35944 The World Bank Group 2005 Trust Funds Annual Report Year ended June 30, 2005 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 consists of the following member institutions: ______________________________ 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 ARTF Afghanistan Reconstruction Trust Fund IMF International Monetary Fund ADB Asian Development Bank ICSID International Center for Settlement of Investment Disputes APOC Africa Program for Onchocerciasis Control IDA International Development Association ASEM Asia-Europe Meeting Asian Financial Crisis Response Fund IDF Institutional Development Fund BioCF BioCarbon Fund InfoDev The Information for Development Program BNPP Bank - Netherlands Partnership Program ITF Iraq Trust Fund BRF Brazilian Rain Forest JSDF Japan Social Development Fund CDCF Community Development Carbon Fund LICUS Low Income Countries Under Stress CEBTF China Education Blending Trust Fund MDG Millennium Development Goals CFP Concessional Finance and Global Partnerships Vice-Presidency MIGA Multilateral Investment Guarantee Agency CGAP Consultative Group for Assistance to the Poor NGO Nongovernmental organization CGIAR Consultative Group on International Agricultural Research PCF Post-Conflict Fund CTF Consultant Trust Fund PHRD Policy and Human Resources Development Fund DEC Development Economics and Chief Economist PPIAF Public/Private Infrastructure Advisory Facility DGF Development Grant Facility of the World Bank PRCF Prototype Carbon Fund DRF Debt Reduction Facility PREM Poverty Reduction & Economic Management ESMAP Energy Sector Management Assistance Program PRSP Poverty Reduction Strategy Paper ESSD Environmentally and Socially Sustainable Development PRSTF Poverty Reduction Strategy Trust Fund FDI Foreign direct investment SBAP Sustainable Business Assistance Program FIAS Foreign Investment Advisory Services SSATP Sub-Saharan Africa Transport Policy Program FIRST Financial Sector Reform and Strengthening Initiative TATF Technical Assistance Trust Funds Program FY Fiscal year TFET Trust Fund for East Timor GDLN Global Development Learning Network TFGWB Trust Fund for Gaza and West Bank GEF Global Environment Facility TFSCB Statistical Capacity Building Program GEFCC Least Developed Countries Fund for Climate Change UNDP United Nations Development Programme GFATM Global Fund to fight AIDS, Tuberculosis, and Malaria UNEP United Nations Environment Programme GPEP Global Program to Eradicate Poliomyelitis WBG West Bank and Gaza GPOBA Global Partnership on Output-based Aid WBG- West Bank and Gaza - Public Financial Management PFMR Reform Trust Fund HD Human Development Network WBI World Bank Institute HIPC Heavily Indebted Poor Countries Initiative WHO World Health Organization IBRD International Bank for Reconstruction and Development WSP World Bank Sanitation Program ICF Italian Carbon Fund Contents Preface..........................................................................................................................................................................1 1. About Trust Funds.............................................................................................................................................1 2. Portfolio Overview and Fiscal Year2005 Financial Highlights......................................................................2 Financial Highlights.............................................................................................................................................2 Number of Accounts............................................................................................................................................2 Donor rankings based on last five years cumulative contributions......................................................................4 Disbursements......................................................................................................................................................4 Funds Held in Trust and Investments...................................................................................................................6 3. Sectoral and Thematic Focus of Trust Funds..................................................................................................8 Debt Service and Debt Reduction........................................................................................................................8 Environment and Sustainable Agriculture ...........................................................................................................9 Health and Human Development.......................................................................................................................10 Poverty Reduction and Social Development......................................................................................................11 Capacity Building and Technical Advisory Services.........................................................................................11 Post-Conflict Reconstruction and Natural Disasters..........................................................................................12 Financial Sector Strengthening and Crisis Management....................................................................................13 Private Sector and Infrastructure Development .................................................................................................14 4. Trust Funds Administered by the International Finance Corporation and the Multilateral Investment Guarantee Agency .....................................................................................................................................................15 5. World Bank Group Trust Funds - Financial Information Summary for Year Ended June 30, 2005......16 Introduction........................................................................................................................................................16 Trust Fund Highlights........................................................................................................................................16 Number of active trust funds and programs.......................................................................................................17 Cash and Investments.........................................................................................................................................19 Contributions and Disbursements by Program...................................................................................................20 Contributions by Donor......................................................................................................................................21 Disbursements by Category ...............................................................................................................................22 Annexes.......................................................................................................................................................................23 Annex A.......................................................................................................................................................................24 Debt Service and Debt Reduction.............................................................................................................................24 Heavily Indebted Poor Countries Initiative (HIPC)...........................................................................................24 Debt Reduction Facility for IDA-only Countries (DRF) ...................................................................................25 Annex B.......................................................................................................................................................................26 Environment and Sustainable Agriculture..............................................................................................................26 Global Environment Facility (GEF)...................................................................................................................26 Least Developed Countries Fund for Climate Change (GEFCC) ......................................................................27 Carbon Finance: Prototype Carbon Fund (PRCF) ............................................................................................28 Carbon Finance: Netherlands Clean Development Mechanism Facility (NCDMF) ..........................................28 Carbon Finance: Community Development Carbon Fund (CDCF)...................................................................29 Carbon Finance: BioCarbon Fund (BioCF).......................................................................................................30 Carbon Finance: Italian Carbon Fund (ICF) and Danish Carbon Fund (DCF)...............................................30 Consultative Group on International Agricultural Research (CGIAR)..............................................................32 i Annex C.......................................................................................................................................................................34 Health and Human Development.............................................................................................................................34 Global Fund to Fight AIDS, Tuberculosis, and Malaria (GFATM)...................................................................34 Global Partnership to Stop Tuberculosis (Stop TB)...........................................................................................35 Global Program to Eradicate Poliomyelitis (GPEP) ..........................................................................................35 African Program for Onchocerciasis Control (APOC) ......................................................................................36 Education for All-Fast Track Initiative Catalytic Fund (EFA-FTI Catalytic Fund)...........................................37 China Education Blending Trust Fund (CEBTF)...............................................................................................37 Annex D.......................................................................................................................................................................39 Poverty Reduction and Social Development............................................................................................................39 Japan Social Development Fund (JSDF) ...........................................................................................................39 Poverty Reduction Strategy Trust Fund (PRSTF)..............................................................................................40 Annex E.......................................................................................................................................................................42 Capacity Building and Technical Advisory Services..............................................................................................42 Policy and Human Resource Development (PHRD) Fund ................................................................................42 Bank-Netherlands Partnership Program (BNPP) ...............................................................................................43 Africa Capacity Building Foundation (ACBF) ..................................................................................................43 World Bank Institute (WBI) Partnerships..........................................................................................................44 Global Development Learning Network (GDLN) .............................................................................................45 Trust Fund for Statistical Capacity Building (TFSCB)......................................................................................46 Knowledge for Change Program........................................................................................................................47 Consultant Trust Fund (CTF) Program..............................................................................................................47 Annex F .......................................................................................................................................................................48 Post-Conflict Reconstruction and Natural Disasters..............................................................................................48 Post-Conflict Fund (PCF) ..................................................................................................................................48 Low-Income Countries Under Stress (LICUS) Implementation Trust Fund .....................................................48 Iraq Trust Fund (ITF).........................................................................................................................................49 Afghanistan Reconstruction Trust Fund (ARTF)...............................................................................................50 Trust Fund for Gaza and West Bank (TFGWB) ................................................................................................50 West Bank and Gaza: Public Financial Management Reform Trust Fund.........................................................51 (WBG-PFMRTF)...............................................................................................................................................51 Trust Fund for East Timor (TFET) ....................................................................................................................51 Timor-Leste Transition Support Program (TTSP) .............................................................................................52 Multi-Country Demobilization and Reintegration Program (MDRP)................................................................52 ProVention Consortium (PVC)..........................................................................................................................53 Annex G.......................................................................................................................................................................54 Financial Sector Strengthening and Crisis Management.......................................................................................54 Asia-Europe Meeting (ASEM) Asian Financial Crisis Response Funds (TF1 and TF2)...................................54 Financial Sector Reform and Strengthening (FIRST) Initiative.........................................................................55 Consultative Group to Assist the Poor (CGAP).................................................................................................55 Annex H.......................................................................................................................................................................57 Private Sector and Infrastructure Development.....................................................................................................57 Public-Private Infrastructure Advisory Facility (PPIAF)...................................................................................57 ii Foreign Investment Advisory Service (FIAS)....................................................................................................57 Global Partnership on Output-Based Aid (GPOBA)..........................................................................................58 Energy Sector