38883 The World Bank Group 2006 Trust Funds Annual Report Year ended June 30, 2006 Trust Fund Operations Department Concessional Finance and Global Partnerships The World Bank 1818 H Street N.W., Washington DC 20433, USA The World Bank Group ______________________________ International Bank for Reconstruction and Development (IBRD)ª International Development Association (IDA)ª International Finance Corporation (IFC) Multilateral Investment Guarantee Agency (MIGA) International Center for Settlement of Investment Disputes (ICSID) _____________________________ ªIBRD and IDA are collectively known as The World Bank or The Bank Abbreviations and Acronyms ACBF Africa Capacity Building Foundation IFC International Finance Corporation ACGF Africa Catalytic Growth Fund IMF International Monetary Fund ADB Asian Development Bank InfoDev The Information for Development Program AfDB African Development Bank ISPP Indonesia Strategic Poverty Partnership AML/CFT Anti Money Laundering/Combating the IRTF Iraq Reconstruction Trust Fund Financing for Terrorism JNA Joint Needs Assessment AHI Avian and Human Influenza JSDF Japan Social Development Fund ARTF Afghanistan Reconstruction Trust Fund KCP Knowledge for Change Program ASTAE Asia Sustainable Alternative Energy LDC Least Developed Countries Fund for Climate Change APOC Africa Program for Onchocerciasis Control LICUS Low Income Countries Under Stress ASEM Asia-Europe Meeting Asian Financial Crisis Response Fund MDF Multi Donor Fund for Aceh and Nias BioCF BioCarbon Fund MDG Millennium Development Goals BNPP Bank - Netherlands Partnership Program MDRP Multi-country Demobilization and Reintegration Program BRF Brazilian Rain Forest MDTF Multi-Donor Trust Fund CAP Cities Alliance Program MIGA Multilateral Investment Guarantee Agency CBF Capacity Building Facility NAPCOD New Afghanistan Project for Cotton and Oil Development CDCF Community Development Carbon Fund NBI Nile Basin Initiative CEBTF China Education Blending Trust Fund NCDMF Netherlands Clean Air Development Mechanism Facility CGAP Consultative Group for Assistance to the Poor NECAF Netherlands European Carbon Facility CGIAR Consultative Group on International Agricultural Research NGO Nongovernmental organization CSP Consolidation Support Program NSDS National Strategies for the Development of Statistics DAC Development Assistance Committee OBA Output Based Aid DCF Danish Carbon Fund OiE Organisation Mondiale de la Santé Animale/ World Organization for Animal Health DGF Development Grant Facility of the World Bank OTF Ozone Trust Fund DRF Debt Reduction Facility PACT Partnership for Capacity Building in Africa EAR European Agency for Reconstruction PCF Post-Conflict Fund EFA-FTI Education For All ­ Fast Track Initiative PCF Prototype Carbon Fund EIOP European Investor Outreach Program PHRD Policy and Human Resources Development Fund EPDF EFA-FTI Program Development Fund PPIAF Public/Private Infrastructure Advisory Facility ESMAP Energy Sector Management Assistance Program PREM Poverty Reduction & Economic Management ESSD Environmentally and Socially Sustainable Development PRSP Poverty Reduction Strategy Paper FAO Food and Agriculture Organization PRSTF Poverty Reduction Strategy Trust Fund FATF Financial Action Task Force on Money Laundering PRSTR Poverty Reduction and Transport Strategy Reviews FDI Foreign Direct Investment RMS Results Measurement System FIAS Foreign Investment Advisory Services SBAP Sustainable Business Assistance Program FIRST Financial Sector Reform and Strengthening Initiative SCCF Special Climate Change Fund FY Fiscal Year SIPP Serbia Investment Promotion Program GBI Grassroots Business Initiative SSATP Sub-Saharan Africa Transport Policy Program GDLN Global Development Learning Network Stop TB Global Partnership to Stop Tuberculosis GDEP Global Dracunculiasis Eradication Program TATF Technical Assistance Trust Funds Program GEF Global Environment Facility TFET Trust Fund for East Timor GEFIA Global Environment Facility ­ IBRD as Trust Fund for Environmentally and Socially Implementing Agency TFESSD Sustainable Development GFATM Global Fund to fight AIDS, Tuberculosis, and Malaria TFG Transitional Federal Government GPEP Global Program to Eradicate Poliomyelitis TFGWB Trust Fund for Gaza and West Bank GPOBA Global Partnership on Output-based Aid TFSCB Trust Fund for Statistical Capacity Building Program GPP Global Programs and Partnerships UNDP United Nations Development Programme HD Human Development Network UNEP United Nations Environment Programme HIPC Heavily Indebted Poor Countries Initiative UNFPA United Nations Population Fund IBRD International Bank for Reconstruction and Development UNECA United Nations Economic Commission for Africa ICF Italian Carbon Fund WBG West Bank and Gaza ICT Information and Communications Technology WBG World Bank Group IDA International Development Association WBI World Bank Institute IDF Institutional Development Fund WHO World Health Organization IEG Independent Evaluation Group WSP World Bank Sanitation Program Contents Preface..........................................................................................................................................................................1 1. About Trust Funds.............................................................................................................................................1 2. Portfolio Overview and Fiscal Year 2006 Financial Highlights.....................................................................2 Financial Highlights.............................................................................................................................................2 Contributions........................................................................................................................................................3 Disbursements......................................................................................................................................................7 Funds Held in Trust and Investments...................................................................................................................9 3. Sectoral and Thematic Focus of Trust Funds................................................................................................10 Debt Service and Debt Reduction......................................................................................................................10 Sustainable Development...................................................................................................................................11 A. Environment and Sustainable Agriculture.....................................................................................................11 B. Infrastructure.................................................................................................................................................12 Health and Human Development.......................................................................................................................13 Poverty Reduction and Social Development......................................................................................................14 Capacity Building and Technical Advisory Services.........................................................................................15 Post-Conflict Reconstruction and Natural Disasters..........................................................................................16 Financial and Private Sector Development ........................................................................................................17 4. Trust Funds Administered by the International Finance Corporation and the Multilateral Investment Guarantee Agency .....................................................................................................................................................19 5. World Bank Group Trust Funds - Financial Information Summary for Year Ended June 30, 2006......20 Introduction........................................................................................................................................................20 Comparative Information...................................................................................................................................20 Trust Fund Highlights........................................................................................................................................20 Number of Active Trust Funds and Programs....................................................................................................21 Funds Held in Trust............................................................................................................................................22 Cash and Investments.........................................................................................................................................23 Promissory Notes...............................................................................................................................................24 Contributions and Disbursements by Program...................................................................................................25 Contributions by Donor......................................................................................................................................26 Disbursements by Managing Unit......................................................................................................................27 Disbursements by Category ...............................................................................................................................28 6. Trust Funds and Results..................................................................................................................................29 How Does The Bank Approach Results?...........................................................................................................29 Results Achieved Under Trust Funds.................................................................................................................30 Annexes.......................................................................................................................................................................33 Annex A......................................................................................................................................................................34 Debt Service and Debt Reduction...........................................................................................................................34 Heavily Indebted Poor Countries Initiative (HIPC)...........................................................................................34 Debt Reduction Facility for IDA-only Countries (DRF) ...................................................................................35 Annex B ......................................................................................................................................................................36 i The World Bank Group 2006 Trust Funds Annual Report Sustainable Development........................................................................................................................................36 B.1. Environment and Sustainable Agriculture ........................................................................................................36 Global Environment Facility (GEF)...................................................................................................................36 Least Developed Countries Fund for Climate Change (LDC) ...........................................................................37 Special Climate Change Fund (SCCF)...............................................................................................................37 Carbon Finance: Prototype Carbon Fund (PCF)...............................................................................................38 Carbon Finance: Netherlands Clean Development Mechanism Facility (NCDMF)..........................................38 Carbon Finance: The Netherlands European Carbon Facility (NECAF) ..........................................................39 Carbon Finance: Community Development Carbon Fund (CDCF)...................................................................39 Carbon Finance: BioCarbon Fund (BioCF).......................................................................................................40 Carbon Finance: Italian Carbon Fund (ICF)....................................................................................................40 Carbon Finance: Danish Carbon Fund (DCF)..................................................................................................40 Trust Fund for Environmentally and Socially Sustainable Development (TFESSD) ........................................41 Pilot Program to Conserve the Brazilian Rain Forest (BRF) .............................................................................41 Consultative Group on International Agricultural Research (CGIAR)..............................................................42 Nile Basin Initiative (NBI).................................................................................................................................43 B.2. Infrastructure......................................................................................................................................................44 Public-Private Infrastructure Advisory Facility (PPIAF)...................................................................................44 Foreign Investment Advisory Service (FIAS)....................................................................................................45 Global Partnership on Output-Based Aid (GPOBA)..........................................................................................45 Energy Sector Management Assistance Program (ESMAP)..............................................................................46 Water and Sanitation Program (WSP) ...............................................................................................................47 Cities Alliance Program (CAP)..........................................................................................................................48 Sub-Saharan Africa Transport Policy Program (SSATP) ..................................................................................48 Asia Sustainable and Alternative Energy (ASTAE) Program............................................................................49 Information for Development (infoDev) Program .............................................................................................50 Annex C......................................................................................................................................................................51 Health and Human Development............................................................................................................................51 Global Fund to Fight AIDS, Tuberculosis, and Malaria (GFATM)...................................................................51 Global Partnership to Stop Tuberculosis (Stop TB)...........................................................................................52 Global Program to Eradicate Poliomyelitis (GPEP) ..........................................................................................52 African Program for Onchocerciasis Control (APOC) ......................................................................................53 Global Dracunculiasis Eradication Program (GDEP)........................................................................................53 Education for All-Fast Track Initiative: Catalytic Fund (EFA-FTI)..................................................................54 Education for All-Fast Track Initiative: Program Development Fund (EPDF).................................................54 China Education Blending Trust Fund (CEBTF)...............................................................................................55 Avian and Human Influenza (AHI) Facility.......................................................................................................55 Bangladesh Health, Nutrition and Population Sector Multi-Donor Trust Fund.................................................56 Annex D......................................................................................................................................................................57 Poverty Reduction and Social Development...........................................................................................................57 Japan Social Development Fund (JSDF) ...........................................................................................................57 Poverty Reduction Strategy Trust Fund (PRSTF)..............................................................................................58 Indonesia Strategic Poverty Partnership (ISPP).................................................................................................58 Africa Catalytic Growth Fund (ACGF) .............................................................................................................59 Annex E ......................................................................................................................................................................60 Capacity Building and Technical Advisory Services ..............................................................................................60 Policy and Human Resource Development (PHRD) Fund ................................................................................60 Bank-Netherlands Partnership Program (BNPP) ...............................................................................................61 ii The World Bank Group 2006 Trust Funds Annual Report Africa Capacity Building Foundation (ACBF) ..................................................................................................61 World Bank Institute (WBI) Partnerships..........................................................................................................62 Global Development Learning Network (GDLN) .............................................................................................63 Trust Fund for Statistical Capacity Building (TFSCB)......................................................................................63 Knowledge for Change Program (KCP) ............................................................................................................64 Annex F ......................................................................................................................................................................66 Post-Conflict Reconstruction and Natural Disasters..............................................................................................66 Post-Conflict Fund (PCF) ..................................................................................................................................66 Low-Income Countries Under Stress (LICUS) Implementation Trust Fund .....................................................67 Iraq Reconstruction Trust Fund (IRTF) .............................................................................................................67 Afghanistan Reconstruction Trust Fund (ARTF)...............................................................................................68 West Bank and Gaza: Trust Fund for Gaza and West Bank (TFGWB)..............................................................69 West Bank and Gaza: Public Financial Management Reform Trust Fund........................................................69 Timor Leste: Trust Fund for East Timor (TFET)..............................................................................................70 Timor-Leste: Consolidation Support Program (CSP) ......................................................................................70 Multi-Country Demobilization and Reintegration Program (MDRP)................................................................71 Multi-Donor Fund for Aceh and Nias (MDF)....................................................................................................72 Sudan Multi-Donor Trust Funds........................................................................................................................73 Annex G......................................................................................................................................................................74 Financial and Private Sector Development............................................................................................................74 Asia-Europe Meeting (ASEM) Asian Financial Crisis Response Funds (TF1 and TF2)...................................74 Financial Sector Reform and Strengthening (FIRST) Initiative.........................................................................75 Consultative Group to Assist the Poor (CGAP).................................................................................................75 Annex H......................................................................................................................................................................77 Trust Funds Administered by IFC and MIGA.........................................................................................................77 International Finance Corporation (IFC)............................................................................................................77 Multilateral Investment Guarantee Agency (MIGA) .........................................................................................79 Annex I .......................................................................................................................................................................81 Trust Fund Glossary...........................................................................................................................................81 Annex J.......................................................................................................................................................................84 Webpage Addresses...........................................................................................................................................84 iii The World Bank Group 2006 Trust Funds Annual Report Preface The World Bank has been mobilizing concessionalresources for poverty reduction and sustainabledevelopmentfor nearly 50 years. IDA has alwaysbeenand continuesto be our primary channelfor suchresources. However, in recentyearswe have seenstronggrowth in complementary channelsthatarealsoadministeredby theBank,both at countrylevelandin supportof globalpriorities. Thesecomplementarychannels,whichwe groupunderthe term"trust funds",provide supportto abroad rangeof activitiesthathavegrownincreasinglydiverseandcomplex. Theyincludenotably:(i) fundsthat we superviseonbehalfof thedonors,muchaswe supervisetheuseof IDA or ffiRD; (ii) fundsfor which the Bankactsasa financialintermediary;and(iii) fundsthatenabletheBankto scaleupits ownwork. In fiscal2006totalfundsheld in trust grewto US$lO.3billion, with newcontributionsofUS$5.2 billion and disbursementsof US$4.4billion. Examplesof the threetypes of trustfund notedabovethat were approved during fiscal 2006 included, respectively: (i) the Bangladesh:Health, Nutrition and PopulationSectorMulti-Donor TrustFund for US$475million from six donors,supportinga Sector-wide approachalongsidea US$300million illA credit; (ii) US$l3.5 million from Norway to supportthe buy backof commercialdebtowedby Mozambique;and(iii) US$600,000from Icelandto expandtheBank's work in analyzingthecostsof doingbusinessin 20 SmallStates. Looking forward, the increasingcomplexity of developmentchallengesat both the countryand global level, and the associatedtrends in overall aid architecture,make it likely that trust funds will continueto grow in volume and diversity. The Bank's role in managingthesefunds must continueto evolve inresponse.To thatend,wehaveembarkedonacomprehensiveprocessto reviewthepoliciesand proceduresthatunderpinour administrationof thesefunds,andthe managementframeworkthatsupports them,to identifywaysfurtherto strengthentheir efficiencyandeffectiveness. We would welcome feedback on the infonnation in this report, or on its format, to donorgueries@worldbank.org. PHILIPPELE HOuE.ROU Vice President ConcessionalFinanceandGlobalPartnerships The World Bank Group 2006 Trust Funds Annual Reporl 1 Section 1 About Trust Funds 1. About Trust Funds Trust funds are key vehicles for leveraging the World Bank's resources toward pursuing its core objectives of poverty reduction and sustainable growth, and achieving the Millennium Development Goals 1. A trust fund is a fund established to support development-related activities or programs, with administration by the World Bank and contributions from one or more donors. Through the use of trust funds, the Bank can mobilize and direct concessional resources to key strategic development priorities at country level, and as a vehicle for supporting partnerships with other development actors on global or regional challenges. 2. Donors include many Bank member countries, the private sector, foundations and non- governmental organizations. The World Bank Group also contributes some of its own resources to selected trust funds. Increased demand for global partnerships and closer alignment of development priorities among donors have made the strategic role of Trust Funds increasingly important, thereby raising the need for effective management by the Bank 3. Aligned with the World Bank's Country Assistance Strategies and sector development priorities, trust funds have experienced robust growth in various regions and sectors. This is largely in response to the international community's desire for the Bank to help leverage donor resources for a broad range of development initiatives at the global, regional and country level. These initiatives vary significantly in size and complexity, ranging from multi-billion dollar arrangements such as HIPC, Carbon Finance, GEF and GFATM, to much smaller and simpler freestanding activities. 4 Substantial reforms have been introduced in recent years to help the Bank move toward a more client-centered approach. These reforms have essentially focused on simplification of operational procedures and harmonization with efforts of other development partners at the country and international levels. Such reforms need to be continued to ensure that the Bank administers funds in ways that promote on-the-ground results and strategic alignment, maximize efficiency, control the risks and costs involved, and ensure that funds are used for their intentional purposes. 1 The World Bank Group 2006 Trust Funds Annual Report Section 2 Portfolio Overview and Fiscal Year 2006 Financial Highlights 2. Portfolio Overview and Fiscal Year 2006 Financial Highlights Financial Highlights The World Bank Group's Trust Fund portfolio continued to grow in fiscal 2006 1. Higher contributions, higher disbursements, and higher year-end fund balances1 were all features of the portfolio of trust funds administered by the World Bank Group during fiscal 2006. World Bank Group Trust Fund Portfolio Overall portfolio FY 2006 FY2005 US$ million US$ million Contributions received during the Year 5,214 4,750 Disbursements made during the Year 4,374 4,128 Adjustments for investment income, administrative fees and exchange rate 705 430 differences Funds held in Trust at Year-end 10,293 9,308 The World Bank Group was managing a total of 929 active trust funds and programs at end of fiscal 2006 Number of TFs Administered by WBG 2. The number of active trust funds institution at end FY2006 administered by the WBG increased from a total of MIGA, 12 840 at the end of fiscal 2005 to 929 at the end of IFC, 152 fiscal 2006. Of these, 82 percent (765 funds) were managed by the World Bank (IBRD), 17 percent WORLD (152 funds) by the International Finance BANK Corporation (IFC), and one percent (12 funds) by (IBRD / the Multilateral Investment Guarantee Agency IDA), (MIGA). 765 3. In monetary terms, 95 percent (US$9.8 billion) of the funds held in trust were for the IBRD administered portfolio, more than 4 percent (US$453 million) for the IFC administered portfolio, and less than half a percent (US$40 million) for the MIGA administered portfolio. 1See Annex I Trust Fund Glossary for definitions of contributions, disbursements and funds held in Trust 2 The World Bank Group 2006 Trust Funds Annual Report Section 2 Portfolio Overview and Fiscal Year 2006 Financial Highlights Contributions An increase in contributions for fiscal 2006 revived the earlier upward trend Trust Fund Contributions for Last Five Years 4. After a dip of four percent during fiscal 2006 5,214 2005, contributions picked up again in fiscal 2006 with an increase of almost 10 percent over 2005 4,750 fiscal 2005 to a new peak of US$5,214 million. 2004 4,940 Some key features of these contributions are Year2003 3,899 reflected in the charts below. 2002 2,732 0 1000 2000 3000 4000 5000 6000 $' million Almost half of fiscal 2006 contributions from donors were for trust funds supporting Recipient activities (including debt relief) 5. Forty-seven percent (US$2,466 million) of fiscal 2006 contributions were for trust funds supporting Recipient activities2, of which US$423 million were for debt service trust funds; US$1,013 million for co-financing, investment, and special financing trust funds; and US$1,030 million for technical assistance trust funds. Forty-two percent (US$2,185 million) were for fiscal agency trust funds (including GEF, GFATM and others); seven percent (US$367 million) for trust funds supporting Bank/Partnership activities; and four percent (US$195 million) for trust funds used for other type of activities, including administrative. FY2006 Trust Fund Contributions ($5,214 million) by Usage Type Others $195 million Trust Fund Fiscal supporting Agency Recipient Trust Funds Activities $2.19 billion $2.47 billion Trust Funds Supporting Bank/Partnership Activities $367 million 2See Annex I Trust Fund Glossary for definition of Recipient activities 3 The World Bank Group 2006 Trust Funds Annual Report Section 2 Portfolio Overview and Fiscal Year 2006 Financial Highlights The Global Fund to Fight AIDS, Tuberculosis and Malaria was the most popular program with donors, attracting 25 percent of all fiscal 2006 contributions 6. GFATM attracted US$1,313 million, or 25 percent of all fiscal 2006 contributions. The next four programs were: GEF receiving US$720 million or 14 percent; HIPC receiving US$390 million or 8 percent; the Afghanistan Reconstruction Trust Fund (ARTF) US$363 million or seven percent; and IFC trust funds receiving US$231 million or four percent of all fiscal 2006 contributions. The top three global programs (GFATM, GEF, and HIPC) together received 47 percent of all fiscal 2006 contributions. Sovereign Governments continued to be the single biggest source of contributions in fiscal 2006 7. Eighty percent of all contributions FY2006 Contributions by Donor Types in fiscal 2006 were provided by Sovereign Donor Type US$ million percentage Governments, either directly or through their agencies. Intergovernmental Organizations Sovereign Governments 4,164 80.0% were the next biggest donor, together Intergovernmental Organizations 579 11.0% providing eleven percent of all fiscal 2006 World Bank Group 421 8.0% contributions, followed by The World Bank Private For-Profit Entities 29 0.6% Group with eight percent, Private For-Profit Private Non-Profit Organizations 20 0.4% Entities more than half percent, and Private Non- Profit Organizations less than half Total Contributions 5,214 100.0% percent3. 