This report is the product of acomprehensive study on Benin. It highlights the country sgeographical and economic situation and concentrates inparticular on environmental conditions and the challengesfacing Benin. This report covers the financing of priorityenvironmental activities, as well as allocations to programsdesigned to improve the environment and living conditions ofthe population. The environmental analysis of Benin seeks tohelp the Government integrate the environment into policyformulation by analyzing cross-cutting aspects and thechallenges of implementing sound environmental management,and creating a platform for strengthening the country scapacities in order to facilitate sustainable naturalresource and environmental management. To this end, a numberof measures have been recommended, among them theestablishment of effective policies and institutions basedon sound governance and improved effectiveness, and themobilization of financing for environmental protection andnatural resource management. The study includes the analysisof a case study on three cities: Porto-Novo, Cotonou, andParakou, and examines the impact of environmental problemsand environmental management challenges on these cities.