Management Assistance Program (ESMAP)..............................................................................59 Water and Sanitation Program (WSP) ...............................................................................................................60 Cities Alliance Program.....................................................................................................................................61 Sub-Saharan Africa Transport Policy Program (SSATP) ..................................................................................61 Asia Sustainable and Alternative Energy (ASTAE) Program............................................................................62 Information for Development (infoDev) Program .............................................................................................63 Annex I........................................................................................................................................................................65 Trust Funds Administered by IFC and MIGA.......................................................................................................65 International Finance Corporation (IFC)............................................................................................................65 Multilateral Investment Guarantee Agency (MIGA) .........................................................................................67 Annex J........................................................................................................................................................................69 Trust Fund Glossary .................................................................................................................................................69 Annex K.......................................................................................................................................................................72 Webpage Addresses...................................................................................................................................................72 iii Preface In recent years the World Bank has taken on greatly expanded responsibilities as a manager of development finance, well beyond the resources provided through IBRD loans and IDA credits and grants. Donor partners have asked the Bank to manage their funds for a variety of purposes, in support of both country-level and global development initiatives. What began as a modest extension of the Bank's lending role has evolved into a major responsibility of the Bank to its development partners, encompassing policy, fiduciary and implementation elements, under the general rubric of trust funds. Total funds held in trust by the Bank continued to grow during fiscal year 2005, with new contributions of $4.75 billion and disbursements of $4.13 billion. This growth reflected donors' continuing desire for the Bank to bring its management, technical and administrative expertise to bear on both global initiatives and country-specific challenges. Examples of the former from the past year include two new carbon funds and new global programs, including for Output-based Aid and for Disability and Development. New country-based funds included cofinancing for poverty reduction strategies in Vietnam, the Post- Tsunami Fund for Aceh and North Sumatra, and the Sudan Post-Conflict Multi-Donor Trust Funds. Looking forward, we expect to see continuing growth in the scale and diversity of such funds, as they support broader harmonization and alignment efforts. There have also been important new financing proposals, such as for donor-backed market instruments, and levies or taxes for development, in which the Bank is playing a role. The Bank's role as partner and fiduciary therefore is likely to evolve in significant ways beyond the trust fund experience to date. We will continue to refine our administrative policies and procedures to ensure such funds contribute to the Bank Group's overall mission and do so effectively and efficiently. This report is the second annual account of the breadth and diversity of these financing partnerships that help in addressing critical development issues. We would welcome feedback on the information in it, and on its format, to donorqueries@worldbank.org. Geoffrey Lamb Vice President Concessional Finance and Global Partnerships Senior Counsellor for IDA The World Bank Group 2005 Trust Funds Annual Report Section 1 About Trust Funds 1. About Trust Funds Trust funds help leverage the World Bank's own resources towards achieving the Millennium Development Goals. 1. A trust fund is a fund established for administration by the World Bank with contributions from one or more donors to support development-related activities or programs. The Bank uses trust funds to mobilize and direct concessional resources to its strategic development priorities, and as a vehicle for supporting partnerships with other development actors. 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 Trust Funds are aligned with the World Bank's strategic priorities and are subject to the same policies and oversight as World Bank loans and credits 3. Trust-funded activities are expected to be closely aligned with the World Bank's business plans and to be consistent with Country Assistance Strategies and sector development priorities. Among the high-priority development activities financed by trust funds are emergency recovery and reconstruction, technical assistance and advisory services, debt relief, post-conflict transition, cofinancing of World Bank lending operations, improving the enabling environment for private sector investments, provision of urgent social services, capacity building for developing country clients, and protection of the environment. 4. In the cases of trust funds that support global programs and partnerships, the World Bank is looking at improving governance arrangements, working with partners in setting global priorities at a strategic level, and focusing on development results. 5. Trust funds are subject, where appropriate, to the same administrative and operational policies that apply to IBRD and IDA resources. Increased attention has been given to staff training and compliance checking on the use of trust funds. Multi-donor and Programmatic Trust Fund Arrangements are on the rise. 6. Recent years have shown an increasing interest among donors to contribute to multi-donor and programmatic trust fund initiatives. These arrangements help expand the scope and impact of the World Bank's operational activities while allowing for coordinated action at the country level, increased collaboration in development assistance at the global and regional level. The World Bank Group 2005 Trust Funds Annual Report 1 Section 2 Portfolio Overview and FY2005 Financial Highlights 2. Portfolio Overview and Fiscal Year2005 Financial Highlights Financial Highlights World Bank Group Administered Trust Fund Portfolio Overall Portfolio Highlights FY2005 FY2004 US$ 'million US$ 'million Contributions received during the Year 4,750 4,940 Disbursements made during the Year 4,128 3,277 Income earned during the year on funds held in trust 226 140 Funds Held in Trust at Year End 9,308 8,587 The World Bank Group1administered trust fund portfolio continued to grow in fiscal 2005 1. Although new contributions were somewhat lower than in the previous year, they were still higher than the level of disbursements during fiscal year 2005. This, combined with higher investment income resulted in higher year end fund balances at the World Bank Group at the end of fiscal year 2005 compared with the previous fiscal year. Number of Accounts WBG was managing a total of 840 active trust funds and programs at the end of fiscal 2005 2. The number of active accounts dropped from a Number of Active Trust Funds & Programs Administered by WBG total of 903 at the end of fiscal 2004 to 840 at the end Institutions as at end FY05 of fiscal 2005. Of these, 84 percent (705 trust funds) were managed by the World Bank (IBRD/IDA), 15 MIGA 1% percent (124 trust funds) by the International Finance IFC Corporation (IFC), and one percent (11 trust funds) by 15% the Multilateral Investment Guarantee Agency (MIGA). World 3. In monetary terms, 96 percent ($8.9 billion) of Bank the funds held in trust were for the World Bank (IBRD/IDA) 84% (IBRD/IDA) administered portfolio, 3.5 percent ($317 million) for the IFC administered portfolio, and about half a percent ($39 million) for the MIGA administered portfolio. 1 Trust fund accounts also exist to process the `payments on account' received for the activities of the International Center for Settlement of Investment Disputes (ICSID), which is part of the World Bank Group. While these accounts are not strictly considered trust funds, since they are not funds entrusted for development activities of the WBG, these are nevertheless included in all trust fund data included in this report. The World Bank Group 2005 Trust Funds Annual Report 2 Section 2 Portfolio Overview and FY2005 Financial Highlights Contributions A slight drop in contributions for fiscal year 2005 was a change from the recent trend of year on year increases Trust Fund Contributions for Last Five Years 4. 4 percent less contributions were received during fiscal year 2005 than the previous year, thus 2005 4,750 breaking the recent trend of year on year increasing 2004 4,940 levels in the past five years. 2003 3,899 earY 2002 2,732 2001 2,183 0 2000 4000 6000 $' million Sovereign Governments continued to be the single biggest source of contributions Type of Donors - FY2005 Contributions 5. 77.5 percent of all contributions were provided Private Non- by sovereign governments, either directly or through Profit Private For Intergovernmental Entities Profit their agencies. The World Bank Group contributed Organizations 1.7% Organizations 11.8 percent of the total, followed by intergovernmental 8.5% 0.5% organizations (8.5 percent), private non-profit entities (1.7 percent), and private for profit organizations (0.5 percent). World Bank Group 6. Though contributions from sovereign 11.8% governments continued to be the single largest source, Sovereign the total inflow from this category of donors was some Governments $42 million less than in the previous year. Similarly, 77.5% intergovernmental organizations, including the European Commission, UN bodies, multinational and regional development banks, and international financial institutions, contributed $318 million less than in the previous year. The World Bank Group contributed $97 million more than in the previous year, private non-profit entities $62 million more, and private for profit organizations $13 million more than in the previous year. Contributions from the World Bank Group have increased consistently since fiscal year 2002 Contributions from World Bank Group over Last Five Years 7. Contributions from the World Bank Group have increased consistently since fiscal year 2002. During 2005 562 fiscal 2005, contributions were up by $97million to 2004 465 $562million. ra 2003 333 Ye 2002 222 2001 421 The World Bank Group 2005 Trust Funds Annual Report 0 100 200 300 400 500 600 $' million 3 Section 2 Portfolio Overview and FY2005 Financial Highlights WBG contributions come from IBRD and IFC FY2005 Contributions from WBG 8. Of the $562 million contributed by World Bank totalled $562million Group institutions, 90 percent ($504 million) came from IFC IBRD and 10 percent ($58 million) from IFC. Compared 10% with the previous year, IBRD contributions were up by $92 million (22 percent increase over previous year) and IFC contributions were up by $25 million (76 percent increase over the previous year). IBRD 90% Donor rankings based on last five years cumulative contributions Donor Rankings based on Last Five Years 9. Based on cumulative contributions Cumulative Contributions 2001-2005 since 2001, the United States was the top 3,000 2,654 donor with $2.7 billion, followed by the 2,500 n 2,083 1,996 1,993 2,000 European Commission $2.1 billion, Japan 1,650 1,520 $2 billion, the World Bank Group $2 billion, millio'$1,500 1,000 840 756 706 658 United Kingdom $1.7 billion. Canada, 500 France, Germany, Italy, and Netherlands were 0 other significant donors. United European Commission States Japan WBG UKNetherlands Canada France ItalyGermany 10. For more details, see Section 5. Disbursements Trust fund disbursements reached a record level of $4,128 million during fiscal year 2005 11. Trust fund disbursements during fiscal year were up by 26 percent ($851 million) over the previous year, reaching $4,128 million. Disbursements have increased at an average annual rate of 20 percent between fiscal years 2001 and 2005. 78 percent of all disbursements were made from trust funds executed by recipients outside the World Bank Group. More than two third of all disbursements were from multi-donor trust funds. The World Bank Group 2005 Trust Funds Annual Report 4 Section 2 Portfolio Overview and FY2005 Financial Highlights Disbursements from trust funds supporting Recipient activities accounted for nearly two thirds of all disbursements FY2005 Trust Fund Disbursements ($4,128million) by Usage Type Fiscal Agency Trust Funds, 33% Trust Funds ($1.3billion) Supporting Recipient Trust Funds Activities, Supporting 62% Bank/Partn ($2.6billion) ership Activities, 5%($200m) Disbursements from trust funds supporting Recipient Activities continued to lead the spending activity Disbursements From Trust Funds Supporting Recipient Activities $' million % Debt Service 889 35% Co-financing, investment & Special 720 28% Bank financing Technical Assistance 966 38% Total 2,575 100% 12. Recipient activities include tasks that are the responsibility of a recipient country, such as project preparation and final design; project implementation including the preparation of bidding documents; and debt service. Disbursements from Fiscal Agency trust funds accounted for one third of all disbursements Disbursements from Fiscal Agency Trust Funds $' million % GFATM 936 70% GEF 244 18% Other fiscal Agency Trust Funds 163 12% Total 1,343 100% Disbursements from trust funds supporting World Bank and Partnership activities were only 5% of total disbursements 13. Disbursements from trust funds supporting Bank and partnership work totaled $200 million or 5 percent of the total. They included $36 million disbursed from the CTF program, and $164 million from trust funds supporting the provision of analytical and advisory services, technical assistance, and staff secondments. The World Bank Group 2005 Trust Funds Annual Report 5 Section 2 Portfolio Overview and FY2005 Financial Highlights Almost half of all disbursements were for global/regional programs FY2005 Disbursements ($ 4,128 14. 49 per cent ($2,016 million) of all trust fund million) by Recipient Regions of the disbursements were made through global/regional World programs. Africa was the single largest recipient region, accounting for 22 percent ($911 million) of all SAR 10% disbursements, followed by South Asia at 10 percent AFR 22% ($420 million), East Asia 7 percent ($296 million), Middle East and North Africa 7 percent ($292 million), Europe and Central Asia 3 percent ($106 million), and EAP7% Latin America and Caribbean 2 percent ($87 million). Global/ Regional ECA 3% 49% LCR 2% MNA 7% Funds Held in Trust and Investments Funds held in trust are kept separate from the World Bank's own assets At end of fiscal year 2005, the World Bank Group was holding $9.3 billion in trust fund assets 59 percent of all funds held in trust at end of fiscal year 2005 belonged to three global programs Funds held in Trust by WBG over Last Five Years 15. At the end of fiscal year 2005, 59 percent ($5.5 billion) of all funds held in trust belonged to 2005 9,308 the three largest global programs: the Global Fund to Fight Aids, Tuberculosis, and Malaria (GFATM) 2004 8,587 $2,391 million; the Global Environment Facility (GEF) $1,942 million; and the HIPC Debt Initiative 2003 6,887 earY $1,181 million. 