MENA MDTF - World Bankpubdocs.worldbank.org/.../MNA...post-PCM-version.pdf · MENA MDTF OPERATING...

THE WORLD BANK GROUP – MNA REGION

MENA MDTF Operating Principles

7/22/2015

This document sets forth the operating principles of the Middle East and North Africa (MNA) Multi-Donor Trust Fund (MDTF), its objectives, design, governance and administration.

MENA MDTF OPERATING PRINCIPLES June 11, 2014

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CONTENTS

Section I – OBJECTIVE, DESIGN & ELIGIBILITY ......................................................................................................... 3

1. Objective........................................................................................................................................................... 3

2. Design ............................................................................................................................................................... 3

3. Eligibility ........................................................................................................................................................... 4

SECTION II – GOVERNANCE OF THE MDTF .............................................................................................................. 6

1. Governance of the MDTF ................................................................................................................................. 6

2. Contact information ......................................................................................................................................... 7

Section III – PROPOSALS, SELECTION CRITERIA & GRANT CEILING AMOUNT .......................................................... 8

1. Proposals .......................................................................................................................................................... 8

2. Selection Criteria .............................................................................................................................................. 8

3. Selection Process ............................................................................................................................................ 10

SECTION IV - ADMINISTRATION ARRANGEMENTS ............................................................................................... 12

1. Accounting Year .............................................................................................................................................. 12

2. Bank Fiduciary Responsibility as TF Administrator ......................................................................................... 12

3. MDTF Records Keeping Standards .................................................................................................................. 12

4. Administrative Costs ....................................................................................................................................... 12

SECTION V - RESULTS, MONITORING & EVALUATION, DONOR VISIBILITY AND REPORTING REQUIREMENTS ...... 13

1. Results, Monitoring & Evaluation ................................................................................................................... 13

2. Donor Visibility ............................................................................................................................................... 13

3. Reporting Requirements ................................................................................................................................ 14

Deleted: 14


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SECTION I – OBJECTIVE, DESIGN & ELIGIBILITY

1. OBJECTIVE

The overall objective of the Middle East and North Africa (MENA) Multi-Donor Trust Fund (MDTF) is to

provide catalytic donor support, to countries in the region that are currently undergoing historic transition

and reform.

The MENA MDTF, in full alignment with the Bank’s MENA strategy for the institution’s response to the

Arab Spring and with clear linkages to current and future Bank-funded operations and programs on the

ground, will focus on Strengthening Governance; Increasing Social and Economic Inclusion; Creating Jobs

from both the demand and the supply-side; and Accelerating Sustainable Growth through policy actions

that promote climate-friendly growth. The cross-cutting themes of gender, regional integration and a

competitive private sector are also fundamental tenets of the Bank’s MENA framework for engagement1.

2. DESIGN

The MDTF is designed as a programmatic trust fund that will support technical assistance for project

preparation, analytical studies, capacity building and knowledge sharing. The MDTF will contribute

funding for these activities, ensuring that the Bank and the broader donor community are helping

governments, service providers and citizens “do things differently” and helping them guide adaptations

in the development paradigm to include features that much of the population has perceived to be lacking

in the past. The MDTF will also support the Bank itself to “do things differently”, in line with its regional

framework for engagement.

The MDTF will complement the Bank’s and other donors’ activities through real-time support for MENA

countries undergoing reform, working with both governments and non-traditional partners (e.g., CSOs,

media, academia, and the private sector, chambers of commerce, trade unions) under both Recipient-

executed and Bank-executed arrangements, as the situation requires.

In addition to working closely with country counterparts, the MENA MDTF will require that all proposed

activities have been discussed and coordinated with key partners working on the ground (e.g. bilateral

donors, IFIs, in particular AfDB, EBRD). This will ensure appropriate leveraging and synergies of activities,

and will avoid duplication of effort and donor resources.

1 See details in the Concept Note provided in Annex I.


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3. ELIGIBILITY

ELIGIBLE COUNTRIES

Bank TTLs will submit proposals (in coordination with client countries) only for activities that demonstrate

transformational reform, in countries that by income-level fall in the IDA or IBRD bracket, where the Bank

is currently actively engaged. The current list of eligible countries includes2:

Djibouti;

Egypt;

Iraq;

Jordan;

Lebanon;

Morocco;

Tunisia;

West Bank & Gaza; and,

Yemen.

ELIGIBLE ACTIVITIES FUNDED BY THE MDTF

The MDTF will finance any activities consistent with the objectives and specific purposes of the TF. Two

broad types of activities will be financed to support the four thematic components:

TECHNICAL ASSISTANCE

Project preparation (recipient-executed), project identification and preparation activities, to adapt best practice to local and country circumstances for greatest effectiveness, including timely and transparent delivery of results.

Research and analysis produced into user-friendly and implementation-oriented studies/policy notes. This could include data collection (e.g. surveys) to help fill knowledge gaps and to inform policy interventions and program/project design. Release of new data is expected to yield a wealth of information that when analyzed, can help guide policy.

Institutional strengthening and capacity building, including expert advisory services, training, and human resource or organizational development. This could also include the actual contracting of partners (e.g. training agents, auditors, NGOs, local governments) during initial stages of implementation of new procedures/reforms, alongside which government agencies and public service providers can receive “on-the-job” training.

Design of management information systems.

Design of monitoring systems and impact evaluations of government/donor-funded programs.

2 Libya would normally not qualify as it fits in the higher income bracket (and is therefore a country that operates on a fee-for-service/RTA basis), but proposals might be considered in the initial year of the MDTF, on an exceptional basis, given issues of current existing capacity which might warrant small, catalytic Bank-executed grants.


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KNOWLEDGE SHARING AND DISSEMINATION

South-South knowledge exchange, in particular with countries in other regions that have undergone

transition.

Landmark conferences and workshops on the thematic components or sub-components.

Outreach activities that provide a platform for dialogue between key stakeholders (e.g. CSOs, youth groups, media, religious groups, NGOs) and also that enable the capture and dissemination of good practices, using a variety of communication/media tools.

Twinning arrangements (e.g. between institutions in MENA and in OECD countries).

The activities funded could include donor/development partner coordination activities, as well as regional

and multi-country initiatives.

The initial balance of work under the MDTF will likely be tilted toward Bank-executed activities to ensure

relatively quick delivery of results, given the limited experience of most stakeholders in the region with

governance initiatives, social and economic inclusion and other new areas for reform. If the review

committee determines that a submitted proposal would be best implemented as Recipient Executed

rather than Bank Executed, then Recipient Execution should be adopted in order to qualify for funding.

ELIGIBLE EXPENDITURES

Eligible expenditures for MENA MDTF-funded activities may include costs associated with identifying,

supervising and delivering the activity, as well as costs associated with preparing and disseminating

information produced by the MENA MDTF. TTLs must ensure that they are in compliance with World Bank

Group guidelines on hiring consultants and procuring goods and services.

Table 1 - Contributions use by type of activity

For Recipient-Executed activities For Bank-Executed activities

goods;

consultants’ services;

training

operating costs; and

non-consultant services.

associated overheads3;

consultants’ fees individuals and firms;

contractual services;

equipment lease cost;

extended term consultants;

media, workshop, conference and meeting;

staff costs with indirect costs4;

temporary support staff costs;

travel expenses; and

equipment purchase

3 Categories under Bank-executed Activities are groupings of general ledger accounts; for example, costs related to communications and translation. Such costs may or may not be approved for individual TF proposals. 4 Indirect costs: Office overheads associated with the staff, such as communications; information technology; office rent/lease; depreciation; office occupancy; equipment and furniture; utilities; security; moves; temporaries; and contractual services.

Deleted: The overall balance by the end of the MDTF in USD value is expected to be about 50%-50% [TBD] Bank-Recipient Executed


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SECTION II – GOVERNANCE OF THE MDTF

1. GOVERNANCE OF THE MDTF

The governance structure of the Trust Fund will comprise the following:

PROGRAM COUNCIL

A Program Council chaired by the Regional Vice President or designee, at which donors committing to a

contribution of $1 million would have a seat, will be the governing body of the MDTF. The main functions

of the Program Council will be to: provide strategic guidance on overall MNA MDTF policy framework;

review implementation progress/impact of activities; review and approve changes in scope of MNA MDTF

activities, ensuring consistency with Bank operational policies and procedures; and, review issues referred

by the Program Coordination Unit (PCU).

The Program Council will hold a Program Council Meeting (PCM) annually to discuss the work program for

the year and progress of ongoing deliverables as well as any need for realignment if necessary. For the

first year of the MDTF, the Program Council will meet semi-annually. At the first PCM of the MDTF, the

initial set of donors will approve the draft Operating Principles, which can be changed as required from

time to time by the Technical Review Committee (TRC). All changes would be reviewed at subsequent

PCMs.

WORLD BANK TECHNICAL REVIEW COMMITTEE (TRC)

A World Bank Technical Review Committee (TRC) chaired by the MNA Director of Strategy and Operations

and supported by the Program Manager of the MDTF will meet at least twice a year but not more than

quarterly to select proposals generated by a Call for Proposals. The aim will therefore be to issue up to

three Calls for Proposals per year.