8. The contributions from Sovereign Governments continued to be the single largest source - the total inflow from this category of donors was some US$478 million more than in the previous year. Similarly, Intergovernmental Organizations, including the European Commission, UN bodies, multinational and regional development banks, and international financial institutions, contributed US$178 million more than in the previous year. 3Private For-Profit Entities included Elsam Engineering and Energi E2, each contributing to Carbon Finance program; Private Non-Profit Organizations included the UN Foundation, which contributed to the debt service program, and FIA Foundation, which contributed to the Global Road Safety Program. 4 The World Bank Group 2006 Trust Funds Annual Report Section 2 Portfolio Overview and Fiscal Year 2006 Financial Highlights After increasing for four fiscal years, the World Bank Group contributions declined in fiscal 2006 9. Contributions from the World Bank Contributions from the World Bank Group over Group that had been consistently increasing the Last Five Years since fiscal 2002 dipped from US$562 million 2006 421 to US$421 million, moving WBG from being 2005 562 the biggest single donor in fiscal 2005 to fifth position in fiscal 2006. Compared with the 2004 465 previous year, IBRD contributions were down earY2003 329 by US$227 million (45 percent decrease over 2002 218 previous year) and IFC contributions were up 0 100 200 300 400 500 600 $' million by US$86 million (148 percent increase over the previous year). The decrease in IBRD contributions reflected the declining schedule of IBRD contribution to IDA's HIPC debt relief program. Most World Bank Group contributions came from IBRD 10. World Bank Group contributions came from net or surplus income of IBRD and IFC. Of the US$421 million contributed by the World Bank Group institutions, 66 percent (US$277 million) came from IBRD and 34 percent (US$144 million) from IFC. 11. Of the US$277 million contributed by IBRD, 76 percent (US$210 million) went to HIPC, nine percent (US$25 million) to Low Income Countries Under Stress (LICUS), 6 percent (US$16 million) to the Institutional Development Fund (IDF), 3 percent (US$7.4 million) to the DGF, and around 2 percent (US$5 million) each to the Multi-Donor TF For North Sudan, Multi-Donor TF For South Sudan, and Pakistan Earthquake Disaster Recovery TF. The rest was split between Onchocerciasis (US$2.1 million), FIAS (US$1.1 million) and CGAP (US$0.5 million). Most IFC contributions went to technical assistance and advisory services managed by IFC itself 12. Of the US$144 million contributed by IFC, 75 percent (US$108 million) went to a number of IFC managed trust funds for technical assistance and advisory services, 24 percent (US$35 million) went to IFC Performance-Based Grants Initiative, and one grant of less than half a million dollars went to CGAP. 5 The World Bank Group 2006 Trust Funds Annual Report Section 2 Portfolio Overview and Fiscal Year 2006 Financial Highlights United States continued to be the top contributing donor during fiscal 2006 Donor Rankings based on fiscal 2006 Contributions 13. In the category of sovereign countries, the United States was the top donor with contributions for the year of US$735 million. Contributions summarized under "Others" totaling US$35 million included twelve donors (Saudi Arabia, Greece, Turkey, Madagascar, Argentina, South Korea, Brazil, Pakistan, Mexico, Czech Republic, Afghanistan, and Iceland) each contributing amounts ranging between US$1 million to US$5 million that altogether totaled US$28 million, plus another thirty-five donors each contributing amounts below US$1 million that altogether totaled US$7 million. 14. Among Other Donors, UNEP gave the most with contributions totaling US$57 million. Contributions summarized under "Others" totaling US$42 million included ten donors (Islamic Development Bank (IDB), FIA Foundation, Elsam Engineering, William & Flora Hewlett Foundation, Energi E2, United Nations Development Programme, Case Foundation, African Development Bank (AfDB), Japan Iron and Steel Federation, and Consorci De Promocio Comercial) -- each contributing amounts ranging between US$1 million to US$5 million that altogether totaled US$18 million, plus 108 other donors each contributing amounts below US$1 million that altogether totaled US$24 million. 6 The World Bank Group 2006 Trust Funds Annual Report Section 2 Portfolio Overview and Fiscal Year 2006 Financial Highlights 15. Based on cumulative cash Donor Cumulative Contributions 2002-2006 contributions received over the last five years, the United States remained 3500 3,260 the top donor with a total of US$3,260 3000 million, followed by the European 2500 2,240 Community with US$2,240 million, 2,166 2,110 2000 1,995 United Kingdom US$2,166 million, million'$ 1794 1500 Japan US$2,110 million, and the 986 1000 909 906 836 World Bank Group US$1,995 million. 500 0 USA EC UK Japan WBG Netherlands Canada Italy France Norway Disbursements Trust fund disbursements have consistently increased since fiscal 2002 Trust Fund Disbursements for Last Five Years 16. Trust fund disbursements during fiscal 2006 were US$4,374 million - up by 2006 4,374 US$246 million (six percent) over the previous year. In the three years prior to 2005 4,128 2005, disbursements increased at an 2004 3,277 annualized rate of 29 percent. Seventy- ra two percent of disbursements in fiscal Ye2003 2,561 2006 were related to multi-donor trust 2002 1,931 fund programs. 0 1000 2000 3000 4000 5000 $' million More than half of all disbursements were from trust funds supporting Recipient activities (including debt relief) 17. Fiscal 2006 disbursements supporting recipient activities totaled US$2,446 million, or 56 percent of all disbursements. These comprised disbursements from: debt service trust funds totaling US$792 million (of which HIPC disbursed US$769 million and other debt service trust funds together disbursed US$23 million); co-financing, investment, and special financing trust funds, totaling US$670 million (including West Bank and Gaza TFs US$110 million, JSDF US$36 million, OTF US$35 million, IRTF US$32 million and GEFIA US$30 million); and 7 The World Bank Group 2006 Trust Funds Annual Report Section 2 Portfolio Overview and Fiscal Year 2006 Financial Highlights technical assistance trust funds, totaling US$984 million (including ARTF US$335 million, GEFIA US$159 million and PHRD US$66 million). Overall, disbursements under trust funds supporting Recipient activities were five percent lower than the fiscal 2005 figure of US$2,575 million. More than one third of all disbursements were from Fiscal Agency trust funds, and these continued to grow 18. Disbursements under Fiscal Agency trust funds amounted to US$1,659 million, or 38 percent of total disbursements in fiscal 2006, increasing significantly (24 percent) from previous year disbursements of US$1,343 million. The breakdown of disbursements in fiscal 2006 was as follows: Disbursements from Fiscal Agency Trust Funds in FY06 US$'million percentage GFATM 1,138 69% GEF 337 20% CGIAR 102 6% MDF Aceh 56 3% Others 26 2% Total 1,659 100% Disbursements from trust funds supporting Bank and Partnership work/activities increased significantly in fiscal 2006, although they were still only six percent of total disbursements 19. Disbursements from trust funds supporting Bank and Partnership activities totaled US$257 million, or six percent of all disbursements. Such work undertaken by the Bank includes producing a specific product, such as a piece of analysis, and continuing support of a Partnership, such as through a Secretariat4. They included US$28 million disbursed from the Consultant Trust Fund program and US$229 million from trust funds and programs supporting analytical and advisory services, technical assistance, and staff secondments (including IFC US$75 million, PPIAF US$14 million and CGAP US$9 million). Fiscal 2006 disbursements under this type of trust fund increased significantly (29 percent) compared to fiscal 2005 (US$200 million). Out of total fiscal 2006 trust fund disbursements, forty-five percent of all disbursements were for global/regional programs 20. Almost 45 percent (US$1,958 million) of all trust fund disbursements were made through global/regional programs. Of the remainder, Africa was the single largest recipient region accounting for 21 percent (US$939 million) of all disbursements, followed by East Asia & Pacific 11 percent (US$463 million), South Asia 10 percent (US$432 million), Latin America and Caribbean 5 percent (US$217 million), Middle 4See Annex I Trust Fund Glossary for definition of Bank and Partnership activities 8 The World Bank Group 2006 Trust Funds Annual Report Section 2 Portfolio Overview and Fiscal Year 2006 Financial Highlights East and North Africa more than 4 percent (US$203 million) and Europe and Central Asia less than 4 percent (US$162 million). Funds Held in Trust and Investments The World Bank Group was holding US$10,293 million in trust fund assets at the end of fiscal 2006 21. At the end of fiscal 2006, the Bank held Funds held in Trust by WBG over Last Five US$10,293 million in trust for funds/programs it Years was managing, an increase of US$985 million 2006 10,293 over the previous year. Forty-seven percent (US$4,870 million) of these funds were held for 9,308 fiscal agency trust funds; forty-three percent ra 2004 8,587 (US$4,404 million) for trust funds supporting Ye 6,887 Recipient activities; six percent (US$575 2002 5,331 million) for Bank/Partnership activities; and four percent (US$444 million) for trust funds used for 0 2000 4000 6000 8000 10000 12000 other type of activities, including administrative. $' million 22. About 55 percent (US$5.6 billion) of all funds held in trust belonged to the three largest global programs: GFATM US$2,626 million; GEF US$2,132 million; and HIPC Debt Initiative US$865 million. Funds held in trust are invested in accordance with the Bank's investment guidelines 23. At the end of fiscal 2006, the fair market value of the trust fund investment FY 2006 Trust Fund Investment Portfolio portfolio stood at US$10,554 million, compared stood at $ 10,554 million 11,000 401 (4%) with US$9,543 million at the end of fiscal 2005. 10,000 1,290(12%) 321 (3%) 9,000 403(4%) Forty-nine percent (US$5,162 million) of the 8,000 1,346(13%) 1,319(14%) portfolio was invested in Money Market and 7,000 on 2,355(22%) illi 6,000 2,574(27%) Cash instruments, 22 percent (US$2,355 million) m $'5,000 in Domestic Government Bonds, 13 percent 4,000 3,000 (US$1,346 million) in Mortgage Backed 5,162(49%) 4,926(52%) 2,000 Securities, 12 percent (US$1,290 million) in 1,000 0 Asset Backed Securities, and four percent FY2006 $10,554million FY2005 $9,543 million (US$401 million) in other agency obligations. Money Market and Cash Domestic Govt Bonds The investment income realized from such Mortgage backed Securities(MBS) Asset Backed Securities(ABS) investments is credited to the respective trust Others fund accounts or returned to donors. 24. The return on investment portfolio for fiscal 2006, based on the market value of the portfolio, was 2.36 percent, compared with 2.29 percent for fiscal 2005. The average return for the three years ended fiscal 2006 was 1.89 percent, and for the five years was 3.1 percent. 9 The World Bank Group 2006 Trust Funds Annual Report Section 3 Sectoral and Thematic Focus of Trust Funds 3. Sectoral and Thematic Focus of Trust Funds 1. The trust funds administered by the Bank contribute to its twin objectives of poverty reduction and sustainable development, and especially the Millennium Development Goals.5 The variety, complexity, and multiplicity of these goals make it difficult to assign each program to a single sector or thematic area. However, the descriptions below use broad definitions of sectors and themes to give the reader a flavor of the activities being financed. More details on selected programs and their key achievements in fiscal 2006 are provided in the annexes to this report. Debt Service and Debt Reduction The World Bank Group administers trust funds providing debt relief to heavily indebted poor countries 2. Trust funds have proven useful vehicles for delivering reductions in the debt burden of the world's poorest and most heavily indebted member governments, by providing partial relief from both official and commercial debt. Several features make the World Bank a suitable party to administer these funds. First, a large portion of the debt is itself either Bank-related or owed to other public organizations with which the Bank has well-established disbursement links. Second, trust fund arrangements allow the pooling of resources by multiple donors having common debt relief objectives. Third, the Bank's experience in disbursing large sums engenders confidence that funds will be routed efficiently to the proper creditors. 3. The HIPC Debt Initiative, established in 1996 and managed by the World Bank, was the first comprehensive approach to reducing the external debt of the world's poorest, most heavily indebted countries, and an important step forward in placing debt relief within the framework of poverty reduction. 4. The Debt Reduction Facility, also administered by the Bank, provides debt relief for external commercial debt principal as well as for associated interest arrears and penalties owed by those country governments deemed to be eligible only for financing through the International Development Association. The Debt Reduction Facility is expected to be extended through the end of fiscal 2007 to complement HIPC's debt reduction operations in up to 27 countries. 5. The Bank also administers trust funds supporting debt buy-down/blending programs, which combine different types of funds to lower the overall cost of IBRD/IDA funding to a Borrower. These include trust funds supporting the Polio Eradication program in Nigeria and Pakistan, and the Health, Education and Rural programs in China (more details on some of these trust funds are provided in Annex C). 6. The Multilateral Debt Reduction Initiative launched at Gleneagles in 2005 has a different structure and so does not require the use of trust funds. 5These are to (1) eradicate extreme poverty and hunger; (2) achieve universal primary education; (3) promote gender equality and empower women; (4) reduce child mortality; (5) improve maternal health; (6) combat HIV/AIDS, malaria, and other diseases; (7) ensure environmental sustainability; and (8) develop a global partnership for development. See www.developmentgoals.org 10 The World Bank Group 2006 Trust Funds Annual Report Section 3 Sectoral and Thematic Focus of Trust Funds Debt Service and Debt Reduction More information on the following trust funds provided in Annex A 1. Heavily Indebted Poor Countries Initiative 2. Debt Reduction Facility for IDA-only Countries Sustainable Development As of June 2006, the Environment and Infrastructure networks of the World Bank have been integrated into the new Sustainable Development Network, with the objectives of: mainstreaming environmental issues, improving synergies, better integrating core operations, and strengthening the focus on sustainability in infrastructure investments A. Environment and Sustainable Agriculture A growing number of trust funds provide support to biodiversity protection, prevention of climate change and ozone layer depletion, land conservation, energy renewal and sustainable agriculture 7. The World Bank Group's support for sustainable development has attracted donor contributions to several trust funds in support of environmental protection. The Global Environment Facility, formally established in 1994, provides grant and concessional funding to meet the agreed incremental costs of measures to achieve global environmental benefits in seven areas: climate change, biological diversity, international waters, desertification, ozone layer depletion, land degradation and persistent organic pollutants. The Bank serves as one of the Facility's implementing agencies, as well as trustee of the Global Environment Facility Trust Fund. During fiscal 2006, the Facility remained the largest single source of financial assistance addressing environmental concerns in developing countries, and it continued to attract substantial new donor funding. 8. The Bank and donors have recognized the important impact of climate change, and have sought to ensure that developing countries and economies in transition can benefit from international efforts to address the issue. One manifestation of this concern was the creation, early in fiscal 2003, of the Least Developed Countries Fund for Climate Change, which contributes to the integration of climate change considerations into development activities. In fiscal 2005, a second fund, the Special Climate Change Fund, began to be funded through donor pledges in the last quarter of the year. This new fund finances complementary activities, programs and measures relating to climate change. 9. Working through a series of carbon fund programs, the Bank's carbon finance business seeks to catalyze a global carbon market through the purchase of high-quality emission reductions in climate- friendly projects in developing countries and economies in transition. More funds were added to the family of carbon funds in fiscal 2006: The Spanish Carbon Fund and the Umbrella Carbon Fund. In total, nine carbon finance facilities are now being administered by the Bank. 10. The Consultative Group on International Agricultural Research has had a widely acknowledged impact over 33 years in contributing to sustainable food security for poor farmers in developing countries. The scientific work carried out by the 15 international research centers supported by the CGIAR partnership--an alliance of 64 public and private sector entities (private foundations, and regional and 11 The World Bank Group 2006 Trust Funds Annual Report Section 3 Sectoral and Thematic Focus of Trust Funds international organizations)--makes it the largest scientific network of its kind in the world. CGIAR centers conduct work in more than 100 countries. 11. A new Multi Donor Trust Fund for the Red Sea ­ Dead Sea Water Conveyance Feasibility Study was established in fiscal 2006. The objective of the trust fund is to finance a Feasibility Study and Environmental and Social Assessments to investigate a possible solution to the decline of the Dead Sea. These will help stakeholders to determine whether the transfer of water from the Red Sea, to revive the Dead Sea, generate electricity and stimulate economic growth, is feasible. Environment and Sustainable Agriculture More information on the following trust funds provided in Annex B.1 1. Global Environment Facility 2. Least Developed Countries Fund for Climate Change 3. Special Climate Change Fund 4. Carbon Finance: Prototype Carbon Fund 5. Carbon Finance: Netherlands Clean Development Mechanism Facility 6. Carbon Finance: The Netherlands European Carbon Facility 7. Carbon Finance: Community Development Carbon Fund 8. Carbon Finance: BioCarbon Fund 9. Carbon Finance: Italian Carbon Fund 10. Carbon Finance: Danish Carbon Fund 11. Trust Fund for Environmentally and Socially Sustainable Development 12. Pilot Program to Conserve the Brazilian Rain Forest 13. Consultative Group on International Agricultural Research 14. Nile Basin Initiative B. Infrastructure Infrastructure is increasingly recognized as a major contributor to achieving poverty reduction and the Millennium Development Goals, and there have been an increasing number of trust funds assisting initiatives to develop infrastructure 12. Some forms of infrastructure such as water supply and sanitation are explicitly covered in the MDGs, while others, such as energy, roads, and information and communications technology, lead to improvements in MDGs such as health, education, and gender. In addition to physical investments, the Bank provides support to clients to improve infrastructure delivery via policy dialogue and support for reform and institution building. The Public-Private Infrastructure Advisory Facility (PPIAF) finances catalytic technical assistance to help governments build strategies for infrastructure development, and promotes best practices for private sector involvement in infrastructure development. The Financial Investment Advisory Service (FIAS), jointly sponsored by the World Bank and IFC, helps developing country governments improve the environment for foreign direct investment in their economies--solely at the request of governments and on the topics identified, and agreed to, by those governments. The Water and Sanitation Program (WSP), now in its twenty-sixth year, addresses water supply and sanitation needs worldwide through support for advocacy and knowledge management activities. The Energy Sector Management Assistance Program (ESMAP), established in 1983, supports the provision of energy policy advice and other technical assistance to governments, public institutions, and private businesses. It focuses on developing energy markets, promoting environmentally sustainable energy production, and broadening access to reliable, efficient, and affordable energy services for under-served populations 12 The World Bank Group 2006 Trust Funds Annual Report Section 3 Sectoral and Thematic Focus of Trust Funds worldwide. The Cities Alliance Program aims to improve living conditions for the urban poor by helping create city development strategies and supporting slum-upgrading. 13. The Global Program for Output-based Aid is a more recent initiative that supports an innovative strategy for delivering basic services to populations least able to afford them, and those currently without access. The core of this program's approach is to contract out the delivery to a third party, usually a private firm, whose payment from public funds is tied to its performance in delivering services. 14. The new Global Road Safety Facility was established in fiscal 2006, aimed towards increasing the awareness and understanding of the growing scale of road crash trauma in low- and middle-income countries. The principal development objective of this facility is, through enhanced road safety, to reduce the impact of road crashes on health. That impact can otherwise push people into poverty or make escape from poverty difficult -- which directly affects both the individual and the overall economic state of health at the country and regional level. Infrastructure More information on the following trust funds provided in Annex B.2 1. Public-Private Infrastructure Advisory Facility 2. Foreign Investment Advisory Service 3. Global Partnership on Output-Based Aid 4. Energy Sector Management Assistance Program 5. Water and Sanitation Program 6. Cities Alliance Program 7. Sub-Saharan Africa Transport Policy Program 8. Asia Sustainable and Alternative Energy Program 9. Information for Development Program Health and Human Development In recent years the World Bank Group has collaborated with large groups of donors in global and regional efforts to strengthen health and human development for the most vulnerable populations 15. Several trust fund programs support efforts to fight and prevent disease, and foster preventive practices in countries that suffer from severe health threats or poor support systems. Many are part of broader partnerships managed outside the Bank and with the involvement of the World Health Organization (WHO). 16. The largest health-related trust funds administered by the Bank are those dealing with communicable diseases, particularly in Africa and Asia. Interventions on these fronts have been mobilized through multi-donor trust fund programs, the most prominent being the Global Fund to Fight AIDS, Tuberculosis, and Malaria (GFATM), the Global Partnership to Stop Tuberculosis, the Global Program to Eradicate Poliomyelitis, the African Program for Onchocerciasis Control, and the Global Dracunculiasis Eradication Program. 17. Two new health-related trust fund programs were introduced in fiscal 2006. The multi donor Avian and Human Influenza (AHI) Facility is part of a joint effort between the World Bank, donor countries, regional development banks, FAO, WHO, the World Organization for Animal Health (OiE) and other 13 The World Bank Group 2006 Trust Funds Annual Report Section 3 Sectoral and Thematic Focus of Trust Funds partners for the purpose of preparing the world for, and minimizing the socio-economic impact of human pandemic outbreak of influenza derived from birds. The US$475 million Bangladesh Health, Nutrition and Population Sector Multi-Donor Trust Fund and a US$300 million IDA credit together support a sector-wide approach by the Government of Bangladesh to its 2003-2010 Strategic Investment Plan, to modernize the health sector and accelerate progress towards the health-related MDGs. 18. Education is another important focus of Bank-administered trust funds. The "Education for All" Fast Track Initiative, funded by five donors, aims at accelerating progress towards universal primary education on a global scale, and the China Education Blending Trust Fund provides grants that allow China's western provinces to borrow for education on highly favorable terms. Health and Human Development More information on the following trust funds provided in Annex C 1. Global Fund to Fight AIDS, Tuberculosis, and Malaria 2. Global Partnership to Stop Tuberculosis 3. Global Program to Eradicate Poliomyelitis 4. African Program for Onchocerciasis Control 5. Global Dracunculiasis Eradication Program 6. Education for All-Fast Track Initiative: Catalytic Fund 7. Education for All-Fast Track Initiative: Program Development Fund 8. China Education Blending Trust Fund 9. Avian and Human Influenza (AHI) Facility 10. Bangladesh Health, Nutrition and Population Sector Multi Donor Trust Fund Poverty Reduction and Social Development The World Bank Group attracts considerable financial support from donors for initiatives specifically targeted at assisting poverty reduction and social development in poor communities 19. Several programs have been established specifically to support the Bank's broad poverty reduction and social development goals. The Japan Social Development Fund, established in fiscal 2001, provides grants, originally to address the poverty and associated social consequences of the 1997-99 global economic and financial crises. Today, it continues to assist the most vulnerable population groups through investments and capacity building at the community level. The Poverty Reduction Strategy Trust Fund assists the governments of low-income countries to prepare and implement poverty reduction strategies, strongly emphasizing the permanent upgrading of recipient skills in the process. 20. The more recently established Indonesia Strategic Poverty Partnership is a UK-funded program to support background work for the development of strategies for alleviating poverty in a rapidly decentralizing environment. Several trust funds were created in fiscal 2006 to provide resources that cofinance the Bank's loans and credits targeting similar goals, such as the Vietnam Poverty Reduction Support Credit IV, Belgian Poverty Reduction Partnership II, Rwanda Poverty Reduction Support Credit II, Sierra Leone Poverty Reduction Strategy Paper and Armenia Poverty Reduction Support Credit II. Each of these cofinancing arrangements is expected to have great impact on poverty reduction and social development goals in those specific countries. 21. The Norwegian Governance Program was established in 2006 to contribute to improved governance and reduced corruption in countries, through supporting activities in the following three broad thematic 14 The World Bank Group 2006 Trust Funds Annual Report Section 3 Sectoral and Thematic Focus of Trust Funds areas: managing the politics and process of governance and anti-corruption reforms; mainstreaming governance in the sectors; and managing for results. Poverty Reduction and Social Development More information on the following trust funds provided in Annex D 1. Japan Social Development Fund 2. Poverty Reduction Strategy Trust Fund 3. Indonesia Strategic Poverty Partnership 4. Africa Catalytic Growth Fund Capacity Building and Technical Advisory Services Since a shortfall in human capital investment can be a major limiting factor in development, a number of trust funds seek to build capacity and supply critically needed technical advisory services 22. A fundamental role of the Bank is to help governments in client countries to work better, by helping build efficient and accountable public sector institutions and strengthening implementation capacity. Trust fund programs in this area include the Policy and Human Resources Development Fund (PHRD) sponsored by Japan; the Bank-Netherlands Partnership Program (BNPP); and the Africa Capacity Building Foundation (ACBF), which provides long-term support for the development of professional capacity for policy analysis in Africa. Other programs include those of the World Bank Institute (WBI), the Global Development Learning Network (GDLN), the Multi Donor Trust Fund for Statistical Capacity Building in support of poverty reduction and economic and social development, and the Bank-executed Knowledge for Change Program (KCP), which supports economic and social knowledge generation activities. 