Burkina Faso - Mining Sector Capacity Building and Environmental Management Project (Formerly listed as Mining Sector Capacity Building Project)

Report No. PIC1827 Project Name Burkina Faso-Mining Sector Capacity... Building and Environmental Management Project Region Africa Sector Mining, Environment, Public Sector Management Project ID BFPA283 Borrower Government of Burkina Faso Implementing Agencies Ministry of Energy and Mines Ministere de lEnergie et des Mines Secretariat General Projet d ' assistance technique au secteur minier 01 BP 12 Ouagadougou 01 Tel: 226 31 78 64 Fax: 226 31 78 64 Date PID Prepared January 5, 1995 Projected Appraisal Date January 15, 1996 Tentative Board Date May 1996 1. Country and Sector Background. Since 1991, the Government of Burkina Faso has been implementing a wide range of policy, economic and sectoral reforms under its structural adjustment program. Selective progress has been made during the period 1991-94 in implementing public enterprise reform, banking and business law reform and privatizing the regional railway in support of private sector growth. The main objective of the Policy Framework Paper for 1995-97 is to consolidate and deepen the ongoing adjustment process, focusing on macroeconomic performance, public sector management, private sector development and improvements in the social sectors. Aost 22 months after the devaluation of the CFAF, the macroeconomic situation has stabilized and inflation has returned to low levels. The fiscal situation is much under control and the Government is focusing on building capacity, sectoral growth, poverty alleviation and environmental sustainability. 2. At present, modern mining is little developed in Burkina. Yet, exports of gold represent, after cotton, the country