The TRC will comprise representation from the PCU and one representative each from the MNA Country

Units that are eligible for funding. The TRC will follow the Approval Process and Criteria for determining

the eligibility of projects for funding as described in these Operating Principles.

PROGRAM COORDINATION UNIT (PCU)

The Program Coordination Unit (PCU) will comprise the Program Manager of the MDTF supported by an

analyst and a Resource Management Specialist. The PCU will also receive cross-support from a Senior

Operations Officer and advice from the Bank’s MNA Results Team.


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The PCU will support the TRC in selection of proposals, provide consolidated Operational Reporting, and

arrange for the SC meetings. The PCU coordinates the administrative and operational aspects of the

MDTF. The main functions of the PCU are as follows:

Administration - Ensuring proper administration and monitoring of, and accounting for the MDTF;

Overall support to TRC - Organizing the PCM; Reviewing and approving closing date extension

requests;

Monitoring & Reporting - Coordinating reviews and evaluations, including compliance audits and

the evaluation of the overall TF; producing annual report for donors on progress of the Fund in

addition to normal Bank financial reporting procedures; monitoring progress of grants on a

regular basis including against the results framework; and, reporting on progress with

disbursements, supervision and completion reports;

Knowledge & Communications - Ensuring knowledge sharing, lessons of experience across MNA;

Maintaining the MDTF website; preparing program level communications and/or management

briefings as needed; disseminating good practice examples; developing knowledge sharing tools

to ensure documentation and dissemination of lessons learnt, keeping MNA management team

abreast of progress/results of TF activities;

TTLs support - Providing guidance to TTLs during the proposal preparation process; on available

best practice and experiences from other countries; providing proposal quality review, including

technical content of proposals; reviewing TF proposals to ensure, compliance with TF policies and

procedures

2. CONTACT INFORMATION

Queries on the MDTF should be submitted to the Program Coordination Unit, by email at [email protected] or by phone at + 1 (202) 473-7793.

mailto:[email protected]


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SECTION III – PROPOSALS, SELECTION CRITERIA & GRANT CEILING AMOUNT

1. PROPOSALS

Activities under the MDTF should be demand-driven from the client – government or other key

stakeholder (and if the latter, will require government endorsement – see below). All applications should

be submitted as part of a Call for Proposal. Applications will contain two parts:

Concept Note/Ideas Brief - task teams are required to prepare a one-page concept note/ideas

brief, outlining the proposed activities and the consistency of these with the MDTF criteria;

MNA MDTF Application Form (see template in Annex IV), which includes a detailed budget and

an individual activity results framework.

2. SELECTION CRITERIA

All activities funded by the MDTF must adhere to the following principles:

1) Be consistent with the Bank’s MENA strategy/framework for engagement as described in Section 1

above and in the Concept Note provided in the Annex, and therefore be truly transformational,

supporting new and reforming governments to undertake initiatives in the areas of governance,

inclusion, jobs and sustainable growth. This includes demonstrating that each initiative aims to “do

things differently.”

2) While encouraging innovation and doing things differently, demonstrate that proposals for funding

imbibe the lessons learned from best practice, in particular, from the recent World Development

Report (WDR) on gender and on conflict/fragile states, as well as the forth-coming WDR on jobs.

3) Be consistent with the MDTF annual work program agreed at the PCM.5

4) Include a satisfactorily completed the MENA MDTF application, including an Ideas Brief (see Annex

IV). The application template will be placed on the MNA internal website, and will be circulated with

each Call for Proposals.

5) Demonstrate clear results. As part of the application, the proposal should describe specific outputs

to be funded by the MDTF, and demonstrate clear links to specific outcomes generated from the

activity and be aligned with the Bank or other development partner programs that will help deliver

the designated outcomes.

6) Demonstrate client ownership and demand, and therefore be undertaken with clear government

and relevant stakeholder commitment of the activity, with Country Director’s approval in writing.6

5 Although during the first year the PCM will meet semi-annually, the work program for that year (and all subsequent years) will be agreed by the donors and the Bank annually. 6 When the Bank provides grants directly to entities other than the member government (e.g. to NGOs/CSOs) it obtains the consent of the member government. The particular manner in which member consent is obtained varies from country to country depending on the agreement reached between the Bank and relevant member government. In all cases, the country’s consent or no-objection must be in place before the Grant Agreement is signed, and details of that consent/no-objection are recorded in a decision note for the project/operation.


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7) Be additional, and not duplicate other TF and donor-funded activities (e.g. ANSA, MSME TA, trust

funds in West Bank and Gaza7, trust funds in Iraq8, education sector in Yemen, South-South

Exchange, and others) administered by the Bank or other donors/IFIs (e.g. EBRD, AfDB).

8) Be undertaken in a way that promotes effective coordination with the activities of official donors

and other IFIs/development partners active in the country and sector.

9) Follow Bank fiduciary guidelines for FM, procurement and where relevant, safeguards. In addition,

TTLs must be Trust Fund Accredited to manage an allocation.

10) Receive Country Director’s endorsement in writing.

11) Receive Sector Director’s endorsement in writing.

Table 2 – Grant Ceiling Amount Sizes

Minimum value Maximum-value

Bank-executed $50,000 $500,000 Recipient-executed $200,000 $750,000

The TRC should avoid selecting many projects at the minimum range and only projects at the maximum

range, to balance transaction costs and the ability to support a robust range of interventions across the

eligible countries and thematic areas. (Note: Recipient-executed grants are eligible for up to 10 staff-

days preparation costs from award until grant signing, outside of the values quoted above.)

Each Sector Director is expected to vet the proposals submitted by their teams, and should not be

approving/submitting more than three proposals per Call for Proposals (or as specified in the respective

Call). This will be made clear in the Call that goes out to teams. Exceptions for the suggested maximum

and minimum values and the number of projects per SD per call for proposal will require RVP approval—

and will by definition be exceptional.

Grant Execution Period:

12 months for Bank-Executed Grants, starting from the date of Grant approval;

18 months for Recipient-executed Grants.

Extension of Closing Date: Closing Date for MNA MDTF activities will not be extended without strong

justification.

Grant Closing Date and Grace Period: No expenditures may be incurred or become due after the Closing

Date. MDTF Bank-executed activities have a four-month grace period, and Recipient-executed activities

have six months. Provision of grace period is to allow for payment of outstanding invoices for work

completed before the Closing Date.

7 Examples include (but are not limited to): Palestinian Reform and Development MDTF; Norwegian Aid Coordination TF; PFM and Anti-Corruption TF; Municipal Development TF; Local Government Capacity Building MDTF 8 Iraq Reconstruction MDTF; Iraq Private Sector Development TF


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In the case of RETFs, TTLs will:

Discuss the status of the activity with the Recipient six months prior to the closing date to ensure timely completion;

Draft the notification to the Recipient on the final disbursement position and cancellation of the balance upon receipt of LOA’s completion of disbursements and confirmation of final account status; and,

Send copies of the notification letter to LEG, LOA, ACT, and TF Program Manager, at which point TACT/ACT will cancel and dispose of any unused funds.

In the case of BETFs, TTLs will:

Validate expenses posted;

Close contracts as needed;

Request RM staff to “lock” the P#/WBS element; and,

Send an email to TACT requesting the TF to be closed and remaining balances refunded to the

Trustee account.

3. SELECTION PROCESS

Once sufficient time (no less than two weeks and no more than four weeks) have passed from the Call for

Proposals, the PCU will review all proposals received, and review them for completion. Where there are

questions on content, the PCU will approach the applicant, copying the Sector Manager or Director, for

clarification.

The PCU will then collect all proposals and provide to the TRC Chair, explaining which do not qualify for

further consideration and why. The TRC Chair will approve the short-list, and this short-list will be

distributed to the TRC. The TRC will have one week to review.

The TRC members will have reviewed all proposals prior to meeting at the TRC. At the TRC, the proposals

will be ranked against the selection criteria and other parameters outlined in these Operating Principles

(e.g. balance across sectors and countries) as High, Medium, or Low. Based on the amount intended for

allocation, all possible proposals marked “High” will be approved, and possibly some marked “Medium”

will be approved subject to any concerns the TRC had being appropriately addressed by the TTL – although

a strong case should be made for proposals marked “Medium”.

All members of the TRC should be comfortable with the final list of proposals selected. Where the TRC is

split, the TRC Chair will make the deciding vote.

After the Review Committee has completed deliberations on the selection of activities per a Call for

Proposals, the PCU should produce a brief report summarizing the main reasons for selection as well as

for rejection. These reports should be available to donors should they wish to receive the information.


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Once approval for an activity has been awarded by the MDTF committee (see Selection Process below),

the TTL must complete the Concept Review stage via the Operations Portal, and receive relevant

Country/Regional Director approval via the portal. The MDTF award letter will be used for documentation

of the decision.

Additional (supplementary) Funding for an activity that has previously been approved by the TRC –

which has demonstrated good performance (results, disbursements) and where there is clear client

demand – is allowed for up to 20% of the original grant, to be approved through a rapid process initiated

by the PCU and through an” absence of objection” by the TRC.


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SECTION IV - ADMINISTRATION ARRANGEMENTS

1. ACCOUNTING YEAR

The MNA MDTF accounting year will follow the Bank's fiscal year, which is July 1 to June 30.

