The World Bank’s Board of Executive directors on April 27 approved US$5 Million to support Tonga’s Second Inclusive Growth Development Policy Operation.

Tonga’s Second Inclusive Growth Development Policy Operation aims to:

• Deliver more competitive and transparent public procurement
• Introduce and monitor budget targets to help ensure fiscal sustainability
• Improve the management of Government Spending on wages
• Prepare a new regulatory framework for the energy sector
• Design more simple and transparent procedures to attract foreign investment and encourage private sector participation in public enterprises.

Michel Kerf, the World Bank Country Director for Timor-Leste, Papua New Guinea, and the Pacific Islands said that the World bank has been a long-term supporter of policy reform in Tonga during the past six years and the government’s hard work is evident in the results: “Above average economic growth, healthier public finances, and commitment to good governance.”

According to the World Bank several development partners are expected to provide budgetary support to Tonga in the coming year as part of a coordinated policy framework, “including the government of Australia, through the Department of Foreign Affairs and Trade, the government of New Zealand, through the Ministry of Foreign Affairs and Trade, the Asian Development Bank and the European Union.”