They also support the reform of policies that affect the productivity of the investment. See examples below. It also supports bottom-up service delivery by financing locally identified and managed development initiatives, and by promoting decentralization, local capacity building, and community development. They aim to bring sector expenditures, policies, and performance in line with a country. They also help the borrower develop the institutional capacity to plan, implement, and monitor the expenditure or investment program.
Special design features.
SIMs typically involve agreement on the composition of sector investment programs, and on sectoral policy reforms necessary for the program. They also involve strengthening the institutions that will carry out the program. The SIM is most appropriate where a sector expenditure program needs extensive coordination, particularly if the program involves a large share of donor-financed investments. Therefore, SIMs typically involve coordinated efforts among the multilateral and bilateral donors providing assistance to the sector. It aims to improve transport efficiency and accessibility within the eight provinces of Sumatra, by integrating and strengthening the planning and management of transport infrastructure.