MENA Transition FundTenth Steering Committee Meeting

May 22-23, 2017 (Rome, Italy)

Meeting Minutes

Key Decisions

1) Cash available on May 22, 2017 was $15.1 million, including funds from Germany ($2.2 million), Italy ($5.4 million), Japan ($4.3 million), UAE ($1 million), and investment income. The following projects were fully approved, to be funded with uncommitted cash, for a total of $2 million:

Jordan OECD Promoting Open Government: Supporting the coordination and implementation of Open Government Partnership National Action Plan for a total of $1 million; and

Morocco OECD Supporting Open Government and Anti-Corruption Reforms for $1 million.

2) The following projects were approved for partial funding due to insufficient resources for a total of $13.1 million. If additional funds materialize before the end of calendar year 2017, a call for proposals will be announced during which the unfunded portions of these projects can be resubmitted as additional financing for Steering Committee priority consideration before considering new projects:

Jordan WB Promoting Financial Inclusion Policies for $1.2 million (in lieu of $1.441 million); Jordan WB Public Investment Management and PPP Reform for $0.6 million (in lieu of $1.415

million); Morocco IFC/WB Improving Infrastructure Delivery and PPPs for US$1.9 million (in lieu of $3.033

million); Libya WB Health Sector Support ASA Program for $2.4 million (in lieu of $3.0836 million); Egypt AfDB Strengthening Capacity of the Administrative Control Agency to Combat Corruption

for $3.5 million (in lieu of $4.889 million); and Tunisia WB Enhance Gas Sector Governance and Competitiveness TA for $3.5 million (in lieu of

$5.055 million).

3) The following projects, as presented, were not approved for funding by the SC: Jordan WB Al-Mafraq Reconstruction Zone Feasibility and Establishment Planning for $1.4

million; Libya OECD Building Public Administration and capacities for post-conflict reconstruction for

$1.6 million; and Morocco OECD Promoting local job creation and the socio-economic empowerment of women

for $1.787 million. 4) The Yemen IsDB Institutional Support for Post-Conflict Reconstruction and Development Project for $4.9 million was also not approved, as presented, for funding by the SC. However, in the case of Yemen, recent cancellation of Transition Fund projects were made totaling $7.84 million (see list below). As with previous cancellations, the funds will remain assigned to Yemen for a period of six months for new project submissions (including revision of the above project) and additional funding to existing projects. If new submissions are not received within 6 months from cancellation (in this case by

November 15, 2017), the funds will be returned to the Trustee and can be allocated to projects from other Transition Countries.

       Yemen WB Accountability and Transparency Enhancement Project (full cancellation/closed in December 2016): $5.2 million

       Yemen WB Civil Society and Government Partnership (full cancellation/closed in June 2015): $0.85 million

      Yemen WB Enterprise Revitalization and Employment Pilot Project (partial cancellation of government-executed component/the ISA-executed component is still under implementation): $1.789 million

5) The SC agreed, with the consent of the Trustee and Coordination Unit, to extend the timeframe of the Transition Fund by one year from December 2017 to December 2018. The Operations Manual has therefore been amended accordingly. 6) $0.67 million was approved to cover the Trustee and CU budgets from July 1, 2017 to June 30, 2018.

7) $0.69 million was reserved to cover the Trustee and CU budgets from July 1, 2018 to January 31, 2021.

Summary of Meeting

1) Remarks by Co-Chairs

The tenth meeting of the Transition Fund Steering Committee (SC) took place in Rome, Italy on May 22 and 23, 2017. A list of meeting participants is presented in Annex 1.

The meeting commenced with opening remarks from the Italian co-Chair, Paolo Cuculi, Deputy Director General for Development Cooperation, Ministry of Foreign Affairs and International Cooperation, who noted the importance of stability and development in MENA as key drivers for global peace and prosperity, and committed to reinvigorate the Partnership by strengthening its role as a forum for policy dialogue that gathers G7 partners, Transition Countries (TCs), Implementation Support Agencies (ISAs), and regional stakeholders. H.E. Ms. Hela Cheikhrouhou, Tunisia’s Minister of Energy, Mines and Renewables addressed the importance of maintaining open and democratic dialogue and thanked donors and ISAs for supporting the priorities of TCs and in implementing projects (see Annex 2 for co-Chairs’ remarks).

