Trust Fund Portfolio Update & Progress on Implementation of New Management Framework Junhui Wu Director Global Partnership and Trust Fund Operations Department (CFPTO) Christian Rey Manager Global Partnership and Trust Fund Policies (CFPTP) Donor Forum Paris, May 25 th, 2009

Agenda CFP Organizational Change Partnerships and Development Grant Facility Update on Trust Fund Portfolio Implementation of Trust Fund Management Framework Results Agenda Donors Focal Points 2

Global Partnerships and Trust Funds in the Bank’s Strategic Context 6 Strategic Themes MDGs IBRD Partnerships & TFs IDA Trust Funds became major source of financing in addition to IBRD and IDA Working in partnerships is essential to meet development challenges Trust Fund Management Framework was approved by the Board in October 2007 Bank

Organizational Structure 4 Philippe Le Houérou Vice-President Philippe Le Houérou Vice-President Susan McAdams Director Multilateral Trusteeship & Innovative Financing Department (CFPMI) Susan McAdams Director Multilateral Trusteeship & Innovative Financing Department (CFPMI) Priya Basu Manager (CFPMI) Gaiv Tata Acting Director IDA Resource Mobilization Department (CFPIR) Gaiv Tata Acting Director IDA Resource Mobilization Department (CFPIR) Gaiv Tata Manager Operations (CFPIR) Michael Koch Acting Manager Finance (CFPIR) Rocio Castro Navin Girishankar Traci Phillips Advisers (CFPVP) Rocio Castro Navin Girishankar Traci Phillips Advisers (CFPVP) Khang Luu Chief Administrative Officer (CFPVP) Khang Luu Chief Administrative Officer (CFPVP) Junhui Wu Director Global Partnership & Trust Fund Operations Department (CFPTO) Junhui Wu Director Global Partnership & Trust Fund Operations Department (CFPTO) David Potten Acting Manager Program Management & Administration (CFPPM) Christian Rey Manager Global Partnership & Trust Fund Policy (CFPTP ) Michael Koch (Director) Financial Management Department (CFPFM) Angela Furtado Sr. Communications Officer (CFPVP) Angela Furtado Sr. Communications Officer (CFPVP)

CFPTO Mandate Lead the development and oversight of Bank policies and procedures on Global Partnerships (GP) and Trust Funds (TF); Advise Senior Management, the Board, and donors on all aspects of the GP and TF business; Analyze GP and TF portfolios to identify good practice, capture results, and monitor aid architecture trends; Manage global cross-sectoral programmatic TFs and the Development Grant Facility (DGF). 5

Partnership Portfolio: Development by Fiscal Year & Breakdown by Sector Board 6

Development Grant Facility (DGF): Bank’s mechanism to provide grant support for global and regional partnerships 7 Established in FY98 Three principal objectives: - Catalyzing partnerships - Encouraging innovation - Developing networks Wide range of grant recipients: - including research institutions (CGIAR), UN agency secretariats, international NGOs and others.

Trust Fund Overview: FIF / Non-FIF Breakdown 8

Trust Fund Overview: Category Breakdown 9 Trust Fund CategoryFunds held in trust Disbursements US$m% % IBRD/IDA-Administered TFs23,47790%3,90897% Bank Executed1,0584%1876% Recipient Executed4,32016%1,57838% Financial Intermediary18,09971%2,14352% Other Bank Group-Administered TFs8222%1324% Others1,8717%0% TOTAL26,170100%4,040100% as of December 31, 2008

TF Disbursements by Region and Sector 10 FY08 TF Disbursement by Sector

Trust Fund Management Framework 11 Enhanced Strategic Focus and Selectivity Strengthened Risk and Results Management Enhanced Operational Efficiency and Sustainability  Extensive consultations with donors during and after May 2007 Donor Forum  Extensive consultations with management and staff  Presentations to Audit Committee (July 2007) and Budget Committee (September 2007)  Approval by Executive Directors (October 2007) Plus Policy Principles for accepting and managing TFs at the Bank Three Pillars

Trust Fund Management Framework 12 Overall direction of the reform: “Mainstreaming Trust Funds into the Bank’s business”

TFMF Pillar 1: Enhancing Strategic Alignment and Focus 13 1.Country level:  Integration of TFs in CAS documents.  CFP review of CASs documents 2. Region/Sector level:  Strategic discussions at VPU level through Trust Fund Management Plans.  TFMPs submitted by 17 VPUs managing TFs – Dec Corporate level:  Institutional review of strategic issues and risks (e.g. creation of a Senior Management Review (SMR) of complex TF and partnership proposals and financial engineering initiatives)  Increased transparency (e.g. Inclusion of BETFs in Bank budget documents )  Improved External Relations (e.g. One-stop-shop for Donors and related website)

TFMF Pillar 2: Strengthening Risk & Results Management Strengthening Standard Controls  New TF typology – BETF, RETF, FIF  Improved tools: TFast project and web-based processing tools; new TFs data reporting  OP/BP 14.40, TF Handbook, and TF Financial Compendium issued  TTL accreditation program update 2.Tailoring Specialized Controls to Type-specific Risks:  Integrating BETFs into FY09-11 planning/budget exercise  Aligning RETFs with IBRD/IDA lending processes/systems: risk-based fiduciary framework applied to enhance compliance; e.g. RE projects over $5million follow IDA/IBRD processes 3. Strengthening M&E and Sharpened Results Focus  IEG country/sector evaluations to include TFs; QAG to report on TFs in ARPP  Independent evaluation of large programmatic TFs and TF-financed Global and Regional Partnership Programs required

TFMF Pillar 3: Enhancing Operational Efficiency & Sustainability 15 1.Revised threshold and TF fee structure effective January 1, Externally-Financed Output (EFO) created.  Specified output/activity and timeframe in support of Bank work program; no minimum or maximum size, no fees; reporting focused on outputs  120 EFOs Bank wide with over 30 contributors processed to date; 3.Streamlining Reviewing internal processes to rationalize roles, enhance efficiency  New Global Partnership and Trust Fund Policy Department (CFPTO)  Decentralization of TFP Clearance—being piloted in EAP 4.Simplification of procedures for Small TF Grants (less than US$5 million) 5.Other Enhancements: e.g. Improved customized cost recovery guidance

TFMF: Looking Forward 16 Streamlining ROLES & RESPONSBILITIES TRUST FUND MANAGEMENT FRAMEWORK 2 nd WAVE OF TF MANAGEMENT REFORMS Deepening MAINSTREAMING OF PROCESSES Monitoring COST RECOVERY

Strengthening the Results Focus Study on-going: Assessment of the landscape, sampling of selected global and country specific programs Goal: To develop a framework for TF results based on IDA’s Results Measurement System which also takes into account the specific characteristics of TFs: -innovation -pilots -global and regional vs. country focus 17

Trust Fund Results: An example Gender Action Plan US$30 million over 4 years, 149 WB projects + analytical work in 73 countries 6 Results-Based Initiatives (Liberia, Egypt, Kenya, Cambodia, Lao PDR, Peru) as pilots to support women’s economic empowerment in key economic sectors such as infrastructure, energy, water and sanitation, agriculture, and finance “Power to the Poor” - Rural Electrification Project in Laos in 20 pilot villages (2008): credit scheme to finance grid access -Increase in connection rates from 78% to 95% -For female headed households from 63% to 90% -Extension to three other provinces, potential to reach 50,000 beneficiaries by end

TF Donor Center 19 World Bank offers online access to project and TF information through Client Connection Donors can access their TF portfolios through “TF Donor Center” Donor Focal Points re-established

Thank You 20