| Project Detail |
Project Description
The proposed operation will support the efforts of the GoDR to limit the adverse impact of the COVID-19 pandemic on
its hard-won gains in poverty reduction and shared prosperity. The operation is part of a donor-coordinated initiative
with the Inter-American Development Bank (IDB), the French Development Agency (AFD), and the Japanese International
Cooperation Agency (JICA). Short-term measures supported by the operation are aligned with the three components of
the government’s program: upgrading the healthcare system, strengthening social protection policies, and providing
liquidity support to the private sector.
Under Pillar 1, the operation supportsthe rapid strengthening of the Dominican Republic’s (DR) health system capacity
to deal with the COVID-19 pandemic. Measures supported include i) authorizing the use of emergency processes for the
purchase and contracting of goods, works and services related to health care; ii) approving measures related to the
COVID-19 emergency that strengthen transparency and accountability mechanisms for resources associated with
procurement and contracting management; iii) establishing a COVID-19 Contingency Plan to respond rapidly to the
increasing number of COVID-19 cases; and iv) establishing measures to release the importation of key medical articles
from the import duty and tax on goods and services during the emergency period.
Under Pillar 2, the operation aims to support GoDR’s efforts to mitigate the impact that the crisis can have on
household income and poverty rates. Measures supported are i) the creation of a job stability and income program, the
“Workers Technical Support Fund” (FASE), to support vulnerable formal workers and offset the economic impacts of the
COVID-19 pandemic. This program is expected to benefit at least 700,000 formal employees with a wage subsidy between
c. US$93 and c. US$158. Support will also be provided for the creation of the “Stay Home” program to deliver an
emergency transfer to vulnerable households identified through the existing “Eating First” program and the national
Unique Beneficiary System database.
Pillar 3 of the operation supports measures to provide temporary financial relief to households and firms by deferring
tax payments. This will help cushion the immediate impact of the crisis on households and increase firm liquidity to help
them stay in business and retain their employees. At the same time, as the measures do not reduce the total tax liability
of the firms, it is not expected that they will have a negative impact on overall tax collection levels. |