23. The Africa Catalytic Growth Fund was established in fiscal 2006 as an innovative mechanism for growth in the Africa region. It seeks to catalyze good performance, the scaling-up of on-going programs of recipient governments, and the leveraging of other partner funding, toward achieving the MDGs. Capacity Building and Technical Advisory Services More information on the following trust funds provided in Annex E 1. Policy and Human Resources Development Fund 2. Bank-Netherlands Partnership Program 3. Africa Capacity Building Foundation 4. World Bank Institute Trust Funds 5. Global Development Learning Network 6. Trust Fund for Statistical Capacity Building 7. Knowledge for Change Program 15 The World Bank Group 2006 Trust Funds Annual Report Section 3 Sectoral and Thematic Focus of Trust Funds Post-Conflict Reconstruction and Natural Disasters The World Bank Group plays a leading role in administering the efforts of the international community to support the restoration of normality in countries emerging from periods of insurrection and armed conflict and natural disasters 24. Trust funds continue to play an important role in providing critically needed donor support to areas of the world that have recently experienced civil war, armed insurgencies, or other forms of internal conflict or natural disasters. Often the circumstances are such that normal financial instruments and budget provisions cannot be used. Trust fund grants focus on stabilizing the quality of life and environment and facilitating access to training and new sources of livelihood. Some programs are also designed to reintegrate ex-combatants into civil society. The longest-standing of these multi-donor initiatives for post-conflict support has been the Trust Fund for Gaza and West Bank, which was created in 1993 after the Oslo Accords, and mainly provides emergency services support to the Palestinian Authority. This fund has been supplemented by another trust fund, opened in fiscal 2004, that supports public financial management reform efforts in the West Bank and Gaza. 25. The Sudan Post Conflict Multi-Donor Trust Funds were created in fiscal 2005, following the signing of the Comprehensive Peace Agreement and release of the Sudan Joint Assessment Mission Report. Other post-conflict reconstruction efforts are in progress in Iraq, Afghanistan, Timor Leste, and several other countries and territories. In addition, the Bank-administered Post-Conflict Fund (PCF) makes sub-grants with the objective to enhance the Bank's ability to support countries in transition from conflict to sustainable peace and economic growth. In fiscal 2006, the PCF funded 14 grants in 9 different countries including: Russia (North Caucasus), the Philippines, Iraq, West Bank Gaza & Israel, Haiti, Colombia, Kosovo, Haiti and Sri Lanka. The PCF secretariat also administers the Low-income Countries Under Stress (LICUS) Trust Fund, established to strengthen institutions, support early efforts at policy reform and build capacity for social service delivery in fragile states. In fiscal 2006 the LICUS Trust Fund funded 17 grants in 8 countries including: Liberia, Côte d'Ivoire, Zimbabwe, Central African Republic, Haiti, Somalia, Sudan, and Togo. The Indonesia Multi-Donor Trust Fund for Aceh and Nias was established in fiscal 2005 to support the rehabilitation and reconstruction in the wake of the earthquake and tsunami that struck in December 2004. 26. In fiscal 2006, the Philippines Mindanao Trust Fund was established to fund a reconstruction and development program that aims to strengthen local level peace-building initiatives and assist economic and social recovery in the conflict-affected areas of Mindanao. Its specific focus is on helping internally displaced persons to rebuild their lives and communities. Other new trust funds include: (i) the Somalia Joint Needs Assessment (JNA), led by the World Bank and the United Nations Development Group (on behalf of the UN system), working in partnership with authorities of the newly established Transitional Federal Government (TFG) and the international donor community; (ii) The Sri Lanka--North East Housing Reconstruction Fund, supported by a European Community grant for US$15.5 million, to co- finance a US$75 million IDA credit for the North East Housing Reconstruction Program. It aims to facilitate post-conflict reconstruction and thereby support the return of persons displaced by the conflict. 16 The World Bank Group 2006 Trust Funds Annual Report Section 3 Sectoral and Thematic Focus of Trust Funds Post-Conflict Reconstruction and Natural Disasters More information on the following trust funds provided in Annex F 1. Post-Conflict Fund 2. Low-Income Countries Under Stress Trust Fund 3. Iraq Trust Fund 4. Afghanistan Reconstruction Trust Fund 5. Trust Fund for Gaza and West Bank 6. West Bank and Gaza: Public Financial Management Reform Trust Fund 7. Trust Fund for East Timor 8. Timor-Leste Transition Support Program 9. Multi-Country Demobilization and Reintegration Program 10. Multi Donor Fund for Aceh and Nias 11. Sudan Multi Donor Trust Funds Financial and Private Sector Development As of June 2006, the Financial and Private Sector networks of the World Bank have been integrated; recognizing that a strong financial and private sector is a prerequisite for sustained development, donors fund a number of related initiatives in developing and transition countries 27. Working with its partners, the World Bank Group helps countries make their financial systems stable and sound, supportive of growth, and responsive to the savings and financing needs of their populations, including both small and medium-sized enterprises and low-income households. Trust- funded programs support these goals by encouraging the reform of financial systems and supporting the development of individual financial institutions and markets. Further, the World Bank Group focuses on creating a sound investment climate for private businesses, including small and medium-size enterprises, encouraging private participation in infrastructure and social services, creating innovative local currency financing instruments, lending to sub-sovereign entities, creating strong regulatory regimes for infrastructure, and supporting firms through the provision of technical assistance and advisory services. 28. Among the World Bank's programs in this area is the Asia-Europe Meeting (ASEM) Asian Financial Crisis Response Trust Funds, which were established by leaders of the ASEM to provide support to the East Asian crisis hit countries. Another one is the Financial Sector Reform and Strengthening Initiative (FIRST), which is implemented jointly with the International Monetary Fund. FIRST and its associated programs are designed to improve the Bank's collective ability to diagnose key challenges, and develop the policy and technical assistance agenda for specific client countries, thereby improving the quality of country assistance strategies and operations. The Consultative Group to Assist the Poorest (CGAP) is another globally focused program that works to expand access to financial sector services for the poorest in developing countries by providing advisory services, training, research and development, consensus building on standards, and information dissemination. This program is currently mid-way through its third phase. 29. The World Bank has included Anti Money Laundering/ Combating the Financing of Terrorism (AML/CFT) as part of its development mandate in the financial sector, as these relate to and reinforce its complementary work on governance and legal framework issues. Working closely with the IMF and the Financial Action Task Force on Money Laundering (FATF), the Bank provides support to client countries 17 The World Bank Group 2006 Trust Funds Annual Report Section 3 Sectoral and Thematic Focus of Trust Funds through technical assistance, assessments, knowledge sharing and advocacy work to strengthen the integrity of the financial sector in the countries. A new AML/CFT Trust Fund for Asia-Pacific and Central America/Caribbean was established in fiscal 2006, with the objective of strengthening the skills of agencies responsible for AML/CFT within the regions. Financial Sector Strengthening and Crisis Management More information on the following trust funds provided in Annex G 1. Asia-Europe Meeting Asian Financial Crisis Response Funds 2. Financial Sector Reform and Strengthening Initiative 3. Consultative Group to Assist the Poor 18 The World Bank Group 2006 Trust Funds Annual Report Section 4 Donor funded operations in other WBG Institutions 4. Trust Funds Administered by the International Finance Corporation and the Multilateral Investment Guarantee Agency In addition to the World Bank, the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) also manage trust funds 1. Grant programs tailored to their respective missions are managed by each World Bank Group institution under separate legal arrangements with donors and other interested external parties. IFC uses trust fund resources primarily to improve the enabling environment for private sector initiatives and activities. MIGA's programs address factors that mitigate investor risk and promote investment best practices, so as to help recipient countries attract and retain private investment. Donor-funded operations in other World Bank Institutions More information on the following trust funds provided in Annex H 1. International Finance Corporation 2. Multilateral Investment Guarantee Agency 19 The World Bank Group 2006 Trust Funds Annual Report Section 5 WBG Trust Funds Financial Information Summary 5. World Bank Group Trust Funds - Financial Information Summary for Year Ended June 30, 2006 Introduction 1. This section provides aggregate financial information on the activities of trust funds administered individually or jointly by the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA) and the International Centre for Settlement of Investment Disputes (ICSID), in this report collectively referred to as the "Bank". 2. Trust funds are financial and administrative arrangements between external donors and the Bank that provide grant funds to address diverse development needs, including project preparation, technical assistance, advisory services, debt relief, post conflict transition and the co-financing of investment projects. Trust fund financing contributes to the Bank's poverty reduction mission by supporting innovative approaches to the design and implementation of development projects. 3. Audit requirements for trust funds are contained in the Bank's Operational Policy (OP 14.40), Bank Procedures (BP 14.40), and Trust Fund Hand Book. The annual "single audit", formally known as Management's Assertion Regarding Effectiveness of Internal Control over Financial Reporting of Trust Fund Activities, provides reasonable assurance that the Bank's overall internal control framework surrounding trust funds provides accurate and reliable cash-based financial reports. Comparative Information 4. Previous year numbers have been regrouped to make them comparable with current presentation. This report is for general use and is not intended to represent the financial position of trust funds administered by the Bank. Trust Fund Highlights 5. Funds held in trust at June 30, 2006 amounted to US$10.29 billion, up by 11 percent from US$9.31 billion at June 30, 2005. At June 30, 2006 and June 30, 2005, funds held in trust belonging to the three largest trust fund programs Global Fund to Fight AIDS, Tuberculosis and Malaria - GFATM; Global 20 The World Bank Group 2006 Trust Funds Annual Report Section 5 WBG Trust Funds Financial Information Summary Environment Facility - GEF; and Heavily Indebted Poor Countries Debt Initiative Trust Fund - HIPC accounted for 55 percent and 59 percent, respectively, of the total funds held in trust, with the details as shown below: Jun-06 Jun-05 GFATM GFATM 26% 26% Others Others 41% 45% GEF GEF HIPC 21% HIPC 21% 8% 12% 6. Contributions received in cash during fiscal 2006 were US$5.21 billion, compared to US$4.75 billion received during fiscal 2005, an increase of 10. The top five external donors in fiscal 2006 were United States (US$735 million), United Kingdom (US$654 million), Netherlands (US$514 million), European Commission (US$493 million) and Japan (US$392 million). The top three trust fund programs, which accounted for 46 percent of all cash contributions received during fiscal 2006, were GFATM (25 percent), GEF (14 percent) and HIPC (7 percent). 7. Disbursements made in cash during fiscal 2006 totaled US$4.37 billion, a 6 percent increase from US$4.13 billion in fiscal 2005. The top three trust fund programs, which accounted for 56 percent of all disbursements made during fiscal 2006, were GFATM ­ US$1,138 million (26 percent), HIPC - US$769 million (18 percent) and GEF - US$528 million (12 percent). Contributions and Disbursements for year ended ni n6,000 4,940 4,750 nt illio 5,214 4,000 Contributions ou m 4,128 4,374 mA DSU 2,000 3,277 Disbursements - Jun-04 Jun-05 Jun-06 Number of Active Trust Funds and Programs June 30, 2006 June 30, 2005 Number of Active Trust Funds and Programs1 929 840 1Many trust fund programs are made up of a non-disbursing parent fund and a number of disbursing subsidiary funds. This report consolidates these funds and counts them as a single fund or a program. 21 The World Bank Group 2006 Trust Funds Annual Report Section 5 WBG Trust Funds Financial Information Summary Funds Held in Trust 8. Cash contributions received from donors but not yet disbursed (funds held in trust) are held as cash and investments. (in millions of U.S. dollars) June 30, 2006 June 30, 2005 Major Trust Fund Programs Global Fund to Fight AIDS, Tuberculosis and Malaria (GFATM) 2,626 2,391 Global Environment Facility (GEF) 2,132 1,942 Heavily Indebted Poor Countries (HIPC) 865 1,181 Subtotal 5,623 5,514 Other Trust Fund Programs Greater than US$30 million Single Purpose and Programmatic Trust Funds 1,426 1,216 Iraq Reconstruction Trust Fund 411 382 Free-Standing Grants1 396 346 International Finance Corporation Trust Funds 339 238 Afghanistan Reconstruction Trust Fund 274 247 Carbon Finance 253 115 Donor Balance Accounts and Holding Trust Funds 190 204 Trust Fund for Government of South Sudan 159 - Debt Service and Debt Reduction Trust Funds 148 133 West Bank and Gaza 140 134 African Capacity Building Foundation 104 106 Trust Funds for Aceh, Indonesia 100 26 Montreal Protocol/Ozone Trust Fund 95 102 Institutional Development Fund 71 70 Trust Fund for North Sudan 70 - Consultant Trust Funds 54 70 Consultative Group to Assist the Poorest 39 47 Financial Sector Reform & Strength 36 33 Low Income Countries under Stress 36 16 Brazilian Rain Forest 34 37 Public-Private Infrastructure Advisory Facility 32 37 Special Climate Change Fund 32 8 Other Trust Fund Programs Less than US$30 million 231 227 Total Funds Held in Trust2 10,293 9,308 1Non-programmatic trust funds that support a specified activity or set of activities in a specific country, region or globally. 2Total funds held in trust exclude interim advances from IBRD resources which totaled US$7 million at June 30, 2006 and US$9 million at June 30, 2005. 22 The World Bank Group 2006 Trust Funds Annual Report Section 5 WBG Trust Funds Financial Information Summary Cash and Investments 9. Cash contributions received from donors for trust funds administered by the Bank together with the administration fees recovered from trust funds are managed by the IBRD's Treasury Department, which maintains a single investment portfolio for all trust funds that are administered by the World Bank Group. Trust fund assets are held separately from the assets of the IBRD/IDA, IFC, MIGA and ICSID. 10. IBRD invests the funds pending their disbursement in liquid instruments such as money market deposits, U.S. Treasury securities and other high-grade bonds and asset-backed securities. The aggregation of such investments is herein referred to as the "Pool". The Pool is managed on a commingled basis considering investment horizons and commitment patterns of different trust funds. Trust funds with shorter investment horizons (up to one year) are invested in a more conservative portfolio within the Pool with a higher proportion of short-term, cash-like investments. Trust funds with longer investment horizons (currently HIPC, GEF, GFATM, PHRD and JSDF) are invested in a portfolio with a larger proportion of longer term investments. 11. The investment return for the overall portfolio for the year ended June 30, 2006 was 2.36 percent and for the year ended June 30, 2005 was 2.29 percent. The following table shows the composition of Cash and Investments at each reporting date. Investment portfolio June 30, 2006 June 30, 2005 (in millions of U.S. dollars) Tranche Tranche Tranche Tranche 1 2 Total 1 2 Total US$ portfolio Money Market (MM) /Cash 3,376 1,032 4,408 42% 2,804 1,621 4,425 47% Domestic Government Bonds 949 1,406 2,355 22% 1,007 1,567 2,574 27% Mortgage Backed Securities (MBS) - 1,346 1,346 13% - 1,319 1,319 14% Asset Backed Securities (ABS) 410 880 1,290 12% 125 278 403 4% Agency 162 239 401 4% 120 186 306 3% Sovereign/Government Guarantees - - - - 6 9 15 0% Subtotal 4,897 4,903 9,800 93% 4,062 4,980 9,042 95% Non ­ US$ portfolio Money Market/Cash 754 - 754 7% 501 - 501 5% Total 5,651 4,903 10,554 100% 4,563 4,980 9,543 100% 30-Jun-06 30-Jun-05 ABS Others Others MBS ABS 4% 4% 3% MBS 12% MMand 14% 13% Cash MMand 49% Cash Domestic 52% Domestic Govt Govt Bonds Bonds 27% 22% 23 The World Bank Group 2006 Trust Funds Annual Report Section 5 WBG Trust Funds Financial Information Summary Promissory Notes 12. In certain trust funds contributions pledged by donors are settled through deposit of demand notes. These demand notes are recorded as promissory notes when received. Promissory notes are encashed based on schedules agreed with the donors and they are recorded as cash contributions upon encashment. 13. Promissory notes held at June 30, 2006 amounted to US$2.56 billion up by 14 percent from US$2.25 billion at June 30, 2005. Promissory notes held for the top two programs, GEF (60 percent) and Carbon Finance (32 percent) accounted for 92 percent of the total promissory notes held at June 30, 2006. (in millions of U.S. dollars) June 30, 2006 June 30, 2005 Global Environment Facility 1,541 1,588 Carbon Finance4 820 430 Heavily Indebted Poor Countries 144 125 Global Funds to Fight AIDS, Tuberculosis and Malaria 37 91 Other Trust Fund Programs 19 21 Total 2,561 2,255 June 30, 2006 June 30, 2005 HIPC Others HIPC Others 2% Carbon 5% Carbon 6% Finance 6% Finance 19% 32% GEF 60% GEF 70% 4The Promissory note balance of Carbon Finance includes US$19 million at June 30, 2006 (US$24 million at June 30, 2005) for Trust Funds administered by IFC. 24 The World Bank Group 2006 Trust Funds Annual Report Section 5 WBG Trust Funds Financial Information Summary Contributions and Disbursements by Program (in millions of U.S. dollars) Contributions Disbursements Year ended June 30, Year ended June 30, 2006 2005 2006 2005 Major Trust Fund Programs Global Fund to Fight AIDS, Tuberculosis and Malaria 1,313 1,025 1,138 936 Global Environment Facility 720 734 528 417 Heavily Indebted Poor Countries 390 622 769 865 Subtotal 2,423 2,381 2,435 2,218 Other Trust Fund Programs Single Purpose and Programmatic Trust Funds 694 659 447 401 Afghanistan Reconstruction Trust Fund 363 449 335 354 Free-Standing Grants1 301 246 250 290 International Finance Corporation (IFC) Trust Funds 231 149 134 109 Trust Funds for Aceh, Indonesia 218 25 148 - Trust Fund for Government of South Sudan 167 - 9 - Carbon Finance 165 67 34 16 West Bank and Gaza 120 181 119 234 Consultative Group on International Agricultural Research 100 130 102 123 Trust Fund for North Sudan 73 - 3 - Montreal Protocol/Ozone Trust Fund 56 52 61 79 Iraq Reconstruction Trust Fund 53 52 37 25 Low Income Countries under Stress 26 - 8 9 Special Climate Change Fund 24 8 - - African Capacity Building Foundation 19 47 25 31 Water & Sanitation Program 18 19 18 15 Debt Service and Debt Reduction Trust Funds 16 80 2 13 Institutional Development Fund 16 19 17 14 Onchocerciasis/Tropical Diseases Research 13 6 7 15 International Centre for Settlement of Investment Disputes 13 12 11 8 Least Developed Countries Trust Fund for Climate Change 12 4 6 1 Environmentally & Social Sustainable Development Fund 12 15 12 13 Energy Sector Management Assistance 10 6 5 5 Financial Sector Reform & Strength 9 10 9 8 Development Grant Facility 8 8 7 7 Consultative Group to Assist the Poorest 8 13 17 14 World Bank Institute 6 4 4 14 Public-Private Infrastructure Advisory Facility 6 12 17 14 Trust Fund for East Timor 5 10 12 15 Consultant Trust Funds 2 36 28 36 Infodev 1 1 6 5 Donor Balance Accounts and Holding Trust Funds - 14 10 - Asia-Europe Meeting: East Asia Crisis Trust Fund - 8 14 8 Others 26 27 25 34 Total2 5,214 4,750 4,374 4,128 1Free-Standing Grants are non-programmatic trust funds that support a specified activity or set of activities in a specific country, region or globally. 2Cash contributions are reported in the program that first receives the funds and the disbursements are reported when paid. 25 The World Bank Group 2006 Trust Funds Annual Report Section 5 WBG Trust Funds Financial Information Summary Contributions by Donor Year ended June 30, (in millions of U.S. dollars) 2006 2005 Sovereign Countries and the European Community United States 735 486 United Kingdom 654 467 Netherlands 514 358 European Community 493 337 Japan 392 460 Italy 293 87 Norway 273 191 Canada 217 270 France 177 434 Sweden 166 236 Germany 165 229 Spain 107 72 Denmark 101 93 Australia 56 51 Ireland 49 15 Switzerland 47 51 Finland 45 47 Belgium 33 38 Russia 28 5 Austria 25 16 Luxembourg 10 8 Portugal 10 13 New Zealand 10 5 India 6 3 China 5 5 Others 34 44 Subtotal 4,645 4,021 World Bank Group IBRD 277 504 IFC 144 58 IDA 1 - Subtotal 422 562 Other donors UNEP 57 53 United Nations Foundation 15 23 ADB 10 - GFATM Secretariat 10 - European Agency for Reconstruction 7 - UNAIDS 6 2 Others 42 89 Subtotal 147 167 Total Cash Contributions 5,214 4,750 26 The World Bank Group 2006 Trust Funds Annual Report Section 5 WBG Trust Funds Financial Information Summary Disbursements by Managing Unit (in millions of U.S. dollars) Year Ended June 30, IBRD/IDA Bank-executed Recipient- executed Total Regions 2006 2005 2006 2005 2006 2005 East Asia and Pacific 39 31 381 315 420 346 South Asia 11 11 402 401 413 412 Africa 76 89 255 180 331 269 Middle East and North Africa 11 12 174 279 185 291 Europe and Central Asia 6 6 129 102 135 108 Latin America and the Caribbean 5 9 105 109 110 118 Subtotal 148 158 1,446 1,386 1,594 1,544 Other Managing Units Resource Mobilization & Cofinancing 29 46 2,249 2,042 2,278 2,088 Environmentally and Socially Sustainable Development 150 174 17 12 167 186 Infrastructure Network /PSI 68 62 5 3 73 65 Financial Sector 26 22 - - 26 22 World Bank Institute 22 32 1 6 23 38 Human Development 15 21 - 10 15 31 Development Economics/Chief Economist 12 9 2 2 14 11 Poverty Reduction and Economic Management 5 6 - - 5 6 Others 18 8 1 1 19 9 Subtotal 345 380 2,275 2,076 2,620 2,456 Other World Bank Group Organizations International Finance Corporation (IFC) 145 114 3 4 148 118 International Centre for Settlement of Investment Disputes (ICSID) 11 8 - - 11 8 Multilateral Investment Guarantee Agency (MIGA) 1 2 - - 1 2 Subtotal 157 124 3 4 160 128 Total Cash Disbursements 650 662 3,724 3,466 4,374 4,128 27 The World Bank Group 2006 Trust Funds Annual Report Section 5 WBG Trust Funds Financial Information Summary Disbursements by Category (in millions of U.S. dollars) Year Ended June 30 2006 2005 Trust Funds Supporting Recipient Activities Debt Service HIPC 769 864 Other Debt Service 23 25 Technical Assistance 984 966 Co-Financing, Investments and Special Bank Financing 670 720 Subtotal 2,446 2,575 Trust Funds Supporting Bank/Partnership Activities Analytical and Advisory Services and Staff Support Programs 229 164 Consultant Trust Funds 28 36 Subtotal 257 200 Fiscal Agency Trust Funds GFATM 1138 936 GEF 337 244 Other Fiscal Agency Trust Funds 184 163 Subtotal 1,659 1,343 Others 12 10 Total Cash Disbursements 4,374 4,128 June 30, 2006 June 30, 2005 Supporting Bank/ Supporting Partnership Bank/ 6% Partnership 5% Fiscal Fiscal Agencies Agencies Supporting 33% 38% Recipient Supporting 56% Recipient 62% 28 The World Bank Group 2006 Trust Funds Annual Report Section 6 Trust Funds and Results 6. Trust Funds and Results How Does The Bank Approach Results? 1. The Bank's overall approach to achieving and measuring development results builds from considerable efforts to ensure the quality and effectiveness of each of the activities that it finances. Ultimately, the best evidence of the Bank's impact and effectiveness lies in improved development outcomes, including the extent of achievement of the Millennium Development Goals, in the low and middle income countries where the Bank provides support. 2. However, given the long timeframes involved in development, and the fact that Bank programs alone cannot bring about changes at the national level, systems to measure shorter term changes or intermediate outcomes have been developed and refined. Examples of these can be found for both the Bank's work in IDA-eligible countries and for the Global Programs and Partnerships (GPPs) where the Bank is active. 3. IDA: Many of the building blocks for achieving long term development outcomes in poor countries are not within the Bank's span of control. They depend greatly on partnerships with others and on the quality of implementation by recipient countries. While bearing that in mind, for IDA14 the Bank developed a Results Measurement System (RMS)6, which built on lessons learned with the first RMS in IDA13. The IDA14 RMS provides two different tiers of information. Tier I monitors the aggregate progress of IDA-eligible countries on 14 broad development outcomes related to national poverty reduction strategies and the MDGs. These indicators were pared down from a longer list used in IDA13, to those that are most relevant to IDA's business as well as most measurable in IDA countries. Tier II focuses on IDA's activities and its contributions to country outcomes. It relies on a stronger focus on results and self-assessment in IDA country CASs, and assessments of the quality and outcomes of operations in the IDA portfolio. Tier II indicators also emphasize that a robust results-tracking mechanism is built into all new IDA projects at the design, supervision and evaluation stages; and measure and monitor improvements in project outputs for IDA projects in four key sectors ­ health, education, water and transport. A further emphasis of the IDA14 RMS is to improve statistical capacity to measure development outcomes in IDA countries, particularly in these four key sectors. 4. GPPs: Where a program is supported from the Bank's Development Grant Facility, regular monitoring and evaluation is a key requirement, in order to help the Bank and its partners understand the results it is achieving and identify areas for improvement. To ensure objectivity, besides the program manager's role in reporting on operational and financial progress, all such programs also must have periodic independent evaluations, every three to five years. Program staff work with the Bank's Independent Evaluation Group (IEG) to develop evaluation terms of reference and agree how the reviewers be chosen. In addition, IEG and the central GPP group have developed guidelines for the independent evaluation of programs--see Box 1 below. During fiscal 2006 this work has been expanded to include consultations with the Development Assistance Committee Evaluation Network. 5. While substantial progress has been made with systems such as the RMS, the Bank still needs to make progress both in developing a culture based on achieving and measuring concrete development results, and in ensuring a common understanding of results-related concepts. This is particularly true for 6IDA. 2003c. "IDA Results Measurement System: Progress and Proposals." SecM 2003-0519. Washington, DC; IDA. 2004b. "IDA Results Measurement System: Recommendations for IDA 14." IDA/SecM 2004-0499. Washington, DC; and IDA. 2005a. Additions to IDA Resources: Fourteenth replenishment - Working Together to Achieve the Millennium Development Goals. IDA/R2005-0029. Washington, DC. 29 The World Bank Group 2006 Trust Funds Annual Report Section 6 Trust Funds and Results trust funds, which are often small relative to other contributions, or otherwise hard to distinguish, and have often therefore been subsumed into wider programs for reporting or evaluation purposes. While that approach was partly a response to the problem of attributing results across a number of contributing factors, it has also served to obscure the value of each individual contribution. 6. The use of a results-based management framework is one of the key criteria used by IEG in assessing the quality of monitoring and evaluation activities undertaken by global programs7. The framework entails a structured and well-defined set of inputs, outcome and impact indicators. Unfortunately, the monitoring and evaluation of trust funds do not follow such a framework consistently, and the differences and linkages of these indicators are not always clearly established. As the Bank's results agenda continues to underpin how the Bank works, there is the need to look more systematically at ways to identify the impact of individual trust funds, while recognizing the limits of any mechanistic approach to attribution. Box 1: Independent Evaluation Guidelines for DGF Financed GPPs Evaluations should: review measurable indicators of performance-including outputs, outcomes and impacts and assist programs to develop improved indicators. be conducted every three to five years (for programs that receive DGF funding of more than US$300,000). be owned and utilized by all partners and not be driven solely by the needs of the Bank. Therefore, timing and coverage should take into account partner preferences. be overseen by the program's governing body and conducted with the assistance of program management. Evaluators should report to the governing body, not to management. be conducted by individuals or companies that have been at "arm's-length" from the initiative. report on outputs, outcomes and impacts. address the performance of the governing body as well as of management. make recommendations for financial sustainability as well as program delivery. be discussed by the relevant Bank Sector Board and used as a basis for considering DGF funding requests. have terms of reference and selection of consultants cleared with the DGF Secretariat. The DGF grant can cover a part of evaluation costs which should also be borne by other partners. Results Achieved Under Trust Funds 7. Most trust fund-supported programs report separately on their activities and results. These programs produce annual reports and are also subject to occasional rigorous independent evaluations, which are normally publicly disclosed and published in the respective program website8. The Bank's Independent Evaluation Group (IEG) undertakes periodic meta-evaluations, reviewing a selection of such program- level evaluations conducted by Bank-supported global programs. The evaluations demonstrate that in general, these programs add value and yield positive impacts on reducing poverty and promoting economic growth. 