1. Country selection and resource allocation
SECOND INVESTORS GROUP, St Albans, United Kingdom, February 2016

2. Approach to selection of second wave countries (from June 2015 Oversight Group)
Background
Universe: 75 Countdown to 2015 countries (high-burden), narrowed by Oversight Group to 63 low/lower-middle income countries
Four “frontrunners” that participated fully in Business Plan development process: DRC, Ethiopia, Kenya, and Tanzania
Multi-step approach for second wave countries:
Use of objective measures to identify a “long list” (25-30) of priority countries that have significant opportunities (ability to mobilize domestic resources, use IDA/IBRD for health, and achieve results)
Assessment of list against priority countries of key stakeholders/initiatives, and other key considerations (e.g., regional balance, income levels)
Consultation to gauge level of interest on the part of countries
Discussion on short list (10-15 countries) with wider set of partners
Final approval by the financiers of the GFF Trust Fund

3. GFF Trust Fund resource allocation (from February 2015 Oversight Group)
IDA allocation
Formula determines country envelope
Combination of country performance rating (CPIA and past performance), population, and income
Ministry of Finance determines repartition among sectors (in consultation with government ministries and with World Bank Country Director)
GFF Trust Fund allocation
Starting point is formula modified IDA allocation formula
Allocation = Need2 * Population0.5 * Income-0.125
Output is a range for each country (e.g., US$20-40 million)
Flexibility and ability to respond to changing external circumstances
Incentivize financing from external and domestic resources
Final decision by the GFF Trust Fund Committee is made in course of preparing the grant