At the conclusion of these remarks, an introduction of the agenda followed by the Executive Secretary (see Annex 3).

2) Trustee Presentation

The Trustee presented the Transition Fund’s current funding status and outlook. The presentation is provided in Annex 4. Total pledges received at the time of the SC meeting amounted to $252.3 million.

Total cash contributions received to date amount to $240.4 million, including recent contributions received from Germany ($2.2 million); Japan ($4.3 million); Italy ($5.4 million); and the UAE ($1 million) since December 2016. Thirteen countries have contributed the full amount of their pledges: Canada, Denmark, Germany, Italy, Japan, Kuwait, Netherlands, Qatar, Russia, Saudi Arabia, UAE, Turkey and the UK. Investment income earned to date amounts to $2.5 million, bringing the total funding to US$242.9 million. This meeting marks the first time investment income is allocated to projects.

Funding decisions totaling $218.6 million were made before the SC meeting for projects and administrative budgets.

Current cash available, net of reserved funds, is $15.1 million. Reserved funds include $7.8 million in project cancellations reserved for Yemen until November 16, 2017, and $1.4 million reserved for the Trustee and Coordination Unit (CU) budgets from July 1, 2017 to January 31, 2021 (see additional breakdown of budget below).

The next cash payments of $10 million and Euro 1.8 million are expected from the United States and France, respectively, according to original pledges. The Trustee indicated hope that these payments will come through in the next half of 2017. The US noted that the state department has not yet identified a source for its final contribution, but continues to look, while France remarked that its additional contribution was conditional upon the Transition Fund reaching full capitalization, i.e. $250 million and will be awaiting guidance on when that is achieved.

Estimated administrative costs for the Trustee and CU in FY17 (July 1, 2016-June 30, 2017) are projected at $437,000, which is $26,000 above the approved budget. The proposed FY18 budget for the Trustee and CU is $670,000. The SC approved a transfer of the full FY18 budget of $670,000 (see table below), and reserved $690,000 for the administrative budgets through FY21.

Total Budget Approved FY17

Total Estimated Expenditures* FY17

Total Proposed FY18 Budget

Total Reserved FY19-21

Trustee 258,000 252,000 250,000 450,000Coordination Unit 153,000 185,000 420,000** 240,000Total Budget 411,000 437,000 670,000 690,000

*Actual expenditures through April 2017 and estimated expenditures for May and June 2017** Of which US$300,000 to be allocated to Independent Assessment

3) CU Presentation

The Executive Secretary gave a brief presentation providing a financial and portfolio updated and outlining the 12 projects that were submitted totaling $30.6 million (see presentation in Annex 5). The presentation outlined key highlights on the status of the Fund and portfolio-related progress issues mainly:

Overall disbursement as of December 2016 increased to 29% from 18% in December 2015 (approx. $64 million disbursed);

Additional funds leveraged to co-finance Transition Fund projects amounted to about $20 million;

On average, as of December 2016, about 87 percent of the portfolio was rated in the satisfactory range; 12 percent in the unsatisfactory range; and one project is not yet effective – projects are moving faster from the time of SC approval to project effectiveness.

The Executive Secretary also indicated that the performance of the portfolio of the Transition Fund will be re-assessed during the next progress update due in late July/early August 2017.

Disbursements: Donors noted the need to keep an eye on disbursements as well as problem projects, although some remarked that disbursements are not always the best barometer of progress, but also noting that Fund-level disbursements reflect average disbursements for all projects, irrespective of when they were approved. Hence, new project approvals tend to drag down the average disbursement rate, and a more accurate assessment of disbursement levels can be viewed on the basis of the length of time projects have been in implementation (reference bubble chart in the CU’s presentation).

Results: Donors indicated the need to focus more on project outcomes rather than outputs, including reporting comprehensively at the project-level of all indicators. The CU remarked that the current Fund-level results framework comprises both outcome and output indicators due to the diverse scope of the Fund, but noted that the final independent assessment will include an in-depth review of results/impact on the ground from Transition Fund projects.