7See "Addressing the Challenges of Globalization: An Independent Evaluation of the World Bank's Approach to Global Programs", The World Bank Operations Evaluation Department (now IEG), 2004. 8A list of webpage addresses for selected TF programs is available in Annex J of this report. 30 The World Bank Group 2006 Trust Funds Annual Report Section 6 Trust Funds and Results 8. However, many Bank-administered trust funds are freestanding funds/grants, on which evaluation reports are not produced for public consumption. Instead, self-evaluation reports are produced by task managers at completion of trust funded activities, for internal management purposes9. Pending the development of a more systematic approach, this section reports on the results reported under a sample of these self-evaluation reports. The sample covers those reports prepared during FY2005-2006, covering 159 trust funded activities. These trust funds were used for the following broad purposes: 84 for technical assistance (TA), 62 for co-financing of Bank operations, 12 for project preparation and one for debt service. In total, about US$900 million was disbursed under these trust funds over their life. Box 2 below provides a sample of the outputs described in those reports. 9. The reports submitted indicate that, in general, trust funds have performed relatively well in achieving their intended objectives, with the following overall results: 17 percent of the trust funded activities were rated as `Highly Satisfactory'; 75 percent as `Satisfactory' and 8 percent as `Unsatisfactory'. Trust funds were considered effective instruments for piloting and promoting sector reform and organizational improvement, and for maintaining the Bank's active participation in sector reform dialogue. If set up in the right context, trust funds supporting technical assistance have often served as a catalyst and provided the right focus for subsequent longer-term programs, which are unlikely to have been initiated if the trust funds were not available. Project Preparation trust funds proved of tremendous help in developing knowledge and strengthening capacity in recipient countries, thereby helping them better prepare for implementation of subsequent operations. PHRD preparation grants often helped build more committed partnerships between the Bank and recipient agencies during the preparation of Bank-financed projects and led to joint understanding on the project design, objectives and activities. GEF preparation grants supported preparation at the very early stages of project/program identification, information gathering for completion of project proposals and necessary documentation, and completion of technical design and feasibility works, for larger projects. Box 2: Sample of TF Results as Reported During FY2005-2006 Cofinancing TFs supporting a larger IBRD/IDA project: 1 449 microprojects throughout the rural areas in Moldova were supported, with nearly 700,000 direct beneficiaries. 2 In Tanzania, improvement of school facilities and materials, and capacity building led to increase in Gross Enrollment Ration for primary education from 78 percent in 2000 to 106 percent in 2004; and in Net Enrollment Ratio from 59 percent to 91 percent during the same period. 3 In Vietnam, more than 1,200 new private enterprises registered on average every month; timely implementation of ownership transformation under the new SOE reform plans; drafting of a sound regulatory framework for policy lending; drafting of the 10-year Strategy for HIV/AIDS; etc. 4 US$30 million worth of grants were provided to 2,875 schools in 60 districts throughout Indonesia, for financing of a school rehabilitation program, which included improvement of buildings and furniture, provision of books and support of teacher activities. 5 In support of India's Ozone Depleting Substance phase-out program, 5,400 Metric Ton Ozone Depleting Potentials were phased out through some 83 subprojects in the country. 6 In West Bank and Gaza, the availability of essential drugs and rehabilitation services was increased; educational facilities and services were improved; municipal services projects were implemented in the water, waste water, roads and electricity sectors; and shelters/rehabilitation and training centers were better equipped. 9These reports were either ICMs or ICRs. Bank policy requires an ICM (Implementation Completion Memorandum) to be prepared for all trust funded activities exceeding US$1 million, unless there is already an ICR (Implementation Completion Report, now renamed Implementation Completion and Results Report, and required for all IDA and IBRD financed work) covering the activity. 31 The World Bank Group 2006 Trust Funds Annual Report Section 6 Trust Funds and Results Technical Assistance TFs: 1 Establishment of four PPIAF regional coordination offices in Africa and Asia, and support of 244 activities ranging from knowledge dissemination to technical assistance advisory products in the area of infrastructure development. 2 The Performance Measurement Framework, an integrated tool to measure and monitor Public Financial Management, was developed and Public Expenditure and Financial Accountability assessments and action planning were undertaken in 13 countries. 3 Establishment of the GDLN Distance Learning Center in Bolivia and the Spanish Distance Learning Center (CEDDET). 4 Preparation of work programs and Project Concept Documents, and launching of best practices for the Uganda Energy for Rural Transformation and South Africa Renewable Energy Market Transformation projects. 5 Support to development of an independent Energy Management Companies Association in China, which focused on developing and sustaining Energy Management Companies. 6 Completion of feasibility and design studies for 14 water supply subprojects in Eritrea and implementation of capacity building/training activities aimed towards improving the overall planning, management and implementation of community based water supply schemes. 10. Cofinancing trust funds were often used to fund specific activities that are integral to the broader program, but for which there may be less recipient appetite than for loans or credits. Moreover, cofinancing arrangements provided a more solid basis for dialogue and coalition building between the client countries, the Bank and the donor community, particularly for difficult long-term agendas. These arrangements provided donors with opportunities to leverage the Bank's technical and financial capacity, in turn increasing the Bank's ability to promote effective reforms with client governments. 11. Ownership and active engagement of client countries was found to be key to achievement of intended objectives. Lack of ownership was cited as one of the key missing elements in those trust funds with an `Unsatisfactory' rating. 32 The World Bank Group 2006 Trust Funds Annual Report Annexes Descriptions of Selected Trust Fund Programs Annexes Descriptions of Selected Trust Fund Programs 33 The World Bank Group 2006 Trust Funds Annual Report Annex A Debt Service and Debt Reduction Annex A DEBT SERVICE AND DEBT REDUCTION From the trust funded programs in this area, the following were selected to give a flavor of the type of work being carried out with resources provided by donors 1. Heavily Indebted Poor Countries Initiative 2. Debt Reduction Facility for IDA-only Countries Heavily Indebted Poor Countries Initiative (HIPC) Highly Indebted Poor Countries Debt Initiative FY2006 US$'million Cash Contributions received during the year 390 Disbursements made during the year 769 NOTE: The table above does not reflect funds transferred from other programmatic sources. Such transfers are reflected in the corresponding tables for the originating source programs. 1. As of June 30, 2006, 28 countries are receiving debt relief under the HIPC initiatives. Of these, 18 countries have reached completion point and 10 have reached decision point and are receiving interim debt service relief under the HIPC Initiative. Subsequent to June 2006, two more countries have reached completion point under the Initiative. For the 28 countries that have reached their decision or completion points, HIPC and other debt relief initiatives are expected to reduce the overall debt stock by almost 90 percent. Debt relief allows beneficiary governments to allocate more resources for development and encourages reforms in public financial management. 2. From the inception of HIPC through the end of fiscal 2006, qualifying countries have received about US$4 billion in debt relief on IDA repayments. Up to April 2006, the HIPC Trust Fund reimbursed IDA for the debt relief it provided, drawing on transfers from the Bank's net income to the HIPC Trust Fund. Bank net income allocated to the HIPC Trust Fund totaled US$2.3 billion. Starting May 2006, donor contributions under the IDA14 arrangements were used to cover IDA's cost of HIPC debt relief. 3. The HIPC Trust Fund also provides financial support to the debt relief efforts of eligible regional and sub-regional creditors, the largest of which is the African Development Bank. To date, donors have pledged US$3.8 billion to the HIPC Trust Fund to support these creditors, and have contributed more than US$3.6 billion in the form of cash and promissory notes. Disbursements from the HIPC Trust Fund to eligible regional and sub-regional creditors now total more than US$2.65 billion. The World Bank Group 2006 Trust Funds Annual Report 34 Annex A Debt Service and Debt Reduction Debt Reduction Facility for IDA-only Countries (DRF) Debt Reduction Facility FY2006 US$'million Cash Contributions received during the year 13 Disbursements made during the year 0 4. This facility was established in the context of the debt crisis of the 1980s, as a vehicle to reduce the stock of official external debt owed to commercial creditors by poor countries. Its beneficiaries are countries that are eligible to borrow from the World Bank Group only on the concessional terms offered by IDA. Since its establishment in 1989, the Debt Reduction Facility has financed 22 operations in 21 countries. About US$4.5 billion of external commercial debt principal and more than US$3.5 billion of associated interest arrears and penalties have been settled. 5. Soon after the start of fiscal 2005, the Bank's Executive Directors agreed to extend the DRF to July 2007, with commitment to replenish it by a US$50 million contribution from IBRD net income over the period and incorporating some changes in its operational practices, in order to increase creditors' participation under the HIPC Initiative. The additional resources will help the DRF to address some of the remaining commercial debts of HIPC Initiative countries, by complementing HIPC in coming years. In March 2006, the administration of the DRF was transferred from the Infrastructure Vice Presidency to the Poverty Reduction and Economic Management (PREM) Vice Presidency. Since PREM also administers the World Bank's involvement in the HIPC Initiative, this will help strengthen linkages between the DRF and the HIPC Initiative. 6. The DRF is now providing support for financial and legal advisers to assist with the preparation of commercial debt reduction operations in Mozambique, Nicaragua and the Democratic Republic of Congo. Negotiations with commercial creditors are well advanced in the first two countries, while financial and legal advisers are currently being procured by DR Congo. 35 The World Bank Group 2006 Trust Funds Annual Report Annex B Sustainable Development Annex B SUSTAINABLE DEVELOPMENT B.1. Environment and Sustainable Agriculture From the trust funded programs in this area, the following were selected to give a flavor of the type of work being carried out with resources provided by donors 1. Global Environment Facility 2. Least Developed Countries Fund for Climate Change 3. Special Climate Change Fund 4. Carbon Finance: Prototype Carbon Fund 5. Carbon Finance: Netherlands Clean Development Mechanism Facility 6. Carbon Finance: The Netherlands European Carbon Facility 7. Carbon Finance: Community Development Carbon Fund 8. Carbon Finance: BioCarbon Fund 9. Carbon Finance: Italian Carbon Fund 10. Carbon Finance: Danish Carbon Fund 11. Trust Fund for Environmentally and Socially Sustainable Development 12. Pilot Program to Conserve the Brazilian Rain Forest 13. Consultative Group on International Agricultural Research 14. Nile Basin Initiative Global Environment Facility (GEF) Global Environment Facility FY2006 US$'million Cash Contributions received during the year 720 Disbursements made during the year 528 7. Established in 1991, the GEF finances projects to address six critical threats to the global environment: (1) loss of biodiversity; (2) climate change: (3) degradation of international waters; (4) ozone depletion; (5) land degradation; and (6) persistent organic pollutants. 8. The GEF serves as the financial mechanism for the Convention on Biological Diversity, the UN Framework Convention on Climate Change and the Stockholm Convention on Persistent Organic Pollutants (POPs). GEF financing is provided to eligible countries through the World Bank, UNDP, UNEP, four regional development banks, FAO, IFAD and UNIDO. As one of the Implementing 36 The World Bank Group 2006 Trust Funds Annual Report Annex B Sustainable Development Agencies of the GEF, the World Bank draws upon its lending experience and policy dialogue with developing countries to help them identify, prepare and implement projects that simultaneously reduce poverty, improve the local environment and benefit the global environment. 9. As of end fiscal 2006, the total active portfolio of Bank-implemented GEF projects was 223 projects with total net GEF Grant amount commitments of US$1,528 million, which was higher compared to US$1,430 million in fiscal 2005. This portfolio size was eight percent larger than that of the previous year. The largest share of commitments under implementation were in the Latin America Region (26 percent), followed by the East Asia and Pacific Region (23 percent), Africa (21 percent) and Europe and Central Asia (14 percent). Approvals continued their upward trend since 2000, with grants approved by the Bank Board in fiscal 2006 increasing by 28 percent compared to those in fiscal 2005. GEF grants approved in fiscal 2006 totaled US$328 million, which represented 43 projects. As in previous years, the largest focal areas in fiscal 2006 were Biodiversity (US$125 million, or 36 percent); Climate Change (US$78 million, or 23 percent); and Persistent Organic Pollutants (US$45 million, or 14 percent). 10. As of June 30, 2006, the cumulative resources available to the GEF Trust Fund amounted to US$7.3 billion and the cumulative amount allocated for the GEF work program, agency fees, and corporate budgets was US$6.7 billion equivalent (project allocations net of cancellations). Least Developed Countries Fund for Climate Change (LDC) Least Developed Countries Fund for Climate Change FY2006 US$'million Cash Contributions received during the year 12 Disbursements made during the year 6 11. The LDC was established in November 2002 to address the needs of least developed countries whose economic and geophysical characteristics make them especially vulnerable to the impact of global warming and climate change. In its initial phase the fund supports the preparation of national adaptation programs of action. The GEF administers the fund and the World Bank acts as its trustee. The implementing agencies include the Bank, UNDP and UNEP. 12. Since inception of the Fund, and as of the end of fiscal 2006, eighteen countries have pledged contributions to the Fund. The total cumulative funds available (including cash receipts, promissory notes and investment income earned) amounts to US$43.3 million. Of this amount, US$11.8 million had been allocated to cover projects, fees, corporate budget and other administrative expenses; and US$11 million had been disbursed. Special Climate Change Fund (SCCF) Special Climate Change Fund FY2006 US$'million Cash Contributions received during the year 24 Disbursements made during the year 0 37 The World Bank Group 2006 Trust Funds Annual Report Annex B Sustainable Development 13. The SCCF was established in November 2004 to finance activities, programs and measures relating to climate change that are complementary to those funded by resources from the GEF Trust Fund and by bilateral and multilateral funding. The Program for Adaptation and the Program for Transfer of Technology are the two sub programs approved to date. The GEF administers the Fund and the World Bank acts as its trustee. The implementing agencies include the World Bank, UNDP and UNEP. 14. Since its inception, and as of the end of fiscal 2006, eleven countries have pledged contributions to the Fund. The total cumulative funds available (including cash receipts, promissory notes and investment income earned) amounted to US$39.1 million. Of this amount, US$3.6 million has been allocated to cover projects, fees, corporate budget and other administrative expenses; and US$0.5 million has been disbursed. Carbon Finance: Prototype Carbon Fund (PCF) Prototype Carbon Fund FY2006 US$'million Cash Contributions received during the year 10 Disbursements made during the year 8 15. The PCF was established in 1999 as a multi-donor trust fund. The fund uses contributions from companies and governments to purchase emission reductions from projects developed and implemented in consistency with the Clean Development and Joint Implementation Mechanisms defined under the Kyoto Protocol. Under the Kyoto Protocol, the developed nations agreed to limit their greenhouse gas emissions relative to those of 1990. The PCF aspires to promote sustainable development, demonstrate the possibilities of public/private partnerships, and offer opportunities to its stakeholders for learning by doing. Six governments and 17 major multinationals have so far contributed US$180 million to this fund. 16. As at June 30, 2006, the PCF has signed 22 Emission Reduction Purchase Agreements with a cumulative contract value of US$139 million, not including options. The primary focus of these projects is on renewable energy technologies, waste management, coalmine methane recuperation, and biomass energy technology. Specific projects include: the West Nile hydropower project in Uganda; sustainable fuelwood and charcoal production for the pig iron industry in Minas Gerais, Brazil; afforestation on degraded agricultural land in Romania; wind farms in both Costa Rica and Colombia; solid waste management in Latvia; an alternative fuel and cement component in Indonesia; and a municipal solid waste-to-energy project in Durban, South Africa. Carbon Finance: Netherlands Clean Development Mechanism Facility (NCDMF) Netherlands Clean Development Mechanism Facility FY2006 US$'million Cash Contributions received during the year 11 Disbursements made during the year 5 17. Established in May 2002, the NCDMF supports projects in developing countries by purchasing greenhouse gas emission reduction credits. The Facility has an overall target of purchasing up to 38 million metric tons of emission reductions. The Facility purchases emission reductions from projects in 38 The World Bank Group 2006 Trust Funds Annual Report Annex B Sustainable Development the following categories: (i) renewable energy technology, such as geothermal, wind, solar, and small- scale hydro; (ii) clean, sustainably grown biomass (no waste); (iii) energy-efficiency improvement; (iv) fossil fuel switch and methane recovery; and (v) sequestration. The agreement with the World Bank is part of a larger program of the Netherlands to obtain 100 million tons of carbon dioxide equivalent of greenhouse gas emission reductions through carbon trading Carbon Finance: The Netherlands European Carbon Facility (NECAF) The Netherlands European Carbon Facility FY2006 US$'million Cash Contributions received during the year 1 Disbursements made during the year 1 18. The NECAF, established in 2004, focuses on projects in Central and Eastern Europe. The Facility has several goals: to create markets for emission reductions; mitigate climate change; support sustainable livelihood and poverty reduction through environmental improvement; support rural electrification, renewable energy and energy efficiency operational targets; meet greenhouse gas emission reduction targets; reduce the adverse impact of energy use on health by reduction in local pollutants; improve solid waste management practices; and upgrade district heating systems. The Facility became operational in August 2004 and is co-managed by IBRD and IFC, each managing a facility of Euro 40 million. The first Emission Reduction Purchase Agreements for the Facility are expected to be signed by the end of calendar year 2006 Carbon Finance: Community Development Carbon Fund (CDCF) Community Development Carbon Fund FY2006 US$'million Cash Contributions received during the year 30 Disbursements made during the year 4 19. The CDCF, established in 2003, provides carbon finance to smaller scale projects in least developed countries and poorer areas of developing countries. In all other respects, CDCF has the same objectives as other World Bank managed carbon funds, namely, to encourage new investments in renewable energy and clean technologies that aim to reduce greenhouse gas emissions and mitigate the effects of climate change. With a capitalization of US$128 million, the CDCF has participation from both private and public sector participants. 20. To help achieve CDCF's goals, the World Bank has established a technical assistance facility, called CDCFplus, which is dedicated to building local capacity in preparing CDCF projects. CDCFplus builds and strengthens the capacity of project developers in these countries to prepare pilot carbon finance projects, including the identification of community development benefits. 39 The World Bank Group 2006 Trust Funds Annual Report Annex B Sustainable Development Carbon Finance: BioCarbon Fund (BioCF) BioCarbon Fund FY2006 US$'million Cash Contributions received during the year 5 Disbursements made during the year 2 21. The BioCF was established in 2004, to foster land use projects that mitigate climate change. It provides financing for projects that sequester or conserve greenhouse gases in forests and agro- ecosystems. It will help poor farmers and rural communities in developing and transition countries find new value in their agricultural lands and forests, as they earn income from sequestering or conserving carbon. 22. Fourteen governments and companies from Japan, Europe and Canada have contributed US$53.8 million, 56 percent from private companies and 44 percent from government entities. About 150 project proposals have been reviewed, from which 23 projects have been selected to be supported in the form of emission reduction purchase agreements. Tranche One was closed to further contributions on August 31, 2005. Tranche Two opened in September 2005. It is expected to become operational once contributions of US$10 million have been received. Carbon Finance: Italian Carbon Fund (ICF) FY2006 Italian Carbon Fund US$'million Cash Contributions received during the year 63 Disbursements made during the year 2 23. The ICF was established in January 2004 between the World Bank and the Government and private sector interests in Italy, to finance carbon credits from projects in developing countries and transition economies. The Fund received an initial contribution of US$45 million from the Government, and is expected to grow significantly as the Fund benefits from the participation of Italian private and public sector entities. It supports a wide range of technologies and activities in China, India, Central and South America, the Balkans, East Asia, the Mediterranean, and the Middle East. Carbon Finance: Danish Carbon Fund (DCF) FY2006 Danish Carbon Fund US$'million Cash Contributions received during the year 9 Disbursements made during the year 1 40 The World Bank Group 2006 Trust Funds Annual Report Annex B Sustainable Development 24. The DCF became operational in January 2005. It is comprised of Danish entities from both the public and private sectors. The total capitalization of the DCF is EURO 58 million. The final portfolio of the DCF is expected to include about 10 projects; this is in addition to the DCF's participation of US$5.125 million in the World Bank Community Development Carbon Fund (CDCF). 25. Diversification, especially in terms of the countries in which the projects are located, is an important consideration for the DCF when reviewing and approving projects for inclusion in its portfolio. The seven most advanced projects are located in five countries. The largest share of emission reductions is currently expected from China and from the Central and Eastern Europe region. These seven projects consist of different technologies in different sectors, namely HFC-23 destruction, the oil and gas sector, renewable energy, waste management and coal mine methane. Trust Fund for Environmentally and Socially Sustainable Development (TFESSD) Trust Fund for Environmentally and Socially Sustainable FY2006 Development US$'million Cash Contributions received during the year 12 Disbursements made during the year 12 26. The TFESSD was created in December 1999. It provides flexible financing for innovative analytical and project work, to deepen knowledge and contribute to the development of new tools, while encouraging Bank staff to incorporate environmentally and socially sustainable development issues in all their work--at headquarters and in the field. 27. Since 1999 the Fund has supported 270 projects in more than 50 low- and middle-income countries. Donor contributions from Norway and Finland total US$74 million, with about half of the funding going to Africa. As of the end of fiscal 2006, there were 125 ongoing TFESSD activities under the four "windows": Poverty, Environment, Social Development and Social Protection. Pilot Program to Conserve the Brazilian Rain Forest (BRF) Pilot Program to Conserve the Brazilian Rain Forest FY2006 US$'million Cash Contributions received during the year 2 Disbursements made during the year 5 28. The BRF Pilot Program was launched in 1992 as a joint initiative of the Government of Brazil, civil society and the international community--with an initial financial contribution of US$250 million from Germany, European Community, UK, US, Netherlands, Japan, Italy, France and Canada. Over time cumulative contributions have grown to some US$430 million. Brazil contributes about 10 percent in counterpart funds. Out of this amount, some US$73 million are administered by the World Bank. In addition to counterpart funding, government agencies in Brazil make available their own infrastructure and personnel to carry out projects. Project participants, such as local communities, also contribute to the Program, mostly in the form of labor and materials. 29. The Program's long-term objectives are to: (i) demonstrate the feasibility of harmonizing economic and environmental objectives in tropical rain forests; (ii) help preserve the biodiversity of the 41 The World Bank Group 2006 Trust Funds Annual Report Annex B Sustainable Development rain forests; (iii) reduce the Brazilian rain forests' contribution to global carbon emissions; and (iv) provide a concrete example of cooperation between developed and developing countries on global environmental issues. 30. Over the past 14 years, the Pilot Program has yielded significant and tangible results including: (i) the demarcation of 460,000 square kilometers of indigenous land and establishment of over 20,000 square kilometers of Extractive Reserves; (ii) 200 natural resources management projects successfully implemented by communities; (iii) development of good forest management initiatives; and (iv) training of thousands of community leaders in fire prevention. These and other results being generated by this program provide a growing knowledge base for broad dissemination of lessons learned, best practices and practical experiences for the conservation and sustainable use of the forests of Brazil. Consultative Group on International Agricultural Research (CGIAR) Consultative Group on International Agricultural Research FY2006 US$'million Cash Contributions received during the year 100 Disbursements made during the year 102 31. Established in 1971, the CGIAR mobilizes cutting-edge science in agriculture, forestry, livestock, and fisheries to reduce hunger and poverty, improve human nutrition and health, protect the environment, and support economic growth. The CGIAR is a constantly evolving alliance of Members, partners and international agricultural research centers that mobilizes science to benefit the poor. 32. In December 2005, the CGIAR membership approved the System Priorities for CGIAR Research 2005 ­ 2015 that were developed through extensive consultation. The Priorities will be subject to annual, dynamic review, and mechanisms are being explored to ensure appropriate and harmonized donor funding. CGIAR centers in West and Central Africa (IITA and WARDA) and in East Africa (ILRI and the World Agroforestry Centre) have made progress in alignment of research programs and are identifying opportunities to share corporate services. 33. In a move to strengthen transparency and accountability, the CGIAR launched its Performance Measurement System in 2005, after a pilot period. From 2006, the CGIAR Performance Measurement System is a regular element of CGIAR monitoring and evaluation. 34. The CGIAR mobilized a record US$450 million in donor funding in calendar year 2005, a US$13 million or 3 percent increase over calendar year 2004. Africa continues to be the major focus of CGIAR research, with almost half of the calendar year 2005 budget spent on research programs on Sub-Saharan Africa. 35. In calendar year 2005, CGIAR activities were designed to build on the earlier reforms, as follow: (i) simplification of the way we do business - oversight and management functions within the World Bank have been separated; (ii) strengthening science - the world-class CGIAR Science Council is fully operational; (iii) opening up the system - forging new science based partnerships - the four Challenge Programs are all operational and effectively bringing new partners and new scientific, intellectual, human and financial resources into the System; and (iv) a commitment to efficiency, efficacy, transparency and accountability - the production of the CGIAR Charter clarifies roles and responsibilities for all parts of the CGIAR System. 