2. BANK FIDUCIARY RESPONSIBILITY AS TF ADMINISTRATOR

All Bank-administered Trust Funds are supervised in accordance with the Bank’s fiduciary responsibilities,

with due diligence to economy, efficiency, and effectiveness, and in compliance with AMS 15 and the

Bank’s trust funds and internal control and accounting policies and procedures (see OP/BP 14.40 in Annex

III).

The Bank’s TTL is responsible for supervision compliance, including with the Bank’s Administrative

Statement on selection of consultants for Bank operational work (AMS 15).

Letter of Representation: Signed by TTL and by Sector Manager, issued (in SAP) by ACTTF. Managers and

TTLs should document and would correct trust fund irregularities.

3. MDTF RECORDS KEEPING STANDARDS

Operational Units/Departments will maintain copies of MDTF documentation in WBDocs in accordance

with the Bank’s document retention policy. The documentation to be retained in WBDocs should include

approved proposals, TORs, consulting contracts, reports and other outputs prepared by consultants,

activity status/completion reports.

4. ADMINISTRATIVE COSTS

In order to assist in the defrayment of the costs of administration and other expenses incurred by the

Bank under this Agreement, the Bank will deduct and retain for its own account two percent (2 %) of each

Contribution.

In addition, costs for program management and administration as referred to in Annex 1 up to a maximum

of 5% will be charged to the Trust Fund on an actual basis. These costs will include coverage of PMU travel

and related, in relation to the MENA MDTF activities. If the contributions increase beyond what was

originally expected at the time of counter-signature of the first administration agreement, and the

administrative costs increase as a result, the Donors acknowledge that an additional administrative fee

may be applied to such new contributions.


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SECTION V - RESULTS, MONITORING & EVALUATION, DONOR VISIBILITY AND

REPORTING REQUIREMENTS

1. RESULTS, MONITORING & EVALUATION

The MENA MDTF will place a high priority on the delivery of results and require that every intervention

be deliverable rapidly, be catalytic with the real possibility of replication and scaling-up, be innovative,

and, demonstrate how activities are “doing things differently” to contribute to reforms.

M&E approaches will be put in place as part of the MDTF administration, in particular, as part of the

selection process of activities eligible for funding, managed by the Technical Review Committee of the

MDTF. The M&E framework will allow for tailoring to the type of activities, given the broad range of

reform activities supported, but also allow comparability, where feasible, across the spectrum of activities

funded so lessons can be drawn.

All projects will precisely define what change/reform initiative they are targeting, and will specify the

output and outcome indicators to be measured (following the results framework of the MDTF) in a realistic

and timely manner. An explanation of the type of data and collection mechanisms that will be used should

be provided in the proposal for funding (See Application and guidelines on how to apply for funding, Annex

IV). Each MDTF-funded activity will need to demonstrate specific links to the Bank’s strategy. Although

the types of indicators monitored and reported will vary depending on the type of intervention and the

pillar/building block of the strategy/framework for engagement (e.g. governance, sustainable growth,

jobs and inclusion), in every case, the project proposal presented to the Technical Review Committee

should demonstrate the relevant links to outcomes and outputs on policies, projects, and/or people.

Indicators will be – to the extent possible and where relevant, disaggregated by gender sex and target

groups, such as youth.

The monitoring and evaluation that underpins the RF must meet day-to-day management requirements,

support the accountability and learning needs of key stakeholders, and generate evidence that the

activities are contributing to achievement of overall MDTF outcomes. The M&E system will generate

reporting that, along with standard financial reporting, can provide assurances to governments and

donors that resources provided are delivering the anticipated results. The information captured in and

provided through the RF should inform subsequent MDTF funding and programming decisions as well as

help inform government and bilateral donor action that is external to the Fund, to ensure that all efforts

are coordinated and coherent (see next section).

Annex II provides the MENA MDTF Macro/Aggregate Results Framework as approved by the donors at

the Program Council Meeting in Rabat in June, 2013, which captures both the results delivered in country

as well as appropriate indicators of how the MDTF funded work is helping the Bank “do things differently.”

2. DONOR VISIBILITY


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TTLs must make every effort to ensure that publications, training programs, seminars or symposia

financed under the MDTF, and all press releases or other information materials issued by the Bank with

respect to the TF will clearly indicate that the activities in question have received funding from the various

donors of the Fund. The flags and logos of each donor government or agency will figure on all MENA MDTF

publications and report.

3. REPORTING REQUIREMENTS

Output Summary Report: For Bank-executed activities, each TTL will, 1-2 months prior to closing of the

activity, provide a 1-2 page summary of all outputs satisfactorily completed. This output summary will be

submitted to the MDTF Coordination Unit for review, and then will be virtually reviewed and cleared via

the Operations Portal by the respective Country/Regional Director, as part of the endorsement of output,

to ensure quality control and provide an opportunity for amendments prior to activity close. This Output

Summary Report (format to be provided and included in the Annex to these Operating Principles) will be

shared with donors at PCMs and used to inform the MDTF Annual Reports.

Implementation Completion Summary (ICS) or Grant Reporting and Monitoring (GRM): At the close of

an activity, as required and explained in the application for funding, the TTL must prepare an

Implementation Completion Summary (ICS). For recipient-executed activities spanning two or more

years, this or a GRM may be required at a designated interim period. The TTL’s Manager/Country Director

should approve the ICS/GRM in the Operations Portal as part of the Completion of Activity. Completion

reports must document actual achievements, indicating outputs, dissemination strategy, and client

feedback. A standard template will be provided by the MDTF CU and will be included in the Annex to

these Operating Principles.

MDTF Annual Report- This periodic report extracts data at the program level and reflects on MDTF

performance both at country and regional level, drawing conclusions on lessons learned on aggregate, in

addition to project/intervention-level. The report should highlight both positive and negative

performance together with recommendations on how the MDTF portfolio should be adapted to capitalize

on positive progress and manage/minimize the impact of barriers and challenges that are seen to hinder

performance. This will be prepared annually. The report will also capture progress towards the outcome

and output indicators identified. It will highlight any changes to design or management that are necessary

to maximize the likelihood that a project achieves its objectives. In addition, the report will provide a

broad-based breakdown of planned and actual costs related to TF activities (e.g. staffing costs, consultant

costs, travel, etc). The PCU will put this operational report together, in time for the PCM meeting.

Financial Reporting and Audits: The PCU will provide donors: (i) access to current financial information

relating to the trust fund in its holding currency via the Bank‘s Trust Funds Donor Center secure website;

and, (ii) within six months following the end of each Bank fiscal year, a management assertion together

with an attestation from the Bank's external auditors concerning the adequacy of internal control over

cash-based financial reporting for trust funds as a whole. The cost of such attestations is borne by the

Bank.


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ANNEXES

ANNEX I - Concept Note for the MNA MDTF

ANNEX II - MENA MDTF Results Framework (approved June, 2013)

ANNEX III – Core Sector Indicators (OPCS, World Bank, 2012)

ANNEX IV –OP/BP 14.40

ANNEX V–MNA MDTF Grant Application Form and guide on how to fill the application


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ANNEX I - CONCEPT NOTE FOR THE MULTI-DONOR TRUST FUND

(MDTF) FOR THE MIDDLE EAST & NORTH AFRICA REGION (MENA)

1. OBJECTIVE OF THE MENA MDTF

The overall objective of the Middle East and North Africa (MENA) Multi-Donor Trust Fund (MDTF) is to

provide catalytic donor support, through a World Bank-administered trust fund, to countries in the

region that are currently undergoing historic transition and reform. This Trust Fund is designed to be in

full alignment with the Bank’s MENA strategy for the institution’s response to the Arab Spring, and

therefore the activities funded will demonstrate clear linkages to relevant current and future Bank-funded

operations and programs on the ground. Accordingly, the main areas of focus are: (i) governance, (ii)

economic and social inclusion, (iii) private sector-led job creation; and, (iv) shared and sustainable growth.

The initial focus areas are deliberately broad to allow for a variety of subtopics to be treated within these

broader themes as guided by different country demands. However, two immediate areas of focus are

likely to include youth employment and social inclusion.

The MDTF is designed as a programmatic trust fund that will support technical assistance for project

preparation, analytical studies, capacity building and knowledge sharing. “Soft” activities such as capacity

building and knowledge sharing are the glue that holds together reform programs and provide the critical

underpinnings for broad participation and sound institutions, yet these are often not funded through

“hard” financing and investments. The MDTF will contribute funding for these very activities, ensuring

that the Bank and the broader donor community are helping governments, service providers and citizens

“do things differently” and helping them guide adaptations in the development paradigm to include

features that much of the population has perceived to be lacking in the past. The initial balance of work

under the MDTF will likely be tilted toward Bank-executed activities to ensure relatively quick delivery of

results, given the limited experience of most stakeholders in the region with governance initiatives, social

and economic inclusion and other new areas for reform. However, as capacity increases in these areas,

the balance will shift toward Recipient-executed activities.

In addition to working closely with country counterparts, the MENA MDTF will require that all proposed

activities have been discussed with key partners working on the ground (e.g. bilateral donors, IFIs, in

particular AfDB, EBRD). This will ensure appropriate leveraging and synergies of activities, and will avoid

duplication of effort and donor resources.

