1 SUDAN MULTI-DONOR TRUST FUNDS Report to the Sudan Consortium by the Technical Secretariats for the MDTF-N and MDTF-S Oslo, Norway May 5, 2008

2 MDTF OPERATIONAL CHARACTERISTICS Rely primarily on national execution Leverage govt. funding for pro-poor programs Reflect govt. priorities in selection of projects and programs Apply internationally-accepted fiduciary and anti-corruption policies Target under-served areas (Three Areas, other under-developed areas)

3 FINANCIAL STATUS - REVENUES At Oslo - eleven donors pledged $508.5 million to the two MDTFs Since Oslo – 6 additional donors pledged $87.2 million Three of the donors who pledged at Oslo contributed an additional $10.0 million Of 17 donors who pledged to the MDTFs 15 have made payments – equal to or above their pledges Amounts paid in at end March 2008 was $234 million for MDTF-N, and $391.7 million for MDTF-S. Also, $37.5 million was income earned on deposits

4 FUNDING, PROJECT COMMITMENT AND AND DISBURSEMENT STATUS (March 31, 2008)

5 THREE OPERATIONAL PERIODS FOR THE MDTFS Year 1 – Establishment (2005)  Interim Oversight Committees established  Technical Secretariats established  Government institutions established  Year 2 – Consolidation (2006)  Strengthening of Technical Secretariats  Strengthening of Government institutions  Increase in Projects approved  UN-World Bank General Framework signed  Year 3 – Results (2007)  Procurement delays reduced and results from early projects established

6 MDTF PORTFOLIOS (March 31, 2008) MDTF-N  11 projects approved  MDTF-N commitments (Phase I) $183.4 million and disbursements $75.2 million (41% of commitments)  GoNU commitments (Phase I) $348.6 million and disbursements $194.2 million (56% of commitments)  MDTF-S  14 projects approved  MDTF-S commitments (Phase I) $234.7 million and disbursements $125.9 million (54% of commitments)  GoSS commitments (Phase I) $246.6 million and disbursements $115.8 million (47% of commitments)

7 PROJECT COMMITMENTS FOR PHASE I AND DISBURSEMENTS (March 31, 2008)

8 MDTF-N PROJECT PORTFOLIO

9 MDTF-S PROJECT PORTFOLIO

10 RESULTS FOR MDTFS Joint  New National Currency Project  National Population Census MDTF-National  Community Development Fund  Decentralized Health System  Emergency Program South Kordofan MDTF-South Emergency Transport and Infrastructure Project Rapid Impact Emergency Project Umbrella Health Project

11 JOINT RESULTS  New National Currency Project  MDTF-N contributed to the cost of printing new notes and the minting of new coins for all Sudan  Complete conversion in all markets achieved in 6 months due to excellent organization by Central Bank and Sudan Printing Press National Population Census  MDTF-N through the UNFPA contributed to the cost of preparations for the Census across Sudan  This included the preparation of questionnaires, mapping of enumerator areas, and the training of enumerators.  Census was started on April 222 and will finish on May 6.

12 RESULTS FOR MDTF-N  Community Development Fund  Financial support in 200 localities in North Kordofan, South Kordofan, Blue Nile and Kassala  180 small community driven projects completed by end December, 2007 for basic health and education, as well as access to clean water  10 villages received solar energy for lighting public areas in remote rural villages benefiting 38,000 people  Emergency Program South Kordofan  School kits for teachers and students  Provision of drinking water  Decentralized Health System  Delivered 180,000 malaria bed nets, provided 31 health centers and 58 basic health care units with pharmaceutical supplies  MDTF-N provided analytical support to the preparation of future operations such the Gum Arabic project (Technical Secretariat) project and the Agricultural Services project (TAF)

13 RESULTS FOR MDTF-S  Emergency Transport and Infrastructure Project  Completed reconstruction and rehabilitation in part of the Juba Hospital complex, the GoSS National Assembly Hall and the Presidential Cottage  133 km of roads rehabilitated and 366 km maintained  Rapid Impact Emergency Project  Six month of pharmaceutical supplies to 840 health centers  School kits for head masters, teachers and students provided to 2,600 primary schools or learning centers  Umbrella Health Project  Delivered $18 million of basic pharmaceuticals to the Ministry of health for further distribution  Delivered 1.1 million malaria bed nets, of which 600,000 were distributed to households

14 UN AGENCIES’ IMPLEMENTATION OF MDTF PROJECTS (December 31, 2007)

15 REVIEW OF MDTF PROGRAMS Major review by Scanteam, commissioned by DFID on behalf of MDTF donors Key conclusions on factors for improvements in MDTF operations –  WB adjusted procedures/operational policies  Staffing up of Khartoum and Juba offices  Project teams in Ministries gaining experience  Real time technical support: procurement/management  Successful process of mutual learning

16 MONITORING AND EVALUATION OF PORTFOLIOS BY MONITORING AGENT Performance Parameters Portfolio Average MDTF-NMDTF-S Overall progress rating Achieving grant objectiveMSS Implementation of grantMS Implementation performance rating Project managementMS Financial managementMSS Provision of counterpart fundingMSS Procurement administrationMSS Monitoring and evaluationMSNR Overall status (4 th qtr-07)*32.3 Previous year rating (4 th qtr-06) =Highly Satisfactory (HS) 2=Satisfactory (S) 3=Moderately Satisfactory (MS) 4=Moderately Unsatisfactory (MU) 5=Unsatisfactory (U) 6=Highly Unsatisfactory (HU); NR=Not Rated

17 KEY LESSONS FROM MDTF EXPERIENCE Government Ownership is enhanced by own implementation, but slower start-up Technical Secretariats need adequate staffing to support Governments High expectations in uncertain environment brings frustration High fiduciary standards are critical Public sector focus risks crowding out private sector Counterpart government funding needs to be reliable, but timely information on necessary funding is needed

18 RISKS FACING THE MDTFs Transparency and Accountability in Government Programs Both Governments stress importance of good governance Procurement laws (GoNU) and procurement regulations (GoSS) established Sustainability of Development Programs Sound project institutions needed to ensure sustainability Needs to be established at project appraisal

19 THE WAY FORWARD  Agree on framework and strategy for the MDTFs  World Bank’s focus in National:  broad based growth to non-oil sectors  decentralized service delivery  World Bank’s focus in South:  help improve strategic coherence of development programs and economic policies  capacity building support to the states