42 The World Bank Group 2006 Trust Funds Annual Report Annex B Sustainable Development Nile Basin Initiative (NBI) Nile Basin Initiative FY2006 US$'million Cash Contributions received during the year 16 Disbursements made during the year 7 NOTE: The table above does not reflect funds transferred from other programmatic sources. Such transfers are reflected in the corresponding tables for the originating source programs. 36. The NBI process began in 1998, with facilitated dialogue, for development of a basic platform of trust, and adoption of a `shared vision', leading to formal NBI launch by nine countries (plus Eritrea as observer). NBI is a partnership of riparian states seeking to bring peace and prosperity to the people of the basin through the shared vision--to "achieve sustainable socioeconomic development through the equitable utilization of, and benefit from, the common Nile Basin water resources."10 37. The Nile Basin Trust Fund (NBTF) was established in January 2003 at the request of the Nile Basin Council of Ministers as the preferred mechanism to administer and harmonize donor partner support pledged to the NBI. This multi-donor trust fund is currently administered by the World Bank, on behalf of all donors who contribute to the fund for the benefit of the Nile Basin riparian countries. Nine development partners have pledged over US$112.7 million to the NBI projects financed through the NBTF. Of the total pledges, an amount of US$105.3 has been translated into signed NBTF legal agreements between the Bank and donor partners. 38. A significant feature of the NBTF is that funds are executed by the NBI. NBI Secretariat, the executing agency for majority of NBTF projects, has overall responsibility for the delivery of the Program including Shared Vision Program (SVP) ­ a multi-sectoral, basin-wide program to build trust, capacity and the enabling environment for investment. ENTRO is the executing agency for Eastern Nile Subsidiary Action Program (ENSAP) and NELSAP - Coordination Unit is working together with the Nile Secretariat on Nile Equatorial Subsidiary Action Program (NELSAP). This ensures riparian ownership of NBI activities and contributes to building institutional capacity to implement regional projects. 39. The Bank and NBI institutions have entered into grant agreements for 12 projects amounting of US$65.3 million and allocated US$6 million to Bank-executed activities by June 30, 2006. 10Nile Council of Ministers, Policy Guidelines for the Nile River Basin Strategic Action Program, February 1999. 43 The World Bank Group 2006 Trust Funds Annual Report Annex B Sustainable Development B.2. Infrastructure From the trust funded programs in this area, the following were selected to give a flavor of the type of work being carried out with resources provided by donors 1. Public-Private Infrastructure Advisory Facility 2. Foreign Investment Advisory Service 3. Global Partnership on Output-Based Aid 4. Energy Sector Management Assistance Program 5. Water and Sanitation Program 6. Cities Alliance Program 7. Sub-Saharan Africa Transport Policy Program 8. Asia Sustainable and Alternative Energy Program 9. Information for Development Program Public-Private Infrastructure Advisory Facility (PPIAF) Public-Private Infrastructure Advisory Facility FY2006 US$'million Cash Contributions received during the year 6 Disbursements made during the year 17 NOTE: The table above does not reflect funds transferred from other programmatic sources. Such transfers are reflected in the corresponding tables for the originating source programs. 42. PPIAF is a multi-donor technical assistance facility that works with developing countries to improve their provision of infrastructure through private sector involvement. Launched in 1999, PPIAF is directed by its 15 participating members, which include bilateral and multilateral development agencies, and international financial institutions. The facility: (i) channels technical assistance to governments in developing countries on strategies and measures to tap the full potential of private sector involvement in infrastructure; and (ii) identifies, disseminates, and promotes best practices on matters related to private sector involvement in infrastructure in developing countries. Members commit to both core and non-core funds (use of the latter is restricted to particular themes, activities, or regions). 43. In fiscal 2006, PPIAF approved the financing of 93 activities for a total of US$17.4 million. The largest share went to Africa (38 percent), followed by South Asia (14 percent), East Asia and the Pacific (12 percent), Europe and Central Asia (11 percent), Latin America (9 percent), and Middle East and North Africa (5 percent). Outlays for global products, such as toolkits and dissemination of emerging best practices, accounted for 11 percent of the total portfolio. 44 The World Bank Group 2006 Trust Funds Annual Report Annex B Sustainable Development Foreign Investment Advisory Service (FIAS) Foreign Investment Advisory Service FY2006 US$'million Cash Contributions received during the year 6 Disbursements made during the year 14 44. The FIAS advises governments of developing countries on how to improve their investment climate for foreign and domestic investors, and better integrate in the global economy. Since its establishment in 1985, it has advised more than 130 countries through more than 700 projects. FIAS is a multi-donor service of IFC and the World Bank that focuses on six core areas: investment climate diagnostics, foreign direct investment policies and regulations, administrative barriers reforms, investment promotions, sector-focused solutions, and corporate social responsibility. 45. Fiscal 2006 marked the second year of implementation of FIAS's three-year strategy, which has received strong support from donors. FIAS also developed multi-year, multi-product programs in Fiji, Bangladesh, Sierra Leone, Senegal, and Kenya. Of the 74 completed advisory projects in fiscal 2006, the largest program was in Sub-Saharan Africa (27), followed by East Asia and Pacific (20), Europe and Central Asia (10), Latin America and the Caribbean (8), South Asia (6), and Middle East and North Africa (3). 46. In fiscal 2006, the successful implementation of the second year of FIAS's FY2005-2007 strategy focused on the following three areas: Strengthening Partnerships for Better Outcomes. In fiscal 2006, FIAS implemented around 18 joint projects with IFC's regional facilities and 8 with the World Bank's Multilateral Investment Guarantee Agency (MIGA). Driving for Impact. In fiscal 2006, FIAS launched two pilot benchmarking projects in Sierra Leone and Bangladesh to monitor the progress of private sector development reforms. Both pilots fostered the creation of public-private committees to build local capacity in monitoring and evaluation. Generating Leading-Edge Practical Knowledge. During the year, 10 knowledge management products were completed, 30 good-practice case studies were developed, and several new products/themes were piloted. Global Partnership on Output-Based Aid (GPOBA) Global Partnership on Output-Based Aid FY2006 US$'million Cash Contributions received during the year 42 Disbursements made during the year 3 47. The GPOBA is a multi-donor trust fund set up in 2003 by UK and the Bank. Since then, the IFC has also joined as a donor, while Netherlands and Australia are in the process of doing so. GPOBA's goal is to help increase access to reliable basic infrastructure and social services (water, energy, ICT, transport, 45 The World Bank Group 2006 Trust Funds Annual Report Annex B Sustainable Development health and education) for the poor in developing countries by broadening the use of output-based aid (OBA) approaches. 48. OBA involves the use of explicit performance-based subsidies to delegate service delivery to third parties--typically private firms, but also possibly NGOs, country-based organizations and state- owned companies--under contracts that tie the disbursement of public funding to the services or outputs that are actually delivered. GPOBA's pilot demonstration projects aim to draw lessons on targeting eligible beneficiaries, defining performance requirements, determining payment structures, and designing monitoring arrangements. As of September 2006, GPOBA has been involved in over 45 projects through direct provision of subsidies for investment, technical assistance, and dissemination-related support. 49. As of fiscal 2006, GPOBA had cumulatively approved funding of about US$19.3 million for 47 projects. Also, in fiscal 2006 total donor contributions were US$41.8 million, which included the US$35 million funding for IFC Performance Based Grants Initiative, and total disbursements were US$2.7 million. Energy Sector Management Assistance Program (ESMAP) Energy Sector Management Assistance Program FY2006 US$'million Cash Contributions received during the year 10 Disbursements made during the year 5 50. The ESMAP is a long-standing, global partnership for technical assistance, established in 1983. It provides advice to governments, public and private institutions, and supports pilot projects on sustainable energy development for poverty reduction in developing countries and economies in transition. ESMAP has operated in some 110 countries through approximately 700 activities covering a broad range of energy issues. As of June 30, 2006, ESMAP had a portfolio of 92 projects under implementation, out of which 24 independent projects and 7 regional block work programs had been launched during the fiscal year. The total portfolio was worth US$28.8 million. 51. Highlights of ESMAP's expanded work program that has partly been decentralized through programmatic contracts to the regions in 2006 include: Energy Security: Provided advice to governments on energy security policy through country-based studies in China, Paraguay, Peru, and on the integration of gas pipelines in the Southern Cone of South America. Renewable Energy: Facilitated resource mobilization in Mexico through a study on a long-term renewable energy program which led to the creation of a new GEF project. Energy-Poverty: Worked with the World Energy Council to advance the peri-urban agenda in Latin America through a study on the energy needs of the peri-urban poor in Brazil. Market Efficiency and Governance: Supported revision of local regulations in Cameroon, Cambodia and Haiti. 46 The World Bank Group 2006 Trust Funds Annual Report Annex B Sustainable Development Water and Sanitation Program (WSP) Water and Sanitation Program FY2006 US$'million Cash Contributions received during the year 18 Disbursements made during the year 18 52. Established in 1979, the mission of the WSP is to alleviate poverty by helping poor people gain sustained access to improved water and sanitation services. WSP focuses its work at the country level by providing policy and strategic investment support, generating, managing and synthesizing knowledge, supporting sector networking, and designing and supervising small pilot projects. WSP provides services in 25 focus countries in four regions (Africa, East Asia Pacific, Latin America & Carribean and South Asia) through a combination of a small management team in Washington and regional hubs in Kenya, Indonesia, Peru and India, and field staff in the country offices. 53. At the end of fiscal 2006, the WSP work program included 114 multi-year projects with an average expenditure of approximately US$189,000 per project. The total expenditure at the end of the fiscal year was US$21.6 million against an initial budget of US$23.4 million, showing a 23 percent increase over fiscal 2005. 54. Some of the main activities and results achieved are highlighted below: Roadmaps for Sector Development: Supported development of (a) MDG roadmaps for all focus countries in Africa, as well as for Nicaragua and Honduras. Large Scale Rural Water and Sanitation (RWS) Investments: Provided support to: RWS implementation in Indonesia which helped leverage investments from the World Bank, the Asian Development Bank and the government, in 80 out of 400 districts. Domestic/Local Private Sector: Provided support in benchmarking of utilities in Philippines to improve financial and operational performance. Sanitation and Hygiene: Supported the implementation of Community-led Total Sanitation in India, Bangladesh, Pakistan, and Indonesia, leading to rapid scale up of access to sanitation among rural households. Finance: Supported design of municipality-operator contracts in Peru and pro-poor tariff subsidies in Delhi and Bangalore. Anti-Corruption: WSP prepared framework paper for diagnosing corruption in the sector and was among the founding partners of the Water Integrity. Development Marketplace 2006: WSP and ESMAP were the technical partners for the 2006 DM, which focused on basic needs for clean water, hygiene, sanitation and access to energy. 47 The World Bank Group 2006 Trust Funds Annual Report Annex B Sustainable Development Cities Alliance Program (CAP) Cities Alliance Program FY2006 US$'million Cash Contributions received during the year 9 Disbursements made during the year 9 NOTE: The table above does not reflect funds transferred from other programmatic sources. Such transfers are reflected in the corresponding tables for the originating source programs. 55. The CAP was established in 1999 as a global coalition of cities and their development partners committed to scaling up the impacts of successful approaches to urban poverty reduction. There are two interrelated priorities, the achievement of cities without slums through citywide and nationwide slum upgrading, and City Development Strategies (CDS)--linking the process by which local stakeholders define their vision for their city and its prospects for economic growth, with financing strategies and investments. Members of the Alliance include all G-7 Governments, plus Brazil, Ethiopia, Netherlands, Nigeria, Norway, South Africa and Sweden, the Asian Development Bank, UN-HABITAT, UNEP, the World Bank, and local authorities represented by the United Cities and Local Governments and Metropolis. 56. The Cities Without Slums Action Plan has been incorporated into the MDGs and a growing number of countries are adopting comprehensive slum upgrading programs, setting development targets, undertaking reforms to prevent growth of new slums, and improving lives of slum dwellers. CDS have emerged as key tool for local economic development and city-wide inclusion strategies. The Alliance has also demonstrated how improving the lives of slum dwellers provide a strategic opportunity for the international development community to target poverty where it is growing the fastest--in cities. 57. Significant new programs were initiated during fiscal 2006 in all developing regions, with record funding approvals in Sub-Saharan Africa and Asia. Alliance members also renewed financial support for the slum upgrading programme in the state of Bahia, Brazil; the Slum Upgrading Facility, which will focus initially on mobilizing domestic capital for slum upgrading in Ghana, Tanzania, Sri Lanka and Indonesia, as well as for CDS activities in Asia; and the Alliance's ongoing urban finance initiative. Developing country membership of the Cities Alliance continued to expand in fiscal 2006, with South Africa and Ethiopia joining. Sub-Saharan Africa Transport Policy Program (SSATP) Sub-Saharan Africa Transport Policy Program FY2006 US$'million Cash Contributions received during the year 2 Disbursements made during the year 4 58. The SSATP is a growing partnership of 35 Sub-Saharan Africa countries and all the Sub-Saharan Africa Regional Economic Communities, who share a vision in which the implementation of sound 48 The World Bank Group 2006 Trust Funds Annual Report Annex B Sustainable Development transport sector strategies will lead to sustainable growth and poverty reduction. Created as an initiative of the World Bank and the UN Economic Commission for Africa (UNECA) in 1987, it is now a fully fledged partnership financed mainly by the European Commission with substantial support from Denmark, Ireland, France, Norway, Sweden and the World Bank (which also manages the Program). Partner countries and regional organizations contribute through significant human resources and physical facilities. Ownership is firmly rooted at the country and regional levels, and program activities are driven by stakeholder demand. 59. The Poverty Reduction and Transport Strategy Reviews (PRTSR) continued to contribute to the process of improving coherence between transport and poverty reduction strategies. By the end of fiscal 2006, 13 of the 29 countries engaged in the PRTSR had completed the review. Some of them have started integrating the recommendations of the review in their growth and poverty reduction strategies. The outcome of the PRTSR will be fed into the countries transport sector strategy, leading to implementation of transport projects facilitating pro-poor growth. During fiscal 2006, more than 1,000 public and private sector professionals participated in workshops, seminars and conferences arranged or supported by SSATP, laying the foundation for the transport sector's contribution to poverty reduction in SSA. Asia Sustainable and Alternative Energy (ASTAE) Program Asia Sustainable and Alternative Energy Program FY2006 US$'million Cash Contributions received during the year 0 Disbursements made during the year 1 60. ASTAE's mission is to scale-up the use of sustainable energy options in Asia to reduce energy poverty and protect the environment. ASTAE has supported the preparation and implementation of 43 World Bank and/or GEF projects in 15 countries in Asia. 61. Through fiscal 2006, 35 of the 43 projects supported by ASTAE were approved by the Bank Board. Projects approved during the period 2004 -2006 will provide access to modern energy sources to about 800,000 households and improve the electricity services of another 600,000 households, avoid directly over 250 MW electricity generating capacity equivalent as a result of energy efficiency improvements (and indirectly an additional 3.5 GW equivalent), install directly 268 MW renewable electricity generating capacity (and indirectly an additional 4.9 GW), and reduce directly over 55.8 million tons CO2 in greenhouse gas emissions (and indirectly an additional 1,240 million tons). 62. During fiscal 2006, ASTAE was supported by the Netherlands, and Canada. The Bank's Board and GEF Council approved, inter alia, the following ASTAE-supported projects: the China ­ Renewable Energy Scale-up Program (CRESP) Follow Up project, which will support a 100 MW wind farm and rehabilitation of existing and building of new micro hydro projects with a total capacity of 28 MW; and the Lao PDR, Rural Electrification Phase I projects, which will provide over 52,000 households with access to energy. 49 The World Bank Group 2006 Trust Funds Annual Report Annex B Sustainable Development Information for Development (infoDev) Program Information for Development Program FY2006 US$'million Cash Contributions received during the year 1 Disbursements made during the year 6 63. infoDev is a partnership of international development agencies, coordinated and served by an expert Secretariat housed at the World Bank, one of its key donors and founders. It acts as a neutral convener of dialogue, and as a coordinator of joint action among bilateral and multilateral donors-- supporting global sharing of information on information and communication technologies (ICT) for development (ICT4D), and helping to reduce duplication of efforts and investments. infoDev also forms partnerships with public and private-sector organizations who are innovators in the field of ICT4D. 64. infoDev's mandate is to help maximize the impact of ICT in global efforts to achieve the internationally-supported Millennium Development Goals. infoDev helps donors and their developing country partners identify ways ICT can contribute to objectives such as improving education and health services, making public institutions more efficient and transparent, supporting rural livelihoods, and contributing to economic growth by supporting small and medium-sized enterprises that use ICT for their business. A new research strategy approved by infoDev's donors in March 2005 continues to guide the work program and incorporates a focus on three broad themes: (i) mainstreaming ICT as a tool of development and poverty reduction; (ii) enabling access for all; and (iii) innovation and entrepreneurship in developing countries, which includes the Japan-funded Incubator Initiative. Supporting these three themes are selected research and knowledge products in areas such as monitoring and evaluation 65. Fiscal 2006 disbursements totaled US$6 million, which has increased largely due to a ramping up of infoDev's analytical work program under the new strategy and the implementation of a second round of grants under the Japanese-financed Business Incubator Initiative. 50 The World Bank Group 2006 Trust Funds Annual Report Annex C Health and Human Development Annex C HEALTH AND HUMAN DEVELOPMENT From the trust funded programs in this area, the following were selected to give a flavor of the type of work being carried out with resources provided by donors 1. Global Fund to Fight AIDS, Tuberculosis, and Malaria 2. Global Partnership to Stop Tuberculosis 3. Global Program to Eradicate Poliomyelitis 4. African Program for Onchocerciasis Control 5. Global Dracunculiasis Eradication Program 6. Education for All-Fast Track Initiative: Catalytic Fund 7. Education for All-Fast Track Initiative: Program Development Fund 8. China Education Blending Trust Fund 9. Avian and Human Influenza (AHI) Facility 10. Bangladesh Health, Nutrition and Population Sector Multi-Donor Trust Fund Global Fund to Fight AIDS, Tuberculosis, and Malaria (GFATM) Global Fund to Fight AIDS Tuberculosis and Malaria FY2006 US$'million Cash Contributions received during the year 1,313 Disbursements made during the year 1,138 66. GFATM was established in 2002 with the objective to make a sustainable contribution to the reduction of infections, illness and death caused by three communicable diseases: HIV/AIDS, Tuberculosis and Malaria. The Bank has been working with the Global Fund as a development partner in fighting these diseases and as Trustee for the Global Fund Trust Fund. The Trustee responsibility is limited to that of a fiscal agent, whereby grant commitments and disbursements are executed only upon instruction from the Global Fund Secretariat and the Trustee is not responsible for the identification or implementation of Global Fund projects, or for ensuring that the funds received are used for the purposes intended. 67. The Global Fund has experienced rapid growth since its establishment in 2002. As of June 30, 2006, the Global Fund had received close to US$5.1 billion in contributions of cash and promissory notes from about 47 Donors. Of this, US$1.3 billion was received during fiscal 2006. A number of smaller country donors and private sector donors have provided additional funding through the United Nations Foundation and the World Health Organization. Since inception, the Global Fund has committed US$4.1 billion for projects in over 325 programs in over 130 countries. Around 58 percent of this funding has gone to Africa. Around 55 percent of the funding is used to combat HIV/AIDS, 30 percent for Malaria and 15 percent for fighting Tuberculosis. As a reflection of the Global Fund's expanding operations, 51 The World Bank Group 2006 Trust Funds Annual Report Annex C Health and Human Development there was a continued increase in the level of both commitments and disbursements in 2006. The Trustee made grant commitments of US$1.2 billion and disbursed US$1.1 billion to project grant recipients during the fiscal 2006. The Global Fund trust fund had a cash balance of US$2.6 billion as of June 30, 2006. Global Partnership to Stop Tuberculosis (Stop TB) Global Partnership to Stop Tuberculosis FY2006 US$'million Cash Contributions received during the year 0 Disbursements made during the year 4 68. The Stop TB Partnership seeks to improve coordinated action against the worsening pandemic of tuberculosis (TB), which kills nearly 2 million people each year, mostly the poor. Stop TB aims to control the disease and reduce its impoverishing effects, through effective control strategies and new technologies. The partnership has grown to include over 400 partners, including countries where TB is more common, civil society, industry, foundations, technical agencies, academia, and bilateral and multilateral organizations. In January 2006, Stop TB published a Global Strategic Plan, which involves reducing the incidence of TB, in line with the MDGs, and reaching the Partnership's targets for 2015 of halving TB prevalence and death compared with 1990 levels. 69. Advocacy, communication and social mobilization, and resource mobilization, remained at the core of the Partnership's activities. Overall, resources available for TB control globally and in the 22 countries where TB is most common increased for the fifth consecutive year. Multiyear agreements with donors were signed during 2005 for more than US$100 million, giving the Secretariat and the Stop TB Partners increased operational stability. The total income of the Partnership was US$34.4 million, which represented a 44 percent increase over 2004 (US$ 23.9 million). 70. The Global Drug Facility built on its reputation as a unique and highly successful initiative. During calendar year 2005, it approved 2.2 million affordable, quality-assured treatments, taking the total cumulative number of anti-TB treatments it has procured to 6.7 million by the end of the year. Total procurement for 2005 was US$28 million. Global Program to Eradicate Poliomyelitis (GPEP) Global Program to Eradicate Poliomyelitis FY2006 US$'million Cash Contributions received during the year 15 Disbursements made during the year 1 71. The GPEP, launched in fiscal 2003, is a partnership with the Bill and Melinda Gates Foundation, Rotary International, and the United Nations Foundation. Its overall goal is the eradication of poliomyelitis worldwide. The program works by establishing performance-based funding for countries required to make large investments in polio eradication activities. An IDA credit is prepared with agreed performance targets. Once these performance targets are achieved, donor funds are used to write off the costs of the credit to the country concerned, effectively turning the credit into a grant. Currently Pakistan 52 The World Bank Group 2006 Trust Funds Annual Report Annex C Health and Human Development and Nigeria have polio projects with donor funding available to write-off (buy-down) the credit to grant terms once the performance targets are achieved. By the end of fiscal 2006, a number of trust funds had been established to support this program, with contributions totaling US$75 million. African Program for Onchocerciasis Control (APOC) African Program for Onchocerciasis Control FY2006 US$'million Cash Contributions received during the year 13 Disbursements made during the year 7 NOTE: The table above does not reflect funds transferred from other programmatic sources. Such transfers are reflected in the corresponding tables for the originating source programs. 72. Onchocerciasis, or river blindness, is a parasitic disease with an insect vector that breeds in water. It is the world's second leading cause of infectious blindness. The Onchocerciasis Control Program in West Africa (OCP) (1974­2002) halted transmission and virtually eliminated the disease throughout ten countries. The success of OCP led in 1995 to the launch of the APOC, which includes the 19 endemic African countries outside the OCP area. APOC treats people in tens of thousands of communities each year, using a proven delivery mechanism known as community-directed treatment. In calendar year 2005 alone, 119 projects in more than 90,000 communities used this approach to treat 50 million people with Mectizan, a drug donated free of charge by its developer, Merck & Co. Inc., on an unlimited basis. The Program is also providing increased access to health services for poor remote and under-served communities and an opportunity to address other important health problems (including tropical diseases such as Malaria, Lymphatic Filariasis, Trachoma, Intestinal Helminthes, Schistosomiasis) and micronutrient deficiency. 73. The World Bank serves as trustee for APOC's Trust Fund, which receives contributions from approximately 25 bilateral and multilateral agencies and foundations. By the end of fiscal 2006, donors had cumulatively committed about US$80 million to APOC Phase II. WHO is the executing agency for APOC, with a Program headquarters office in Ouagadougou. The Bank and WHO are joined by UNDP and FAO as sponsoring agencies of APOC. Global Dracunculiasis Eradication Program (GDEP) Global Dracunculiasis Eradication Program FY2006 US$'million Cash Contributions received during the year 0 Disbursements made during the year 0 74. The GDEP was initiated in 1987. Dracunculiasis (Guinea Worm) is a 3,000-year-old parasitic disease endemic in the poorest rural areas of Sub-Saharan Africa. It is contracted when humans drink water contaminated with water fleas carrying infective larvae. It is extremely painful and debilitates victims to the point that they are unable to work, attend school, care for children, or harvest crops. 75. To date, the Program has made great progress towards the eradication of the disease, with the number of cases declining from 3.5 million in 1986 to only 6,451 cases in calendar year 2005 (about a 99 53 The World Bank Group 2006 Trust Funds Annual Report Annex C Health and Human Development percent reduction). Endemic countries have been reduced from thirteen countries in calendar year 2003 to nine countries in 2005. Seventeen countries were certified disease-free. Yemen was the last formerly endemic country in Asia to be certified disease free early in 2004. In Africa, Ghana (2,665 cases notified in 2005) and Sudan (3,531 cases notified in 2005) remained the most heavily infected countries. Only Senegal was certified disease-free. Six countries (Cameroon, Central African Republic, Chad, Kenya, Mauritania and Uganda) were in the pre-certification stage, and zero indigenous cases were reported in Benin and Uganda. Sustained commitment from the international community, along with greater coordination at regional level and strengthening of surveillance systems, remain the necessary requirements for the achievement of the eradication goal by 2009. Education for All-Fast Track Initiative: Catalytic Fund (EFA-FTI) Education for All-Fast Track Initiative Catalytic Fund FY2006 US$'million Cash Contributions received during the year 143 Disbursements made during the year 42 NOTE: The table above does not reflect funds transferred from other programmatic sources. Such transfers are reflected in the corresponding tables for the originating source programs. 