2. STRATEGIC CONTEXT & RATIONALE

Citizens are challenging authorities across the region with the unifying refrain for “Dignity, Respect and

Freedom.” People-led revolutions have resulted in the establishment of new or transition governments

in Egypt and Tunisia, with peaceful election processes taking place in both countries. Monarchies in

Morocco and Jordan have started an evolutionary process of reforms and Morocco has also just


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completed an orderly election. Libya, Syria and Yemen have seen violent uprisings as part of the popular

desire for voice in the governance of these countries and in Libya, we see the beginnings of a new regime.

The political nature of events should not underestimate the role played by economics. For different

reasons, most of the countries in the region have not generated the kind of shared economic growth that

can generate the quantity and quality of jobs required for the expanding labor force, particularly for

youth. The public engagement emerging today opens up a new opportunity for the people to carry out

the kind of reforms needed for more participatory societies and inclusive, shared growth.

Immediate support from the international community is necessary to accompany these economic

transitions, and has been requested by the governments and other stakeholders through a variety of

platforms, including the Deauville Partnership. Requests are not only for financing, but also for technical

support and knowledge sharing.

The World Bank has a comparative advantage in providing integrated solutions to client countries in

the MENA region, based on its global experience supporting transitions (Eastern Europe, Latin America,

Asia) as well as its field presence and regional expertise. The Bank is also well positioned to broker

strategic partnerships between the region, other multilaterals and bilateral partners.

In line with the four building blocks of the Bank’s regional framework for engagement in response to

the Arab Spring, developed through our dialogue with governments and other key local stakeholders in

the region as well as through discussions with key partners interested in supporting the region’s reform

efforts, the MDTF will focus on the following interlinked components:

1) Strengthening the Governance Framework, in particular increasing transparency and accountability

measures for the creation of responsive states that can be held accountable for their actions, in

particular, service delivery and effective, efficient use of public monies;

2) Increasing Social and Economic Inclusion of disadvantaged groups (e.g. youth, women, the poor, rural

populations, minorities) through measures which provide opportunities for enhanced voice and

citizen participation in decision-making (including at the local level) as well as economic measures

which help ensure more inclusive growth, for

example, access to infrastructure services in

underserved areas and broad-based safety nets;

3) Creating Jobs for the unemployed and

underemployed, including for youth and women,

by: a) providing an enabling environment for a

dynamic and competitive private sector that

supports opportunity, innovation and

entrepreneurship, and, b) supporting actions that

help match the demands of the job market with a

well-equipped, appropriately educated and

nimble labor force.

Strengthen Governance Framework

Increase Economic & Social Inclusion

Create Jobs

Accelerate Sustainable Growth


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4) Accelerating Sustainable Growth through short and long-term policy actions that promote climate-

friendly growth in recognition of the stresses on the Region’s natural resources, particularly water.

3. DESCRIPTION OF TRUST FUND ACTIVITIES

A. THEMATIC COMPONENTS TO BE COVERED BY THE MENA MDTF

The MDTF will complement the Bank’s and other donors’ activities through real-time support for MENA

countries undergoing reform, working with both governments and non-traditional partners (e.g., CSOs,

media, academia, and the private sector, chambers of commerce, trade unions) under both Recipient-

executed and Bank-executed arrangements, as the situation requires.

I – STRENGTHENING THE GOVERNANCE FRAMEWORK

Strengthening the governance framework involves increasing accountability of authorities to citizens and

greater citizen participation and feedback in policy making, requiring more transparency in government

operations and higher standards for public officials. This strengthened governance architecture will help

provide legitimacy to emerging governments. Many of these reforming or new governments have

signaled the need for help in this area, in particular for capacity building. Unlike other Regions, the MENA

Region has received limited access to trust fund resources for governance work, for different historical

and administrative reasons. The MDTF will provide support for a variety of “soft” activities (e.g., project

preparation, knowledge sharing including participatory workshops) that are critical to the success of any

reform effort as they help ensure implementation on-the-ground related to higher level laws and policies.

Activities to be funded could include:

Promoting evidenced-based policy making, transparency and access to information. This includes improving poverty monitoring, the quality of data collected, and the use of data. The Bank has recently received requests from Morocco and Tunisia for capacity building to statistical agencies to improve survey methodology, measurement, analysis, monitoring, and targeting tools for poverty programs. The Bank is also working with the EBRD on the Life in Transition Surveys, which will provide new and critical household information. Access to information reform would require support for institution and capacity building, including on improved e-government and internet access. From the demand side, it entails support for capacity building of citizens and civil society through demystification of information about government programs and strengthening the level of awareness and understanding of citizens through dissemination of information to the public.

Strengthening accountability and economic governance reforms and public financial management (PFM), through technical assistance that includes analytical work and capacity building in areas including budget transparency, comprehensiveness of the budget, involvement of parliament, and a greater role for supreme audit institutions. PFM for natural resources (oil revenues) in the case of Libya may entail assistance in the formulation of a more sustainable fiscal policy framework. Efforts could also be extended to Central Banks, many of which are currently championing governance reforms in banking.

Holding services accountable to client-orientation, for example through the introduction of measurable, publicly-disseminated service standards. The MDTF could help promote systems where


19

users provide input into the design and monitoring of public services. For example, beneficiary scorecards were part of the reforms introduced by the Bank-funded Development Policy Loan in Tunisia; citizen report cards and community scorecards are used widely alongside Bank-funded programs in other regions. Resources could be used for capacity development of non-state actors, including directly empowering youth and citizenry through the use of social media and ICT. For example, Bank-funded projects in China are promoting the use SMS so that citizens adversely affected by programs can provide feedback to an independent monitor; similar schemes can be developed in MENA; and, CSOs can be contracted to collect feedback on the quality of both infrastructure and social services using both traditional and high tech means.

Supporting efforts to fight corruption, including advising governments on mechanisms for enforcement of judicial decisions and strengthening the application of anti-corruption legislation.

Supporting procurement reform for greater transparency, social accountability and integrity, while improving financial management and efficiency of spending at the country and project level.

II - INCREASING SOCIAL & ECONOMIC INCLUSION

Social Inclusion Activities will allow for greater citizen participation and voice. This ultimately will lead to

more effective reform initiatives since citizens will help shape them in a manner they find acceptable and

can support, enhancing ownership and therefore sustainability. What will be critical is to listen to

different voices. MDTF resources will be directed at events and workshops to enable a dialogue and

outreach with CSOs, religious organizations, diverse political figures, media (new and traditional), youth

groups, as well as the more traditional NGOs and private sector players (e.g. chambers of commerce).9

This will be supported by studies and notes setting out options for reforms and helping governments and

development partners draw lessons to inform policy work. For example, the Bank is drafting a regional

Gender Action Plan, intended to lead to country-level plans. The MDTF could help design and implement

a strategy and carry out consultations to ensure women’s issues are well represented. The MDTF could

also support workshops providing information as an honest broker that helps citizens participate more

actively in processes that affect them, for example, training in budget concepts allows interested groups

to engage in participatory budgeting at the local level.

Greater Economic Inclusion will be essential for the sustainability of current reform efforts: at the end of

the day, citizens will need to feel the benefits of economic growth. For example, Morocco’s National

Initiative for Human Development (INDH) is a Bank and donor-supported reform program which aims to

introduce social accountability measures and enhance economic inclusion (including strengthening local

institutions). The MDTF will help fund on-the-ground implementation support for capacity building,

knowledge sharing, and dissemination for such programs, including:

Building social safety nets (SSN): The 2008/9 Financial Crisis and then the Arab Spring have brought to light important vulnerabilities and disparities in the region. Most countries still lack effective SSN systems that could be scaled-up in times of crisis. The MDTF could support stock taking of existing SSN, South-South exchange to learn from countries such as Turkey, Brazil, Indonesia, or could design

9 In this sub-component, the MDTF would be complementary to ANSA Arab World, a regional platform for constructive engagement between CSOs, government, media and the private sector.


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pilot SSN interventions such as cash-for-work, conditional cash transfers and other similar mechanisms, drawing on South-South learning experiences (with impact evaluations, in view of scaling-up).

Developing policies that enable access to finance for middle and lower income households and micro-enterprises.

Undertaking analytical and design work on energy, fuel and food subsidies, as such subsidies pose a huge fiscal burden, are often poorly targeted, and can encourage resource waste. Subsidy schemes can be designed to help ensure specific objectives such as affordability for the poor while at the same time providing incentives for efficient use (e.g. of cleaner energy sources). The Egyptian Government, for example, has expressed interest in pursuing the nexus of energy pricing and sector governance; the Bank has embarked on initial studies, but further work is needed.

Supporting lagging regions to redress regional disparities. MDTF activities could include: assisting MENA countries to assess the nature of existing disparities and design projects to overcome them; providing opportunities to benefit from international experience in spatial development; and, supporting decision-makers to adapt appropriate policies. Household surveys could bring insights to rural household poverty, access to rural infrastructure services, local job situations and sources of income to better inform policy interventions.

Developing institutions at the local level. In MENA today, several governments are revising and/or refining their decentralization reform agenda (e.g. Morocco, Jordan, and Tunisia). Support from the MDTF could include development of mechanisms and tools for better coordination between central government and regional/municipal levels, clarifying the roles and responsibilities of each tier of government in various planning and expenditure functions, while anchoring these reforms within an emerging institutional structure. Efforts could include related reforms to ensure a more equitable distribution of services and resources while improving revenue streams and fiduciary systems.

