Tuesday August 8, 2023, in the meeting room of his cabinet, in Brazzaville, the Minister of Economy and Finance, Jean-Baptiste Ondaye, on behalf of the Government, signed with the leaders of commercial banks established in the Republic of Congo, the Memorandum of Understanding relating to the establishment of a new coordination framework for the financing of public investment projects, included in the National Development Plan (PND) 2022-2026, the monitoring and control of the implementation of said projects.

The signing of this Memorandum of Understanding on the new Project Financing Framework or Mechanism aims to correct the weaknesses of the current practice of conducting public investment projects. These include, in particular, the difficulties of planning payments on the basis of availability at the level of the Treasury, which manages a significant amount of expenditure.

“This uncertainty generates several risks, namely: the non-completion of projects, which generally results in the phenomenon of “white elephants”, due to the trade-offs that can be made, taking into account the “emergencies” of the State ; the payment of a service, when it is not carried out in accordance with the requirements of the contracts, due to the gap between the payment made to the Treasury and the proof of the provision of the services; and the accumulation of payment arrears due to the strong dependence on the financial health of the State, with repercussions on business activity, unemployment and economic growth,” said Zacharie Mokemo, Chief of Staff of the Minister of State, Minister of Territorial Planning, Infrastructure and Road Maintenance.

The main results of this innovative Mechanism are expected, among others, as follows: “the reduction of uncertainty and the reduction of State cash flow tensions, thanks to better forecasting of disbursements which will be made in installments; the significant improvement in the rate of execution of the works, thanks to the condition, imposed on the companies awarded the contracts, to disburse according to the progress of the works; significant reduction in credit diversions and uncaused payments; the significant reduction in the accumulation of new payment arrears; the stability and growth of businesses and banks, thanks to the regularity of payments; improving relations between banks, businesses and the State, as well as optimal allocation of resources; the increase in state tax and customs revenue; improving the country’s economic growth, etc.,” the speaker said.

For his part, the Minister of Economy and Finance not only welcomed the spirit of dialogue and frank collaboration which was manifested throughout the process of development and validation of this Memorandum of Understanding, but also perceived, implicitly, the positive impact of innovations on the daily lives of populations. “I am convinced that the innovations provided for in this Memorandum of Understanding, particularly in our way of conducting public investment projects, will contribute significantly to the realization of the Society Project of His Excellency the President of the Republic, Denis Sassou-N'Guesso: "Together, let's continue the march", and to improve the living conditions of our populations", concluded Jean-Baptiste Ondaye.

The Communication Unit of the Ministry of Economy and Finance