Component I. Improve the business environment through better regulations. The project will improve efficiency of inspection services by supporting regulatory reform in the area of inspections in support of Competitiveness and Export Readiness Project, including an overarching Inspection Law and respective bylaws; sectoral laws and regulations to enable implementation of the Inspection Law. The project will also continue further the work already started on simplification of permits and licenses during the Investment Climate I and will include follow up activities on subnational simplification of regulations for businesses. Additional support will be provided in simplification of regulations and evidence based policy making Regulatory Impact Assessment (RIA). A well-functioning RIA system spills over to three other reform agendas: i) strategic planning, ii) public consultation, and iii) ex post evaluation. To build on achievements under the IC I Project, the project will continue the support by assisting the GoK and the Prime Ministers Office with: a) review of the legal framework / administrative procedures for RIA; strategic planning including piloting of few RIAs and institutional strengthening. Component II. Support foreign investments and exports. The project will contribute to increased foreign direct investment inflows and maximize the benefits for the domestic economy. Project activities in this area will build upon reforms already undertaken through the IC I project in particular in terms of strengthening the legal framework for investment attraction, entry and retention. The IC II project will support the implementation of several important reforms to create a strong and transparent investment policy framework. This set of reforms will help attract and retain foreign investors, harness spill-overs from FDI and spur local business development.