2002 5,331 2001 4,344 0 2000 4000 6000 8000 10000 $' million The World Bank Group 2005 Trust Funds Annual Report 6 Section 2 Portfolio Overview and FY2005 Financial Highlights Funds held in trust are invested in accordance with the World Bank's investment guidelines for trust funds FY2005 Trust Fund Investment Portfolio stood at $9,543million 16. At the end of fiscal year 2005, the fair market value of the trust fund investment portfolio stood at 12,000 $9,543 million compared with the fair value of the portfolio as at the end of fiscal year 2004 of $8,860 10,000 million. - 1,330 M ortgage backed 8,000 2,243 Securities sn 17. Since the implementation of the new lioil 4,220 6,000 investment strategy for the Trust Funds in January US Treasuries M $ 2005, the portfolio has been invested in two distinct 4,000 tranches. Trust funds with investment horizons of up 6,617 M oney M arket & to one year are invested in a more conservative 2,000 3,993 Cash tranche with a higher proportion of short-term, cash- - like investments. Trust funds with longer investment FY2004 FY2005 horizons are invested in a tranche with a larger proportion of longer term investments. As a result, the mix of securities in the portfolio by the end of fiscal year 2005 was significantly different from that at the end of fiscal year 2004. At the end of fiscal year 2005, 42 percent ($3,993 million) of the portfolio was allocated to sub-portfolios which are primarily invested in Money Market and Cash instruments, 44 percent ($4,220 million) in a sub-portfolio benchmarked against a US Treasury index and 14 percent ($1,330 million) in a sub-portfolio benchmarked against a US Mortgage backed Securities index. 18. The return on the portfolio for fiscal year 2005, based on the market value of the portfolio, was 2.29 percent, compared with 1.02 percent for fiscal year 2004. Return for three years ended fiscal year 2005 was 2.32 percent and for five years ended on that date was 4.21 percent. The World Bank Group 2005 Trust Funds Annual Report 7 Section 3 Sectoral and Thematic Focus of Trust Funds 3. Sectoral and Thematic Focus of Trust Funds By channeling grant money through World Bank Group-administered trust funds, donors support a wide array of activities carried out by recipient agencies and the World Bank Group in pursuit of development goals that benefit the poor 1. The trust funds administered by the Bank serve goals that support the international development agenda, especially the Millennium Development Goals.2 The variety, complexity, and multiplicity of these goals make it difficult to assign each program to a single sector or thematic area, but 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 year 2005 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 the disbursement of large sums engenders confidence that funds owed 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 year 2007 to complement HIPC's debt reduction operations in up to 27 countries. 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 2These 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 The World Bank Group 2005 Trust Funds Annual Report 8 Section 3 Sectoral and Thematic Focus of Trust Funds 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 5. The 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 year 2005, 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. 6. 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 year 2003, of the Least Developed Countries Fund for Climate Change, which contributes to the integration of climate change considerations into development activities. Another was the creation of a market for buying of carbon emission reductions of greenhouse gases. In fiscal year 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. 7. 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 year 2005: among them the Danish Carbon Fund and the Netherlands European Carbon Facility. In total, eight carbon finance facilities are now being administered by the Bank. Environment and Sustainable Agriculture More information on the following trust funds provided in Annex B 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& Danish Carbon Fund 10. Trust Fund for Environmentally and Socially Sustainable Development 11. Pilot Program to Conserve the Brazilian Rain Forest 12. Consultative Group on International Agricultural Research 13. Nile Basin Initiative 14. Mediterranean Environment Technical Assistance Program The World Bank Group 2005 Trust Funds Annual Report 9 Section 3 Sectoral and Thematic Focus of Trust Funds 8. 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 international organizations) makes it the largest scientific network of its kind in the world. CGIAR centers conduct work in more than 100 countries. Health and Human Development In recent years the 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 9. 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). 10. The largest of the health-related trust funds administered by the Bank are those dealing with communicable diseases, particularly in Africa and Asia. Principal among the diseases addressed are HIV/AIDS, tuberculosis, malaria, onchocerciasis, poliomyelitis, and dracunculiasis. 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. 11. 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. China Education Blending Trust Fund The World Bank Group 2005 Trust Funds Annual Report 10 Section 3 Sectoral and Thematic Focus of Trust Funds Poverty Reduction and Social Development The Bank Group attracts considerable financial support from donors for initiatives specifically targeted at assisting poverty reduction and social development in poor communities 12. Several programs have been established specifically to support the Bank's broad poverty reduction and social development goals. 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. The Japan Social Development Fund, established in fiscal year 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 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. 13. Several trust funds were created in fiscal year 2005 to provide resources that cofinance the Bank's loans and credits targeting similar goals, such as the Vietnam Poverty Reduction Support Credits Program, China Poor Rural Communities Development Project, and the Angola Third Social Action Fund. Each of these cofinancing arrangements is expected to have great impact on poverty reduction and social development goals in those specific countries. 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 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 14. 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 capacity3. Trust fund programs in this area include the Policy and Human Resources Development Fund sponsored by Japan; the Bank-Netherlands Partnership Program; and the Africa Capacity Building Foundation, 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, the multi-donor Trust Fund for Statistical Capacity Building, established in fiscal year 2000 to strengthen the capacity of statistical systems, in support of poverty reduction and economic and social development, and , the Bank-executed Knowledge for Change Program, which supports economic and social knowledge generation activities. 3Capacity building encompasses three main activities: skill upgrading, both general and specific; procedural improvements; and organizational strengthening. The World Bank Group 2005 Trust Funds Annual Report 11 Section 3 Sectoral and Thematic Focus of Trust Funds 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 8. Consultant Trust Funds Post-Conflict Reconstruction and Natural Disasters The Bank Group plays a leading role in administering the efforts of the international community to support the restoration of normalcy in countries emerging from periods of insurrection and armed conflict and natural disasters 15. 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, 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 which mainly provides emergency services support to the Palestinian Authority. This fund has been supplemented by another trust fund, opened in fiscal year 2004, that supports public financial management reform efforts in the West Bank and Gaza. 16. The Sudan Post Conflict Multi-Donor Trust Funds were created in fiscal year 2005 following the signing of the Comprehensive Peace Agreement and release of the Sudan Joint Assessment Mission Report. A donor conference in Norway in April 2005, pledged funds towards identified reconstruction and development needs. 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 goal of providing early and broad assistance to conflict-affected areas. In fiscal year 2004, PCF was an important source of financing for Haiti, Somalia, and Sudan. The PCF secretariat also administers a new Low-income Countries Under Stress (LICUS) trust fund targeted to countries in non-accrual status. 17. The newest initiative on the natural disaster front is the Indonesia Multi-Donor Trust Fund for Aceh and North Sumatra. This trust fund is supporting the rehabilitation and reconstruction in the wake of the earthquake and tsunami that struck in December 2004. Eight donors, including the Bank, have committed to contribute a total of $444 million, which is being used to finance Government-executed projects and sectoral programs that comprise a major part of the rehabilitation and reconstruction effort. The World Bank Group 2005 Trust Funds Annual Report 12 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. The ProVention Consortium Financial Sector Strengthening and Crisis Management Recognizing that a strong financial sector is a prerequisite for sustained development, donors fund a number of initiatives to strengthen financial sectors in developing and transition countries 18. Working with its partners, the 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. 19. Prominent among the World Bank Group's trust-funded programs in this area include the Financial Sector Reform and Strengthening Initiative (FIRST), which is implemented jointly with the International Monetary Fund. FIRST and associated programs are designed to improve our 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 second phase maintained the focus of its predecessor, and included among its donors two beneficiary countries from the first phase. 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. 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 The World Bank Group 2005 Trust Funds Annual Report 13 Section 3 Sectoral and Thematic Focus of Trust Funds Private Sector and Infrastructure Development A number of trust funds assist initiatives to develop infrastructure and strengthen the role of the private sector in development. 20. Trust funded support to private sector development provides opportunities for the poor through market-friendly, enterprise-led growth, and through the provision of better services based on efficient delivery systems and targeted subsidies. The main focus is 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. 21. 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 of their economies--solely at the request of governments and on the topics identified by, 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 worldwide. The Cities Alliance Program aims to improve living conditions for the urban poor by helping create city development strategies and supporting slum-upgrading. 22. The new, Global Program for Output-based Aid 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 delivery of services. Private Sector and Infrastructure Development More information on the following trust funds provided in Annex H 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 The World Bank Group 2005 Trust Funds Annual Report 14 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 23. 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 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 I 1. International Finance Corporation trust funds 2. Multilateral Investment Guarantee Agency trust funds The World Bank Group 2005 Trust Funds Annual Report 15 Section 5 WBG Trust Funds Financial Information Summary 5. World Bank Group Trust Funds - Financial Information Summary for Year Ended June 30, 2005 Introduction 1. This report 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) and the Multilateral Investment Guarantee Agency (MIGA), 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 Handbook. The annual "single audit", formally known as Management's Assertion Regarding Effectiveness of Internal Control over Financial Reporting of Trust Fund Activities, provides assurance that the Bank's overall internal control framework surrounding trust funds provides accurate and reliable cash-based financial reports. 4. As part of the wider control framework for Trust Funds, the Bank pays close attention to reviews on the administration of particular funds, undertaken by the Trust Fund Quality Assurance and Compliance Unit and the Internal Auditing Department. In some cases those reviews have helped identify areas of administration that need further strengthening, and on occasion amounts of potentially ineligible expenditure. In reviewing such cases, Bank Management has distinguished between issues that represent technical breaches of a trust fund's terms, and those that impact substantively the objectives of the relevant trust fund. In the latter case, the Bank reimburses the donor in order to ensure we maintain high fiduciary standards for trust fund administration. Comparative Information 5. The presentation of information contained in this financial information summary is different from what it has been previously in order to make the report more informative. 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 6. Funds held in trust at June 30, 2005 amounted to $9.3 billion, up by eight percent from $8.6 billion at June 30, 2004. At June 30, 2005 and June 30, 2004, funds held in trust which under the three largest programs (Global Fund to Fight AIDS, Tuberculosis and Malaria - GFATM; Global Environment Facility - GEF; and Heavily Indebted Poor Countries Debt Initiative Trust Fund - HIPC) accounted for 59% and 61%, respectively, of the total funds held in trust, with the details as shown below: The World Bank Group 2005 Trust Funds Annual Report 16 Section 5 WBG Trust Funds Financial Information Summary June 30, 2004 June 30, 2005 GFATM GFATM Others 26% 26% Others 39% 41% GEF GEF HIPC 19% HIPC 21% 16% 12% 7. Contributions received in cash during FY05 were $4.8 billion, compared to $4.9 billion received during FY04, a decrease of 4%. The top five external donors in FY05 were USA ($486 million), UK ($467 million), Japan ($460 million), France ($434 million) and Netherlands ($358 million). The top three trust fund programs, which accounted for 50% of all cash contributions received during FY05, were GFATM (22%), GEF (15%) and HIPC (13%). 