WITHIN THE INTERNATIONAL RECONSTRUCTION FUND FACILITY FOR IRAQ

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WITHIN THE INTERNATIONAL RECONSTRUCTION FUND
FACILITY FOR IRAQ

• THE WORLD BANK IRAQ TRUST FUND

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GOVERNANCE AND MANAGEMENT STRUCTURE OF THE
FACILITY

• Donor Committee (joint for WB and UN)
• Facility Coordination Committee (joint)
• Secretariat (joint)
• World Bank Iraq Trust Fund
• UNDG Iraq Trust Fund
• Trust Fund Managers (WB and UNDG)
• Monitoring Agent

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Donor Committee

• One Committee for both Trust Funds
• Endorses overall priorities for Facility
• Sets strategic directions
• Reviews progress
• Meets twice a year

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Donor Committee Members

• Minimum 10 million contribution, plus two seats
  for smaller donors
• Iraq Strategic Review Board, UN, Bank, IMF
  observers (other IFIs may be invited)

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Facility Coordination Committee

• Members UN and the Bank
• Function
• Review, recommend and coordinate program of
  activities financed by the TFs.
• Liaise with Iraqi counterparts to ensure
  coherence of priorities
• Each TF will have full authority in allocation of
  funds within their agreed purpose and agreed
  program.

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ITF - Secretariat

• Staffed by Bank/UNDG
• Based in Baghdad/Amman
• Respond to inquiries
• Handles administrative work
• Distributes/disseminates
• Reports to Facility Coordination Committee

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ITF will be Used to Finance

• The Interim Program for Iraq
• Build Iraqi institutional capacity
• Prepare and implement emergency operations to
  address urgent needs.
• Lay the groundwork for Iraqs medium-term
  program.

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Activities for ITF Financing in the Interim Period

• 4 Projects
• Emergency Infrastructure (MNSIF)
• Emergency Community Based Rural Infra (MNSRE)
• Emergency Primary and Secondary Education (MNSHD)
• Technical Assistance Project (MNC02)

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Expenditure Categories under ITF Financing

• Operations within the Priority Program as
  identified in the Needs Assessment and validated
  by the IRSG and the MoPDC
• Expenditure categories eligible for ITF financing
• Investment/Capital Expenditures, including
  prefeasibility studies and incremental recurrent
  costs directly related to I/C costs
• Technical Assistance and training
• ITF could cofinance Bank operations

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Duration of ITF

• ITF is established following authorization of
  Banks Board at end-January 2004
• About 20 donors participate in the Facility
• Agreements for donor contributions have been
  signed with most donors
• ITF is expected to close on December 31, 2007 or
  when all funds have been fully disbursed.

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Grant Financing Steps
Iraqi Administration sets budget, sector policy
and the Priority Program.
SECTOR POLICY/ PRIORITY FINANCING IM
PLEMENTATION
ISRB and the Ministry of Planning and Development
Cooperation review program/project proposals from
potential recipients for consistency with
budget and Priority Program, and guard against
overlaps. The MOPDC submits endorsed proposals
to the Facility Coordination Committee for
consideration.
Coordination Committee confirms eligibility of
proposal to receive financing from the World Bank
Iraq Trust Fund (or UNDG Trust Fund). (Generally,
proposals would recommend which of UN or WB trust
fund is appropriate for financing.)
World Bank assigns staff with responsibility to
appraise proposal under Banks policy and
procedures.
The recipient and the World Bank, as
Administrator of the Trust Fund, enter into
agreement that includes monitorable performance
indicators and disbursement arrangements
Recipient implements the project.
Recipients may be Ministry of Finance, Ministry
of Planning and other central ministries of Iraq,
line ministries, governorates, municipalities, UN
agencies, NGOs, Iraqi private sector, IFIs, and
other public sector. Applies only to
recipient-executed operations.
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UN Agencies
NGOs
Ministries
Governorates Municipalities
Private Sector
Other Public Sector
IFIs
Project Proposals from Recipients

• Iraq Strategic Review Board and Ministry of
  Planning and Development Cooperation
• Review proposal to ensure
• Is within priority program
• Is not being funded by another source
• Endorse and forward proposals to the Facility for
  funding consideration
• or Reject, or return for Modification.

The Facility Coordiination Committee reviews
proposal for eligibility for funding from the
Facility
Proposal is channeled to the Bank or UNDG Trust
Fund
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Procedures for ITF Financed Operations

• Projects are processed under World Bank Emergency
  Procedures which simplify requirements and
  shorten preparation time
• The Bank is assessing different payment
  mechanisms to project contractors
• Bank is preparing an Implementation Manual to
  identify procurement procedures that will be
  applicable until new Iraqi procurement
  regulations are in place

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The Monitoring Agent

• Independent firm, selected/recruited by the Bank
  and reporting to the Bank
• Reviewing procurement of goods, services
• Screening and recommending withdrawal
  applications
• Pre-screening financial management capacity of
  potential recipients
• M/A does not have approval authority

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Reporting to Donors

• An aggregated WB/UN report semi annually to
  Donors
• A website (currently being structured) that will
  provide up-to-date information on projects in the
  pipeline, under preparation, and under
  implementation review of progress and financial
  information

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Banks Cost Recovery

• Banks Administrative Feecharged off the top for
  central units (TFO,ACTF, LEG, TCQ, etc.
• For TA operations 0.4
• For Investment and Cofinancing operations 0.2
• Management Feeactual costs for staff and
  consultants for analyzing, appraising,
  supervising ITF operations

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Banks Cost Recovery (contd)

• 3. Management Feecosts attributable to ITF
  recovered for
• Bank staff and consultants for analyzing,
  appraising, supervising ITF operations
  (salary,travel)
• Monitoring Agents fee, expenses,
• 50 cost of the Secretariat (shared with UN)
• ITF administration staff
• External audits requested by donors

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