4) Comments from the IFI Coordination Platform Secretariat

The IFI Coordination Platform noted that there is strong consensus amongst IFI CP members that the Transition Fund fills critical gaps in particular given the limited grant resources or concessional financing for ACTs. Indeed, these projects play a catalytic role and address an important niche in the area of capacity building and policy advice for reform implementation, which is complementary to other larger projects in infrastructure, social sectors, etc. At the same time, the Transition Fund provides donors, transition countries and ISAs with a forum to carry out policy dialogue. The significant project pipeline for this round (over USD 30 million) provides a strong evidence of the commitment of Platform members (ISAs) to the Fund. The Secretariat encouraged donors to keep and step up their support for the Fund, including by making effective the pledges already made. The Secretariat also expressed the commitment of ISAs to effective project implementation, as shown by the recent improvement in portfolio quality. Finally, the Secretariat informed SC members about the ongoing stocktaking exercise concerning the activities of the IFI coordination platform, which is being undertaken at the request of the Italian Presidency.

SC members encouraged donor partners to consider the future of the Deauville Partnership and asked ISAs to come up with a proposal for the way forward. The importance of taking structured decisions on whether projects are restructured or cancelled early on was also highlighted.

5) Ninth Call Project Approvals

Twelve projects totaling $30.6 million were submitted for SC consideration. A total of eight projects were approved, including six projects which are partially funded at this time. The list of projects submitted with a breakdown of funds requested and allocated is provided in Annex 6. Below is a list of the projects fully approved, partially approved, and not approved as presented:

The following projects were fully approved:

o Jordan OECD Promoting Open Government: Supporting the coordination and implementation of Open Government Partnership National Action Plan for a total of $1 million; and

o Morocco OECD Supporting Open Government and Anti-Corruption Reforms for $1 million.

The following projects were approved for partial funding due to insufficient resources. If additional funds materialize before the end of calendar year 2017, a call for proposals will be announced during which the unfunded portions of these projects can be resubmitted as additional financing for SC priority consideration before considering new projects:

o Jordan WB Promoting Financial Inclusion Policies for $1.2 million (in lieu of $1.441 million);

o Jordan WB Public Investment Management and PPP Reform for $0.6 million (in lieu of $1.415 million);

o Morocco IFC/WB Improving Infrastructure Delivery and PPPs for US$1.9 million (in lieu of $3.033 million);

o Libya WB Health Sector Support ASA Program for $2.4 million (in lieu of $3.0836 million);

o Egypt AfDB Strengthening Capacity of the Administrative Control Agency to Combat Corruption for $3.5 million (in lieu of $4.889 million); and

o Tunisia WB Enhance Gas Sector Governance and Competitiveness TA for $3.5 million (in lieu of $5.055 million).

The following projects, as presented, were not approved for funding by the SC:o Jordan WB Al-Mafraq Reconstruction Zone Feasibility and Establishment Planning for

$1.4 million;o Libya OECD Building Public Administration and capacities for post-conflict reconstruction

for $1.6 million; o Morocco OECD Promoting local job creation and the socio-economic empowerment of

women for $1.787 million; and o Yemen IsDB Institutional Support for Post-Conflict Reconstruction and Development

Project for $4.9 million. However, in the case of Yemen, recent cancellation of Transition Fund projects were made totaling $7.84 million (see list below). As with previous cancellations, the funds will remain assigned to Yemen for a period of six months for new project submissions (including revision of the above project) and additional funding to existing projects. If new submissions are not received within 6 months from cancellation (in this case by November 15, 2017), the funds will be returned to the Trustee and can be allocated to projects from other Transition Countries.