8. Disbursements made in cash during FY05 were $4.1 billion, up 26% from $3.3 billion in FY04. The top three trust fund programs, which accounted for 53% of all disbursements made during FY05, were GFATM ­ $936 million (23%), HIPC - $865 million (21%) and GEF - $417 million (10%). Contributions and Disbursements for year ended noilli 6,000 4,940 m 5,000 3,899 4,750 D 4,000 Contributions US 3,000 4,128 nitnuo 2,000 3,277 2,561 Disbursements 1,000 - Am Jun-03 Jun-04 Jun-05 Number of active trust funds and programs June 30, 2005 June 30, 2004 Number of active trust funds and programs1 840 903 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 single fund or program. The World Bank Group 2005 Trust Funds Annual Report 17 Section 5 WBG Trust Funds Financial Information Summary Funds Held in Trust 9. Contributions received from donors but not yet disbursed (funds held in trust) consist of cash and investments. (in millions of U.S. dollars) June 30, 2005 June 30, 2004 Major Trust Fund Programs Global Fund to Fight AIDS, Tuberculosis and Malaria (GFATM) 2,391 2,223 Global Environment Facility (GEF) 1,942 1,624 Heavily Indebted Poor Countries (HIPC) 1,181 1,396 Other Trust Fund Programs Greater than $30 million Single Purpose and Programmatic Trust Funds 1,162 945 Free-Standing Grants1 421 492 Iraq Reconstruction Trust Fund 382 215 Afghanistan Reconstruction Trust Fund 247 151 International Finance Corporation Trust Funds 238 191 Donor Balance Accounts and Holding trust Funds 204 297 West Bank and Gaza 134 185 Debt Service and Debt Reduction Trust Funds 133 64 Carbon Fund 115 61 African Capacity Building Foundation 106 85 Montreal Protocol/Ozone Trust Fund 102 131 Institutional Development Fund 70 64 Consultant Trust Funds 70 67 Consultative Group to Assist the Poorest 47 35 Public-Private Infrastructure Advisory Facility 37 37 Brazilian Rain Forest 37 37 Financial Sector Reform & Strength 33 30 Other Trust Fund Programs Less than $30 million 256 257 Total Funds Held in Trust2 9,308 8,587 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 $9 million at June 30, 2005 and $4 million at June 30, 2004. The World Bank Group 2005 Trust Funds Annual Report 18 Section 5 WBG Trust Funds Financial Information Summary Cash and Investments 10. 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, MIGA and IFC. 11. 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 tranche 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 tranche with a larger proportion of longer term investments. 12. The investment return for the overall portfolio for the year ended June 30, 2005 was 2.29% and for the year ended June 30, 2004 was 1.02%. The following table shows the composition of Cash and Investments at each reporting date: Cash and Investments June 30, 2005 June 30, 2004 (in millions of U.S. dollars) Sub-portfolio: Money Market (MM) and Cash 3,993 42% 6,617 75% US Treasuries 4,220 44% 2,243 25% Mortgage backed securities (MBS) 1,330 14% - - Total 9,543 100% 8,860 100% June 30, 2004 June 30, 2005 US MBS Treasuries 14% 25% US Treasuries 44% MM and MM and Cash Cash 75% 42% The World Bank Group 2005 Trust Funds Annual Report 19 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 2005 2004 2005 2004 Major Trust Fund Programs Global Fund to Fight AIDS, Tuberculosis and Malaria 1,025 1,191 936 429 Global Environment Facility 734 1,003 417 398 Heavily Indebted Poor Countries 622 594 865 941 Other Trust Fund Programs Single Purpose and Programmatic Trust Funds 602 349 329 122 Afghanistan Reconstruction Trust Fund 449 280 354 218 Free-standing Grants1 298 406 361 412 West Bank and Gaza 181 156 234 170 International Finance Corporation (IFC) Trust Funds 149 125 109 84 Consultative Group on International Agricultural Research 130 99 123 100 Debt Service and Debt Reduction Trust Funds 80 62 13 64 Carbon Fund 67 33 16 13 Iraq Reconstruction Trust Fund 52 220 25 2 Montreal Protocol/Ozone Trust Fund 52 46 79 60 African Capacity Building Foundation 47 37 31 36 Consultant Trust Funds 36 15 36 35 Water & Sanitation Program 20 14 14 10 Institutional Development Fund 19 18 14 14 Environmentally & Social Sustainable Development Fund 15 13 13 13 Trust Fund for East Timor 15 - 16 19 Donor Balance account and Holding Trust Funds 14 107 - - Consultative Group to Assist the Poorest 13 12 14 13 International Center for Settlement of Investment Disputes 12 7 8 6 Public-Private Infrastructure Advisory Facility 12 15 14 13 Financial Sector Reform & Strength 10 12 8 4 Development Grant Facility 8 9 7 11 Asia-Europe Meeting: East Asia Crisis Trust Fund 8 9 8 5 Special Climate Change Fund 8 - - - United Nations Development Program 7 - 2 2 Onchocerciasis/Tropical Diseases Research 6 11 15 13 Energy Sector Management Assistance 6 4 5 5 World Bank Institute 4 10 14 19 Yugoslavia Fund - - 9 - Low Income Countries under Stress - 25 9 - Others 49 58 30 46 Total2 4,750 4,940 4,128 3,277 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. The World Bank Group 2005 Trust Funds Annual Report 20 Section 5 WBG Trust Funds Financial Information Summary Contributions by Donor (in millions of U.S. dollars) Year ended June 30 2005 2004 Sovereign Countries and the European Community United States 486 742 United Kingdom 467 607 Japan 460 554 France 434 162 Netherlands 358 385 European Community 337 645 Canada 270 250 Sweden 236 64 Germany 229 191 Norway 191 180 Denmark 93 54 Italy 87 196 Spain 72 34 Switzerland 51 48 Australia 51 61 Finland 47 31 Belgium 38 39 Austria 16 14 Ireland 15 34 Portugal 13 4 Korea 12 9 Luxembourg 8 7 China 5 5 Kuwait 5 5 Others 40 49 Subtotal 4,021 4,370 World Bank Group IBRD 504 412 IFC 58 33 IDA - 20 MIGA - - Subtotal 562 465 Other donors Gates Foundation 54 - UNEP 53 46 United Nations Foundation 23 14 UNDP 7 3 Others 30 42 Subtotal 167 105 Total Cash Contributions 4,750 4,940 The World Bank Group 2005 Trust Funds Annual Report 21 Section 5 WBG Trust Funds Financial Information Summary Disbursements by Category (in millions of U.S. dollars) Year Ended June 30 2005 2004 Trust Funds supporting Recipient activities Debt Service HIPC 864 941 Other Debt service 25 65 Technical Assistance 966 812 Co-financing, Investments and Special Bank Financing 720 506 Subtotal 2,575 2,324 Trust Funds supporting Bank/Partnership activities Analytical and Advisory services and staff support programs 164 107 CTF program 36 35 Subtotal 200 142 Fiscal Agency Trust Funds GFATM 936 429 GEF 244 238 Other fiscal agency trust funds 163 139 Subtotal 1,343 806 Others 10 5 Total Cash Disbursements 4,128 3,277 June 30, 2004 June 30, 2005 Supporting Supporting Bank/ Bank/ Partnership Partnership Fiscal 5% 4% Agencies Fiscal 25% Agencies Supporting 33% Recipient Supporting 62% Recipient 71% The World Bank Group 2005 Trust Funds Annual Report 22 Annexes Descriptions of Selected Trust Fund Programs The World Bank Group 2005 Trust Funds Annual Report 23 Annex A Debt Service and Debt Reduction Annex A Debt Service and Debt Reduction From an array of 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) NOTE: The table below does not reflect funds transferred from other programmatic sources. Such transfers are reflected in the corresponding tables for the originating source programs. Highly Indebted Poor Countries Debt Initiative FY2005 $'million Cash Contributions received during the year 622 Disbursements made during the year 865 1. As of end-June 2005, 27 countries were receiving debt relief under the HIPC debt relief initiative. Eighteen had reached the completion point4 and are receiving irrevocable debt relief. The nine countries that are between decision point and completion point are receiving interim debt service relief. Debt relief provided thus far under the HIPC Initiative framework amounts to $54 billion. For the 27 countries that have reached their decision or completion points, HIPC and other debt relief initiatives have reduced the overall debt stock by two-thirds. Ratios of debt service-to-exports have been substantially reduced, to an average of ten percent. Debt relief allows beneficiary governments to allocate more resources for development. 2. From the inception of HIPC through the end of fiscal year 2005, IDA has provided about $3.1 billion in debt relief to qualifying countries. The HIPC Trust Fund has to date reimbursed IDA for the debt relief it provides to these countries. Funding for this reimbursement has come primarily in the form of the transfer of the Bank's net income to the IDA component of the HIPC Trust Fund. Total Bank net income allocations to the HIPC Trust Fund to date are $2.12 billion. The IDA14 replenishment agreement included funding to cover IDA's cost of HIPC debt relief during the IDA14 period. 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 $3.6 billion to the HIPC Trust Fund to support these creditors, and have contributed more than $2.9 billion. Disbursements from the HIPC Trust Fund to eligible regional and sub-regional creditors now total more than $2.3 billion, including $865 million in fiscal year 2005. 4The completion point under the HIPC Initiative is when creditors commit irrevocably to, and fully deliver, debt relief. The decision point, which precedes the completion point, is when debt relief is committed and begins on an interim and voluntary basis. The World Bank Group 2005 Trust Funds Annual Report 24 Annex A Debt Service and Debt Reduction Debt Reduction Facility for IDA-only Countries (DRF) Debt Reduction Facility FY2005 $'million Cash Contributions received during the year 50 Disbursements made during the year 0.1 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 the Bank's International Development Association. Since its establishment, the Debt Reduction Facility has financed 22 operations in 21 countries. About $4.5 billion of external commercial debt principal and more than $3.5 billion of associated interest arrears and penalties have been settled. 5. Soon after the start of fiscal year 2005, the Bank's Executive Directors agreed to extend the DRF to July 2007, with commitment to replenish it by a $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 allow the DRF to address the commercial debts of the 27 HIPC countries that have reached their decision or completion points. In coming years the facility will complement HIPC through debt reduction operations in those countries. 6. Since its extension, the DRF is now providing support for debt reduction operations in Mozambique, Nicaragua, the Democratic Republic of Congo, and Sierra Leone. Negotiations with commercial creditors are most advanced in Mozambique, in which approximately US$15 million will be required during the second half of 2005 from the Facility to fund a commercial debt reduction operation. Funded by the DRF, financial and legal consultants have been chosen by Nicaragua to advise it in negotiations with creditors, and proposals to allocate resources to hire financial and legal advisors will be submitted to the IDA Board for DRC and Sierra Leone in the second half of 2005. The World Bank Group 2005 Trust Funds Annual Report 25 Annex B Environment and Sustainable Agriculture Annex B Environment and Sustainable Agriculture From an array of 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 & Danish Carbon Fund 10. Trust Fund for Environmentally and Socially Sustainable Development 11. Pilot Program to Conserve the Brazilian Rain Forest 12. Consultative Group on International Agricultural Research 13. Nile Basin Initiative 14. Mediterranean Environment Technical Assistance Program Global Environment Facility (GEF) Global Environment Facility FY2005 $'million Cash Contributions received during the year 734 Disbursements made during the year 417 7. The Global Environment Facility (GEF), established in 1991, helps developing countries fund projects and programs that protect the global environment. GEF is governed by an assembly of 176 participating countries, a council, secretariat, scientific and technical advisory panel. The GEF trusteeship is held by the World Bank. There are ten implementing agencies--the World Bank, the UN Development Programme, the UN Environment Programme, the African Development Bank, the Asian Development Bank, the European Bank for Reconstruction and Development, the Inter-American Development Bank, the International Fund for Agricultural Development, the UN Food and Agriculture Organization, and the UN Industrial Development Organization. 8. Grants from GEF support projects related to biodiversity, climate change, international waters, land degradation, desertification, the ozone layer, and persistent organic pollutants. Today its projects range from the Africa Stockpiles Program--to eliminate obsolete pesticides and contaminated waste--to the Mesoamerican Biological Corridor--a project that combines nature conservation with improving people's lives--to expanding the global market for solar home systems, which now totals more than one million rural households. GEF allocations in fiscal year 2005 were more than $600 million, with an additional sum exceeding $2 billion in cofinancing from other partners. Since 1991, 26 percent of GEF allocations have gone to Asia, 21 percent to Latin America and the Caribbean, 23 percent to Africa, 16 percent to Europe and Central Asia, 13 percent to global programs, and three percent to regional programs. As of June 30, 2005, the cumulative resources available to the GEF Trust Fund amounted to $6.6 billion and the cumulative amount allocated for the GEF work program, agency fees, and corporate budgets was $ 6.3 billion equivalent (project allocations net of cancellations). The World Bank Group 2005 Trust Funds Annual Report 26 Annex B Environment and Sustainable Agriculture Least Developed Countries Fund for Climate Change (GEFCC) Least Developed Countries Fund for Climate Change FY2005 $'million Cash Contributions received during the year 4 Disbursements made during the year 1 9. The Least Developed Countries Fund for Climate Change was established in September 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 Global Environment Facility administers the fund and the World Bank acts as its trustee. The implementing agencies include the Bank, the UN Environment Programme, and the UN Development Programme. 10. Since inception of the Fund, and as of the end of fiscal year 2005, $33 million has been pledged by 12 donor countries, with $20 million in cash and $12 million in the form of promissory notes already received. More than $11 million had been allocated for 43 national projects, plus two global support projects, and most of these projects had commenced implementation. Special Climate Change Fund (SCCF) Special Climate Change Fund FY2005 $'million Cash Contributions received during the year 8 Disbursements made during the year 0 11. The Special Climate Change Fund was established in May 2002 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 as of date. The Global Environment Facility administers the Fund and the World Bank acts as its trustee. The implementing agencies include the World Bank, the UN Environment Programme, and the UN Development Programme. 12. Since its inception, nine donor countries have pledged contributions to the Fund, and total cash receipts amount to $8.0 million. Of this amount, $6.9 million is dedicated to the Program for Adaptation and the balance of $1.1 million is earmarked for the Program for Transfer of Technology. As of the end of fiscal year 2005, there were no allocations made towards projects. The World Bank Group 2005 Trust Funds Annual Report 27 Annex B Environment and Sustainable Agriculture Carbon Finance: Prototype Carbon Fund (PRCF) Prototype Carbon Fund FY2005 $'million Cash Contributions received during the year 5 Disbursements made during the year 5 13. The World Bank seeks to ensure that developing countries and economies in transition can benefit from the emerging market for reductions in greenhouse gas emissions. Working through a series of "carbon funds", the intent is 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. 