1. SUDAN: Multi Donor Trust Funds Norway-World Bank Third Workshop Dialogue Washington, DC May 26, 2005

2. Overview  Key Principles  Joint Assessment Mission (JAM)  Governance Structure  Implementing Entities  Program/Project Cycle  Bank’s Role

3. Sudan MDTFs  Specified in Wealth Sharing Protocols  Two Funds: National Government (NG) -- special focus on war affected and poor communities Government of South Sudan (GoSS)  Implementation Arrangements specify World Bank as Administrator

4. Principles  Promote government ownership & leadership  Align assistance w/ national objectives within coherent budget  Reduce transaction costs  Build institutional capacity & deliver urgent needs  Promote transparency & mutual accountability  Support the peace process

5. Joint Assessment Mission  Builds on the Peace Agreement  WB-UN coordinated w/ GoS, SPLM  Diagnostic assessment of needs ($$)  Policies & Programs to reach MDGs  Covers Interim Period with 2 broad phases Immediate recovery & consolidation of peace (2005-2007) Scaling-up for MDGs in Phase II (through 2011) FRAMEWORK FOR SUSTAINED PEACE, DEVELOPMENT AND POVERTY ERADICATION

6. JAM Policy Priorities  Consolidating peace  Expanding access to basic services  Growth of economic opportunities  Improving governance

7. Oslo Donors Conference April 11-12, 2005  JAM Framework presented as basis for pledging for reconstruction & development (2005-2007)  Total Pledged Oslo: $4.5 bn  Total Pledged Development: $2.0bn  MDTFs Pledged: $500 mn  “Pledges are good, cash is better” (UNSG)

8. MDTF Areas of Support  Programs structured around JAM Framework  Program revised annually based on budget  Sector wide programs & area-based interventions  Preference for co-financing government programs  Coordination w/ donors outside MDTFs  Not cover humanitarian & security costs

9. Sudan Consortium Oversight Committee Technical Secretariat (WB as administrator and designated agencies of NG and GoSS) Implementing Entities UN Agencies Private sector NGOs NG/GoSS entities Individual donor contributions NG/GoSS Monitoring Agent Donors’ Group

10. Sudan Consortium  Meets semi-annually  Provides forum for consultations on development & economic policy  Facilitates aid management against program/benchmarks of JAM results matrix  Members include all Donors, NG/GoSS, UN, World Bank, CSO/NGO rep

11. Oversight Committee (OC)  Sets strategic priorities  Sets criteria for allocation of funds  Exercises programmatic & allocational responsibility  Ensures consistency of MDTF w/ overall Framework  Members: WB, UN, Gov’t, Donors

12. Technical Secretariat  Under direction of World Bank  Receives & reviews proposals  Makes recommendations to OC  Ensures proposals are consistent w/ NG/GoSS program & meet criteria  Provides regular assessments to OC  Ensures fiduciary standards met in execution of funds (Monitoring Agent)

13. Implementing Entities  Government Ministries & local government authorities  UN agencies & programs  NGOs  Private sector

14. NG/GoSS set budget, sector policy and program priorities as per JAM SECTOR POLICY/ PRIORITYPROGRAMMINGPROJECT/PROGRAMAPPROVALIMPLEMENTATIONSUPERVISIONREPORTING Project Proposals get appropriate Government approval Proposal submitted to Technical Secretariat (TS) MDTF Project Cycle OC approves program/project TS submits appraised project to Oversight Committee for approval Procurement of goods & services (WB guidelines) Technical Secretariat supervises Monitoring Agent monitors procurement/disbursement Implementing agency reports quarterly to TS

15. Criteria for Project Approval  Conformity w/ Framework  Cost vs. benefit  Capacity building at national & local level  Demonstrated capacity of implementing agency  Balance tension: quick results (‘peace dividend’) & capacity building

16. Role of the World Bank  Sudan in arrears; restricts lending  Administer Multi-Donor Trust Funds  Coordinate donor efforts to minimize overlap, maximize leverage from scarce resources  Thru T/A & Analytical work: Initial strong focus capacity building and knowledge transfer (especially in South)