III - CREATING JOBS

Unemployment in the MENA region is high relative to most other regions in the world: youth

unemployment (ages 15-24) is among the highest in all regions, at 27%; unemployment rates are

particularly high for young women at 36% (World Development Indicators, 2005). The MDTF will help

address demand and supply side issues regarding unemployment in the region, for example, introducing

catalytic programs that help match the demands of the job market with those on the job market, adapting

educational curricula to develop a well-equipped, appropriately educated and nimble labor force and,

strengthening the enabling environment for a dynamic and competitive private sector that drives

innovation and entrepreneurship. Job creation efforts usually include short-term interventions (e.g. cash-

for-work programs, skill training and certification) and longer-term interventions (e.g. efficient labor

market intermediation, social dialogue for regulatory reform through workshops and on-line chats, and

pension and unemployment insurance reform). The MDTF could fund activities in areas such as:

Helping promote youth employment: There is a great sense of urgency for this agenda. The MDTF could support a range of interventions/knowledge activities aimed at improving employability for skilled and unskilled youth with potentially important returns in the short and medium run. The MDTF could support interventions to improve labor market insertion for youth and overall school-to-work transition and entrepreneurship programs, with a focus on soft skills and built-in impact


21

evaluation for possible scale up of effective programs. South-South exchange on project design (e.g., with Latin America) for enhancing skills and employability is also required.

Box 1. Transition to Youth Employment – Labor Intensive Investment in Egypt

The Bank is working with the Ministry of Manpower and Migration in Egypt on a Labor Intensive Investment project. Linked to this, a Transition to Youth Employment Project is being designed. The Transition to Youth Employment project will contribute to the development of the institutional capacity framework of public employment services. It will support a more effective and quicker transition from school to work, leading to more and better jobs for job seekers, mainly young men and women. The project will support the delivery of a package of integrated services to mobilize public employment offices, and will provide information on career guidance and labor market to young people under the leadership of the Ministry of Manpower and Migration.

By the end of the project, it is expected that Public Employment Services (PES) offices will play a better role in helping young people find jobs with a changed image of the operation of these offices. Youth in selected areas will have increased access to PES services that include a better understanding of the labor market, how it functions, the job opportunities available, and the life skills needed in the labor market, which will lead to better career planning and education / training choices. The project will establish linkages with relevant stakeholders like the Ministry of Education, youth associations, vocational training providers, workers’ and employers’ associations, and civil society to ensure provision of the most appropriate channels of service delivery and its enhance sustainability after project completion.

The project will be implemented in partnership with International Labor Organization (ILO) given its previous experience and ongoing working relationship with the Ministry of Manpower and Migration as well as its knowledge of the model supported by this project which is expected to be expanded under the Labor Intensive Investment Project.

Using, the Gender Action Plans being developed (see above) to highlight issues particular to increasing female participation in the labor force. For example, “proximity jobs” near early childhood development centers can increase employment opportunities for women and provide quality childcare.

Building on the 2013 WDR on Jobs which can play an important role in informing Bank policy. MENA is developing a companion report to adapt the framework of the global WDR for the region, building on its emphasis of the transformation role of jobs. The MDTF could help open up a dialogue on jobs in the region and share international and regional experiences linked to improving employment outcomes.

Facilitating innovation and technology adaptation will be critical to drive employment generation in a Middle-Income Country (MIC) region such as MENA since, except in some industries and in some countries, it is unlikely to have a comparative advantage in labor-intensive manufacturing vis-à-vis Asia. Moving up the value chain will be an important way to produce middle income level jobs for the region. Specific activities under the MDTF could include South-South exchanges (e.g., between ECA and MENA), collaboration with firms such as Google and eBay, as well as with Small Business departments in the US and Europe, and linkages with the Arab Diaspora and academic institutions in the US and Europe.

Supporting the creation of a stronger enabling environment for responsible and competitive private sector-led job creation and for greater trade/regional integration, including for legislative, institutional and regulatory reforms that can provide comfort and incentives for new businesses, both local and Foreign Direct Investments (FDI), and also to facilitate external trade openness and market integration. This will also include policy and practical support on pre-bank financing for high employment generating businesses (angel and seed finance, venture capital, leasing, factoring), development of business plans, etc.


22

Advising on options for creating rural non-farm employment through innovative program design (e.g., ecotourism), to help create jobs and incentives for youth to stay in rural areas.

IV - ACCELERATING SUSTAINABLE GROWTH

The Bank’s recently released Economic Development Prospects report suggests that economic growth will

have to rise from the average of 4.8 percent over the last decade to an average of six percent per year

during the next decades in order to address MENA’s employment issue. This will not be a simple task. As

discussed above, only a dynamic and growing private sector can create high quality jobs at a rate that

keeps pace with MENA’s growing and increasingly young population. However, the private-sector of the

past has been labeled “crony capitalism,” where a select few ran large businesses and received favorable

government treatment, including access to land and other resources. The region’s resources are under

increasing pressures. Short and long-term economic policy actions are needed to promote political and

economic stability, but while also considering the stresses on the region’s natural resources. The MDTF

could help increase awareness and provide technical advice/program design in the following sub-thematic

areas:

Environmentally sustainable, climate smart management of existing water resources including efficient use of water in agriculture and the efficient use of energy, through for example a reduction in distortions introduced by water and energy subsidies.

Programs to promote cleaner and smarter urban and industrial development, for example through smart urban design.

Support for “green growth” that in turn can lead to “green jobs,” in the form of policies and research that encourage innovation in water resource management (e.g. commercial irrigation, renewable energy and energy efficiency, sanitation, and sustainable transport.

Support for analytics to identify low CO2 emissions technology choices and development of cost abatement curves to aid in selection of the most cost effective investments.


23

ANNEX II –MENA MDTF Aggregate Results Framework

Indicators Relevant Source

Date

Doing different things:

Cumulative number of person days of

employment

(Tier II)

4,903,853

(2011)

TBC29,917,327

(2014)

World Bank reporting against MENA

Regional Results Frameworks

Total number of beneficiaries across Bank

projects:

Of which labour market programmes

Of which safety net programmes

(Tier II)

N/A

12,830

3,597,157

(2011)

TBC

41,800,000

233,846

7,755,484 (2014)


Regional Results Frameworks

Number of countries with WB supported

programs on Open Government OR PFM reform

(Tier II)

2 (2011) TBCMonitored

(2014)


Regional Results Framework (noting the

combination of two different indicators:

Open Gov + PE/FM activities)

Doing different things/doing things differently:

Cumulative number of pieces of technical and

analytical work that informed strategy/policy

and stimulated public debate on (but not

limited to): gender inclusion, governance,

energy and consumption subsidy reform, social

protection, youth inclusion, job creation, labour

markets (Tier II)

40 (2011) TBC 64 (2014)


Regional Results Frameworks (although

does not exactly equal total of individual

figures to avoid double counting)

Percentage of projects linked to MDTF with

gender informed design NA TBC 75%

MDTF Progress Reports and Activity

Descriptions

Cumulative number of high quality analytical

products produced with resources from MDTF

(policy notes, survey work, evaluations,

reports) that demonstrate the good use of

analysis with clear recommendations, with

potential policy implications, targeted at

policymakers or for project preparation

0 TBC 20

MDTF progress reports with random

sample quality assured by DFID

advisers

Cumulative number of high quality technical

assistance activities (project design, capacity

building, guidelines) carried out through MDTF

that provide clear and practical

recommendations for practical and policy

implementation, with positive client feedback

0 TBC 20



advisers

Cumulative number of high quality dialogue

and knowledge and knowledge sharing events

(S-S exchange, conferences, focus

group/Community of Practice general

meetings, etc.) leading to clear policy

conclusions in focus areas, using resources from

the MDTF

0 TBC 22



advisers

Cumulative number of people trained directly

through MDTF (and % of which women) e.g.

through targeted workshops, training-oriented

S-S exchange, certification programs,

innovative learning programs, etc

0 TBC 500 (175) MDTF progress Reports

Cumulative number of businesses provided

with support directly through MDTF0 TBC 300 MDTF progress Reports

Cumulative number of results stories produced

which demonstrate the catalytic effect of the

MDTF (particularly on women and youth)

0 TBC 6 MDTF progress Reports

OUTPUTS

Strengthened project

preparation, technical

assistance, seed funding,

policy analysis, dialogue and

knowledge sharing through

World Bank MENA Trust

Fund

##

Direct support provided to

beneficiaries through World

Bank MENA Trust Fund ##

MENA MDTF Aggregate Results Framework

Target 2015Results Chain Baseline

2012

OUTCOME

World Bank MENA Portfolio

focused on promoting economic

and social inclusion and is

developed in ways that

responds effectively to needs


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ANNEX III –Core Sector Indicators

PROJECT BENEFICIARIES

1. Direct project beneficiaries (number), of which female (percentage)

ACCESS TO URBAN SERVICES AND HOUSING FOR THE POOR

1. People in urban areas provided with access to “improved water sources” under the project (number). 2. People in urban areas provided with access to “improved sanitation” under the project (number). 3. People in urban areas provided with access to all -season roads within a 500 meter range under the

Project (number). 4. People in urban areas provided with access to regular solid waste collection under the project

(number). 5. People in urban areas provided with access to electricity under the project by household connections

(number).