14. The Prototype Carbon Fund (PRCF) 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.5 The PRCF 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 $180 million to the fund. 15. As of the end of fiscal year 2005, the PRCF had invested in projects with a cumulative contract value of more than $117 million not including options. Thirty-two projects are at advanced stages and 20 have been contracted. 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 FY2005 $'million Cash Contributions received during the year 0 Disbursements made during the year 1 16. The Netherlands Clean Development Mechanism Facility (NCDMF) was established in May 2002. The Facility supports projects in developing countries. The NCDMF purchases emission reduction credits for renewable energy, energy efficiency, and fuel switching activities. Cost-effectiveness and sustainability play a major role in selection and approval of projects. Projects are drawn from a broad range of technologies and processes in energy, industry, and transport, to provide various vehicles for generating greenhouse gas emission reductions. At the end of fiscal year 2005, the total capitalization of the Facility stood at approximately 136 million. Some 31 million metric tons of carbon dioxide equivalents of greenhouse gas emission reductions is projected to be obtained by the Facility. The agreement with the World Bank is part of a larger program by the Netherlands to obtain 100 million tons of carbon dioxide equivalent of greenhouse gas emission reductions through carbon trading (Ref: http://www.cdminfo.nl). 5Under the Kyoto Protocol, the developed nations agreed to limit their greenhouse gas emissions relative to those of 1990. The World Bank Group 2005 Trust Funds Annual Report 28 Annex B Environment and Sustainable Agriculture 17. As of July 1 2005, there were 32 projects under consideration. Thirteen of these projects are in Latin America, five in China, three in sub-Saharan Africa, three in Southeast Asia, two in North Africa, two in India, and four are in Central Asia. Sixteen of these are renewable energy projects (eleven are hydro, one is wind-power, one is geothermal, two are biogases, and one is biomass), four are energy efficiency projects, four are landfill gas recovery and use projects, two are composting projects, one is an HFC-23 destruction project, three are gas flare projects, one is an energy conservation project through the use of alternative building materials, and one is a coal mine methane capture project. Carbon Finance: The Netherlands European Carbon Facility (NECAF) The Netherlands European Carbon Facility FY2005 $'million Cash Contributions received during the year 1 Disbursements made during the year 0.3 18. The Netherlands European Carbon Facility, 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; and 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 $37.5 million. First Emission Reduction Purchase Agreements for the Facility are expected to be signed by the end of calendar year 2005. Carbon Finance: Community Development Carbon Fund (CDCF) Community Development Carbon Fund FY2005 $'million Cash Contributions received during the year 8 Disbursements made during the year 5 19. The Community Development Carbon Fund (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 $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. The World Bank Group 2005 Trust Funds Annual Report 29 Annex B Environment and Sustainable Agriculture Carbon Finance: BioCarbon Fund (BioCF) BioCarbon Fund FY2005 $'million Cash Contributions received during the year 22 Disbursements made during the year 1 21. The BioCarbon Fund (BioCF) was established in 2003, and uses the same model as the Prototype Carbon Fund and the Community Development Carbon Fund to expand the reach of carbon finance to ecosystem and land management projects. It provides finance 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. As of July 2005, thirteen governments and companies from Japan, Europe and Canada had contributed $51.3 million. This sum is sufficient to support some 20 projects in the form of Emission Reductions Purchase Agreements to be signed prior to June 2006. About 150 project proposals have been received, from which approximately 20 projects will be chosen. Carbon Finance: Italian Carbon Fund (ICF) and Danish Carbon Fund (DCF) Italian Carbon Fund FY2005 $'million Cash Contributions received during the year 30 Disbursements made during the year 1 Danish Carbon Fund FY2005 $'million Cash Contributions received during the year 0 Disbursements made during the year 0.3 23. The Italian Carbon Fund (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. Te Fund received an initial contribution of $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. 24. The Danish Carbon Fund became operational in January 2005, based on pledges from the Danish Government and private sector. The Fund will focus on projects in wind power, combined heat and power, hydro, biomass and landfill gas. A share of the Fund will be set aside for projects in poorer developing countries that have had difficulties attracting carbon finance. Consistent with major global market trends, the majority of the potential projects are located in the emerging markets of East and South Asia. This development is in contrast to the modest supply of project opportunities from the former centrally planned economies in Eastern Europe. And consistent with another overall market trend, projects in the landfill sector, coal mines, and destruction of HFC-23 seem most likely as the first project types to be included in the Fund's future portfolio. The World Bank Group 2005 Trust Funds Annual Report 30 Annex B Environment and Sustainable Agriculture Trust Fund for Environmentally and Socially Sustainable Development Trust Fund for Environmentally and Socially Sustainable FY2005 Development $'million Cash Contributions received during the year 15 Disbursements made during the year 13 25. The Trust Fund for Environmentally and Socially Sustainable Development (TFESSD) was created in December 1999 to support the World Bank's fight for sustainable poverty reduction. The Fund provides flexible additional financing for innovative analytical and project work, while acting as a catalyst for encouraging Bank staff to incorporate environmentally and socially sustainable development issues in all their work--at headquarters and in the field. 26. Since 1999 the Fund has supported 241 projects in more than 50 low- and middle-income countries. Donor contributions related to these projects total $47 million, with about half of the funding going to Africa. As of the end of fiscal year 2005, there were 137 ongoing TFESSD activities under the four "windows": Poverty, Environment, Social Development, and Social Protection. The TFESSD is focused on innovative, catalytic activities which help the Bank deepen its knowledge and contribute to the development of new tools and instruments. Pilot Program to Conserve the Brazilian Rain Forest (BRF) Pilot Program to Conserve the Brazilian Rain Forest FY2005 $'million Cash Contributions received during the year 4 Disbursements made during the year 4 27. The 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 $250 million from Germany, the European Commission, Japan, the United States, the Netherlands, the United Kingdom and Canada. It is administered, by the World Bank. Brazil contributes about 10 percent in counterpart funds. Over time cumulative contributions have grown to some $420 million. In addition to counterpart funding, government agencies in Brazil make available their own infrastructure and personnel to carry out projects. Project participants also contribute to the Program: local communities make contributions, mostly in the form of labor and materials. 28. 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 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. Projects are divided according to specific thematic objectives. The funding of individual projects comes in part from bilateral contributions, either financial or technical. 29. Over the past 13 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 thousand square kilometers of Extractive Reserves, (ii) 200 natural resources management projects successfully implemented by communities, (iii) development of good forest management by pilot example, 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 experience for the conservation and sustainable use of the forests of Brazil. The World Bank Group 2005 Trust Funds Annual Report 31 Annex B Environment and Sustainable Agriculture Consultative Group on International Agricultural Research (CGIAR) Consultative Group on International Agricultural Research FY2005 $'million Cash Contributions received during the year 130 Disbursements made during the year 123 30. 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. It has grown into an alliance of 64 public and private sector entities supporting a system of 15 international agricultural research centers. With over 8,500 scientists and staff, the centers work in more than 100 countries in collaboration with partners, including national agricultural research institutions, universities, advanced research institutions, civil society organizations, and the private sector. The World Bank co-sponsors CGIAR, together with the UN Food and Agriculture Organization, the UN International Fund for Agricultural Development, and the UN Development Programme. The Bank chairs the Group and houses the CGIAR secretariat. 31. Under a CGIAR reform program, initiated in 2001, developments include the launching of a performance measurement system for all 15 centers, and adoption of the first-ever Charter of the CGIAR System in 2004. Now in its fourth year of operation, the Executive Council has greatly facilitated decision-making in the CGIAR. The Science Council is fully operational, focusing on the formulation of new system priorities for the CGIAR and a more streamlined mechanism for monitoring and evaluation of research programs. In calendar year 2004, a third challenge program (CP) on genetic resources, the Generation CP, was approved by the CGIAR beyond its one-year inception phase. The CGIAR also approved a fourth CP, the Sub-Saharan Africa (SSA) CP. 32. The CGIAR SSA Task Forces on programmatic and structural alignment have submitted their joint report and it will be a major item for discussion at the December 2005 annual general meeting. Other initiatives such as the new CGIAR nomination process for Center Board membership and the first system-wide compensation study are making significant progress. Implementation of various components of the reform program, coupled with the overall improvement of the priority given to agriculture and agricultural research by the donor community, has resulted in a 15 percent increase (about $56 million) in CGIAR funding over the 2003 level. The CGIAR closed calendar year 2004 having mobilized a record $453 million Nile Basin Initiative (NBI) NOTE: The table below does not reflect funds transferred from other programmatic sources. Such transfers are reflected in the corresponding tables for the originating source programs. Nile Basin Initiative FY2005 $'million Cash Contributions received during the year 11 Disbursements made during the year 6 33. The Nile Basin Initiative (NBI) process began in 1998, as did partner engagement, comprising facilitated dialogue, development of a basic platform of trust, and adoption of a `shared vision', leading to formal NBI launch by nine countries (Eritrea as observer). Since then many development partners have joined the process and NBI was formally launched in 1999. Currently, NBI is a unique 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 World Bank Group 2005 Trust Funds Annual Report 32 Annex B Environment and Sustainable Agriculture the common Nile Basin water resources." 6 The NBI is supported by 17 bilateral and multilateral donors in an unusually strong development partnership which shares the vision of the riparian states. Established and activated in January 2003, the Nile Basin Trust Fund (NBTF) administered by the Bank is the main mechanism to channel funds to riparian states, and most donors contribute through this trust fund. 34. A significant feature of the NBTF is that its funds directly support NBI priorities. For the Shared Vision Program (SVP) - a multi-sectoral, basin-wide program to build trust, capacity, and the enabling environment for investment--the NBI Secretariat is the executing agency for all eight projects and has overall responsibility for the delivery of the Program.7 This structure ensures ownership of NBI activities and can contribute to building institutional capacity to design and implement regional projects. 35. By the end of fiscal year 2005, NBTF donors had contributed some $48 million to the trust fund, out of which about $30 million had been disbursed or committed. Ten NBTF-funded projects are currently under implementation and several more under preparation. Mediterranean Environmental Technical Assistance Program (METAP) Mediterranean Environmental Technical Assistance Program FY2005 $'million Cash Contributions received during the year 1 Disbursements made during the year 2 36. The Mediterranean Environmental Technical Assistance Program (METAP) was established in 1990 to assist countries of the Mediterranean to strengthen their capacity in selected regional environmental management activities. In its current phase (fiscal years, 2001-2006) METAP has focused on three areas of work: water quality and coastal zone management; solid waste management; and economic policy tools to aid environment sustainability. The METAP beneficiary countries are: Albania, Algeria, Bosnia-Herzegovina, Croatia, Egypt, Jordan, Lebanon, Libya, Morocco, Syria, Tunisia, Turkey, and West Bank & Gaza. For these countries, population growth and rapid urbanization threaten to undermine the development progress that has been made over the last decade with environmental degradation costing the economies from 2.1 to 4.8 percent of GDP. 37. METAP is a partnership of the European Commission, European Investment Bank, Finnish Ministry of Foreign Affairs, Swiss Agency for Development and Cooperation, UNDP, and the World Bank. METAP's achievements include a series of National Environmental Action Plans (NEAPs), which allow countries to identify problems, set priorities, and develop short and medium term actions to address those priorities. Other successes include programs on the Cost of Environmental Degradation, Environmental Impact Assessment, mainstreaming environment into sectors like trade and privatization, and banking and environment. Themes like these are particularly well suited to the regional approach, where countries can learn from each other, which has been a METAP specialty. 38. From the beginning, METAP also placed great importance on the sound preparation of environmental projects, mostly in the fields of water supply, wastewater and solid waste at the municipal level, as well as some integrated coastal zone management initiatives, in line with METAP country priorities. By now, more than 35 projects have been prepared, resulting in investments of over $2 billion. 6Nile Council of Ministers, Policy Guidelines for the Nile River Basin Strategic Action Program, February 1999. 