76. Education for All (EFA) is a global international commitment adopted in 1990 to bring the benefits of education to "every citizen in every society". The EFA FTI is a partnership of donor and developing countries, created to help low-income countries achieve the Millennium Development Goal of universal completion of primary education by 2015. The EFA-FTI Catalytic Fund was established in November 2003, to provide transitional financial assistance to low-income countries that have completed a poverty reduction strategy and whose education sector plans have been endorsed by donors through the FTI review process, but which have difficulty mobilizing additional external funding. 77. Countries assisted by the fund are required to demonstrate a reasonable and effective effort that is tracked by common indicators. Transitional (2-3 years) assistance from the Fund can enable these countries to start scaling up the implementation of their sector programs and establish a track record of performance that will help them attract longer-term support from new donors. Belgium, the European Commission, Ireland, Italy, the Netherlands, Norway, Russia, Spain, Sweden and the UK have made commitments of US$681 million to the Fund from 2004-08. Fourteen countries have received grant allocations amounting to a total of US$320 million: Djibouti, the Gambia, Guyana, Ghana, Kenya, Lesotho, Mauritania, Madagascar, Moldova, Nicaragua, Niger, Tajikistan, Timor Leste and Yemen. Education for All-Fast Track Initiative: Program Development Fund (EPDF) Education for All-Fast Track Program Development Fund FY2006 US$'million Cash Contributions received during the year 20 Disbursements made during the year 2 78. The Multi Donor EPDF was established by the FTI in November 2004 to enable more low- income countries to access the FTI and accelerate progress towards universal primary education. EPDF commitments total about US$46 million for the period 2005-2007, with pledges from the following 54 The World Bank Group 2006 Trust Funds Annual Report Annex C Health and Human Development donors: Canada (US$4 million), Norway (US$19.87 million), the United Kingdom (US$8.14 million), Sweden (US$2.6 million), Ireland (US$0.31 million), Luxemburg (US$1.3 million), Russia (US$3.2 million) and the Netherlands (US$7.2 million) China Education Blending Trust Fund (CEBTF) China Education Blending Trust Fund FY2006 US$'million Cash Contributions received during the year 0 Disbursements made during the year 7 79. This CEBTF was established through a grant of US$34.6 million from the UK Department for International Development (DFID). It will be used to pre-pay part of a US$100 million World Bank loan to China for Basic Education in Western Areas, which is expected to decrease the effective interest rate on the loan to about two percent a year. Providing affordable nine-year compulsory education in western regions is a priority of the Chinese Government's Western Development Strategy and the World Bank's country assistance strategy for China. 80. The trust fund makes possible a project that will provide better access to quality basic education for a significant number of poorer children in 112 counties within five of China's western provinces and autonomous regions: Gansu, Sichuan, Ningxia, Yunnan, and Guangxi. The project is projected to reach 2.4 million children at the primary and junior secondary levels of education, 19 percent of whom are from ethnic minorities, and to directly affect some 1,700 schools in 112 counties. 81. To date, about 80 percent of the planned school building targets have been achieved. The school facility upgrading has incorporated the concerns with sanitary and clean water supply. The improved school facilities have contributed to a safer and more conducive learning environment that students, teachers and parents welcome. The concept and practice of School Development Panning were piloted in selected counties and are spreading beyond pilot schools. Local stakeholders actively participated in the process through establishment of school governing councils and or school community associations. The Participatory Teacher Training is off to a good start in pilot counties and schools. The Chinese Expert Panel and their provincial peers played a significant role in advising the provinces on implementation in their respective skill areas that are key to successful implementation. The loan disbursement has doubled reaching a cumulative total of US$36 million (36 percent), an increase of US$18 million from the last review period. Avian and Human Influenza (AHI) Facility Avian and Human Influenza (AHI) Facility FY2006 US$'million Cash Contributions received during the year 0 Disbursements made during the year 0 82. The multi-donor AHI Facility became operational in the fourth quarter of fiscal 2006 with the goal of minimizing the risk and socio-economic impact of avian influenza by helping client countries meet their financing gaps in their AHI integrated country actions plans, and by increasing human 55 The World Bank Group 2006 Trust Funds Annual Report Annex C Health and Human Development influenza pandemic preparedness more generally. The Facility also helps to ensure that countries are able to control and eliminate avian influenza and to avoid a possible human pandemic. The Facility concept grew out of the International Pledging Conference organized by the Government of the People's Republic of China, the European Commission, and the Bank in January 2006. As of the end of fiscal 2006, a combined commitment of about US$76 million equivalent had been pledged to the Facility by eight donors. 83. The Facility provides support for the elaboration and implementation of integrated country action plans, and for a wide range of related activities. In order to receive support, action plans must be consistent with protocols of the FAO, the World Organization for Animal Health (OiE), and WHO. Each plan must also be endorsed in accordance with the in-country procedures of the Facility's governance structure, and the Bank's Country Director must confirm that other relevant sources of financing cannot be made available. Grant requests of US$3 million or more must undergo an additional review step by an Advisory Board, consisting of the Facility's major donors. As of the end of fiscal 2006, a pipeline of some 40 potential funding proposals had been established, with expectations that about half would be submitted during the first quarter of fiscal 2007. Bangladesh Health, Nutrition and Population Sector Multi-Donor Trust Fund Bangladesh Health, Nutrition and Population Sector Multi- FY2006 Donor Trust Fund US$'million Cash Contributions received during the year 39 Disbursements made during the year 0 84. This US$475 million trust fund, together with a US$300 million IDA credit, support the Government of Bangladesh in implementing its sector-wide Strategic Investment Plan (2003­2010) to modernize the health sector and accelerate progress towards meeting the health-related Millennium Development Goals. The program for 2005­2010, focuses on: (i) strengthening public health sector management and stewardship capacity through development of pro-poor targeting measures and through improvement of sector-wide governance mechanisms; (ii) diversifying the health sector through development of new delivery channels for publicly and privately financed services; and (iii) stimulating demand for essential services by poor households through health advocacy and demand-side financing options. 85. Seven development partners have pooled their finances with IDA including UK, European Community, Sweden, Netherlands, Canada, Germany, and UNFPA. The Bangladesh' HNPSP MDTF is a good example where a large group of donors have worked intensively together towards harmonized procedures for common disbursements to the program. The group of pooling financiers works closely together with the non-pooling partners in the HNP-Consortium. Together with the Ministry all development partners carry out joint annual reviews of the program, thus guaranteeing an effective coordination of the overall support to the program. 56 The World Bank Group 2006 Trust Funds Annual Report Annex D Poverty Reduction and Social Development Annex D POVERTY REDUCTION AND SOCIAL DEVELOPMENT From the trust funded programs in this area, the following were selected to give a flavor of the type of work being carried out with resources provided by donors 1. Japan Social Development Fund 2. Poverty Reduction Strategy Trust Fund 3. Indonesia Strategic Poverty Partnership 4. Africa Catalytic Growth Fund Japan Social Development Fund (JSDF) Japan Social Development Fund FY2006 US$'million Cash Contributions received during the year 48 Disbursements made during the year 36 86. The JSDF, originally established to assist World Bank clients to tackle the poverty and social consequences of the 1997-99 global economic and financial crises, today supports innovative programs which directly respond to the needs of the poorest and most vulnerable groups of society. JSDF grants complement Bank-financed operations, financing programs compatible with the development objectives of Bank country assistance strategies, client countries' poverty reduction strategy papers, or the poverty reduction elements of sector strategies. The grants focus on activities that: (i) respond directly to the needs of the poorest; (ii) encourage testing of innovative methods; (iii) support initiatives that lead to rapid demonstrable benefits with positive prospects of developing into sustainable activities; and (iv) build ownership, capacity, empowerment and participation of civil society groups. 87. During fiscal 2006, eleven Regular Program grants were approved for approximately US$15.2 million. Three of these grants were made to countries in East Asia and the Pacific, three to Africa, two to Latin America and the Caribbean, two to Europe and Central Asia and one to South Asia. Multi-sector grants in public sector governance, social development, gender and inclusion, and social protection and risk management accounted for 66 percent of total grant value; agriculture, fishing and forestry 21 percent; health and other social services 4 percent; and education 9 percent. Also in fiscal 2006, the Government of Japan approved two supplemental grants of just over US$15 million for Afghanistan. Fiscal 2006 also saw the approval of five Seed Fund grants, for a combined total of US$0.2 million, to support activities related to the participatory process for preparing JSDF grant proposals. 88. In January 2005, the Government of Japan allocated US$20 million to the JSDF for grants to support reconstruction measures and improvement of services and facilities for poorer population groups in tsunami-affected countries. During 2006, four grants amounting to US$5.9 million were approved, bringing the total to twelve grants totaling about US$17.4 million. Following the 7.6 Richter scale 57 The World Bank Group 2006 Trust Funds Annual Report Annex D Poverty Reduction and Social Development earthquake that hit Pakistan on October 8, 2005, the Government of Japan approved four grants amounting to approximately US$6.5 million for the reconstruction and recovery of the earthquake affected areas. 89. During fiscal 2006 the Government of Japan made additional contributions to the JSDF general fund of US$48 million (including administrative fee). Poverty Reduction Strategy Trust Fund (PRSTF) Poverty Reduction Strategy Trust Fund FY2006 US$'million Cash Contributions received during the year 0 Disbursements made during the year 3 90. The PRSTF was created in 2001. Activities that have been supported include: (i) setting up or institutionalizing the participatory process; (ii) improving diagnostics and analytic foundations; (iii) improving costing and public expenditure management systems; (iv) strengthening monitoring and evaluation systems for the PRSP; and (v) logistical support including translation and dissemination of poverty reduction strategy documents. Approval of country prepared grant applications is made by an in- country steering committee consisting of representatives of the Bank, UNDP, government, and contributing donors. The fund is currently supported by contributions from Japan, the Netherlands and Switzerland. The closing date for the Trust Fund was extended from its initial four-year timeframe (2001-2005) to October 31, 2008, to afford the opportunity for more countries to be recipients of grant resources. Currently, thirty-three countries have received grants from the PRSTF. 91. Proposals approved in fiscal 2006 amounted to about US$2.4 million. Countries in Africa received the largest share (80 percent) and the remainder went to Europe/Central Asia (20 percent). The grants focused on a wide range of activities, including strengthening civic engagement, promoting the participatory process and enhancing PRS monitoring systems. By the end of fiscal 2006, cumulative grant approvals amounted to US$15.5 million, and cumulative disbursements were about US$8 million. Indonesia Strategic Poverty Partnership (ISPP) Indonesia Strategy Poverty Partnership FY2006 US$'million Cash Contributions received during the year 0 Disbursements made during the year 4 92. The ISPP was established in February 2003, with funding of nearly US$13.5 million, to support background work for the development of strategies for alleviating poverty in Indonesia. The key overall achievement of the program is to place Indonesian poverty within a framework of improved governance and institutional reform. 58 The World Bank Group 2006 Trust Funds Annual Report Annex D Poverty Reduction and Social Development 93. The Strategic Poverty Partnership is now largely complete, although full disbursement will not cease until June, 2007. Overall, the Partnership made a substantial contribution towards achieving the governance and poverty goals described by the Country Assistance Strategy. Some highlights include: Support for the development of the two pillars of what has become the President's national poverty reduction strategy -- a conditional cash transfer program and a national program of community empowerment; Use of anti-corruption action plans across the entire Bank Indonesia portfolio, designed with the assistance of the Partnership funded anti-corruption advisor; Development of the Aceh post conflict reintegration program; and Seed funding for the multi-donor office for Eastern Indonesia. Africa Catalytic Growth Fund (ACGF) Africa Catalytic Growth Fund FY2006 US$'million Cash Contributions received during the year 0 Disbursements made during the year 0 94. The ACGF was established in February 2006 as an innovative mechanism for growth, with an initial pledge from the Government of the United Kingdom (£200 million over the period 2006-2008). The ACGF is designed to provide flexible, targeted support to three categories of borrowers that are under-funded by the current aid allocation system: high performing economies that can achieve accelerated growth and serve as regional models; transformation economies that can demonstrate recent and sustained commitment to reform based on strong leadership; and regional integration initiatives that can increase multi-country public goods or boost competitiveness. The Fund targets countries and investments that can deliver results. There are three categories of entry points for accessing ACGF funds: High performing countries that can achieve higher growth rates and become regional "star players" by breaking a binding constraint to growth or reinforcing new export opportunities Examples include increasing reliability of energy supply, or lowering costs through key transport corridors. Transformation countries that can demonstrate recent and sustained commitment to reform based on strong political leadership, in countries that lack the capacity and resources to implement critical reforms. These countries can be provided with technical and financial assistance to lay the basis for sustained growth and help deliver hard to reach MDGs. Regional integration initiatives that can increase the supply of multi-country public goods or deliver growth opportunities. This is an area of great strategic need for Africa, due to its large number of land-locked resources, poor economies and cross border issues. 59 The World Bank Group 2006 Trust Funds Annual Report Annex E Capacity Building and Technical Advisory Services Annex E CAPACITY BUILDING AND TECHNICAL ADVISORY SERVICES From the trust funded programs in this area, the following were selected to give a flavor of the type of work being carried out with resources provided by donors 1. Policy and Human Resources Development Fund 2. Bank-Netherlands Partnership Program 3. Africa Capacity Building Foundation 4. World Bank Institute Trust Funds 5. Global Development Learning Network 6. Trust Fund for Statistical Capacity Building 7. Knowledge for Change Program Policy and Human Resource Development (PHRD) Fund Policy and Human Resource Development Fund FY2006 US$'million Cash Contributions received during the year 51 Disbursements made during the year 77 95. Established in 1990, the PHRD Fund is financed wholly by the Government of Japan. Its goal is to help alleviate poverty, by developing capacity and supporting the transfer of knowledge and skills with which developing countries can build foundations for sustainable development. 96. In fiscal 2006, the Fund's portfolio of programs included activities at the World Bank Institute, the Japan Consultant Trust Fund, the Joint Japan/World Bank Graduate Scholarship Program, the Technical Assistance Program, the Partnership Program, and the Staff Grants Program. Also within the PHRD Technical Assistance program, allowance was made for exceptional submission of proposals related to Avian Flu for both Project Preparation and Cofinancing grants. 97. In fiscal 2006, Government of Japan contributed US$392 million to World Bank trust funds, of which about US$51 million was provided to the PHRD Fund. During fiscal 2006, 106 technical assistance grants were approved, totaling US$103.5 million. The largest share of fiscal 2006 grants went to EAP region (US$29.8 million), followed by ECA (US$28.9 million) and AFR (US$23.4 million). The grants focused mainly on the agriculture sector (29 grants amounting to US$26.6 million, or 26 percent of total funding) and human development (17 grants amounting to US$25.1 million, or 24 percent of total approval). 98. In fiscal 2006, with US$12.4 million, the Joint Japan-World Bank Graduate Scholarship program was able to finance 331 scholars from 103 developing countries, some being from the poorest countries in 60 The World Bank Group 2006 Trust Funds Annual Report Annex E Capacity Building and Technical Advisory Services the world. About forty percent of the scholarships have been awarded to candidates from African countries. Bank-Netherlands Partnership Program (BNPP) Bank-Netherlands Partnership Program FY2006 US$'million Cash Contributions received during the year 22 Disbursements made during the year 35 99. The strategic objective of the BNPP aligns with the Bank's development agenda which aims to achieve sustainable poverty reduction by focusing on the MDGs. BNPP finances activities that help address regional and global issues such as environmental threats, communicable diseases (HIV/AIDS), improving reproductive health, achievement of universal primary education, better governance through better service delivery, trade facilitation and regional integration. The interrelated pillars that underpin the BNPP priorities include building the climate for investment, providing knowledge, advisory services, capacity building and gender-specific interventions. 100. During the first half of fiscal 2006, 46 grants amounting to US$19.5 million were approved to support BNPP activities in four Networks. The largest share of the grants went to the HD Network (14 proposals for Basic Education, HIV/AIDS and Reproductive Health amounting to US$7.9 million), followed by the PREM Network (18 proposals for Good Governance and Trade amounting to US$7.4 million), ESSD Network (9 proposals for environmental sustainability activities amounting to US$3.4 million) and the PSD Network (5 proposals for Private Sector Development activities amounting to US$0.8 million). 101. Since program inception, the Government of the Netherlands has contributed more than US$566 million to the BNPP. Total contributions during fiscal 2006 amounted to US$22 million. This includes contributions through the BNPP to multidonor programs such as Nile Basin Initiative (US$10.2 million), FIRST (US$2.7 million), APOC II (US$2.9 million), TFSCB II (US$1.2 million) and PPIAF II (US$0.5 million). Africa Capacity Building Foundation (ACBF) Africa Capacity Building Foundation FY2006 US$'million Cash Contributions received during the year 19 Disbursements made during the year 25 102. The Partnership for Capacity Building in Africa (PACT) was initiated as a collaborative effort among the World Bank, the African Development Bank, and UNDP in 1995. In January 2000, the ACBF, which was established in 1991 as an element of the "African Capacity Building Initiative", assumed responsibility for PACT. The program provides grants and technical support to some 40 countries in sub-Saharan Africa and to about 34 regional and continental institutions. ACBF currently has 37 funding partners, including four multilaterals, 13 non-African bilaterals, and 20 African countries, some of whom are represented on its Board of Governors. 61 The World Bank Group 2006 Trust Funds Annual Report Annex E Capacity Building and Technical Advisory Services 103. ACBF has delivered a substantially larger scale of its operations under its 2002-2006 Strategic Medium Term Plan (SMTP I). It supports 67 national institutions and 12 knowledge networks. Its emphasis on knowledge networks across countries has emerged as a real comparative advantage and niche. A key aspect of ACBF's activities has been its support to government and non-government policy think-tanks in more than 20 Sub-Saharan African countries, with the majority governed by independent, politically non-partisan and highly-respected governing boards and professional steering committees. Many have won a visible and credible voice in their country's policy discourse through a combination of solid applied research, knowledge sharing programs, effective outreach, and a reputation for delivering high-quality products commissioned by governments, the private sector, civil society and the donor community. World Bank Institute (WBI) Partnerships World Bank Institute FY2006 US$'million Cash Contributions received during the year 6 Disbursements made during the year 4 104. The WBI delivers capacity development programs which aim to help countries share and apply global and local knowledge to meet development challenges. Working in partnership is critical to WBI in delivering its country-specific, regional, and global programs. Partnering with donor institutions -- development cooperation agencies, multilateral institutions, foundations, and private corporations -- leverages WBI's resources and makes its programs more cost-effective by coordinating activities and harmonizing approaches. These "resource partners" commit financial, technical, or intellectual resources that help WBI extend the reach, deepen the content, or prolong the engagement of its programs. 105. Resource partners now contribute funds that amount to about half the Institute's working capital (or a 1:1 ratio of trust funds to Bank budget working capital expenses). The majority of these financial contributions are from the bilateral donors, such as Austria, Belgium, Canada, Denmark, Finland, France, Ireland, Italy, Korea, Norway, Spain, Sweden, Switzerland, the United Kingdom, and the United States, with the remainder from foundations, the private sector, and other organizations. WBI has also received funding from the WBI Capacity Development Grants Window of the Japan-supported PHRD fund, the BNPP, and other World Bank-administered trust fund programs. 106. In fiscal 2006, some US$27.7 million were available to WBI in trust and US$4 million were disbursed during the year. With the support of these contributions, the Institute delivered more than 800 learning activities for clients reaching 90,000 participants in 116 countries. 107. Increasingly, the relationships with donors go beyond the provision of finance where WBI engages with them in the areas of strategy and content, operations, communications and external affairs, and institutional learning. 62 The World Bank Group 2006 Trust Funds Annual Report Annex E Capacity Building and Technical Advisory Services Global Development Learning Network (GDLN) Global Development Learning Network FY2006 US$'million Cash Contributions received during the year 5 Disbursements made during the year 2 108. Initiated by the World Bank in June 2000, the GDLN is a worldwide partnership of learning centers that offer their facilities and services to the development community. These include videoconferencing and internet-based technologies, as well as learning and communication methods that allow people in different locations to interact as if they were in the same place. Through these technologies and techniques, GDLN Affiliates enable their clients to connect across distances for consultation, coordination, and training events in a timely and cost-effective manner. At the end of fiscal 2006 the Network counted more than 120 Affiliates in over 80 countries. GDLN Affiliates in middle income countries are increasingly able to reach people and locations far beyond capital cities by connecting with local partners such as National Research and Education Networks or commercial networks. 109. The World Bank supports GDLN in a variety of ways. In early fiscal 2006, recognizing the value that GDLN brings to the work of project teams and their in-country counterparts, the Bank's regional departments took over responsibilities for emerging regional GDLN associations and groups. The World Bank Institute hosts a small GDLN secretariat that focuses on the global aspects of the partnership, as well as a logistics team to support GDLN clients in working with Affiliates around the world. The Bank's Information Solutions Group provides the technology backbone for setting up videoconferences and connecting those Affiliates who would otherwise not have access to service providers. 110. Today, well over two-thirds of GDLN clients are organizations external to the World Bank, including academic institutions holding training and learning courses, development agencies or NGOs seeking dialogue with partners across the globe, and government agencies coordinating with partners on policy issues. In fiscal 2006, GDLN Affiliates hosted close to 1000 activities on behalf of their clients, providing expert facilitation, event coordination, and technology services. Most of these activities were initiated by NGOs and smaller government agencies. Trust Fund for Statistical Capacity Building (TFSCB) Trust Fund for Statistical Capacity Building FY2006 US$'million Cash Contributions received during the year 3 Disbursements made during the year 1 NOTE: The table above does not reflect funds transferred from other programmatic sources. Such transfers are reflected in the corresponding tables for the originating source programs. 111. Established in fiscal 2000, the TFSCB is a multi-donor trust fund that is part of a worldwide effort to improve the supply of, and demand for, statistical data relevant to poverty alleviation, and to 63 The World Bank Group 2006 Trust Funds Annual Report Annex E Capacity Building and Technical Advisory Services foster a culture of evidence-based decision making. In particular, TFSCB helps developing countries set out a medium to long-term strategic vision for their statistical systems, to prepare programs and plans to put this vision into effect, and then to implement specific capacity building projects. A follow-on trust fund (TFSCB-II) was set up in 2004, and the original fund was closed at the end of calendar year 2005. 112. TFSCB finances two types of projects: (i) technical and financial support to the preparation of National Strategies for the Development of Statistics (NSDS), which define the best national long-term strategy to develop an efficient and sustainable statistical system in the recipient country; and (ii) non- NSDS projects, which provide support to capacity building in specific priority sectors. These projects may target the implementation of one or more critical components of the NSDS. All non-NSDS projects are based on a formal assessment of the statistical system and demonstrate how they will address the main capacity weaknesses. 113. TFSCB-I has been supported by five donor countries--the Netherlands, United Kingdom, Germany, Switzerland and France. TFSCB-I (closed by end 2005) invested about US$11.8 million in 55 projects. TFSCB-II has the same donor countries and had contributions from them in the amount of US$11.5 million thus far. Around US$8.3 million of this amount had been allocated to 44 projects. So far, TFSCB (I and II) has invested over US$20.2 million in 98 statistical capacity building projects across the world. These projects have helped countries address key capacity constraints in their statistical systems and develop strategic approaches to building efficient and effective national statistical systems. TFSCB supported the development of NSDSs in 46 countries. TFSCB has also succeeded in stimulating additional investments from other sources, an additional US$22 million, including from government budgets of the recipient countries. 114. In order to streamline statistical capacity building activities with the Bank's overall operations and to improve the supervision and implementation of individual projects, TFSCB-III was established. TFSCB III will allow some funds to be allocated for overall oversight of TFSCB and for supervision of individual projects, as this has proved to be one area where it has been difficult to ensure availability of resources on a sustainable basis. The same donors will contribute to the TFSCB-III, and more donors are anticipated to join. Further, un-disbursed funds from TFSCB-I will be transferred to the newly established TFSCB-III. Knowledge for Change Program (KCP) Knowledge for Change Program FY2006 US$'million Cash Contributions received during the year 2 Disbursements made during the year 3 115. The KCP serves as an effective, transparent and efficient vehicle for the pooling of intellectual and financial resources for data collection, analysis, and research supporting poverty reduction and sustainable development. It encourages and facilitates the Bank's dialogue with partner agencies, developing country clients, and other interested parties. A subsidiary objective is to assist data collection, analysis, and research capacity in the Bank's client countries. The focus of the KCP is to move quickly into areas and development issues where the creation of new knowledge is likely to assist the formulation of better policies with a greater impact on poverty. 