AGRICULTURE EXTENSION & RESEARCH

1. Technologies demonstrated in the project areas (number) 2. Targeted clients satisfied with agricultural services (percentage) 3. Collaborative research or extension sub-projects under implementation or completed (number) 4. Clients who have adopted an improved agricultural technology promoted by the project (number) 5. Targeted clients who are members of an association (percentage) 6. Client days of training provided (number)

BIODIVERSITY

1. Areas brought under enhanced biodiversity protection (ha) 2. New areas outside protected areas managed as biodiversity -friendly (ha) 3. Marine areas brought under biodiversity protection (ha) 4. Coastline and freshwater under biodiversity protection (km)

CONFLICT PREVENTION AND POST-CONFLICT RECONSTRUCTION

1. People in the project area aware of the project’s beneficiary targeting criteria (percentage) 2. Grievances registered related to delivery of project benefits that are actually addressed (percentage) 3. Conflict affected people to whom benefits have been delivered within the first year of project

effectiveness (number)

4. Beneficiaries who experience a feeling of greater security attributa ble to the project in the project areas (percentage)

EDUCATION

1. Primary completion rate (PCR) (MDG2) (Tier 1) 2. Gender parity index (GPI) (MDG3) (Tier 1) 3. Number of additional qualified primary teachers resulting from project interventions (Tier 2) 4. Number of additional classrooms built or rehabilitated at the primary level resulting from project

interventions (Tier 2) 5. System for learning assessment at the primary level (rating scale)


25

HEALTH

1. People with access to a basic package of health, nutrition, or populat ion services (percent increase based on number of people)

2. Health personnel receiving training (number) 3. Health facilities constructed, renovated, and/or equipped (number) 4. Children immunized (number) 5. Pregnant women receiving antenatal care during a visit to a health provider (number) 6. Children receiving a dose of vitamin A (number) 7. Long-lasting insecticide-treated malaria nets purchased and/or distributed (number) 8. Adults and children with HIV receiving antiretroviral combination therapy (number) 9. Pregnant women living with HIV who received antiretroviral to reduce the risk of MTCT (number)

INFORMATION, COMMUNICATIONS AND TECHNOLOGY (ICT)

PUBLIC ADMINISTRATION, INFORMATION AND COMMUNICATIONS

1. Electronic transactions of public services (%) 2. Average processing time for public services (hours) 3. User perception of quality of public services (%) 4. Costs to user for public services (US$) 5. Ratio of public services government revenues over costs (%)

INFORMATION TECHNOLOGY

1. IT/ITES employment (number of people) 2. IT/ITES revenue (US$) 3. Number of manpower trained under the project (number of people) 4. Impact on IT/ITES sector of World Bank technical assistance (composite score: 1 – low impact to 5 –

high impact)

TELECOMMUNICATIONS

1. Impact on Telecom sector of World Bank technical assista nce (composite score: 1-low impact to 5 –high impact)

2. Access to telephone services (fixed mainlines plus cellular phones per 100 people) 3. Access to internet services (number of subscribers per 100 people) 4. Retail price of internet services (per Mbit/s per Month, in US$) 5. Length of fiber optic network built (km)

IRRIGATION AND DRAINAGE

1. Area provided with irrigation and drainage services (ha) 2. Water users provided with new/improved irrigation and drainage services (number) 3. Operational water user associations created and/or strengthened (number)

MICRO-AND SMALL/MEDIUM ENTERPRISE FINANCE (MSME)

VOLUME OF BANK FUNDING FOR MSME FINANCE

1. Volume of Bank Funding: Lines of Credit - Microfinance (amount US$) 2. Volume of Bank Funding: Lines of Credit - SME (amount US$) 3. Volume of Bank Funding: Institutional Development - Microfinance (amount US$)


26

4. Volume of Bank Funding: Institutional Development – SME (amount US$) 5. Volume of Bank Funding: Enabling Environment – Microfinance (amount US$) 6. Volume of Bank Funding: Enabling Env ironment – SME (amount US$)

OUTREACH

1. Outstanding Microfinance Loan Portfolio (amount US$) 2. Outstanding SME Loan Portfolio (amount US$) 3. Number of active loan accounts - Microfinance 4. Percentage of active loans to women - Microfinance 5. Number of active loan accounts - SME 6. Number of active micro-savings accounts 7. Percentage of active micro-savings accounts held by women 8. Number of active micro-insurance accounts 9. Percentage of active micro-insurance accounts held by women

PORTFOLIO QUALITY

1. Portfolio at Risk - Microfinance (%) 2. Portfolio at Risk - SME (%) 3. Loans at Risk - Microfinance (%) 4. Annual Loan-loss Rate - Microfinance (%)

FINANCIAL SUSTAINABILITY

1. Return on Assets/Equity (%) 2. Adjusted Return on Assets/Equity (%) 3. Financial Self-Sufficiency (%)

PARTICIPATION AND CIVIC ENGAGEMENT

1. Participants in consultation activities during project implementation (number) 2. Intended beneficiaries that are aware of project information and project supported investments

(percentage) 3. Grievances registered related to delivery of project benefits that are actually addressed

(percentage) 4. Community contributions in the total project cost (percentage) 5. Sub-projects or investments for which arrangements for community engagement in post -project 6. sustainability and/or operations and maintenance are established (percentage) 7. Beneficiaries that feel project investments reflected their needs (percentage)

ROADS AND HIGHWAYS

1. Roads constructed (km): (i) Rural; (ii) Non-rural 2. Roads rehabilitated (km): (i) Rural; (ii) Non-rural 3. Roads in good and fair condition as a share of total classified roads (percentage) a. Size of the total classified network 4. Share of rural population with access to an all -season road (proportion) a. Number of people with access to an all -season road 5. Average time from ship readiness to unload to final destination for an imported container, on the 6. corridor(s) targeted by the project (days) a. Freight volume measured in TEU in targeted corridor


27

SOCIAL INCLUSION

1. Vulnerable and marginalized people in the project area that are aware of project investments and benefits (percentage)

2. Share of vulnerable and marginalized people of the total project beneficiaries (percentage) 3. Representatives in community based decision making and management structures that are from

the vulnerable or marginalized beneficiary population (percentage) 4. Vulnerable and marginalized beneficiary population who participate in non -project consultations

and decision making forums (percentage)

WATER SUPPLY

1. People provided with access to “Improved Water Sources” under the project ( number) 2. Improved community water points constructed or rehabilitated under the project (number) 3. New piped household water connections that are resulting from the project intervention (number) 4. Piped household water connections affected by rehabilitation works undertaken under the project

(number) 5. Water utilities that the project is supporting (number) 6. Other water service providers that the project is supporting (number)


28

ANNEX IV –OP/BP 14.4010

BP 14.40 - TRUST FUNDS

Note: This Bank Procedure statement replaces the statement dated February 1997. It applies to all Trust Fund Proposals (TFPs) that are submitted to Concessional Finance and Global Partnerships (CFP) on or after July 1, 2008. This statement does not apply to reimbursable arrangements, externally-financed outputs (EFOs), arrangements under which the Bank provides administrative services but does not receive funds in trust, IDA grants, grants under the Bank’s Institutional Development Fund, or grants under the Bank’s Development Grant Facility. For technical guidance and good practice on trust funds, staff may refer to the Trust Fund Handbook, AND TO THE trust funds website.

Initiation

1. A trust fund administered by the Bank can be country-specific, regional, or global in its geographic scope; it can be set up for a single set of pre-defined purposes, or on a programmatic basis; it can have one or several donors.

2. Concessional Finance and Global Partnerships (CFP) and other Vice Presidential Units (VPUs) identify sources of trust fund support through their contacts with donors. When staff mobilize resources for or through a trust fund, they consult with their VPU Funding Coordinator and with staff in CFP for guidance on available options and good practices.

Establishment

3. At the trustee level, each trust fund is subject to a minimum size threshold as set out in Annex A. To establish a trust fund, the task team leader (TTL) (see Annex B for eligibility) prepares a Trust Fund Proposal (TFP) consistent with the provisions of OP 14.40. The TFP describes inter alia the proposed objectives and results, scope of work, risks and mitigation measures, governance arrangements, supervision and reporting, cost recovery, and financial and audit arrangements. The TTL obtains clearance for the TFP from his/her line manager and submits it to the VPU Funding Coordinator. The VPU Funding Coordinator then endorses the TFP and submits it to CFP, which coordinates clearance with Controller’s, Strategy and Resource Management (CSR), Legal (LEG), and any other Bank units that need to be consulted, as determined by CFP. Following clearance, CFP forwards the TFP to the Vice President of the relevant managing unit (or his/her designate) for approval.

4. In certain circumstances, such as in the case of large trust fund proposals and/or where the financing mechanisms or governance or partnership arrangements are unusually complex or high-risk, review by Senior Management may be required; further, in certain cases, approval by Executive Directors may be required.

5. In exceptional cases where the Bank executes on behalf of the grant recipient, it is upon specific written request from the recipient, and with approval by the relevant Regional Vice President.