7ENTRO is the executing agency for ENSAP projects, and NELSAP-CU is working together with the Nile Secretariat on NELSAP project execution. The World Bank Group 2005 Trust Funds Annual Report 33 Annex C Health and Human Development Annex C Health and Human Development From an array of 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. China Education Blending Trust Fund Global Fund to Fight AIDS, Tuberculosis, and Malaria (GFATM) Global Fund to Fight AIDS Tuberculosis and Malaria FY2005 $'million Cash Contributions received during the year 1,025 Disbursements made during the year 936 39. AIDS, tuberculosis, and malaria claim six million lives each year, decimating economies and destabilizing societies in much of the developing world. The Global Fund was created to finance a dramatic turnaround in the fight against these diseases. This partnership between governments, civil society, the private sector, and affected communities represents a new approach to international health financing. It does not implement programs directly but operates as a financial instrument. It has created a demand-driven model whereby country-level grant applications are developed and submitted by consortia of public and private sector NGOs, government officials, and organizations representing people living with these diseases. The Global Fund Secretariat is based in Geneva, and the World Bank has acted as trustee for the fund from its inception. 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 funds received are used for purposes intended. The Global Fund works in close collaboration with other bilateral and multilateral organizations to supplement existing efforts to combat the three diseases. 40. Typically the Global Fund provides funding for the first two years of projects with a five-year horizon. It has approved four rounds of proposals with two-year funding of $3 billion for 307 programs in 128 countries. Sixty percent of the approved two-year funding involves operations in sub-Saharan Africa. Close to 54 percent of the programs will go towards fighting HIV/AIDS, 29 percent to malaria, and 13 percent to tuberculosis. 41. By the end of fiscal year 2005, the Fund's 42 donors had contributed $3.8 billion in cash and promissory notes. A number of smaller country donors and private sector donors have provided additional funding through the United Nations Foundation and the World Health Organization. Both commitments and disbursements accelerated in fiscal year 2005. Through the end of fiscal year 2005 a total of close to $2.8 billion had been committed to projects, of which $1.3 billion had been disbursed to principal recipients. At that time, the Global Fund's cash balance stood at $2.4 billion. The World Bank Group 2005 Trust Funds Annual Report 34 Annex C Health and Human Development Global Partnership to Stop Tuberculosis (Stop TB) Global Partnership to Stop Tuberculosis FY2005 $'million Cash Contributions received during the year 0 Disbursements made during the year 11 42. The Global Partnership to Stop Tuberculosis (Stop TB) was formed in 1999 to accelerate social and political action to stop the spread of the disease. It works to increase the adoption of DOTS8, the strategy to cure TB, provide a global drug facility, develop new drugs, vaccines and diagnostics, and mobilize civil society. The Stop TB trust fund was established in fiscal year 2003 to strengthen and coordinate action against the epidemic, particularly within the 22 countries that account for 80 percent of new tuberculosis cases. 43. The Stop TB trust fund has disbursed a total of $20 million, including over $10 million in fiscal year 2005, mainly for advocacy activities and the provision of effective and low-priced anti-TB drugs through the `Global Drug Facility' (GDF). The advocacy and communication activities of the Secretariat were targeted to leverage policy decisions affecting TB control at global, national and local levels, to help ensure that the views of the TB community are reflected in decision-making processes. By the end of calendar year 2004, the total Partnership members increased to 303 (from 250 in calendar year 2003) and four new national partnerships (Brazil, Mexico, Pakistan and Uganda) were created. A Network for Action on TB and Poverty was also launched during the same year. 44. By the end of the year, the Global TB Drug Facility (GDF) had provided high-quality TB drugs to over 4.4 million of the world's poorest people either through approved grants or direct procurement. During fiscal year 2005, the Partnership began coordinating the development of the Second Global Plan to Stop Tuberculosis (2006­2015) - a roadmap for TB control over the next decade. All seven working groups of the Partnership are involved in this effort. The Secretariat serves as a platform for collaboration among the working groups and provides catalytic financial support. Global Program to Eradicate Poliomyelitis (GPEP) Global Program to Eradicate Poliomyelitis FY2005 $'million Cash Contributions received during the year 0 Disbursements made during the year 0.2 45. This program, launched in fiscal year 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 rewarding countries (in which poliomyelitis is still present) for progress made towards achieving the goal of eradication. The reward is in the form of a promise to write off the costs, to the country concerned, from IDA funding used to finance eradication efforts. To qualify for this reward the country's achievements are subject to an independent review. Currently Pakistan and Nigeria are potentially eligible to benefit under this program. By the end of fiscal year 2005, a number of trust funds had been established to support this program, with contributions totaling $61 million. 8The directly observed treatment short-course, known as DOTS, ensures that people suffering from tuberculosis are fully treated with a powerful combination of drugs under the regular supervision of health workers or community volunteers. The treatment costs $10 or less for six months of drugs and uses primary care services. The World Bank Group 2005 Trust Funds Annual Report 35 Annex C Health and Human Development African Program for Onchocerciasis Control (APOC) NOTE: The table below does not reflect funds transferred from other programmatic sources. Such transfers are reflected in the corresponding tables for the originating source programs. African Program for Onchocerciasis Control FY2005 $'million Cash Contributions received during the year 6 Disbursements made during the year 15 46. 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 African Program for Onchocerciasis Control (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 2004 alone, 117 projects in more than 60,000 communities used this approach to treat 46 million people with Mectizan, a drug donated free of charge by its developer, Merck & Co. Inc., on an unlimited basis. As the program continues to scale up over the following years, 122 projects will treat about 90 million people, annually protecting 107 million people who are infected with Onchocerciasis or are at high risk of contracting the disease. 47. 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 year 2005, donors had cumulatively committed about $70 million to APOC Phase II. The World Health Organization (WHO) is the executing agency for APOC, which maintains a liaison office in Geneva and a Program headquarters office in Ouagadougou. The Bank and WHO are joined by UNDP and the UN Food and Agriculture Organization as sponsoring agencies of APOC. Global Dracunculiasis Eradication Program Global Dracunculiasis Eradication Program FY2005 $'million Cash Contributions received during the year 0 Disbursements made during the year 2 48. The Global Dracunculiasis Eradication Program (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. 49. 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 18,000 cases in calendar year 2004 (about a 99 percent reduction). Endemic countries have been reduced from 13 countries in calendar year 2003 to 11 countries in 2004. 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 (6,746 cases notified in 2004) and Sudan (6,560 cases notified in 2004) remained the most heavily infected countries. Only Senegal was certified disease-free. Five countries (Cameroon, Central African Republic, Chad, Kenya and Uganda) were in the pre-certification stage, and zero indigenous cases were reported in Benin, Côte d'Ivoire, Ethiopia, Mauritania, 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. The World Bank Group 2005 Trust Funds Annual Report 36 Annex C Health and Human Development Education for All-Fast Track Initiative Catalytic Fund (EFA-FTI Catalytic Fund) NOTE: The table below does not reflect funds transferred from other programmatic sources. Such transfers are reflected in the corresponding tables for the originating source programs. Education for All-Fast Track Initiative Catalytic Fund FY2005 $'million Cash Contributions received during the year 49 Disbursements made during the year 18 50. 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 Fast Track Initiative (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. 51. 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, Italy, the Netherlands, Norway, Spain, Sweden and the UK have made commitments of $289 million to the Fund from 2004-07. Of this pledged amount, $86.7 million has been received to date. Eight countries have received grant allocations amounting to a total of $53 million for 2005: the Gambia, Guyana, Ghana, Mauritania, Madagascar, Nicaragua, Niger, and Yemen. Disbursements in fiscal year 2005 were $18 million. 52. The Multi-donor Education Program Development Fund (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. For those countries without education plans and weak capacity, the EPDF can provide technical support and build the capacity required to prepare and implement a sound education plan. It can also support all low-income countries in sharing their knowledge and experience on education and how to reach the goal of UPC. Norway and the UK had contributed a total of $5.8 million to the trust fund as of the end of fiscal year 2005. China Education Blending Trust Fund (CEBTF) China Education Blending Trust Fund FY2005 $'million Cash Contributions received during the year 12 Disbursements made during the year 3 53. This trust fund was established through a grant of $34.6 million from the UK Department for International Development (DFID). It will be used to pre-pay part of a $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. 54. 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 countries within five of China's western provinces and The World Bank Group 2005 Trust Funds Annual Report 37 Annex C Health and Human Development 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 who are from ethnic minorities, and to directly affect some 1,700 schools in 112 counties. The project became effective in June 2004. Implementation to date has been slowed by delays caused by the need to set up on-lending procedures and special accounts and is now under implementation. The initial work of the project has focused on building and rehabilitating primary and junior secondary schools in villages, management training for the implementation staff in each of the five provinces, and workshops on school development planning and participatory teacher training. The workshops make use of experience from the DFID- supported Gansu Basic Education Project. 55. By the end of calendar year 2004, 434 school buildings had been built--accounting for more than 27 percent of the total plan, and the total area of construction was 367,100 square meters--accounting for more than 31 percent of the total plan. By June 2005, total disbursements stood at $4.3 million. A six- member Chinese Experts Panel (CEP) was formed, which conducted its first field visits on April 2005. The World Bank Group 2005 Trust Funds Annual Report 38 Annex D Poverty Reduction and Social Development Annex D Poverty Reduction and Social Development From an array of 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 Japan Social Development Fund (JSDF) Japan Social Development Fund FY2005 $'million Cash Contributions received during the year 57 Disbursements made during the year 33 56. The Japan Social Development Fund (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 continues to support 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. 57. During fiscal year 2005, 30 Regular Program grants were approved for approximately $41.5 million. Ten of these grants (41 percent of total grant value) were made to countries in East Asia and the Pacific, eight (25 percent) to Africa, six (13 percent) to Latin America and the Caribbean, five to Europe and Central Asia (18 percent) and one (3 percent) to the Middle East and North Africa. Multi-sector grants in public sector governance, social development, gender and inclusion, and social protection and risk management accounted for 54 percent of total grant value, agriculture, fishing and forestry 20 percent, water and sanitation 8 percent, education 5 percent, law and justice 13 percent. Also in fiscal year 2005, the Government of Japan approved one grant of just over $11 million for Afghanistan. 58. In January 2005, the Government of Japan allocated $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. All countries affected by the December 26, 2004 tsunami were eligible for these grants. By June 30, 2005, eight grants totaling about $11.5 million had been approved by the Government of Japan and nine further grants were under consideration. 59. Fiscal year 2005 also saw the approval of 14 Seed Fund grants, for a combined total of $0.5 million, to support activities related to the participatory process for preparing JSDF grant proposals. Four grants were approved each for Africa and for East Asia and the Pacific and three for Europe and Central Asia, and two for Latin America and one for South Asia. In July 2004, the Seed Fund was replenished with an additional $1 million. The World Bank Group 2005 Trust Funds Annual Report 39 Annex D Poverty Reduction and Social Development 60. During fiscal year 2005 the Government of Japan made additional allocations to the JSDF General fund of $5.9 million and to the JSDF contribution for Afghanistan of $9.9 million equivalent. Poverty Reduction Strategy Trust Fund (PRSTF) Poverty Reduction Strategy Trust Fund FY2005 $'million Cash Contributions received during the year 1 Disbursements made during the year 3 61. The Poverty Reduction Strategy Trust Fund (PRSTF) is a multi-donor trust fund that supports capacity building in low-income countries that are undertaking poverty reduction strategies. The Trust Fund is intended to strengthen the preparation and implementation of national poverty reduction strategies by focusing on activities that build sustainable country capacity and have the support of domestic stakeholders and external partners. 62. Each PRSTF grant is managed in-country by the World Bank, the United Nations, and the contributing donors. The Trust Fund is currently supported by Japan, the Netherlands, and Switzerland. An Advisory Board, comprising representatives from the World Bank, IMF, UN and the contributing donors meets yearly to maintain strategic oversight of the Trust Fund. 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. 