1. MDTF Progress Report

2. Guiding Principles for MDTF
Recognition of govt. ownership and leadership in context of the JAM.
Full transparency and openness.
Mutual accountability between govt. and the donors.
Recognition of urgent need to build capacity of govt.
Effective donor coordination.
Support peace process through econ./social programs.
Solid financial management and accountability standards.

3. The MDTF-National Strategy
Two central goals – consolidation of peace and pro-poor growth, to help reach the MDGs and to make peace sustainable.
Guiding principles for prioritization:
Support priority national investments to consolidate peace
Support state- and locality-level investment programs sp. in war affected zones
Focus on pro-poor rural development
Make decentralization work
Lay the groundwork for good governance -- private sector; civil society, support to media and rule of law
Key priorities: Three Areas, other war affected areas in Northern States, marginalized urban areas, the East, and, once peace is established, Darfur.

4. The MDTF-South Strategy
Special emphasis on:
ownership and capacity building
enabling GOSS to prioritize recovery and development needs
Harmonizing development assistance
Guiding principles for prioritization:
effective core of public sector administration – core capacity to plan/ finance GOSS programs with key accountability mechanisms in place
access to basic services – consolidate peace and generate social capital through rapid scale-up of education/health programs
priority sector programs in place, including basic infrastructure (roads, electricity, water)
transition from subsistence-based livelihoods to development-oriented economy -- support to agriculture and private sector devt.
Cross-cutting strategic objectives:
explicit recognition of the regional dimension in all programs
importance of transparency and accountability
avoid crowding out the nascent local private sector and civil society

5. MDTF-N portfolio at a glance
Support priority national investments to consolidate peace
Census, DDR, New currency, Emergency National Infrastructure
Support state- and locality-level investment programs
Community Development Fund, Recovery and Development in Three areas
Focus on pro-poor rural development
Ag. reform, Pro-poor PSD, rural water and sanitation
Making decentralization work
CB for decentralization, CB for H and E
Lay the groundwork for good governance
Rule of Law project: Capacity Building for the Judiciary
Technical Assistance Facility
Legend: GA signed; FPP approved; IPP approved; under prep.

6. MDTF-N: challenges
MDTF small relative to GNU budget: key is to influence pro-poor reforms
Implementation difficulties: coordination; reforms
Size of potential portfolio large relative to resources available
Three areas and other war affected areas require stronger focus
Darfur?

7. MDTF-S: portfolio at a glance
Sector Programs with MDTF
Education
Umbrella Health
Transport and Infrastructure program
Water and Sanitation
Rural development (Agriculture, Livestock)
Investment Projects under MDTF
CB for Public Services; other CB initiatives
Rapid Impact Emergency Project
Core Fiduciary Services
Census, DDR, currency
Rule of Law (including Police Institutions)
Legend: GA signed; FPP approved; IPP approved; under prep.

8. MDTF-S Portfolio: Challenges
CB program remains fragmented
Procurement, external audit agents; Institutions and HR; Capacity for ten states; Rule of law
Portfolio spread wide but unavoidable
Challenges of implementation in GoSS large in the ST
Tensions between goals of CB/quick wins, and recovery/ sustainability of programs
Are recovery programs sufficiently funded, esp. IDPs?
Co-financing sector programs promising
TA; Fiduciary standards; Harmonization of donors
Size of portfolio about right
Donor Coordination on Capacity Building and Institutional Development
There are currently a number of donor initiatives in this area (including the recent idea of a Capacity Building Forum) and there is a need for prioritization, sequencing and coordination. During the mission the effort will be to:
Get agreement with the GOSS for the need for an overall strategy and suitable institutional arrangements for addressing this issue.
Facilitate discussions among donors on the need for agreeing on a strategic framework and approach. This will also be linked with Ashraf Ghani's mission (see below).
Capacity Building Projects for the South
Hold discussions with GOSS (MOL PS & HRD) and the MDTF on reviving the IPP on CB submitted by the GOSS and deferred in the last IOC meeting.
Hold discussions with the GOSS (MOFEP) on capacity needs for Public Expenditure management.
Preparation of Capacity Building project for the north
The IPP for the project was approved in the last IOC meeting.

9. Available Funding – National MDTF
(In USD m.)
2007/08
Total
Paid In 63 62
Current Pledges*
128 65
193
Approved FPPs 33 35 68
Approved IPPs 64 81
145
IPPs in process 87 53
140
* Pledge for 2005 was about USD61 m.
** 2007 Figures are indicative only, actual funds requirements/disbursements will be spread out over additional years of implementation.

10. Available Funding – South MDTF
(In USD m.)
2007/08
Total
Paid In
142
Current Pledges*
256 84
340
Approved FPPs
101
351
452
Approved IPPS 45 67
112
IPPs in process 35 15 50
* Pledge for 2005 was about USD104 m.
** 2007 figures are indicative only, actual funds requirements/disbursements will be spread out over additional years of implementation.

11. The way forward Agreement on process from IOC to OC
Strategies/pipelines to be refined at next OC in light of finance available + SC recommendations
Stronger TS for implementation, esp. in Juba
Urgent attention to WB-UN contracting
Improve coordination wt donors (incl. Arab, Asia)