6. Following approval of the TFP, LEG finalizes legal agreements based on, and fully consistent with, the approved TFP. Trust funds are governed by:

a) Administration Agreement(s) (AA) between the Bank and the donor(s), or, in certain cases, by a Resolution of the Board of Executive Directors;

b) Grant Agreement(s) (GA) between the Bank and the grant recipient(s) in the case of a Recipient-Executed Trust Fund (RETF) (regardless of execution), consistent with the terms of the AA or resolution from which they derive;

10 For Small Grants, please refer to recent changes in Bank procedures: http://intranet.worldbank.org/WBSITE/INTRANET/KIOSK/0,,contentMDK:23142024~menuPK:34897~pagePK:37626~piPK:37631~theSitePK:3664,00.html

http://intranet.worldbank.org/WBSITE/INTRANET/OPERATIONS/INTOPETRUFUN/0,,contentMDK:21506571~pagePK:64168332~piPK:64168299~theSitePK:1051751,00.html


http://go.worldbank.org/B3GZFSNUE0

http://intranet.worldbank.org/WBSITE/INTRANET/UNITS/INTCFP/0,,contentMDK:21631323~menuPK:64060315~pagePK:64060698~piPK:64060880~theSitePK:299971,00.html

http://intranet.worldbank.org/WBSITE/INTRANET/OPERATIONS/INTOPETRUFUN/INTTRUFUNHANDBOOK/0,,menuPK:4340110~pagePK:64168324~piPK:64168339~theSitePK:4340094,00.html

http://go.worldbank.org/GABMG2YEI0

http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/EXTPOLICIES/EXTOPMANUAL/0,,contentMDK:21951503~pagePK:64141683~piPK:64141620~theSitePK:502184~isCURL:Y,00.html




29

c) Financial Procedures Agreement(s) (FPA) or its equivalent in the case of some Financial Intermediary Funds (FIFs).

7. After distribution of the fully signed AA and activation of the trust fund, the TTL calls for funds from the donor(s). Disbursements can begin after the trust fund has been activated and funds have been received. For an RETF, a GA is also fully signed and distributed before disbursements to the grant recipient begin.

Implementation

8. Before initiating an activity financed from a trust fund, the TTL obtains approval from his/her line manager. If such an activity is to be implemented at the country level, concurrence of the relevant Country Director or Country Manager is also obtained. The TTL is responsible for supervising and reporting to his/her line manager (and also to the donor, as provided for in the AA) on progress in implementation of trust-funded activities.

9. For each grant under an RETF, by the time the GA is ready for signature, a procurement plan is prepared in accordance with the GUIDELINES: PROCUREMENT UNDER IBRD LOANS AND IDA CREDITS and GUIDELINES: SELECTION AND EMPLOYMENT OF CONSULTANTS BY WORLD BANK BORROWERS, except for (i) grants to finance activities that are subject to OP 8.00 RAPID RESPONSE TO CRISES AND EMERGENCIES, (ii) grants to finance operations subject to OP 8.60 DEVELOPMENT POLICY LENDING, and (iii) grants for an amount of $2 million or less. In these cases, except under (ii) above, a simplified procurement plan listing items to be procured, along with their cost estimates and the type of procurement (consultants, goods, and/or works) and an estimated timeline that would apply to such procurement, is acceptable . For activities funded by BETFs and, in exceptional cases, activities financed from RETFs which the Bank has agreed to execute on behalf of the grant recipient, the Bank's Administrative Manual governs, and a procurement plan is only required for grants above $2 million. In the case of FIFs and transfers outside the Bank from a trust fund, applicability of the Bank’s Procurement Guidelines and other procedures is decided on the basis of the characteristics of each such fund.

10. When the Bank executes on behalf of a grant recipient, it cannot procure goods or works except for: (a) goods required for training and workshops; and (b) start-up activities referred to in OP 8.00, RAPID RESPONSE TO CRISES AND EMERGENCIES or in Board-approved resolutions for trust funds that specifically permit Bank execution of such activities .

11. To demonstrate that it has complied with the conditions specified in the trust fund legal agreements, and in accordance with AMS 10.11, the Bank maintains key documents related to the approval and implementation of trust funds in its institutional document retention systems.

12. The TTL discusses changes to the original scope of work or general terms of the trust fund with the VPU Funding Coordinator, LEG and CFP to determine if amendment of the TFP and legal agreements (or Board Resolution where relevant) are required, and if wider consultation with other units or review by Senior Management is needed.

13. When Management determines that there has been a substantive departure from the purpose for which a trust fund has been established, and that this departure falls within the Bank's exercise of its responsibilities, the Bank reimburses the relevant trust fund for the expenditure covered by that substantive departure. Any proposal for such a reimbursement is decided by the Vice President, CFP, in consultation with LEG.

Financial Reporting and Auditing

14. For all trust funds, the Bank provides regular financial reports to donors. For BETFs and RETFs, these reports are in the form of statements of receipts, disbursements and fund balance for individual trust fund accounts. These statements are available through the Bank’s Client Connection website. The Bank also provides donors with an annual Management Assertion Regarding Effectiveness of Internal Control Over Financial Reporting for Trust Fund Activities, together with an attestation from the Bank's external auditors. This is known as the “single audit.” In addition, in certain circumstances , where CSR so recommends, or where a donor requires it and it has been provided for in the AA, the Bank will arrange for a financial statement audit of an individual trust fund. In such cases, the donor(s) to the trust fund bear the full cost of the audit, including Bank staff time spent

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supporting it. For FIFs, financial reporting and audit arrangements are decided on the basis of the characteristics of each such fund.

15. Unless otherwise specified in the GA or FPA, (i) the recipient arranges an audit of its administration of trust fund resources channeled to it by the Bank, and (ii) the Bank provides the donor(s) with copies of the financial statements and auditor’s reports received from the recipient.

16. The TTL of record for a trust fund, whether at the trustee level or at the grant level, provides a Letter of Representation (LOR) for each activity financed in whole or in part by a trust fund annually, or when relinquishing management of the fund.

Closing

17. All AAs, GAs, and selected FPAs include a date after which funds cannot be disbursed—the end-disbursement date. The closing date in a GA is set at no less than six months prior to the end-disbursement date in the AA. These dates may be extended as appropriate in the event that the trust-funded activities have not been completed. The TTL initiates action for closure when the TF activities are completed. CSR cancels any unused funds, ensures the disposition of all cancelled funds in accordance with the legal agreements, and prepares final financial statements. In the case of certain FIFs, CFP handles closure arrangements.

Completion Reporting and Evaluation

18. The TTL is responsible for the evaluation of activities financed by a trust fund – including reporting on the outputs and the outcomes resulting from those outputs – to learn lessons from implementation and to inform decisions on future engagements in similar activities. Within six months following closure of each trust fund, the TTL prepares a completion report for approval by his/her line manager.

19. Where total contributions are greater than or equal to $5 million for each programmatic trust fund and for each Global and Regional Partnership Program (GRPP) financed by trust fund(s), respectively, the TTL arranges to have an independent evaluation carried out at least once every five years in accordance with the principles and standards laid out by the Independent Evaluation Group (IEG). IEG periodically reviews such evaluations and also reviews individual trust funds and related activities as part of its ongoing ICR reviews of Bank-financed projects, Country Assistance Strategy Completion Report (CASCR) Reviews, Country Assistance Evaluations (CAEs), and sectoral/thematic reviews.

OP 14.40 - TRUST FUNDS

Note: This operational policy statement replaces the statement dated February 1997, and the Operational Memorandum: Use of Tied Trust Funds and Contacts with Trust Fund Donors, dated June 16, 1998. It applies to all Trust Fund Proposals (TFPs) that are submitted to Concessional Finance and Global Partnerships (CFP) on or after July 1, 2008. This statement does not apply to reimbursable arrangements, externally-financed outputs (EFOs), arrangements under which the Bank provides administrative services but does not receive funds in trust, IDA grants, grants under the Bank’s Institutional Development Fund, or grants under the Bank’s Development Grant Facility.

1. A trust fund is a financing arrangement set up with contributions from one or more donors and, in some cases, from the World Bank Group. The Bank establishes and administers trust funds as a complement to IDA and IBRD financing to promote development and aid effectiveness by leveraging its capacity and development knowledge. The Bank encourages trust funds that draw on its operational role, include contributions from more than one donor, reinforce country capacity and ownership, and promote harmonization and alignment of donor aid modalities. Selectively, the Bank also provides specific administrative and financial services to the international community for trust funds that support work on issues of global importance and where the Bank may not perform an operational role.

2. The Bank accepts contributions from both sovereign and non-sovereign donors, and from the World Bank Group, provided that they meet criteria set out below. Trust funds do not extend any unfair advantages or benefits to the donor.




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3. For each intended trust fund, the Bank decides whether to accept the role or responsibilities proposed, based on the following criteria:

(a) Consistency with the Bank’s Purposes and Mandate. Activities financed from the trust fund are in keeping with the IBRD and IDA Articles of Agreement.

(b) Strategic Relevance. Activities financed from the trust fund are aligned with the Bank’s strategies.

(c) Risk Management and Controls. The risks arising from the trust fund, including those arising from any conflicts of interest or any restrictions on its use, are explicitly considered and are judged to be acceptable and manageable by the Bank.