63. Proposals approved in fiscal year 2005 amounted to about $2 million. Countries in Africa received the largest share (76 percent) and the remainder went to East Asia (24 percent). The grants focused on a wide range of activities, including building analytical capacity for sector work; strengthening capacity to analyze poverty issues and evaluate the poverty and social impacts of policies; establishing PRS monitoring system at a decentralized level; supporting the development of poverty maps; formulating annual action plans for implementing the PRS; and promoting and strengthening the participatory process. By the end of fiscal year 2005, cumulative grant approvals amounted to $12.7 million, and cumulative disbursements were almost $6.1 million. Indonesia Strategic Poverty Partnership (ISPP) Indonesia Strategy Poverty Partnership FY2005 $'million Cash Contributions received during the year 10 Disbursements made during the year 5 64. The Indonesia Strategic Poverty Partnership (ISPP) was established in February 2003, with funding of nearly $13.5 million, to support background work for the development of strategies for alleviating poverty in Indonesia. The work program is expected to improve understanding of the causes and dynamics of poverty and vulnerability in Indonesia, enhance the World Bank's ability to help the Government of Indonesia formulate appropriate policies for strategic poverty reduction and derive practical country-specific tools for poverty reduction. 65. The key overall achievement of the program is to place Indonesian poverty within a framework of improved governance and institutional reform. This framework became the basis for the 2004 Country Assistance Strategy as well as Indonesia's 2005 PRSP, which has guided the overall World Bank country team work program for the past two years. The ISPP has funded five main activity clusters that are helping the World Bank deliver on this framework: The World Bank Group 2005 Trust Funds Annual Report 40 Annex D Poverty Reduction and Social Development Analytical work includes reviews of fuel subsidies, a flagship paper on delivering services to the poor, assessment of opportunities for justice sector reforms that would help the poor and a study of local level conflict and peace building. Operational work concentrated on developing projects that would work through sub-national "platforms"--multi-sectoral teams intended to improve governance and civic participation. The Initiatives in Local Government Reform Project and the Support for Poor and Disadvantaged Areas Project are the first projects developed using the governance and poverty platform framework. Location of Work ISPP has helped the World Bank open a regional office located in Makassar, South Sulawesi, whose purpose is to service the poor regions of eastern Indonesia. The office includes a multi-donor center, and a free-standing information exchange. Experiments funded through the ISPP include a quantified study of interventions to lower corruption in community projects, alternative incentive regimes for improving educational services to poor villages, and assessments of non-traditional media. Civil Society Support has concentrated on increasing poor communities' access to justice. One project strengthens regional legal aid organizations, and a second partnership with women's advocacy networks is helping develop the tools for reducing violence against women in rural areas. The World Bank Group 2005 Trust Funds Annual Report 41 Annex E Capacity Building and Technical Advisory Services Annex E Capacity Building and Technical Advisory Services From an array of 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 8. Consultant Trust Funds Policy and Human Resource Development (PHRD) Fund Policy and Human Resource Development Fund FY2005 $'million Cash Contributions received during the year 82 Disbursements made during the year 93 66. Established in 1990, the Policy and Human Resources Development (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. 67. In fiscal year 2005, 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. With the support of the Government of Japan, the simplification of the PHRD TA process was very successful. Many changes have been introduced, simplifying review and approval procedures, and reducing the documentation required. The most important change is the introduction of a standard grant agreement for PHRD Project Preparation grants, which is produced automatically once a grant has been approved. The standard grant agreement for PHRD project preparation is now being used as the basis for developing similar standard agreements for other trust fund programs. 68. Over the past five years, the Government of Japan has contributed more than $490 million to the PHRD Fund. In fiscal year 2005, replenishing contributions amounted to more than $81 million. Over this same period, $430.5 million has been allocated from PHRD to finance 459 technical assistance grants to more than 74 countries. During fiscal year 2005 alone, 145 technical assistance grants were approved, totaling $118.4 million and representing a substantial increase over fiscal year 2004. The largest share of these grants went to Latin America and the Caribbean ($32.9 million), followed by Africa ($31.7 million) and Europe and Central Asia ($28.6 million). The grants focused mainly on the agriculture sector (24 grants amounting to $25.6 million, or 22 percent of total funding), multi-sectoral (23 grants and $22.1 million, or 19 percent of total allocations), and the human development sector. About 75 percent of the grants were used to support the preparation of World Bank-funded projects, 11 percent supported climate change initiatives, and six percent supported project implementation. The World Bank Group 2005 Trust Funds Annual Report 42 Annex E Capacity Building and Technical Advisory Services 69. The Joint Japan-World Bank Graduate Scholarship program awarded 210 scholarships during fiscal year 2005. Of these, 116 went to scholars from more than 100 countries, and 94 to partner University scholars. During fiscal year 2005, the Government of Japan contributed almost $13 million to the Program through PHRD. 70. In addition, PHRD made special allocations during fiscal year 2005 to the Japan Consultant Trust Fund ($8.8 million) and to global and regional programs including the HIPC Trust Fund ($39.4 million). Bank-Netherlands Partnership Program (BNPP) Bank-Netherlands Partnership Program FY2005 $'million Cash Contributions received during the year 81 Disbursements made during the year 53 71. The Bank-Netherlands Partnership Program (BNPP) was established in 1998 and reformed in 2004, to finance demand-driven global, regional, and cross-country programs for policy work, sector research, and analytical studies, relating to the Millennium Development Goals (MDGs). 72. During the first half of fiscal year 2005, 59 grants were approved to support pre-reform BNPP activities, in the amount of $36.7 million. Implementation of the BNPP reform program began during the third quarter of fiscal year 2005, with a total of 55 funding proposals amounting to about $22 million being approved. The largest share of the grants went to the ESSD Network (23 proposals for environmental sustainability activities amounting to $10.1 million); followed by the PREM Network (19 proposals for Good Governance and Trade amounting to $5.7 million), the HD Network (9 proposals for Education, HIV/AIDS and Reproductive Health amounting to $5.4 million), and the PSD Network (4 proposals for Private Sector Development activities amounting to $0.8 million). 73. Since program inception, the Government of the Netherlands has contributed more than $504 million to the BNPP. Total contributions during fiscal year 2005 totaled $81 million. Africa Capacity Building Foundation (ACBF) Africa Capacity Building Foundation FY2005 $'million Cash Contributions received during the year 47 Disbursements made during the year 31 74. The Africa Capacity Building Foundation (ACBF), based in Harare, Zimbabwe, was established in 1991. It provides long-term support to African countries for the development of professional capacity in economic policy analysis, development management, financial management and accountability, national statistics, parliament's public/private interface, research, and training of relevant staff. Its members include the African Development Bank, International Monetary Fund, United Nations Development Programme, and the World Bank, as well as 32 African and non-African countries and institutions. 75. The integration in 2000 of the Partnership for Capacity Building in Africa (PACT) into ACBF allowed the Foundation to scale up significantly the level, depth, and breadth of its interventions in capacity building. PACT is the direct result of an initiative taken by the African Governors of the World Bank to address Africa's capacity deficit. The ACBF agreed to be responsible for PACT implementation. Its current members include 18 African countries, 15 non-African government donor agencies, and four multilateral institutions (the World Bank, AfDB, UNDP, and IMF). The World Bank Group 2005 Trust Funds Annual Report 43 Annex E Capacity Building and Technical Advisory Services 76. ACBF-PACT currently has a portfolio of 80 full-fledged projects and programs in about 40 African countries, building and strengthening sustainable institutional, technical and professional capacity in core areas of public sector management through provision of funding and long-term technical support. ACBF is also supporting an expanding number of African organizations with region-wide or sub-regional outreach. It involves African governments, as well as non-traditional partners such as national parliaments, civil society organizations, and the private sector. ACBF is increasingly serving as a regional platform for knowledge management and networking on capacity building across countries. It is a "hub" institution for donor coordination and coherence of capacity building activities in Africa. 77. ACBF has made significant progress in addressing the key challenges raised by the 2003 independent evaluation of PACT implementation9. The Foundation is currently preparing a new Strategic Medium Term Plan (SMTP) for a five-year period and a joint evaluation of the performance of the ongoing 2002-2006 SMTP. World Bank Institute (WBI) Partnerships World Bank Institute FY2005 $'million Cash Contributions received during the year 4 Disbursements made during the year 14 78. The World Bank Institute (WBI) delivers capacity development programs which aim to help countries share and apply global and local knowledge to meet development challenges. WBI works under formal partnership arrangements with nearly 200 organizations that share WBI's mission and that provide expertise, content, facilities, staffing, funding and many other inputs to support WBI capacity development programs. Partnerships with donors--development cooperation agencies, multilateral development institutions, foundations, and the private sector--improve cost-effectiveness through activity coordination, aid harmonization, and the joint development of donor agency competence. 79. In fiscal year 2005, WBI continued to build partnerships with a range of donor organizations. During the year, some $28.4 million were available to WBI in trust funds, including carryover of about $15.8 million from the previous fiscal year. WBI maintains multi-year, multi-sectoral, or program- specific funding partnerships with bilateral donors including those in Belgium, Canada, Denmark, Finland, France, Ireland, Italy, Korea, Norway, Spain, Sweden, Switzerland, the United Kingdom, and the United States, as well as private sector organizations and foundations. WBI also receives funding from the WBI Training Grants Window of the Japan-supported Policy and Human Resources Development (PHRD) fund, the Bank-Netherlands Partnership Program, and other World Bank-administered trust fund programs. With the support of these contributions, the Institute delivered more than 925 learning activities for clients involving nearly 110,000 participants. 80. These donor partners have been very important: almost half of the working capital of the Institute is derived from the generous contributions of like-minded donors. 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. Examples of donor partnership include: Vietnam. The Vietnam Trade Program received generous support from the Bank-Netherlands Partnership Program (BNPP) and from the United Kingdom's Department for International Development 9Partnership for Capacity Building: Mid-term Evaluation, by Jerry M. Silverman, Lauren E. Cooper, and John Nee Djan Dodoo, February 2003. The World Bank Group 2005 Trust Funds Annual Report 44 Annex E Capacity Building and Technical Advisory Services (DfID) for a mutual development objective; DfID's Vietnam office also provided considerable advice and local support. Niger and the DRC. Belgium, which has funded several WBI programs over many years, helped WBI to expand the reach of its anti-corruption program into francophone Africa not only through its financial contributions but also through its active involvement in strategic discussions on the program, its on-the-ground support in Niger and Democratic Republic of Congo, and its brokering of an expanded partnership that included UNDP and other institutions. Global Development Learning Network (GDLN) Global Development Learning Network FY2005 $'million Cash Contributions received during the year 1 Disbursements made during the year 2 81. Initiated by the World Bank in June 2000, the Global Development Learning Network (GDLN) is a worldwide partnership of learning centers (GDLN Affiliates) that offer the use of advanced information and communication technologies and distance learning techniques to people and organizations working in development around the world. GDLN Affiliates are located in more than 60 countries, most of which are developing countries. In middle income countries in particular, the Network's actual reach goes much beyond the location of the Affiliates themselves, due to the ability to connect with existing in-country Networks. GDLN has grown from 11 centers in 2000 to 76 at the end of fiscal year 2005. 82. Typical GDLN facilities include classrooms or meeting rooms with access to two-way videoconferencing and, in most cases, high-speed internet resources (such as e-mail and instant messenger). Affiliates also offer access to specialists who are familiar with critical facilitation and learning techniques that are adaptable to individual user needs. Through these technologies and techniques, GDLN Affiliates enable their clients to communicate with each other across distances for consultation, coordination, and training events in a timely and cost-effective manner. GDLN clients include academic institutions holding short courses through GDLN, development agencies seeking dialogue with key partners across the globe, government agencies coordinating with partners on policy issues, and NGOs planning major initiatives with partners. 83. The World Bank supports GDLN in a variety of ways. GDLN teams in the Bank's regional departments work with Affiliates and partners in their respective regions. The Bank's Information Solutions Group (ISG) provides the technological backbone for setting up videoconferences and facilitates access to connectivity providers for those Affiliates that would otherwise not have this access. The GDLN anchor unit, housed in the World Bank Institute (WBI), offers logistical assistance and systems for setting up GDLN events and coordinates Network strategy, governance, and communications. 