116. The three trust funds established under the KCP support activities related to the overarching themes of: (i) poverty dynamics and basic services delivery; (ii) investment climate and trade & 64 The World Bank Group 2006 Trust Funds Annual Report Annex E Capacity Building and Technical Advisory Services integration; and (iii) global public goods. The first addresses issues at the heart of poverty reduction, empowerment and sustainable development; the second focuses on the major elements of a business program conducive to growth, with emphasis on the role of small and medium-scale industries; and the third focuses on global issues that require collective action and coordination across countries, as lack of action or progress in some countries could undermine benefits for all. The Bank is responsible for administering the KCP. However, the KCP partners form a Consultative Group, which meet yearly to discuss the strategic direction of the program, as well as its progress and accomplishments. 117. Cumulative cash contributions in the amount of US$12.4 million have been received from donors as of June 30, 2006. Japan and the Netherlands have communicated their intent to join the KCP and negotiations are ongoing on the administrative arrangements. With these two new donors, the aggregate amount of the Program is expected to exceed US$20 million. 65 The World Bank Group 2006 Trust Funds Annual Report Annex F Post-Conflict Reconstruction and Natural Disasters Annex F POST-CONFLICT RECONSTRUCTION AND NATURAL DISASTERS From the trust funded programs in this area, the following were selected to give a flavor of the type of work being carried out with resources provided by donors 1. Post-Conflict Fund 2. Low-Income Countries Under Stress Trust Fund 3. Iraq Trust Fund 4. Afghanistan Reconstruction Trust Fund 5. Trust Fund for Gaza and West Bank 6. West Bank and Gaza: Public Financial Management Reform Trust Fund 7. Trust Fund for East Timor 8. Timor-Leste Transition Support Program 9. Multi-Country Demobilization and Reintegration Program 10. Multi Donor Fund for Aceh and Nias 11. Sudan Multi Donor Trust Funds Post-Conflict Fund (PCF) Post-Conflict Fund FY2006 US$'million Cash Contributions received during the year 8 Disbursements made during the year 7 118. The PCF was established in 1997 to enhance the World Bank's ability to support innovative activities in conflict-affected countries and countries transitioning from conflict to sustainable peace and development, activities which are often not possible under regular Bank operations. The PCF supports implementation, piloting and analysis of ground-breaking activities through grants to a wide range of partners (NGOs, UN agencies, transitional authorities, governments, and other civil society institutions), in order to provide earlier and broader Bank assistance to conflict-affected countries. The PCF favors innovative approaches to address conflict and development issues, and partnerships with donors and executing agencies. 119. To date, the PCF has received US$73.5 million from the World Bank's Development Grant Facility and an additional US$7.7 million from bilateral and multilateral donors. During fiscal 2006, the PCF committed US$5.2 million through 14 new grants, and US$2.6 million through additional allocations to existing grants. As of June 30, 2006, the PCF had approved a total of US$84.2 million for 171 grants, and disbursed US$69.5 million. 66 The World Bank Group 2006 Trust Funds Annual Report Annex F Post-Conflict Reconstruction and Natural Disasters Low-Income Countries Under Stress (LICUS) Implementation Trust Fund Low-Income Countries Under Stress Implementation Trust FY2006 Fund US$'million Cash Contributions received during the year 26 Disbursements made during the year 8 120. The LICUS Implementation Trust Fund was established in January 2004 with a US$25 million grant from the World Bank's surplus income to support integrated re-engagement strategies in the most severe LICUS in non-accrual status with the Bank. In fiscal 2006, LICUS was replenished with an additional US$25 million grant. The fund is designed to support those countries that have the most severe governance problems and are most vulnerable to conflict. The fund primarily finances integrated programs that are outlined in a country re-engagement note, rather than one-off activities. It is an important source of funding for transition activities in post-conflict countries that are not yet eligible for post-conflict grant financing from IDA. While IDA includes provisions for pre-arrears clearance assistance to post-conflict countries, such assistance requires an agreed arrears clearance plan, which may take considerable time to develop in countries with complex and large arrears. The LICUS Trust Fund can help to fill this gap. Grants focus primarily on capacity building to support governance reform and strengthening social service delivery. 121. Up to June 30, 2006, the fund had committed US$41 to nine countries (Central African Republic, Comoros, Haiti, Liberia, Somalia, Sudan, Togo, Zimbabwe, and Côte d'Ivoire) with a further US$14.3 million in the pipeline for Guinea Bissau, Central African Republic, Timor Leste, Solomon Islands, Burundi, Cambodia, and the Democratic Republic of Congo. These grant programs cover a broad range of interventions. In Haiti, interventions ranging from infrastructure rehabilitation to school feeding programs are ending, in a program that supported the transition through arrears clearance into regular IDA lending. In southern Sudan, grants are supporting the new government in creation of basic systems for planning, budget formulation, and procurement; while in Somalia grants have supported community health services, distance-learning access, training in public finance management, and socioeconomic data gathering and analysis. In Liberia and in the Central African Republic, grants are funding actions to improve economic governance and expand the delivery of social services in critical post-election transition periods. Iraq Reconstruction Trust Fund (IRTF) Iraq Trust Fund FY2006 US$'million Cash Contributions received during the year 53 Disbursements made during the year 37 NOTE: The table above does not reflect funds transferred from other programmatic sources. Such transfers are reflected in the corresponding tables for the originating source programs. 122. In October 2003, the international donor community approved the International Reconstruction Fund Facility for Iraq, comprising the World Bank IRTF and the United Nations Development Group Iraq Trust Fund, which are linked through a common governance structure to ensure close coordination. The IRTF was established in January 2004 to support the reconstruction and rehabilitation of Iraq. It finances 67 The World Bank Group 2006 Trust Funds Annual Report Annex F Post-Conflict Reconstruction and Natural Disasters emergency operations and capacity building programs in the priority areas identified by a joint UN/World Bank Needs Assessment and validated by the Iraqi authorities. The IRTF does not finance quick- disbursing Government recurrent expenditures, humanitarian relief, peace-keeping activities, or other security, military, or political interventions. 123. As of June 30, 2006, seventeen donors had deposited US$454 million into the IRTF, and the Bank and Iraqi authorities had signed Grant Agreements for twelve projects amounting to US$395 million, thereby committing nearly all IRTF available funds. Nine of the twelve emergency projects provide US$383 million in grants implemented by Iraqi institutions that concentrate on improving the delivery of basic services throughout Iraq. During fiscal 2006, new grant funding focused on strengthening Iraq's ability to provide support to vulnerable populations. The Emergency Disabilities Project (US$19.5 million) aims to improve services to disabled populations by developing a comprehensive legal and policy framework for addressing disability issues, and reconstructing fourteen rehabilitation centers. Three projects, totaling US$11 million, are Bank-executed technical assistance projects, which aim to strengthen project and economic management skills, and modernize public administration. 124. The implementation of IRTF projects has been affected by the difficult security situation and significant political transitions since the launch of the program. The World Bank intends to provide on- going close and pro-active support to Iraqi implementing agencies to maximize the pace of implementation, while maintaining appropriate mitigating controls to ensure that funds are used for the intended purposes. Afghanistan Reconstruction Trust Fund (ARTF) Afghanistan Reconstruction Trust Fund FY2006 US$'million Cash Contributions received during the year 363 Disbursements made during the year 335 125. The ARTF was established in May 2002 to serve as a coordinated financing mechanism for the Government's recurrent budget and priority reconstruction programs and projects. To date, ARTF has successfully mobilized US$1.64 billion in grant contributions from 25 bilateral donors, of which US$404 million were paid in the Afghan Government's last fiscal year SY1384 (21 March 2005­20 March 2006), and US$412 million are pledged for the current fiscal year, SY1385 (21 March 2006-20 March 2007). 126. ARTF is governed by a Management Committee consisting of representatives of the ADB, Islamic Development Bank, UNDP and the World Bank, with day-to-day fund administration performed by the World Bank. The Government of the Islamic Republic of Afghanistan participates in the Management Committee meetings as an observer. A Monitoring Agent has been appointed by the World Bank to ensure proper fiduciary management. A Donor Committee is regularly convened to discuss the management and administration of ARTF and provide policy guidance. 127. ARTF is the primary instrument for financing the civilian operating budget. As of June 30, 2006, US$864 million had been disbursed to fund civil servants' salaries and the Afghan Government's operations and maintenance expenditures. There are 11 ongoing investment projects with a combined allocation of US$305 million, of which US$190 million had been disbursed. To enhance the strategic use 68 The World Bank Group 2006 Trust Funds Annual Report Annex F Post-Conflict Reconstruction and Natural Disasters of ARTF resources, the Government is preparing a medium-term fiscal and expenditure framework to underpin resource allocations for priority programs. West Bank and Gaza: Trust Fund for Gaza and West Bank (TFGWB) Trust Fund for Gaza and West Bank FY2006 US$'million Cash Contributions received during the year 0 Disbursements made during the year 20 128. The World Bank's West Bank and Gaza program began operations in 1993 after the signing of the Oslo Accords. Since West Bank and Gaza is not a sovereign state, it cannot apply for membership of the IMF or the World Bank Group, and is therefore not eligible for the sources of financing normally available to member countries. Instead, the Bank's Board of Governors on November 11, 1993 approved a US$50 million grant to be transferred from surplus into TFGWB. To date, the Trust Fund has been replenished five times for a total allocation of US$460 million, most recently in December 2003. The West Bank and Gaza portfolio currently consists of 10 projects, a number of which have been designed to respond to the current emergency facing the Palestinian population. The Trust Fund disbursed US$20 million in fiscal 2006. West Bank and Gaza: Public Financial Management Reform Trust Fund West Bank and Gaza- Public Financial Management Reform FY2006 Trust Fund US$'million Cash Contributions received during the year 116 Disbursements made during the year 96 129. In response to the perilous fiscal situation facing the Palestinian Authority, in December 2003 the Bank was asked by the PA and the donors to create a new mechanism through which donors would be encouraged to provide pooled contributions, to be disbursed into the Single Treasury Account (STA) of the Ministry of Finance. The Fund's main focus was to support improved PA financial management within a broader national reform agenda. Disbursements from the Reform Fund were made based upon the achievement of certain benchmarks, a number of which were derived from the Bank's June 2004 Country Financial Accountability Assessment (CFAA). The Fund closed in June 2006, having disbursed a total of US$273.4 million. 130. Donors to the Reform Fund include Norway, Canada, United Kingdom, Japan, Australia, Korea, France, New Zealand, Spain, the Netherlands and the European Commission (by far the largest donor). 69 The World Bank Group 2006 Trust Funds Annual Report Annex F Post-Conflict Reconstruction and Natural Disasters Timor Leste: Trust Fund for East Timor (TFET) Trust Fund for East Timor FY2006 US$'million Cash Contributions received during the year 5 Disbursements made during the year 12 131. The multi-donor TFET, one component of the overall assistance pledged to Timor-Leste during a December 1999 donor meeting in Tokyo, provides grants in support of reconstruction and development activities focused on physical rehabilitation of social and economic infrastructure, sectoral policy development, and recovery of the private sector. The allocation of funds among sectors and the prioritization of projects are decided by Timorese representatives. All activities are implemented by agencies of the Government of Timor-Leste, with support from the World Bank and the ADB. 132. Under the Second and Third Agriculture Rehabilitation Projects, 1,648 hectares of irrigation schemes and 42 kilometers of access roads were rehabilitated, and eight policies were drafted of which three were approved - MAFF Policy and Strategy, Quarantine Regulation, and Water Policy. With the assistance of the Fundamental School Quality Project, 10 policy papers were finalized, 63 new primary schools and four new Escolas Basicas were constructed, 12 new primary schools were under construction and 23 were refurbished; the construction of new hospitals in Maubisse, Oecussi and Maliana and the Central Laboratory was initiated, as well as the rehabilitation work for the National Hospital. 250 km of road were also rehabilitated/ stabilized under the second Emergency Infrastructure Rehabilitation Project. Further, the Small Enterprises Project rehabilitated 34 small markets, completed construction of 13 new markets, undertook construction of 10 markets, completed final design for 8 new markets, delivered entrepreneurial and financial training to more than 8,000 people, and established an export and investment promotion agency. 133. Disbursement rates have increased in the first three quarters despite the winding down of several projects but slowed down due to the civil unrest. As of end fiscal 2006, donor contributions to TFET, in the form of cash and promissory notes, remained at US$177.9 million, and out of those, US$177.6 million had been committed to projects. In alignment with the Sector Investment Programs, Government and donors agreed at the Timor-Leste Development Partners Meeting in April 2005 and April 2006 to allocate this surplus to the Power Sector Priority Investment Project and to the Gas Seep Harvesting Project. Timor-Leste: Consolidation Support Program (CSP) Timor-Leste Consolidation Support Program FY2006 US$'million Cash Contributions received during the year 0 Disbursements made during the year 0 134. The Government of Timor-Leste requested the Bank to extend its budget support program to Timor-Leste for an additional three years, through fiscal 2008. The new operation, CSP, reflects the move from transition to consolidation of gains made thus far. For three years, the annual Transition Support Program provided a framework for grant financed multi-donor budgetary support to the implementation of the National Development Plan in Timor-Leste. The Transition Support Program 70 The World Bank Group 2006 Trust Funds Annual Report Annex F Post-Conflict Reconstruction and Natural Disasters focused on three thematic areas: (i) service delivery for poverty reduction; (ii) job creation; and (iii) good governance reflecting the country's strategic priorities. The CSP continues these foci with the addition of infrastructure under service delivery. 135. The rationale for continuing multi-donor budget support under CSP is two-fold. On the policy side, the Government of Timor-Leste argues that the program brings critical support in: (i) establishing priorities and assisting the Government to focus on critical areas; (ii) monitoring progress in policy implementation and achievement of results; (iii) building government capacities; and (iv) supporting donor coordination and harmonization. On the funding side, due to increased oil revenues and savings, budgetary support is not critical. Nonetheless, the Government appreciates the framework for policy prioritization, implementation and monitoring, and donor coordination and harmonization, which the program delivers towards the NDP implementation. 136. With current developments in Timor-Leste, the governance area has seen its critical importance raised. A compact program covering from security, police, electoral issues, humanitarian and development matters, needs to be prepared and the Government had once again requested the Bank to assist its preparation, and to coordinate and harmonize the efforts of the development partners. This exercise will be done by the Government and jointly assisted by the Bank and the UN. Multi-Country Demobilization and Reintegration Program (MDRP) Multi-Country Demobilization and Reintegration Program FY2006 US$'million Cash Contributions received during the year 53 Disbursements made during the year 88 137. Launched in 2002, the MDRP Multi-Donor Trust Fund supports a regional planning and financing framework for the demobilization and reintegration (D&R) of a currently estimated 400,000 combatants in Angola, Burundi, the Central African Republic (CAR), the Democratic Republic of Congo (DRC), the Republic of Congo (RoC), Rwanda and Uganda. Recognizing that not one agency can manage the complex political, security, humanitarian and developmental challenges of a D&R program of this scale, the MDRP was set up as a partnership of seven national governments, eleven donors, and some thirty international partners ­ including UN organizations and NGOs. 138. The MDRP supports three broad areas of activity: (i) National D&R Programs that are executed by the national government; (ii) Special Projects executed by NGOs and UN agencies providing D&R support in atypical circumstances; and (iii) Regional Activities that aim to better understand and address cross-cutting issues, such as Combatants on Foreign Soil, security sector reform or links with AIDS. 139. Overall, grants have been approved for: Angola (US$48.4 million for a National Program and US$4.3 for a Special Project); Burundi (US$41.8 million for a National Program and US$3.5 million for a Special Project); CAR (US$9.8 million for a Special Project in lieu of a national program); DRC (US$100 million for a National Program and US$38.3 million for eight special projects); Rwanda (US$14.4 million for a National Program); RoC (US$17 million for a National Program); and Uganda (US$4.2 million for a Special Project). 140. The Trust Fund that co-finances the MDRP with IDA is worth an estimated US$320 million, of which US$215 million has been committed by MDRP donors to date. During fiscal 2006, the Trust Fund 71 The World Bank Group 2006 Trust Funds Annual Report Annex F Post-Conflict Reconstruction and Natural Disasters received cash contributions equivalent to US$53 million, and disbursed almost US$88 million for program activities and management. Multi-Donor Fund for Aceh and Nias (MDF) Multi-Donor Fund for Aceh and Nias FY2006 US$'million Cash Contributions received during the year 218 Disbursements made during the year 148 141. The December 26, 2004 earthquake and tsunami caused unprecedented destruction to several countries surrounding the Indian Ocean. The province of Aceh in Indonesia was worst affected, with approximately 130,000 people confirmed dead and another 37,000 missing. On March 28, 2005, another strong earthquake caused further destruction on the island of Nias, off the coast of Sumatra near Aceh in Indonesia. In the wake of the enormous outpouring of international aid for all affected nations, the Government of Indonesia faced the challenge of ensuring that the large influx of funds were managed effectively, and in a coordinated and transparent way. It thus established a dedicated Agency for Rehabilitation and Reconstruction (BRR) to coordinate and oversee the entire reconstruction process and to implement the Government's US$2.1 billion reconstruction portfolio. The Government of Indonesia also requested that the World Bank set up the MDF as a mechanism to ensure efficient and coordinated delivery of financial support. To date, the MDF's fifteen donors have contributed US$538 million for disbursement through this mechanism, and several donors are currently in the process of making additional contributions to the Fund. 142. The MDF aims to contribute to the recovery of Aceh and Nias by reconstructing communities, reconstructing large-scale infrastructure, rebuilding capacities of local government and private sector entities, sustaining the environment and rebuilding livelihoods. As of June 2006, the MDF Steering Committee had endorsed twelve projects valued at US$330 million, while another four projects, worth US$162 million, were under development. All projects undergo a BRR selection process prior to approval to ensure that they fill key financial gaps in priority sectors of the reconstruction. The strong partnership between the GOI and the MDF is reflected in BRR's commitment to contribute US$240 million of their own funds to co-finance three of the four MDF projects now under development. 143. As of June 2006, 709 new houses had been built and 326 repaired through community participatory processes using MDF funds, with work underway on a further 1,668 new houses and 1,111 damaged houses. The Funds' projects had also disbursed village block grants to more than 5,700 communities, helping to rebuild more than 1,000 km of village roads, 410 bridges, around 300 clean water units and approximately 320 sanitation units. Nearly 5,000 pupils have received scholarship support, and 3,700 individuals received small credits. Other important and ongoing contributions to the reconstruction made by the MDF portfolio include the clearing of tsunami generated waste from cities and agricultural areas, support for the resumption of municipal waste services, preparation of port designs for the completely destroyed harbors along the west coast of Aceh, flood mitigation to protect investments made in Banda Aceh city. MDF funds also support capacity building for local governments in affected areas to help prepare the provincial and district governments to continue development of the region once reconstruction is complete. 72 The World Bank Group 2006 Trust Funds Annual Report Annex F Post-Conflict Reconstruction and Natural Disasters Sudan Multi-Donor Trust Funds Sudan Multi-Donor Trust Funds FY2006 US$'million Cash Contributions received during the year 240 Disbursements made during the year 12 144. The Comprehensive Peace Agreement agreed between the Government of Sudan and the Sudan People's Liberation Movement (SPLM) specified that two Multi-Donor Trust Funds be established to facilitate the coordination of external donor financing of Sudan's reconstruction and development needs as laid out in the Joint Assessment Mission. One fund would be for the new Government of National Unity (GNU) for war-affected areas in the North and the transition zones, and one for the government of Southern Sudan (GoSS). The Multi-Donor Trust Funds would remain operational through the six years of the Interim Period. MDTF-financed activities would be within the context of a unified budget and a coherent public expenditure process. Approximately US$500 million was pledged in Oslo toward the two Trust Funds, nearly all of which has been formally committed over 2005-2007. The World Bank is the Administrator for both MDTFs. 145. The MDTF implementation strategy, from the outset, was to deliver peace dividends in the post- conflict setting of Sudan, characterized by high needs, limited capacity and high oil revenues. It does so through two main implementing channels: government ministries and UN agencies; and NGOs and the private sector are also envisaged to be implementing partners. In South Sudan, implementation using government ministries would also foster good governance, through a cost-sharing arrangement whereby the government would use World Bank fiduciary practices and thus begin functioning on a solid fiduciary footing. 146. To date, US$540 million have been committed to the two MDTFs (National (N): US$196 million and South Sudan (SS): US$344 million) and of that amount, US$282 million has been paid into the Funds (N: US$97 million and SS: US$185 million), including a US$10 million contribution from Bank net income. Eleven Grant Agreements have been signed, worth US$146 million (N: US$40 million and SS: US$106 million); and all projects are effective. The projects are co-financed by government and leverage an additional US$195 million (N: US$30 million and S: US$165 million). Additional projects are in the pipeline. Disbursements from the MDTF are now picking up and amount to US$55 million (N: US$12 million and SS: US$43 million). 73 The World Bank Group 2006 Trust Funds Annual Report Annex G Financial and Private Sector Development Annex G FINANCIAL AND PRIVATE SECTOR DEVELOPMENT From the trust funded programs in this area, the following were selected to give a flavor of the type of work being carried out with resources provided by donors 1. Asia-Europe Meeting Asian Financial Crisis Response Funds 2. Financial Sector Reform and Strengthening Initiative 3. Consultative Group to Assist the Poor Asia-Europe Meeting (ASEM) Asian Financial Crisis Response Funds (TF1 and TF2) Asia-Europe Meeting Asian Financial Crisis Response FY2006 Funds US$'million Cash Contributions received during the year 0 Disbursements made during the year 14 147. The ASEM trust fund was initially established in 1998 to provide support to countries hit by financial crisis. The Asia-Europe Meeting is itself an informal platform for dialogue and cooperation between European Union member states, the European Commission, and ten Asian countries. A second trust fund (ASEM TF2) became operational in April 2001 with contributions from China, the European Community, Denmark, Finland, France, Korea, the Netherlands, Sweden, and UK. It maintains the focus on social welfare and safety nets and financial and corporate restructuring; and its active portfolio is composed of 46 grants totaling US$28.8 million. Total grant disbursements as of end June 2006 were US$20.5 million, of which US$14 million was disbursed in fiscal 2006. 148. Early indications point to the fact that most completed grants have achieved their objectives of policy improvements and effective program implementation. Within each country, several grants have played a fundamental role in bringing about key policy reforms. On this basis, a recent evaluation sponsored by the EC judged that a large proportion of the ASEM TF2 completed grants had a "high" or "reasonable" impact (50 percent for the economic and financial/corporate sectors, and 48 percent for the social sector). The evaluators' judgments of impact were qualitative. The evaluators assessed how individual grants have contributed to achievement of significant economic or social reforms. The evaluators judged a grant to have achieved high impact if it had already contributed significantly to the achievement of policy reforms in the area of the grants' focus. 149. The ASEM has provided a useful model for donor-government exchanges on critical issues affecting the development of a country in a focused manner. The in-country steering committees played proactive roles in policy debates, grant monitoring and implementation, and there was a general recognition that ASEM trust funds had made positive contributions to the abilities of countries to withstand crises, and reduce poverty and vulnerability. 74 The World Bank Group 2006 Trust Funds Annual Report Annex G Financial and Private Sector Development Financial Sector Reform and Strengthening (FIRST) Initiative Financial Sector Reform and Strengthening Initiative FY2006 US$'million Cash Contributions received during the year 9 Disbursements made during the year 9 150. The FIRST Initiative is a US$65 million, multi-donor program whose overall objective is to strengthen financial systems in developing countries. FIRST is supported by the World Bank, IMF, UK, Canada, Switzerland, Netherlands and Sweden. 