Iraq Interim Program of the World Bank Group

History of the Bank in Iraq Iraq was a founding member of the IBRD Received 6 IBRD loans between Last loan closed in 1979 Non-accrual status since 1990

Reengagement with Iraq Watching Briefs launched in early 2003 June 2003: int ’ l community asks UN and World Bank to assess needs and prepare multi-donor trust fund August 2003: Needs Assessment teams evacuated October 2003: Needs Assessment and trust fund concept endorsed in Madrid

An Interim Strategy for Iraq Aim: to support Iraq ’ s reconstruction to the extent possible during the interim period Strategy focuses on: –Capacity building –Prepare and start implementing emergency operations Generate employment / Restore infrastructure and services –Lay the foundation for a medium-term program Draws on Bank ’ s post-conflict experience and experience with countries in transition Relies on Iraq Trust Fund for financing

Iraq Trust Fund UN and World Bank designed International Reconstruction Fund Facility for Iraq Consists of 2 trust funds, with common governance structure Donor Committee endorses overall priorities and provides strategic guidance UN/WB Facility Coordination Committee handles day-to-day management and coordination Joint Secretariat plays informational and administrative role

Trust Fund Contributions 19 donors have committed about $1 billion to the Facility $300 million in signed commitments to the World Bank Iraq Trust Fund $400 million expected in the World Bank Iraq Trust Fund by the end of June 2004

Interim Work Program – Status Capacity building program is underway Emergency Textbook Provision Project ($40 million) – to be signed on May 15 Emergency School Rehabilitation ($60 million) to start in June Emergency Rural Community Infrastructure ($20 million first phase) to start in June/July Emergency Urban Infrastructure ($ million) to start in July/August

Future Bank Lending Could lend $3-5 billion over five years, if threshold issues are met: –Dealing with a de facto government –Clearance of arrears –Security Will prepare a Transitional Support Strategy once a government that meets lending criteria is in place

Principles for the Bank’s Program Reconstruction needs to be country- driven Focus on Bank ’ s comparative advantage: implementation through Iraqi institutions