Yemen WB Accountability and Transparency Enhancement Project (full cancellation/closed in December 2016): $5.2 million;

Yemen WB Civil Society and Government Partnership (full cancellation/closed in June 2015): $0.85 million; and  

Yemen WB Enterprise Revitalization and Employment Pilot Project (partial cancellation of government-executed component/the ISA-executed component is still under implementation): $1.789 million

6) Project Implementation Progress

The CU gave a brief presentation on red-flagged projects that were slow performing in the December 2016 progress update (see Annex 7). TCs and ISAs presented an update on these projects as of May 2017 to help better assess implementation bottlenecks. Currently, only 12 percent of the portfolio is rated Moderately Unsatisfactory or Unsatisfactory. Below is a brief re-cap of actions to be taken by TCs/ISAs to advance projects on the red-flag list (watch-listed projects were not discussed due to time constraints):

Regional EIB Logismed: Morocco1 is working on advancing project implementation, Egypt is going to finalize EU funds and ensure project is fully disbursed by 2020, and Tunisia noted delays relate to the signature requirements of other countries, but has a new schedule for revised disbursements. The EIB, which was expected to present the progress of this regional project, was not represented at this meeting.

Regional EIB TRANSATRAC: Tunisia noted the delay in activity start but indicated there are no issues with carrying out activities related to capacity building and studies and will aim to bring the project to a satisfactory level. In Morocco, the Cooperation Agreement was signed, but delays faced in procurement.2 Egypt indicated the restructuring of the project was approved, and activities are ongoing, i.e. preparing TOR for port of Alexandria, going to sign final TORs, etc. The EIB, which was expected to present the progress of this regional project, was not represented at this meeting.

Egypt AfDB Support to Parliament: 80% of procurement done. Members of parliament have been to Japan. Political roadmap has been completed. Project underway. Expected disbursement by end June about 70%.

Egypt AfDB Building Capacity of MOIC: Expecting 25% disbursement by December 2017. Next steps are procurement documentation. AfDB closely monitoring.

Libya WB Electricity Sector Reform Program: Increased level in commitments. $312,000 disbursed. Commitment amount is $1.4, (80%) committed, should be on track for satisfactory performance.

Tunisia AfDB Enhancing Governance and Growth: Process of appointing PMO complete. First set of disbursements expected at $120,000, tender documents being prepared, almost 50% of funds expect to be committed in the coming months. AfDB remains committed to advancing the project.

Tunisia WB Social Protection Reform: Suffered from delays in procurement and social survey. Disbursed 32% in January. Implementing of a social survey underway with pilot experience in specific areas, which is a focal part in project consistency. Almost 60% disbursement expected by end of the year with generalization of the survey activity to all regions in the country.

1 The two components related to the creation of Logismed observatory and the coordination of the network of logistics platforms are well advanced .The third component related to the training aspect experiences some difficulties related to the performance of the GOPA consortium to which was assigned the implementation of this component by the Center for Transport Studies for the Western Mediterranean and the EIB2 Under the cooperation agreement signed between the EIB and the Ministry of equipment, transport, logistic and water, the EIB is responsible for the conduct of procurement and the signing of contracts with mandated providers to implement the technical assistance.The low disbursement rate could be explained, in part, by the institutional blockage caused by the temporary cooling of relations between Morocco and the EU and its financial institutions. The suspension of relations has led to delays in procurement as well as the launch and progress of some activities of this project.

Tunisia EIB Optimizing and Monitoring Employment in Infrastructure Investments: Delay in contracting because the staff of the EIB has changed. EIB is urged to commence implementation as soon as possible.

Tunisia AfDB Work Readiness Program: Commitments in the pipeline. 10% disbursement expected by end of June with a rise of 33-35% by end of September. Working on procurement packages in parallel to increase by disbursement to 40% by end of year.

Yemen AFESD/OECD Rule of Law: Only project of Arab Fund. Starting procurement of forensic unit. Project approved for extension until February 2018. Both the country and ISAs are strongly committed to implementing the project and a restructuring to support implementation may be considered.

7) Continuation of the Transition Fund Beyond 2017

The Italian co-Chair, floated a motion, for SC consideration to extend the Transition Fund for another year (see Annex 8). In line with the remarks made at the Senior Official Meeting held in Paris last March, the priority of the Italian G7 Presidency indicated that plans to reinvigorate the Partnership also include a specific commitment to the financial dimension. In this respect, it is convinced that the TF retains its importance as a key instrument to channel assistance to TCs, and should continue – consistent with its mandate – to deploy its potential to support the economic transformation underway in several countries in the region. The envisaged extension would enable TCs and ISAs to continue focusing on project implementation and, where needed, to cancel and re-allocate funds to more successful projects or new programs as appropriate, while Donor Countries might consider the possibility to provide new contributions to the TF as well as fulfill current pledges.

