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IDB supports program in Chile to improve public services

Loan will finance enhancement of effectiveness and efficiency of agencies overseeing and providing services

The Inter-American Development Bank (IDB) has approved a $48 million loan to finance a program that will help improve management of services that the Chilean government provides to its citizens.

The Program to Improve Public Management and Citizen Services will promote enhancement of the effectiveness and efficiency of agencies that oversee and supply services to citizens, strengthening their management capabilities.

“Since the 1990s Chile has sought to gradually improve the quality of the public services it provides,” said Juan Carlos Cortázar, leader of the IDB project team. “The challenge now is to keep developing the capablities of the agencies that regulate or provide services so as to make people more satisfied with those services.”

Chile today is a leader in the region in the effectiveness of public services and the providing of services. Still, the average quality of these services faces major challenges to reach the standards of excellence of the countries of the Organization for Economic Cooperation and Development.

The components of the program include strengthening agencies responsible for overseeing services and those which provide them, and the development of tools for fashioning, following up on and evaluating management improvement projects.

The project aims to boost citizen satisfaction as measured by the National Survey of Citizens' Rights.

The IDB loan of $48 million comes from its ordinary capital. It is over 15 years with a grace period of six and a half, an interest rate based on LIBOR and a local contribution of $48 million.

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