(d) GOVERNANCE. The Bank has decision-making authority in the use of the funds adequate to fulfill its roles in administering the specific type of trust fund. 3

(e) NATIONALITY RESTRICTIONS ON PROCUREMENT. The Bank does not accept any contribution to a trust fund that imposes nationality restrictions on procurement (as distinct from nationality restrictions on recruitment, which may still be accepted 4).

(f) OPERATIONAL EFFICIENCY AND SUSTAINABILITY. Trust funds are of a sufficient size 5 to ensure efficient administration, and preferably are programmatic 6 in design. The Bank recovers the costs of performing agreed roles in administering a trust fund, taking into account benefits associated with such funding.

4. The Bank’s roles in administering a trust fund can vary, depending on its type. The Bank always performs some financial or administrative roles, and may also perform one or more operational or partnership support roles. Based on these roles, the Bank categorizes trust funds into three types:

(i) RECIPIENT-EXECUTED TRUST FUNDS (RETFs)—funds that the Bank passes on to a third party and for which the Bank plays an operational role—i.e., the Bank normally appraises and supervises activities financed by these funds;

(ii) BANK-EXECUTED TRUST FUNDS (BETFs)—funds that support the Bank’s work program;

(iii) FINANCIAL INTERMEDIARY FUNDS (FIFs)—funds that involve financial engineering or complex finance schemes, or where the Bank provides a specified set of administrative, financial or operational services.

5. Trust funds involve three levels of administration—the trustee level at which funds are contributed, the program level at which they are allocated, and the disbursement level at which they are disbursed through grant accounts. While a grant account can be of only one type, at the trustee or program level a trust fund may be a hybrid—that is, it may involve more than one type.

6. The policies and procedures that apply to trust funds vary, depending on the trust fund type. In cases of hybrid trust funds, the relevant policies and procedures apply to the type in effect for the grant account. Activities financed from RETFs are administered under the Operational Policies and Procedures that apply to IBRD and IDA financing; smaller-size grants may be subject to simplified procedures. Activities funded by BETFs are administered in accordance with the Bank’s Planning, Budgeting and Performance Management Manual and the Bank’s Administrative Manual, both of which apply to the Bank's administrative budget. In the case of FIFs, the application of Operational Policies and Procedures, the Administrative Manual, financial policies, budget policies and procedures, or other procedures, is determined on the basis of the characteristics of each such fund. All types of trust funds are subject to THE WORLD BANK POLICY ON DISCLOSURE OF INFORMATION.

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ANNEX V: MENA MDTF GRANT APPLICATION FORM11

Key Data

1. Title of proposed activity:

2. Task Team Leader: TFLAP Accredited: YES NO

3. Sponsoring Department:

4. Geographic Focus: Individual Country Regional Multi-Country (please specify country(ies) name(s))

5. Sector Focus: Governance Economic And Social Inclusion Job Creation Sustainable Growth (more than one box can be checked)

6. Types of activities: Technical Assistance Knowledge Sharing & Dissemination (more than one box can be checked)

7. Bank or Recipient-Executed Implementing Agency and Grant Recipient:

8. Estimated Start and Completion Dates:

9. Primary Type of Deliverable:

10. Total Amount Requested from MNA MDTF:

11. Total co-financing, and source(s):

Proposal Overview

12. Strategic alignment and rationale for MDTF Funding [maximum 200 words]:

13. Bank program/project (PO#, name, TTL, sector, country) to which this MDTF-funded activity is linked:

14. Donor Coordination to date/Strategy:

15. Government Approval of Country-Specific Activities (describe approval received/attachments, etc):

16. Brief description of project components and sequencing:

17. Intended beneficiaries of MDTF-funded activity? Does the activity face any specific conflict risks? Does the activity disproportionately benefit any specific group that could contribute to conflict, and if so, how is this risk managed?

11 Please submit completed applications (with Ideas Brief) to [email protected]


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18. Is the required Ideas Brief attached12? Yes No

Results Framework

19. Outcome indicators:

20. Output indicators:

21. Implementation Completion Survey – estimated delivery date:

Implementation Plan

22. Implementation arrangements:

23. Financing Plan summary by the major components (incl. supervision budget) attached? Yes No

24. Disbursement Arrangements:

25. Quality assurance mechanisms:

26. The proposal is expected to trigger Bank Environmental Safeguards or Social Safeguards

Endorsement by Senior Management

27. Country Unit Endorsement: 28. (Name and Title)

(Signature and date)

29. Sector Department Endorsement: 30. (Name and Title)


31. Sector Unit Endorsement: 32. (Name and Title)


33. (Add signatures and names of additional sponsoring units, if any) 34.

12The application form should be complemented by an Ideas Brief (maximum 2-pages, normal margins, 12-point font) which summarizes the

key objectives (including “doing things differently”), the Bank Project to which the activity is linked and how, intended beneficiaries, main tasks, implementation plan, key challenges and expected results (outcomes, outputs) of the proposal.


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NEED HELP FILLING OUT THE APPLICATION?

This note provides guidance for teams to complete the application form, including the Ideas Brief.

#7. If the proposal is Recipient-Executed, a brief description of the recipient institution should be provided, including

confirmation that the recipient institution’s management is independent of the Bank.

#9. Applications should highlight the primary type of deliverable, whether a study or report, training or seminar,

project identification or design, etc.

#12. TTLs should briefly describe the proposal’s alignment with the Bank’s MNA strategy and its link to the

applicable country strategy (CAS or ISN) and indicate whether funding for the activity is available or being sought

from some other source (including loans from international financial institutions, grants from other programs, or a

government’s own resources) and, if so, the rationale for requesting funding from MDTF. [max limit 200 words]

#14. The TTL should describe how the project relates to other donor activities. Priority will be given to activities that

form part of a multi-donor strategy and to proposals providing evidence of actual or potential donor co-financing to

encourage harmonization of efforts.

#15. Government approval of country-specific activities is necessary for each activity funded by the MDTF. The

name, position and institution of the responsible official and other details of the approving authority should be

indicated, as well as contact details.

In the case of grants provided for regional activities, it may be unnecessary and impractical to seek

endorsements from each beneficiary member country if the project spans multiple countries with no or very

limited physical implementation activities (e.g. workshops, training, visits) in any particular beneficiary

country. The determination whether any beneficiary country's endorsement is needed in such cases is based

on the particular circumstances and the approach taken will be reviewed by the TRC in consultation with LEG,

as deemed appropriate.

When the Bank provides grants directly to entities other than the member government (e.g. to NGOs/CSOs)

it obtains the consent of the member government. The particular manner in which member consent is

obtained varies from country to country depending on the agreement reached between the Bank and

relevant member government. In all cases, the country’s consent or no-objection must be in place before

the Grant Agreement is signed, and details of that consent/no-objection are recorded in a decision note for

the project/operation.

#16-17. An essential part of the application is the description of the expected objectives, project components

and intended beneficiaries of the activity. If relevant, the TTL should state the end-of-project milestone to be

achieved through the implementation of each project component.

#18. IDEAS BRIEF. The application form should be complemented by a MAXIMUM 2-page Ideas Brief (normal

margins, 12-point font) which summarizes the key objectives (including “doing things differently”), which Bank

Project the activity is linked to and how, intended beneficiaries, main tasks, implementation plan, key challenges

and expected results (outcomes, outputs) of the proposal.

#19-21. The TTL should summarize the key indicators against which the success of the activity might be judged.

The MENA MDTF will place a high priority on the delivery of results. This will require that every application

demonstrates the links to specific outcomes and outputs indicators, providing baseline data and trends for at least


36

three years. The indicators are usually the same or similar to the indicators tracked/results expected for the IBRD

or IDA project to which the MDTF activity is linked. Please refer to the Bank’s Core Sector Indicators for guidance.

The MENA MDTF Program Coordination Unit will provide a list of outcome and output indicators as a guide on

request. Please note: At the end of the grant execution period, the TTL will be requested to provide summary

information on results in a 2-page Implementation Completion Summary (template to be provided by PCU; will

also require information on lessons learned, key challenges, changes in program design, etc.).

#22. Implementation arrangements should be described, for example, the role of Bank vis-à-vis recipient/executing

agency and other partners, schedule with beginning and end date, as well as major milestones.

#23. A detailed budget, by component, should be attached to each application. If co-financing is not yet approved,

indicate the status of the request and any relevant timing. The TTL should provide information regarding supervision

costs, and describe what funds will be provided by the grant-sponsoring unit from its own administrative budget.

Resources identified should be sufficient for monitoring of the proposed activities and provision of technical and

strategic support to the recipient institutions where necessary (including staff time, transport costs). A higher

allocation of administrative budget is recommended if the Grant is to be Bank executed to allow for both supervision

and implementation of the Grant.

#24. Disbursement Arrangements provide information regarding the date of expected first disbursement and the

projected amount, and describe anticipated disbursement pattern thereafter.

#25-26. The TTL should detail quality assurance mechanisms for the proposal, describing the measures that will be

put in place to ensure the activity is subject to independent quality review (e.g., external peer reviewer or advisory

groups) and clarify whether the proposal is expected to trigger Bank Environmental and Social Safeguards (such as

involuntary resettlement and indigenous people).

#27-33. The last section details the necessary endorsement by Senior management (e.g., Country and Sector

Department) and by any other additional sponsoring units.

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