The meeting noted broad support for the co-Chair’s proposal to extend the Transition Fund by one year to December 2018, keeping in mind issues of accountability, impact of extension and difficulties over raising contributions as well as project-level performance.

The SC agreed, with the consent of the Trustee and Coordination Unit, to extend the timeframe of the Transition Fund by one year3 and accordingly adopted the following amendments to the Operations Manual, which is applicable to all Contribution Agreements and Financial Procedures Agreements. To extend the last day by which the SC can approve projects and the Trustee can transfer funds, the definitions for End Approval Date and End Transfer Date, respectively, as set forth in the Transition Fund Arrangements in section 3 (para. 12) and in the Glossary in section 9 of the Operations Manual, are hereby amended with immediate effect as follows:

“End Approval Date” means six five years after the date the first Project is approved.

“End Transfer Date” means nine eight years after the date the first Project is approved.

8) Other Items and Closing Remarks

The meeting agreed that OECD is to continue as Chair of the IFI Coordination Platform until 2018. A draft survey of the IFI CP has been circulated to all ISAs and comments are due by June 15, 2017.

3 End Approval Date extended to December 11, 2018 and End Transfer Date extended to December 11, 2021

Tunisia will continue as co-Chair of the Transition Fund for the rest of the calendar year, while Canada indicated it is prepared, if needed, to assume Chairmanship starting January 2018.

The Tunisian co-Chair announced its willingness to host the next SC meeting in Tunis if additional funds materialize this calendar year.

The co-Chairs thanked the rest of the SC members for joining the meeting and indicated that the key message the SC seeks to convey is that the Transition Fund remains a crucial instrument to deliver on reforms in the MENA region (see Annex 9 for closing remarks).

Annex 1: List of Meeting ParticipantsNo. Country/ISA Participants No

.Country/ISA Participants

1 Canada Sean Boyd 26 Tunisia Wissem Mhadhbi2 Canada Lisanne Garceau-Bednar 27 Tunisia Karim Bououni3 Egypt Sahar Nasr 28 United Kingdom Carl Aaron4 Egypt Ramy Afifi 29 United States of America Anthony Marcus5 Egypt Ayman Abdel Aziz 30 United States of America Karlin Gatton6 Egypt Joseph Sameh 31 Yemen Mohamed Al-Hawri7 France Alix Thepot 32 AfDB Yasser Ahmad8 Germany Niels Schuett 33 AfDB Yasmine Eita9 Italy Paolo Cuculi 34 AfDB Leila Mokaddem 10 Italy Roberto Colamine 35 EBRD Mircea Micu11 Italy Emmanuelle Farruggia 36 EBRD Adrian Keler12 Italy Leone Gianturco 37 IFC Rapti Goonesekere13 Italy Valerio Giomini 38 IFC Raffaele Boldracchi14 Italy Flavio Lovisolo 39 IsDB Amadou Diallo15 Italy Annamaria Meligrana 40 OECD Miriam Allam16 Italy Federico Ramaiolli 41 OECD Nicola Ehlermann17 Italy Tommaso Sansone 42 OFID Mahmoud Khene18 Italy Mario Beccia 43 IFI Coordination Platform Nicolas Pinaud19 Japan Naoaki Inayoshi 44 IFI Coordination Platform Anton Leis Garcia20 Jordan Saleh Alkharabsheh 45 World Bank Ayat Soliman21 Jordan Zeina Toukan 46 World Bank Trustee Darius Stangu22 Morocco Khalid Kensi 47 World Bank Coordination Unit Franck Bousquet23 Saudi Arabia Fahad Al-Nowaiser 48 World Bank Coordination Unit Hayat Al-Harazi24 Tunisia Hela Cheikhrouhou 49 World Bank Coordination Unit Denise Kassab25 Tunisia Nojava Khraief

Annex 2: Welcome and Opening Remarks

Italian co-Chair Remarks

Distinguished Ministers, dear Delegates,

On behalf of the Italian Minister of Foreign Affairs and International Cooperation, Hon. Angelino Alfano, I wish to warmly welcome you at the 10th meeting of the Steering Committee of the Deauville Partnership “Middle East and North Africa Transition Fund”, that we are pleased to co-chair with Tunisia, here represented by Her Excellency the Minister of Energy, Mining and Renewables, Hela Cheikhrouhou.

