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disbursements. Ifnecessary, the closing date o f this project may be extendedby one year. In FY05, the Bank will undertake EducationSector Strategy ESW ineducation to help define the focus o f the second phase o f PRODEC, the ten-year education program, and to strengthen the MTEF for education to feed into the PRSCs inFY06. Furthermore, M a l i i s a candidate for the Educationfor All initiative,which should significantly increase funding to the education sector in order to accelerate the rise in enrollment rates while improving education quality.

87.

The first phase o f PDDSS, Mali’s ten-year health and social development program,

ends in December 2003 and the Bank’s PRODESS support operation i s due to close by mid- 2004. The Bank will consider extending the closing date to finance the early part o f designing the second phase. A Health Sector Issues ESW will be carried out inFY05 to provide technical support to the second phase o f PDDSS and to feed into the preparation o f

the PRSCs. It i s expected that subsequent support to the health sector will come through PRSCs, to help reduce the current hightransaction costs due to the multiplicity o f donor procedures.

88.

The 2001 Adult HIV prevalence rate was estimated at 1.7%; however, the significant

population movements due to the crisis inneighboring Ivory Coast (where the HIV/AIDS prevalence rate i s 9.65%) pose a potentially serious threat to Mali. The proposed Multi- sectoral HIV/AIDS Project (FY04), to be fundedthrough an IDA grant, will, inter alia, support community efforts on fighting HIV/AIDS through capacity building, establish an information-education-communication (IEC) mechanism, and create partnerships particularly with the transport and private sectors to fight the disease. The project will complement other ongoing HIV/AIDS prevention initiatives such as the work o f UNAIDS and activities under

the HIV/AIDS component o f the PDDSS. It will also focus specifically on the gender dimensions o f HIV infection as the infection rate for women i s higher than for men.

CAS Theme: Public FinanceManagement and Governance

PRSP Pillar 1: PromoteInstitutionalDevelopmentWhile ImprovingGovernanceand Participation.

89.

Given Mali’s satisfactory maintenance o f macroeconomic stability and i t s recent

completion o f the PRSP, the G o M has indicated that it would eventually like to benefit from budget support for the implementation o f the PRSP. As already outlined inParagraph 71,the Bank proposes a gradual move towards the introduction o f PRSCsinFY06. As it moves to PRSCs, the Bank’s assistance will focus on carrying out the core diagnostic reports (as shown inTable 7),and strengtheningpublic sector management and governance, which were

highlightedinthe JSA as particular concerns.

90.

Given the negative impact o f the C6te d’Ivoire crisis on the Malian economy, the

G o M would needadditional assistance in calendar year 2003 to support the implementation

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    f the PRSP program: the Bank i s planning to provide assistance through a supplemental

credit to the on-going SAC-3, provided that the G o M has outlined appropriate actions to take to respond to the situation. As the Bank moves to introduce PRSCs by FY06, it will continue to provide balance o f payments support through a fourth StructuralAdjustment Credit

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