 20,000 for visibility actions. It is intended that the GBS programme will be complemented for the fiscal years by the resources from the sugar allocations (in accordance with the MIP ). Indicative period of disbursement Event S S Signature of Financing Agreement - Q st Tranche/fixed M EC Budget Support Review 4th QRT nd Tranche/variable M Technical Assistance (TA) 0.5 M Visibility 0.02 M Monitoring & Evaluation 0.10 M Audit 0.04 M Total M The GBS will be disbursed through one fixed tranche of million and one variable tranche of million. The first tranche will be released at signature of FA (provided that the general conditions expressed in section 4.3 are met). The variable tranche will be evaluated around the end of 2009(at the latest during the first quarter of 2010). The provision of 500,000 for technical assistance will support macroeconomic and public finance management reforms. The Commission will agree on a TA programme with National Authorities at the latest before the disbursement of the first fixed tranche in The recruitment for the TA component will be launched in the first quarter of A provision of 100,000 has been assigned to monitoring and evaluation of the performance criteria for the disbursements. 20,000 is allocated for communication and visibility activities. 40,000 is allocated for audit of the complimentary support. All individual commitments and contracts must be signed by both parties no later than three years from the date of signature of the financing agreement. This deadline cannot be extended. The above provision does not apply to contracts relating to audit and evaluation, which may be signed later. This operational duration of this GBS Programme is 36 months as from the signature of the Financing Agreement by the GoSKN, followed by a closure period of 24 months, resulting in a period of execution of 60 months. Any balance of funds available shall automatically be cancelled 6 months after the end of the period of execution. The Financing Agreement shall be signed by 31 st December of the year following the year in which the global financial commitment was adopted. Failing this, the corresponding appropriations shall be cancelled. EN 9 EN

10 3.1. Budget support modalities The resources will be disbursed in the form of a direct non targeted general budget support using centralised management. The complementary support consisting of TA, Monitoring, Evaluation, Audit and Visibility components will be implemented in partially decentralised management through the signature of a financing agreement with St. Kitts and Nevis Government and using the procedures described in section 4.2. The TA programme will be managed by the MoFSD which is lead ministry for the implementation of the NAS and consequently for this budget support programme. The Monitoring & Evaluation component of 100,000 Euro will be utilised to monitor the continued eligibility of SKN to budget support which foresees a PEFA and a macro-economic assessment. The Audit and Visibility components for the amount of 60,000 Euro will be centralised and implemented using experts recruited through the framework contract Procurement and grants award procedures All contracts implementing the action must be awarded and implemented in accordance with the procedures and standard documents laid down and published by the Commission for the implementation of external operations, in force at the time of the launch of the procedure in question. Participation in the award of contracts for the present action shall be open to all natural and legal persons covered by article 53 and article 56 of the Financial Regulations applicable to the general budget of the European Community. The technical assistance component will be realised through partly decentralised management through the signature of a financing agreement with the Government of St. Kitts & Nevis. The Commission controls ex ante the contracting procedures for procurement contracts > EUR and ex post for procurement contracts EUR. The Commission controls ex ante the contracting procedures for all grant contracts Performance monitoring and criteria for disbursement As mentioned above, EC Monitoring missions supported by a specific TA will be held for the assessment of the performance criteria of each tranche throughout the programme. The disbursement of both tranches (fixed and variables) will be subject to the fulfilment of the three following general conditions: (i) Overall satisfactory assessment of SKN macro-economic framework, - the EC assessment of the macro-economic situation will be based on consultation with the CDB on the implementation of its policy based loan as well as with the IMF and/or Article IV Reviews (ii) Overall satisfactory progress with improvements to PFM systems as verified by evidence provided in the implementation of the action plan and accompanying technical assistance programme. The establishment of a PFM steering Committee will be the monitoring mechanism for implementation of the PFM Action Plan. Minutes of their meetings as well as an annual progress report from the Committee should be submitted to the EC. PEFA assessment scheduled for the first quarter 2009 and where relevant other supporting documents; (iii) Satisfactory implementation of the National Adaptation Strategy as verified by evidence provided by an annual progress report prepared by the Coordination Unit of the Ministry of Sustainable Development. A three year rolling Performance Assessment Framework (PAF) for the NAS which EN 10 EN

11 includes relevant and measurable performance monitoring indicators should be submitted to the EC in the last quarter of External shocks such as hurricanes that could hit the country during the programme implementation might be taken into account in the assessment of these general conditions provided that the government provides the evidence that these shocks have significantly hampered the implementation of the supported dimensions of the strategy. In addition to the fulfilment of these general conditions, the disbursement of the variable tranche will be linked to the satisfaction of the following performance criteria in the development of appropriate policies: million for the completion of a credible and comprehensive Poverty Reduction Strategy based on the results of the Country Poverty Assessment(25% of the variable tranche total amount); million for completion of a credible, fully costed and sequenced action plan based on the labour market assessment of the current skills base (25% of the variable tranche total amount); million increase access to land to farmers for commercial/small scale agriculture by 100 acres (25% of the variable tranche total amount); and million - the 2009 SKN recurrent budget shows that the share of the budget expenditures to the social services (health, education and social provision) is maintained in % of the total budget(recurrent and without interest payments) are at least maintained at the same level as for the 2007 budget (recurrent 19.4%) (25% of the variable tranche total amount) Evaluation and audit A budget is foreseen to conduct an Article 56.2 Verification Audit in keeping requirements for future AAPs under the AMSP Budget Line. Given that these Budget Support funds are untargeted all audits will be conducted by the Office of the Auditor General in SKN on an annual basis. The end-of-term evaluation will be programmed under the 2010 allocation. Independent consultants will be recruited directly by the Commission on specifically established terms of reference to carry out an end-of programme audit and an external evaluation by the Commission for the technical assistance component Communication and visibility It is proposed that the Government convenes a formal high-level annual review of the macroeconomic, fiscal and PFM situation while the programme is being implemented. This will ensure that discussions between the donors and Government take place at the appropriate level and promote high visibility of the programme. Communication and visibility activities will be coordinated by the MoFSD. EN 11 EN

12 ANNEX The Annual Action Programme 2008 on Accompanying Measures on Sugar in favour of St. Kitts and Nevis for General Budget Support EN 12 EN