At the outset, let me underline that fostering sustainable development in the Mediterranean Basin constitutes a major challenge of the XXI century. Despite the many crisis and tensions affecting this area, the stability and development of the Middle East and North Africa are key drivers also for global peace and prosperity.

For this reason, Italy’s G7 Presidency has included the Deauville Partnership among its priorities. Building upon the work of previous Presidencies, we are committed to reinvigorate the Partnership by strengthening its role as a forum for policy dialogue that gathers G7 partners, Arab Countries in transition, regional stakeholders and International Financial Institutions, as well as a catalyst to promote structural reforms and build an economic environment conducive to a sustainable and inclusive growth.

By doing this, we hope to consolidate the excellent results that, so far, we managed to achieve together, in a plurality of sectors, such as job creations, food security, economic and social development, and so on.

This is why we decided to join the TF with a contribution of 5 million euros. We hope that all other pledged contributions soon materialize as well, so that the TF capitalization threshold may at last be achieved.

Coming to the work of this Steering Committee, I see two main tasks ahead of us: assess and deliberate on the 12 new projects presented by ACTs and Implementation Support Agencies, and discuss the future of the Fund.

On the first issue, with more than 30 million dollars requested, and only 14 available, it is far too easy to predict that our task will be difficult, to say the least. On the second one, as I had the opportunity to indicate during the last Deauville Partnership Senior Official Meeting in Paris, Italy is convinced that the Transition Fund should be allowed to keep supporting the economic transformation underway in several countries in the region, as much still remains to be done in this respect.

I stop here. I wish all distinguished delegations a fruitful session and a pleasant stay in Rome.

Tunisian co-Chair Remarks

Excellencies, ladies and gentlemen,

It is a pleasure to be with you here today and to co-chair the proceedings of the Steering Committee of the Transition Fund. This Fund was established by the Deauville Partnership to support the MENA countries that are going through a fragile democratic transition process. This Fund continues to be very much relevant and needed. Today and tomorrow, we will deliberate about high priority technical assistance projects that will advance national objectives to create jobs and sustainable growth, as well as strengthen the young democratic governance systems. Without those important pillars of jobs, growth and good governance, no democratic process can truly succeed.

On behalf of the Government of Tunisia, I express my support for the growth of resources and continuation of this helpful multi-donor mechanism which enjoys the support of several trusted implementing agencies.

I wish you all successful and productive discussions in the course of these two days.

Annex 3: Agenda

G7 DEAUVILLE PARTNERSHIP 10TH MEETING OF THE MENA TRANSTION FUND STEERING COMMITTEE

ROME, 22-23 MAY 2017

Italian Ministry of Foreign Affairs and International Cooperation

(Sala Conferenze Internazionali)

AGENDA AND PROGRAM OF WORK

Day 1 – May 22nd

08.30 - 09.00 Welcome breakfast and registration of participants

09.00 – 10.45 Session I

- Welcome by the Co-Chairs (Italy and Tunisia)- Opening remarks (Italy)- Introduction and adoption of the agenda- Update by the Trustee- Update by the Coordination Unit - Comments on the operation of the Transition Fund to date

10.45 – 11.00 Coffee break

11.00 – 12.30 Session II

- Presentation and discussion of new project proposals

12.30 – 13.30 Lunch

13.30 – 15.45 Session III

- Presentation and discussion of new project proposals

15.45 – 16.00 Coffee break

16.00 – 18.00 Session IV

- Presentation and discussion of new project proposals

18.15 Group photo

19.00 Dinner hosted by Italy

Circolo del Ministero Affari Esteri e Cooperazione Internazionale

Lungotevere dell’Acqua Acetosa 42 (transport provided)