151. FIRST provides technical assistance grants to recipients in developing and transition countries for capacity building and policy development in financial sector regulation, supervision, and development. By the end of June 2006, FIRST had approved 214 projects with commitments totaling US$39 million, of which 51 had been completed. FIRST also maintains an Information Exchange, an online portal to disseminate information on financial sector development assistance, and AskFIRST, a help desk service for all inquiries regarding financial sector development. The Information Exchange includes the most comprehensive global database of financial sector development projects with over 1,900 projects in 144 countries. Together, the Information Exchange and AskFIRST are a "one-stop shop" for delivering information on the financial sector reform and strengthening efforts of the official donor community. Consultative Group to Assist the Poor (CGAP) Consultative Group to Assist the Poor FY2006 US$'million Cash Contributions received during the year 8 Disbursements made during the year 17 152. CGAP is a global partnership of thirty-three bilateral and multilateral development agencies and private foundations working together to expand poor people's access to sustainable financial services. Its goal is to scale up microfinance by helping to build inclusive financial systems. To this end, CGAP's work focuses on five strategic priorities: Promoting a diversity of financial institutions that serve poor people. In fiscal 2006, partner institutions that started downscaling activities included Cairo-Amman Bank (Jordan), BBS (Botswana), Ecobank (Ghana), Equity Bank (Kenya), Capitec (South Africa), and Forus Bank (Russia). Developing diverse pro-poor financial services. In fiscal 2006 outputs included (i) an operational guide for microfinance providers that are interested in offering money transfer services to their clients; (ii) development and dissemination of technical tools for assessing small- scale savings mobilization at the country level; and (iii) publication of a paper making the case for linking social safety nets and microfinance programs through careful sequencing of grants and appropriate financial services 75 The World Bank Group 2006 Trust Funds Annual Report Annex G Financial and Private Sector Development Improving the policy and regulatory environment. In fiscal 2006 CGAP provided country- level policy consultations to more than ten countries, through country-level policy diagnostics and reviews of microfinance legislation. Building transparency of the financial and social performance of microfinance providers. In fiscal 2006, the MIX, CGAP's web-based information service, provided in-depth standardized financial data on nearly 700 MFIs and 70 donor investor funds. Improving microfinance funders' practices. In fiscal 2006, two private foundations -- the Michael and Susan Dell Foundation, and the Bill and Melinda Gates Foundation -- became members of CGAP. 76 The World Bank Group 2006 Trust Funds Annual Report Annex H Trust Funds Administered by IFC and MIGA Annex H TRUST FUNDS ADMINISTERED BY IFC AND MIGA In addition to the trust funded activities carried out by the World Bank (IBRD and IDA) described above, the following institutions of the World Bank Group also administer donor funded trust funds and programs 1. International Finance Corporation 2. Multilateral Investment Guarantee Agency International Finance Corporation (IFC) International Finance Corporation FY2006 US$'million Cash Contributions received during the year 231 Disbursements made during the year 134 153. Technical Assistance and Advisory Services (TAAS) are central to the development mission of IFC and a core line of its business, in addition to investment. In fiscal 2006, IFC managed about US$134 million in TAAS program expenditures. Project Development Facilities and Private Enterprise Partnership programs accounted for 65 percent of TAAS spending, the Technical Assistance Trust Fund program for about 9 percent, and the Foreign Investment Advisory Service and the Sustainable Business Advisory programs jointly for another 23 percent. The balance of spending occurred in other TAAS programs. Selected programs are described below. 154. In fiscal 2006, IFC had TAAS projects in over 80 countries. Almost half of TAAS projects were implemented in frontier (high-risk, low income) countries and about third were related to investment operations. 155. During the last fiscal year, IFC introduced important changes to its guiding principles and internal processes for TAAS. IFC organized its TAAS operations along five business lines (Business Enabling Environment, Access to Finance, Environmental and Social Responsibility, Infrastructure and Public Private Partnerships, Value Addition to Firms) and strengthened monitoring and evaluation for TAAS operations. Technical Assistance Trust Funds Program (TATF) 156. Since its establishment in 1988, the TATF program has been instrumental in piloting many innovative ideas that are now central to IFC's technical assistance and advisory work. The program is a key instrument for funding and managing donor-funded technical assistance. It covers practically all sectors and regions in which IFC is active and provides funding for one-time, short-term TAAS assignments (typically not exceeding 12 months) aimed at private sector development. 77 The World Bank Group 2006 Trust Funds Annual Report Annex H Trust Funds Administered by IFC and MIGA 157. During fiscal 2006, 78 new TA projects covering 45 countries were approved for funding from the TATF program. Nearly 44 percent of the newly approved TATF projects were implemented in low- income countries and 50 percent were in countries with high risk ratings. Capacity Building Facility (CBF) 158. IFC's Capacity Building Facility (CBF) supported the development of the small and medium enterprise sector by offering grants to innovative projects with a high potential for being scaled up or replicated in the future. In addition to benefiting small businesses, these projects also allowed IFC to pilot new models to develop the sector and share lessons learned internally and externally. 159. In fiscal 2006, 28 new projects were approved. About a third of CBF funds supported IFC investments, with funding levels balanced in about equal share between Africa, Latin America, and Asia, with 64 percent of projects in IDA-eligible countries. Well over half of CBF funding has been to the projects connected with IFC's TA Facilities. Sustainable Business Assistance Program (SBAP) 160. As a multi-year donor funded operation, the Sustainable Business Assistance Program (SBAP) includes three facilities: the Corporate Citizenship Facility (CCF); the Sustainable Financial Markets Facility (SFMF); and the Environmental Opportunities Facility (EOF). 161. CCF helps IFC clients respond to rapidly changing expectations about the environmental and social performance of their businesses. CCF provides technical assistance that acts as a catalyst and leverages cost-sharing with sponsors. In fiscal 2006, CCF has redefined its strategy to focus on local communities and other shareholders, labor practices, and provision of sustainability strategy. 162. SFMF works with the financial sector in developing countries to enhance the environmental and social impact of IFC's intermediaries and the broader market. IFC helps the sector use sustainability to build better and more competitive businesses and to increase environmentally and socially responsible investment in developing countries. 163. EOF acts as a catalyst by providing project preparation grants and flexible investment financing for innovative private sector projects, primarily to address local environmental issues. Target sectors include environmental infrastructure services (clean drinking water, wastewater treatment, solid waste management, recycling, and air quality), pollution abatement, and improvements in the sustainable use of resources. Grassroots Business Initiative (GBI) 164. Launched in 2004, IFC's Grassroots Business Initiative (GBI) supports enterprises that create sustainable economic opportunities for disadvantaged communities in Africa, Latin America, and South and Southeast Asia. Using a comprehensive approach that combines capacity building with the provision of grant funding, GBI aims to have a catalytic impact on the social enterprise development field by addressing these challenges, building partnerships with like-minded groups, and leveraging its position within the World Bank Group. At the business level, GBI provides a package of funding and technical assistance that strengthens small to relatively large grassroots businesses, thereby expanding their impact and leading to improved quality and sustainability, replication, and scale-up opportunities. 78 The World Bank Group 2006 Trust Funds Annual Report Annex H Trust Funds Administered by IFC and MIGA Funding Mechanism for Technical Assistance and Advisory Services (FMTAAS) 165. In 2004, IFC centralized its financial support to TAAS by establishing the Funding Mechanism for Technical Assistance and Advisory Services (FMTAAS). IFC provides most of its TAAS funding resources through this mechanism, mainly to support TA facilities and donor-funded operations. Funded by annual designations from IFC's retained earnings, FMTAAS became fully operational in 2005. IFC designated US$350 million for FMTAAS from its fiscal 2004 and fiscal 2005 retained earnings, with spending spread over seven years to provide stable financing for TAAS operations. An additional US$125 million was designated by IFC from its fiscal 2006 retained earnings to support TA facilities and donor-funded operations. Multilateral Investment Guarantee Agency (MIGA) Multilateral Investment Guarantee Agency FY2006 US$'million Cash Contributions received during the year 6 Disbursements made during the year 1 166. The Multilateral Investment Guarantee Agency (MIGA) was created in 1988 to promote the flow of foreign direct investment (FDI) into emerging economies to improve people's lives and reduce poverty. MIGA fulfills this mandate and contributes to development by offering political risk insurance (guarantees) to investors and lenders, as well as by helping developing countries attract and retain overseas direct investment through technical assistance and online information services. 167. Leveraging MIGA's limited resources through partnerships with trust fund donors has proven to be an important element of the Agency's business strategy. Collaboration with donors gives MIGA the needed flexibility to explore the development of new and innovative products, provide hands-on technical assistance to investment promotion intermediaries, as well as underwrite guarantees for private sector investments in conflict-affected areas. Technical assistance backed by trust funds 168. Since 1998, MIGA has financed a baseline level of capacity building, investor outreach, and knowledge-sharing services for all its member countries from its administrative budget. Online investment information services and knowledge-sharing portals are made available to all country clients and investors at no charge. For countries seeking to promote themselves as investment locations, MIGA facilitates the use of the internet as a low-cost, effective marketing channel. MIGA's core investment information services, including IPAnet, PrivatizationLink, and FDI Xchange, were initially funded in part by bilateral donors, including Austria and Japan. Their ongoing operation and maintenance costs have now been assumed by MIGA. 169. For country clients requesting assistance for building their capacity to promote foreign direct investment, MIGA normally funds an initial assessment of institutional needs, using a structured methodology. The long-term capacity building programs to address the needs identified are co-financed by bilateral and multilateral donors, or by the beneficiary institution. MIGA typically has 12-15 such programs underway at any given time. The Agency has cooperated with a number of donors, such as Switzerland, Austria, Japan, and the European Commission, in implementing these technical assistance initiatives on a country or regional basis. 79 The World Bank Group 2006 Trust Funds Annual Report Annex H Trust Funds Administered by IFC and MIGA 170. Trust funds allow MIGA to enhance its impact in the development of new investor outreach and promotional initiatives targeted to groups of clients facing common issues or special opportunities. A flagship example is the Serbia Investment Promotion Program (SIPP) being implemented by MIGA. Funded by a 4.5 million grant from the European Agency for Reconstruction (EAR), this program's overall objective is to increase the flow of FDI to Serbia and thereby accelerate the transition to a market economy, underpin the European integration process and create long term sustainable private sector development. Furthermore, the program aims at strengthening the institutional capacity of the Serbia Investment and Export Promotion Agency. 171. Another notable trust fund being managed by MIGA is the European Investor Outreach Program (EIOP). A multi-donor initiative, the EIOP has received support since its inception from the Austrian Government; with additional support expected from the European Commission and probably also other European governments, such as the Netherlands, Ireland and Italy. Like the SIPP, the EIOP seeks to stimulate FDI in the Western Balkans through investment outreach to targeted sectors. 172. In the coming year, MIGA expects to sign an agreement for a US$1 million grant from the Japanese Government to launch a pilot facility to help foreign investors address environmental and social challenges in Africa. MIGA will use the grant to provide advice to the firms on the development and implementation of plans and programs to address the possible environmental and social issues. The aim will be to arrive at practical solutions to enable the investments to proceed. And with MIGA's strict environmental and social standards being met, MIGA will then also be able to provide its political risk insurance guarantees. Guarantees backed by trust funds 173. Donor trust funds that backstop guarantees allow MIGA to further leverage its insurance capacity. They provide the expanded flexibility needed to: (1) jointly develop, with external partners, new products that address the evolving needs of the private sector; (2) help MIGA mobilize guarantee capacity in countries where it could not otherwise operate; and (3) underwrite certain highly developmental projects that it could not otherwise support due to restrictions in the MIGA Convention. Thanks to partnerships with donors and the establishment of specialized guarantee trust funds, MIGA is able to promote FDI in new and innovative ways. 174. The multi-donor Afghanistan Investment Guarantee Facility (AIGF) reflects these principles. The facility was financed through an IDA Credit (US$5 million equivalent), a concessional loan from the Asian Development Bank (US$5 million equivalent) to the Government of Afghanistan, as well as a UK grant of £1 million. These contributions are kept in trust with MIGA and leveraged with co-insurance by both MIGA (up to US$10 million) and ADB (up to US$10 million). 175. In fiscal 2006, a US$0.9 million guarantee was issued by MIGA through this facility to DAGRIS, S.A. of France for its purchase of 60 percent of equity in the New Afghanistan Project for Cotton and Oil Development (NAPCOD). The project is the first investment in Afghanistan to be guaranteed by MIGA and the first use of AIGF. The NAPCOD project is expected to create sustainable growth in the cotton sector of the country by providing the technical and financial assistance that will enable cotton growers in northern Afghanistan to increase the production of cotton. 80 The World Bank Group 2006 Trust Funds Annual Report Annex I Trust Fund Glossary Annex I Trust Fund Glossary Term Meaning Administrative trust Trust fund account held in the World Bank's books to manage and facilitate fund reporting of donor contributions, fees, income, and other related administrative matters. No development activity is associated with such a trust fund. Bank and Activities related to lending or non-lending work of the World Bank, including: Partnership activities analytical and advisory activities; country assistance strategy preparation; aid coordination activities; creditworthiness and risk analyses; briefing notes for policy dialogue; project identification (activities that ensure the Bank's due diligence in appraising a project as opposed to the actual undertaking of project preparation work), pre-appraisal; appraisal; negotiations; supervision; project restructuring; implementation completion reports; country portfolio reviews; economic and sector work; research; knowledge sharing; training by WBI; ad hoc policy notes; formal statements or reports; and non-country-specific activities associated with global and regional partnership programs. Bank execution World Bank is responsible for preparing terms of reference, hiring consultants, procuring goods, negotiating contracts, and making payments. Cofinancing An arrangement under which funds provided by third parties are associated with World Bank funds or guarantees for a particular project or program. Cofinancing may be in the form of a loan or a grant. Cofinancing grant When cofinancing funds are provided as a grant, the cofinancier may make the funds available directly to the recipient under a grant agreement or to the World Bank under a trust fund agreement. In the latter case, the Bank, as administrator of the funds on behalf of the cofinancier, enters into a grant agreement with the recipient and disburses funds according to the terms of the grant agreement. Contribution Amount received in cash by the World Bank from donors (public or private) during any fiscal year. Pledges received from donors are not reported as contributions until those pledges are encashed. Debt service trust Trust fund established to support activities leading to the reduction of external fund debt of the developing countries. The most prominent is the HIPC Debt Initiative. Debt buy-down/ Trust fund established to combine different types of funds, to provide Borrowers blending trust fund with more favorable borrowing terms. Disbursement Payment made by the World Bank in cash to eligible recipients by debit to the respective trust fund accounts in any fiscal year, in compliance with legal agreements governing those trust funds. 81 The World Bank Group 2006 Trust Funds Annual Report Annex I Trust Fund Glossary Donor Any entity that makes funds available to be held in trust by the World Bank-- including governments, multinational agencies, nongovernmental organizations, foundations, private organizations, and individuals. In addition, the World Bank contributes to some trust funds from its net income. Fiscal agent An exceptional arrangement under which the World Bank's sole responsibility is to transfer donors' funds to third parties upon instruction from the donors. In this situation, the trust fund recipient/executing agency is fully accountable to the donor on the funds' usage. The trust fund's objectives and the third party's fiduciary framework must be acceptable to the Bank, which undertakes to provide the donor limited reporting on the holding, investment, and transfer of the funds. Free-standing trust Non-programmatic fund established to finance a specific activity or set of funds activities as specified in the administration agreement for the trust fund. Funds held in Trust Funds deposited by a donor in a Commercial Bank account in the name of the World Bank, and held there in trust, pending their disbursement, in accordance with the terms of the relevant legal agreements signed by the Bank and the donor. Grant Funds provided from a trust fund to a recipient for implementation of the trust fund activities that carry no repayment obligation when utilized for the agreed activities. The recipient agrees to implement the grant activities by signing a grant agreement. Multi-donor trust A mechanism which combines the contributions of multiple donors, generally fund for a program of activities over a number of years. This arrangement includes essentially standard legal agreements with all donors, which specify governance procedures covering management, operational and financial reporting, and uses of the funds. Partnership activities Activities, usually regional or global in scope, which support partnerships enabling the World Bank and the donor community to collaboratively address specific development issues through special policy and program initiatives. Under these partnerships, the Bank and the partner entity commit financial, technical, or staff resources. The partners share in the risks and outcomes. Partnerships are generally supported by programmatic trust funds. Disbursements can be for Bank activities, recipient activities, partnership activities (such as overhead, global and regional workshops, or studies) or any combinations of these. Partnership programs may be managed by the Bank or a third party. Programmatic trust Trust fund that finances multiple grants, under a two-stage funding mechanism. fund In the first stage, one or more donors agree to a broad framework designed to support a program of activities over multiple years and commit the funds. In the second stage, the grants are approved for specific activities in accordance with agreed criteria. Grants may be approved by the World Bank, the donor, or a special committee which may include representatives of the Bank, the donor(s), and/or other entities. 82 The World Bank Group 2006 Trust Funds Annual Report Annex I Trust Fund Glossary Recipient Any entity that receives trust fund monies, including governmental, quasi governmental, nongovernmental, or private institutions. The World Bank itself may be the recipient of a trust fund in support of Bank activities. Recipient activities Activities that are the responsibility of the recipient country, such as: project preparation and final design; project implementation including preparation of bidding documents, letters of development policy, and project audits, and implementing a co-financed project and/or other investment projects and debt service; participation in mid-term project reviews; preparation of comprehensive development frameworks; borrowers' contributions to implementation completion reports; preparation of poverty reduction strategy papers; implementation of safeguard policies such as preparation of environmental impact assessments; and implementation of financial management systems. Recipient execution Recipient is responsible for preparing terms of reference, hiring consultants, procuring goods, negotiating contracts, making payments, submitting progress reports and audited financial reports to the World Bank, and performing other implementation activities Special financing Financing provided either on grant or IDA terms for non-Bank member countries, which cannot borrow from the World Bank; or financial assistance to post-conflict countries for which financing cannot be mobilized through conventional channels. Technical Activities directly supporting technical assistance and capacity building needs assistance/advisory of recipient countries and/or the World Bank's own operational work program in services the areas of analytical and advisory activities, knowledge sharing, lending development, capacity building, or research. Trust fund A fund established to be administered by the World Bank with contributions from one or more donors to support development-related activities or programs. A trust fund can be country-specific, regional, or global in scope. It can finance recipient activities, Bank activities, partnership activities, or a combination of these. It can be set up as a programmatic fund to cover a series of activities, or on a free-standing, single-purpose basis. A trust fund may be executed by either a recipient agency external to the Bank, or by the Bank itself. 83 The World Bank Group 2006 Trust Funds Annual Report Annex J Webpage Addresses Annex J Webpage Addresses Trust Funds and Programs Acronym Webpage Address Debt Service and Debt Reduction Heavily Indebted Poor Countries Initiative HIPC http://web.worldbank.org/WBSITE/EX TERNAL/TOPICS/EXTDEBTDEPT/0,, contentMDK:20260411~menuPK:5286 55~pagePK:64166689~piPK:64166646 ~theSitePK:469043,00.html Debt Reduction Facility for IDA only Countries DRF http://web.worldbank.org/WBSITE/EXTERNAL/PROJE CTS/EXTFININSTRUMENTS/EXTGUARANTEES/0,,c ontentMDK:20442149~pagePK:64143534~piPK:641434 48~theSitePK:411474,00.html B.1. Sustainable Development Global Environment Facility GEF http://www.thegef.org Least Developed Countries Fund for Climate LDC http://unfccc.int/cop9/latest/cp_l9.pdf Change Special Climate Change Fund SCCF http://thegef.org/Documents/Council_Documents/GEF_C 27/C.27.9_Status_Report_on_the_Climate_Change_Fund s.pdf Prototype Carbon Fund PCF http://www.prototypecarbonfund.org Netherlands Clean Development Mechanism NCDMF http://carbonfinance.org/Router.cfm?Page=NCDMF&FID Facility =9711&ItemID=9711 Netherlands European Carbon Facility NECAF http://carbonfinance.org/Router.cfm?Page=NECF&FID= 9712&ItemID=9712 Community Development Carbon Fund CDCF http://carbonfinance.org/Router.cfm?Page=CDCF&ItemI D=9709&FID=9709 Bio-Carbon Fund BioCF http://carbonfinance.org/biocarbon/home.cfm Italian Carbon Fund ICF http://carbonfinance.org/Router.cfm?Page=ICF&ItemID= 9710&FID=9710 Danish Carbon Fund DCF http://carbonfinance.org/Router.cfm?Page=DCF&FID=97 13&ItemID=9713 Trust Fund for Environmentally and Socially TFESSED http://web.worldbank.org/WBSITE/EXTERNAL/TOPIC Sustainable Development S/ENVIRONMENT/0,,contentMDK:20276831~pagePK: 148956~piPK:216618~theSitePK:244381,00.html Pilot Program to Conserve the Brazilian Rain BRF http://www.worldbank.org/rfpp/ Forest Consultative Group on International CGIAR http://www.cgiar.org Agricultural Research 84 The World Bank Group 2006 Trust Funds Annual Report Annex J Webpage Addresses Nile Basin Initiative NBI http://www.nilebasin.org B.2. Infrastructure Public/Private Infrastructure Advisory Facility PPIAF http://www.ppiaf.org Foreign Investment Advisory Service FIAS http://waww.fias.net Global Partnership on Output-Based Aid GPOBA http://www.gpoba.org/index.asp Energy Sector Management Assistance Program ESMAP http://www.esmap.org Water and Sanitation Program WSP http://www.wsp.org/ Cities Alliance Program CAP http://www.citiesalliance.org Sub-Saharan Africa Transport Policy Program SSATP http://web.worldbank.org/WBSITE/EXTERNAL/COUN TRIES/AFRICAEXT/0,,contentMDK:20267238~menuP K:538703~pagePK:146736~piPK:226340~theSitePK:258 644,00.html Asia Alternative Energy Program ASTAE http://www.worldbank.org/astae/ Information for Development Program infoDev http://www.infodev.org/ Health and Human Development Global Fund to fight AIDS, Tuberculosis, and GFATM http://www.theglobalfund.org Malaria Global Partnership to Stop Tuberculosis StopTB http://www.stoptb.org Global Program to Eradicate Poliomyelitis GPEP http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/ 0,,contentMDK:20107918~menuPK:34463~pagePK:3437 0~piPK:34424~theSitePK:4607,00.html African Program for Onchocerciasis Control APOC http://www.worldbank.org/gper Global Dracunculiasis Eradication Program GDEP http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/ 0,,contentMDK:20013251~menuPK:34466~pagePK:3437 0~piPK:34424~theSitePK:4607,00.html Education for All Fast Track Initiative Catalytic EFA-FTI http://www1.worldbank.org/education/efafti/ Fund China Education Blending Trust Fund CEBTF http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/ 0,,contentMDK:20127246~menuPK:34470~pagePK:4065 1~piPK:40653~theSitePK:4607,00.html Avian and Human Influenza Facility AHI http://web.worldbank.org/WBSITE/EXTERNAL/TOPIC S/EXTHEALTHNUTRITIONANDPOPULATION/EXT TOPAVIFLU/0,,contentMDK:20917407~pagePK:641684 45~piPK:64168309~theSitePK:1793593,00.html Poverty Reduction and Social Development Japan Social Development Fund JSDF http://www.worldbank.org/rmc/jsdf Poverty Reduction Strategy Trust Fund PRSTF http://web.worldbank.org/WBSITE/EXTERNAL/TOPIC S/EXTPOVERTY/EXTPRS/0,,contentMDK:20177803~p agePK:210058~piPK:210062~theSitePK:384201,00.html 85 The World Bank Group 2006 Trust Funds Annual Report Annex J Webpage Addresses Indonesian Strategic Poverty Partnership ISPP http://www.dfid.gov.uk/countries/asia/indonesia.asp Africa Catalytic Growth Fund ACGF http://web.worldbank.org/WBSITE/EXTERNAL/COUN TRIES/AFRICAEXT/EXTPROJECTSPROGRAMS/EX TAFRCATGROFUND/0,,contentMDK:20883627~pageP K:64168427~piPK:64168435~theSitePK:2431705,00.htm l Capacity Building and Technical Advisory Services Policy and Human Resources Development PHRD http://web.worldbank.org/WBSITE/EX TERNAL/EXTABOUTUS/ORGANIZ ATION/CFPEXT/EXTTRUFUN/EXT MAINPRO/EXTPHRD/0,,menuPK:252 4328~pagePK:64168427~piPK:641684 35~theSitePK:2524316,00.html Bank-Netherlands Partnership Program BNPP http://web.worldbank.org/WBSITE/EXTERNAL/COUN TRIES/WBEUROPEEXTN/NETHERLANDSEXTN/0,,c ontentMDK:20248428~menuPK:512792~pagePK:14976 18~piPK:217854~theSitePK:403179,00.html Africa Capacity Building Foundation ACBF http://www.acbf-pact.org/ World Bank Institute WBI http://www.worldbank.org/wbi/home.html Global Development Learning Network GDLN www.gdln.org Trust Fund for Statistical Capacity Building TFSCB http://www.worldbank.org/tfscb Knowledge for Change Program KCP http://web.worldbank.org/WBSITE/EXTERNAL/EXTDE C/EXTRESEARCH/EXTPROGRAMS/EXTKNOWLED GEOFCHANGE/0,,menuPK:491554~pagePK:64168176~ piPK:64168140~theSitePK:491543,00.html Post-Conflict Reconstruction and Natural Disaster Relief Post-Conflict Fund PCF http://web.worldbank.org/WBSITE/EX TERNAL/TOPICS/EXTSOCIALDEVE LOPMENT/EXTCPR/0,,contentMDK:2 0486203~menuPK:1260916~pagePK:14 8956~piPK:216618~theSitePK:407740, 00.html Low-Income Countries Under Stress LICUS http://www1.worldbank.org/operations/licus Implementation Trust Fund Iraq Reconstruction Trust Fund IRTF http://web.worldbank.org/WBSITE/EXTERNAL/COUN TRIES/MENAEXT/IRAQEXTN/0,,contentMDK:202417 01~menuPK:1557462~pagePK:1497618~piPK:217854~t heSitePK:313105,00.html Afghanistan Reconstruction Trust Fund ARTF http://www.worldbank.org/artf Trust Fund for Gaza and West Bank TFGWB http://www.worldbank.org/we 86 The World Bank Group 2006 Trust Funds Annual Report Annex J Webpage Addresses Trust Fund for East Timor TFET http://web.worldbank.org/WBSITE/EXTERNAL/COUN TRIES/EASTASIAPACIFICEXT/TIMORLESTEEXTN/ 0,,contentMDK:20185391~pagePK:141137~piPK:14112 7~theSitePK:294022,00.html Consolidation Support Program CSP http://intranet.worldbank.org/WBSITE/INTRANET/INT COUNTRIES/INTEASTASIAPACIFIC/INTEAPREGT OPHEANUT/0,,contentMDK:20678354~menuPK:50276 9~pagePK:34003966~piPK:34003685~theSitePK:502735 ,00.html Multi-Country Demobilization and MDRP http://www.mdrp.org/ Reintegration Program Multi-Donor Fund for Aceh and Nias MDF http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/ 0,,contentMDK:20996834~menuPK:34465~pagePK:3437 0~piPK:34424~theSitePK:4607,00.html Sudan Multi-Donor Trust Funds http://web.worldbank.org/WBSITE/EXTERNAL/COUN TRIES/AFRICAEXT/0,,contentMDK:21033447~menuP K:258657~pagePK:2865106~piPK:2865128~theSitePK:2 58644,00.html Financial Sector Strengthening and Crisis Management Asia-Europe Meeting Trust Fund 2 ASEM http://web.worldbank.org/WBSITE/EXTERNAL/COUN TF2 TRIES/EASTASIAPACIFICEXT/ASEM/0,,contentMDK :50004541~menuPK:64018255~pagePK:64018272~piPK :64018284~theSitePK:277456,00.html Financial Sector Reform and Strengthening FIRST http://www.firstinitiative.org Initiative Consultative Group to Assist the Poor CGAP http://www.cgap.org Trust Funds Administered by IFC and MIGA International Finance Corporation IFC http://www.ifc.org/tatf Multilateral Investment Guarantee Agency MIGA http://www.miga.org 87 The World Bank Group 2006 Trust Funds Annual Report