Day 2, May 23rd

08.30 - 09.00 Welcome breakfast

09.00 – 10.30 Session V

- Wrap-up discussion and decision on new project proposals

- Discussion on project implementation and progress

10.30 – 10.45 Coffee break

10.45 – 12.30 Session VI

- Discussion on project implementation and progress- Discussion on next steps- Any other business- Presentation of decisions taken- Concluding remarks by the Co-Chairs

12.30 Lunch

Annex 4: Trustee Financial Presentation

Annex 5: Coordination Unit Update

Annex 6: Project Funding Requested and Allocated

Country # Project Name Funding

Requested Funding

Allocated ISAEgypt 1 Strengthening Capacity of the Administrative Control Agency to Combat Corruption 4,889,260 3,500,000 AfDB

Egypt Total 1 4,889,260

3,500,000

Jordan

1 Public Investment Management and PPP Reform 1,415,000 600,000 WB2 Supporting Jordan’s Open Gov't Partnership Action Plan 1,000,000 1,000,000 OECD3 Al-Mafraq Reconstruction Zone - Feasibility and Establishment Planning 1,400,000 0 WB4 Promoting Financial Inclusion Policies 1,441,000 1,200,000 WB

Jordan Total 4 5,256,000

2,800,000

Libya 1 Health Sector Support ASA Program 3,083,600 2,400,000 WB2 Building public administration institutions & capacities for post-conflict reconstruction 1,600,000 0 OECD

Libya Total 2 4,683,600 2,400,000

Morocco1 Improving Infrastructure Delivery and PPPs 3,033,000 1,900,000 IFC/WB2 Promoting jobs & socio-economic empowerment of women 1,787,700 0 OECD3 Supporting Open Government and Anti-Corruption Reforms 1,000,000 1,000,000 OECD

Morocco Total 3 4,820,700 2,900,000 Tunisia 1 Gas Sector Governance and Competitiveness 5,055,000 3,500,000 WBTunisia Total 1 5,055,000 3,500,000 Yemen 1 Institutional Support for Post-Conflict Reconstruction 4,900,000 0 IsDBYemen Total 1 4,900,000 0 GRAND TOTAL 12 29,604,560 15,100,000

Legend:Full funding approvedPartial funding approvedNot approved

Annex 7: Red-Flagged Projects

Annex 8: Italian Non-Paper – Possible 1-Year Extension of the MENA Transition Fund End Approval and End Transfer dates

As stated during the Deauville Partnership Senior Official Meeting held in Paris last March, the priority of the Italian G7 Presidency to reinvigorate the Partnership also includes a specific commitment to its financial dimension.

For this reason, Italy joined the MENA Transition Fund (TF) with a 5 million euros contribution, and will be honored to host the Tenth Meeting of its Steering Committee (SC) in Rome. On that occasion, the SC shall also discuss the future of the Fund, bearing in mind the decision taken by the Steering Committee at its seventh meeting – held in Berlin in May 2015 – to extend the timeframe of the TF by two years. The last day by which the SC can approve projects is currently December 11 th, 2017.

In this respect, Italy is convinced that the MENA TF retains its importance as a key instrument to channel assistance to Arab Countries in Transition aimed at strengthening governance and fostering sustainable and inclusive economic growth, through the promotion of country-led institutional reforms. In Italy’s view, the TF should continue – consistent with its mandate – to deploy its potential to support the economic transformation underway in several countries in the region, with the aim of improving their citizens’ lives.

In this spirit, and without wishing to pre-determine the discussion in the SC, Italy – with the assistance of the Coordination Unit – would like to present to the Steering Committee (SC) for consideration, a proposal for a one-year extension of the End Approval and End Transfer dates of the TF.

Such extension would enable Transition Countries and Implementation Support Agencies to continue focusing on project implementation and, where needed, to cancel and re-allocate funds to more successful projects or new programs as appropriate, while Donor Countries might consider the possibility to provide new contributions to the TF.

Should the SC agree with this proposal, a simple amendment to the Operations Manual could be made and would also be applicable to all Contribution Agreements and Financial Procedures Agreements.

To extend the last date by which the SC can approve projects and the Trustee can transfer funds, the definitions for End Approval Date and End Transfer Date, respectively, as set forth in the Transition Fund Arrangements in section 3 (para. 12) and in the Glossary in section 9 of the Operations Manual, would need to be amended as follows:

“End Approval Date” means six five years after the date the first Project is approved.

“End Transfer Date” means nine eight years after the date the first Project is approved.

Italy looks forward to discussing this issue during the Tenth Meeting of the MENA Transition Fund Steering Committee.

Annex 9: Closing Remarks

Italian co-Chair Closing Remarks

Distinguished Ministers, dear Delegates,

Since our proceedings have been conducted in a speedy and productive way, I will be brief in my concluding remarks.

First of all, I wish to deeply thank Her Excellency Hela Cheikhrouhou, Minister of Energy, Mining and Renewables of the Republic of Tunisia, and Co-Chair of the present meeting, Her Excellency Sahar Nasr, Minister of Investment and International Cooperation of the Arab Republic of Egypt, and His Excellency Mohammed Alì Al-Hawri, Deputy Minister of Planning and International Cooperation of the Republic of Yemen.

I extend my gratitude to all delegates who have taken part to the Steering Committee, and who made it possible to thoroughly discuss our agenda, and finally come to a positive conclusion.

At the beginning of our works, we had two main goals: discussing the 12 initiatives which have been taken to your attention, and to decide on the future of the Fund.

With regard to the first one, important decisions have been taken, and it is my opinion that, given the budgetary amount at available, this Steering Committee adopted a balanced package of projects.

With regard to the second point, I’m glad to see that the Fund will be extended for one year, so that it will continue to help meeting, with all its potential, the needs of the Arab Countries in transition.

It is crucial to establish strong synergies and enhance coordination among us all, in order to address the many challenges currently facing countries in the MENA region.

On behalf of the Italian Ministry of Foreign Affairs and International Cooperation, I thank you again for your presence, and I wish you all a safe journey back home.

Tunisian co-Chair Closing Remarks

Honourable members of the steering committeeDistinguished Delegates

Allow me first on behalf of the Tunisian delegation to express our gratitude to the Italian Government and particularly the Ministry of foreign Affairs for hosting this tenth session of the MENA steering committee and generously providing us with the facilities and conducive environment necessary for the success of the Session.

Once more during this meeting of SC we enjoyed a new collective exchange on the new projects evaluation and the progress reports of those previously approved, even if it was sometimes tight with some unease when deciding : it was a real challenge during each session to satisfy the wide range of enquiries, coupled with a high quality of proposals coming from the beneficiaries sustained by ISAs, regarding funding constraints, even though the donors generosity.

It was also difficult and even painful to cancel or flag projects as a statement of failure to concrete the ambition for the beneficiaries to progress in transition toward welfare, social and economic development ..but this is the rule .Fortunately such cases were not numerous. But I think that all beneficiaries, share my opinion that we have learnt enough from this experience. Regardless what the projects brought to the recipients, learned new practises in designing, formulating, following up and evaluating projects and programmes. For that, please let me thank all the interveners in the process and particularly the coordination unit for the huge effort in providing all information and data and keeping everybody in touch.

I wish success for ISAs/beneficiaries in implementing their projects and I hope that new donors will join the fund to continue the process and to sustain the Italian initiative for extending the duration of the Transition Fund for one year or more.

This extension should be a good incentive and give all of us opportunity to think about and try to build on a new tool to complement and enforce the job already done by TF, the main idea is to find out how to improve effective projects based on the previous achievements of TF during the last years, giving the beneficiaries more chances and ability to complete their transition process through implementing additional projects targeting the deep change their citizens are waiting for.

Finally, let me on behalf of the Tunisian delegation, renew thanks to all participants and invite the SC to meet in Tunisia for the next session, we’ll be glad to host this meeting and to see you again.

Thank you and good luck for all of you.