84. During fiscal year 2005, 914 videoconferences and web-based activities were delivered through GDLN, representing a seven percent growth over fiscal year 2004. Most activities were initiated by external partners, ranging from NGOs and government agencies to private sector firms and development agencies. The World Bank Group 2005 Trust Funds Annual Report 45 Annex E Capacity Building and Technical Advisory Services Trust Fund for Statistical Capacity Building (TFSCB) NOTE: The table below does not reflect funds transferred from other programmatic sources. Such transfers are reflected in the corresponding tables for the originating source programs. Trust Fund for Statistical Capacity Building FY2005 $'million Cash Contributions received during the year 2 Disbursements made during the year 0.1 85. Established in fiscal year 2000, the Trust Fund for Statistical Capacity Building (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 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 is due to close at the end of calendar 2005. 86. TFSCB finances two types of projects. The first provides technical and financial support to the preparation of National Strategies for the Development of Statistics (NSDS). In line with the Marrakech Action Plan for Statistics (MAPS), TFSCB is working with PARIS21 10 to ensure that all countries have an integrated plan for the strategic development of their national statistical systems, covering all the main data sectors and users. The purpose of an NSDS project is to define the best national long-term strategy to develop an efficient and sustainable statistical system in the recipient country. The second type of project (non-NSDS) provides support to capacity building in specific priority sectors. These projects may also target the implementation of one or more critical components of NSDS. 87. TFSCB-I has been supported by five donor countries--the Netherlands, United Kingdom, Germany, Switzerland and France--which have jointly contributed $12.3 million in cash, and all of these funds have already been committed to projects. TFSCB-II has four donor countries (the fifth will join soon) and had contributions from them in the amount of $9.4 million thus far. Around 50 percent of the latter amount has been allocated to projects. 88. So far, TFSCB (I and II) has invested over $16 million in more than 70 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 has also succeeded in stimulating additional investments from other sources. For each dollar committed by the Trust Fund, about 94 cents have been provided from other sources, including government budgets. 10 The Partnership in Statistics for Development in the 21st Century (PARIS21) was established in November 1999 in response to the UN Economic and Social Council resolution on the goals of the UN Conference on Development. It was launched to act as a catalyst for promoting a culture of evidence-based policymaking and monitoring in all countries, and especially in developing countries. See www.paris21.org The World Bank Group 2005 Trust Funds Annual Report 46 Annex E Capacity Building and Technical Advisory Services Knowledge for Change Program Knowledge for Change Program FY2005 $'million Cash Contributions received during the year 4 Disbursements made during the year 2 89. Established in 2002, the Knowledge for Change Program (KCP) is a multi-donor trust fund created to support economic and social knowledge generation activities. The World Bank's Development Economics Vice-Presidency (DEC) is the Bank's primary locus of research, macroeconomic monitoring, modeling, data collection and analysis. Working through DEC, the Program has proven an effective, transparent, and efficient vehicle for the pooling of intellectual and financial resources to carry out seminal research in important areas for poverty reduction and sustainable development. 90. The Program started out with two windows: (1) Poverty Dynamics and Basic Service Delivery; and (2) Investment Climate and Trade and Integration. A third window, Global Public Goods, was approved by donors in September 2004. The KCP donors include Finland, United Kingdom, Norway, Canada, Sweden, European Commission, Switzerland, and ABN AMRO, a prominent Dutch commercial bank. Cumulative cash contributions in the amount of $10 million had been received from donors as of June 30, 2005. Outstanding contributions on signed pledges totaled $4 million, thus bringing aggregate funding of the Program to $14 million. Consultant Trust Fund (CTF) Program Consultant Trust Fund FY2005 $'million Cash Contributions received during the year 36 Disbursements made during the year 36 91. The Consultant Trust Fund (CTF) Program has provided resources to complement the World Bank's operating budget by financing consultant assignments in line with work programs and donor priorities. As part of the World Bank's reforms of trust funds, its Board of Executive Directors decided, in July 2004, that the Bank would no longer accept trust funds that impose nationality restrictions on procurement after July 1, 2005. Funds available under the CTF program will be drawn down until June 30, 2007 after which it will be closed. The World Bank Group 2005 Trust Funds Annual Report 47 Annex F Post-Conflict Reconstruction and Natural Disasters Annex F Post-Conflict Reconstruction and Natural Disasters From an array of 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. The ProVention Consortium Post-Conflict Fund (PCF) Post-Conflict Fund FY2005 $'million Cash Contributions received during the year 8 Disbursements made during the year 7 92. The Post-Conflict Fund (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 Fund 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. 93. To date, the PCF has received $65.5 million from the World Bank's Development Grant Facility and an additional $6.2 million from bilateral and multilateral donors. During fiscal year 2005, the PCF committed $6.1 million through 12 new grants, and $2.9 million through additional allocations to existing grants. As of June 30, 2005, the PCF had approved a total of $70.3 million for 157 grants, and disbursed $64.2 million. Low-Income Countries Under Stress (LICUS) Implementation Trust Fund Low-Income Countries Under Stress Implementation Trust Fund FY2005 $'million Cash Contributions received during the year 0 Disbursements made during the year 9 94. The Low-Income Countries Under Stress (LICUS) Implementation Trust Fund was established in January 2004 with a $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. The Trust Fund is designed to support those low-income countries under stress that have the most severe governance The World Bank Group 2005 Trust Funds Annual Report 48 Annex F Post-Conflict Reconstruction and Natural Disasters problems and are most vulnerable to conflict. The LICUS Trust 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, the World Bank's soft-loan window.11 Grants focus primarily on capacity building to support governance reform and strengthening social service delivery. The Trust Fund uses the same operational procedures as the Post-Conflict Fund (PCF) and is governed by an expanded PCF Committee. 95. Since 2004, the Trust Fund committed $21.7 million to six countries (Central African Republic, Comoros, Haiti, Liberia, Somalia, and Sudan) with a further $4 million in the pipeline for Togo, Somalia, Zimbabwe, and Cote d'Ivoire. These grant programs cover a broad range of interventions. In Central African Republic and Liberia, grants are supporting implementation of transitional results matrices--a simple planning tool that integrates the political, security, and development areas during a transition--as well as supporting key actions to improve economic governance and financial management and delivery of social services in conflict-affected communities. In Southern Sudan and Somalia, grants are supporting processes to help build the foundations for basic functions of the state, such as reconstruction planning, budget formulation, and financial management. In Haiti, interventions range from infrastructure rehabilitation to school feeding programs, in a program carefully designed to target strategic priorities prior to arrears clearance and transition to regular IDA lending. Iraq Trust Fund (ITF) NOTE: The table below does not reflect funds transferred from other programmatic sources. Such transfers are reflected in the corresponding tables for the originating source programs. Iraq Trust Fund FY2005 $'million Cash Contributions received during the year 52 Disbursements made during the year 25 96. In October 2003, the international donor community approved the International Reconstruction Fund Facility for Iraq, comprising the World Bank Iraq Trust Fund (ITF) and the United Nations Development Group Iraq Trust Fund, which are linked through a common governance structure to ensure close coordination. The ITF was established in January 2004 to support the reconstruction and rehabilitation of Iraq. It finances 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 ITF does not finance quick-disbursing Government recurrent expenditures, humanitarian relief, peace- keeping activities, or other security, military, or political interventions. 97. The ITF became effective upon receipt of the first deposit on March 30, 2004. As of end-June 2005, sixteen donors had deposited $392 million into the ITF. By December 2004, the Bank and Iraqi authorities had prepared, approved, and signed Grant Agreements for nine projects amounting to $366 million, thereby committing nearly all ITF available funds. 98. Two ITF-financed capacity building projects aim to strengthen public administration and economic management skills ($10 million). One capacity building project is already completed and closed, and the second one is on-going. Seven emergency operations ($355 million) provide grants implemented by Iraqi institutions that concentrate on improving the delivery of basic services throughout Iraq. One project, for Emergency Textbook Provision ($40 million) was launched at the end of fiscal year 11IDA 12 and IDA 13 have included provisions for pre-arrears clearance assistance to post-conflict countries. However, 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. The World Bank Group 2005 Trust Funds Annual Report 49 Annex F Post-Conflict Reconstruction and Natural Disasters 2004. Six additional emergency projects, spanning several priority sectors, were initiated by end- December 2004: School Construction and Rehabilitation ($60 million); Health Rehabilitation ($25 million); Baghdad Water Supply and Sanitation ($65 million); Water Supply, Sanitation and Urban Reconstruction ($90 million); Private Sector Development ($55 million); and Community Infrastructure ($20 million). ITF-financed emergency projects are implemented by Iraqi agencies in order to promote country ownership and to build policies and systems for longer term recovery and sustainable development. 99. By the end of fiscal year 2005, most ITF projects had been under implementation for about six months and are largely on track, despite current conditions on the ground. Implementation will continue to be challenging, and the World Bank intends to provide on-going close and proactive support to Iraqi implementing agencies to ensure the pace of implementation remains on track. Afghanistan Reconstruction Trust Fund (ARTF) Afghanistan Reconstruction Trust Fund FY2005 $'million Cash Contributions received during the year 449 Disbursements made during the year 354 100. The Afghanistan Reconstruction Trust Fund (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 $1.3 billion in grant contributions from 24 bilateral donors, of which $380 million were paid in the Afghan Government's last fiscal year SY1383 (21 March 2004­20 March 2005), and $450 million are pledged for the current fiscal year, SY1384 (21 March 2005-20 March 2006). 101. ARTF is governed by a Management Committee consisting of representatives of the Asian Development Bank (ADB), Islamic Development Bank, UNDP and the World Bank, with day-to-day fund administration performed by the World Bank. 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. 102. ARTF is the primary instrument for financing the civilian operating budget. As of June 30, 2005, $627 million had been disbursed to fund civil servants' salaries and the Afghan Government's operations and maintenance expenditures; and $183 million have been committed to 13 investment projects, of which $94 million had been disbursed. A recent external evaluation of ARTF rated its operation highly satisfactory. To enhance the strategic use of ARTF resources, the Government is preparing a National Development Strategy which will include a medium-term fiscal and expenditure framework to underpin resource allocations for priority programs. Trust Fund for Gaza and West Bank (TFGWB) Trust Fund for Gaza and West Bank FY2005 $'million Cash Contributions received during the year 0 Disbursements made during the year 38 103. 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 The World Bank Group 2005 Trust Funds Annual Report 50 Annex F Post-Conflict Reconstruction and Natural Disasters available to member countries. Instead, the Bank's Board of Governors on November 11, 1993 approved a $50 million grant to be transferred from surplus into a Trust Fund for Gaza and West Bank (TFGWB). To date, the Trust Fund has been replenished five times for a total allocation of $460 million, most recently in December 2003. The West Bank and Gaza portfolio currently consists of 13 projects, a number of which have been designed to respond to the current emergency situation facing the Palestinian population. The Trust Fund disbursed US$38.0 million in fiscal year 2005. West Bank and Gaza: Public Financial Management Reform Trust Fund (WBG-PFMRTF) West Bank and Gaza- Public Financial Management Reform Trust FY2005 Fund $'million Cash Contributions received during the year 152 Disbursements made during the year 153 104. West Bank and Gaza continues to suffer from severe economic recession and consequent fiscal crisis. Without donor budget support, the Palestinian Authority (PA) would experience great difficulty in sustaining basic public services, and its ability to function would be imperiled. In view of the decline in donor contributions to the Palestinian budget, the PA asked the Bank in December 2003 to create a new mechanism which would support an enhanced reform effort. The Fund's main focus is to support improved PA financial management within a broader national reform agenda. 105. Donor contributions and disbursements to this Trust Fund to date total $177 million. Donors include Norway, Canada, United Kingdom, Japan, Australia, Korea, France, and the European Commission (by far the largest donor). Total contributions for calendar year 2005 are expected to reach more than $110 million. The triggers for tranche releases under the Trust Fund are the achievement of sets of benchmarks, which have been mutually agreed by the PA and donors. Trust Fund for East Timor (TFET) Trust Fund for East Timor FY2005 $'million Cash Contributions received during the year 15 Disbursements made during the year 16 106. The multi-donor Trust Fund for East Timor (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. 107. Since the Report of the Trustee in May 2004--just before the start of fiscal year 2005--1,853 hectares of irrigation schemes and 68 kilometers of access roads were rehabilitated under the Second and Third Agriculture Rehabilitation Projects; with the assistance of the Fundamental School Quality Project, a National Education Policy Framework was drafted and submitted to the Council of Ministers, and 33 new primary schools and three new Escolas Basicas were constructed; the final designs for new hospitals for Dili, Maubisse, Oecussi and Maliana and for the Central Laboratory, were approved and nine micro- policies were drafted under the First and Second Health Sector Rehabilitation and Development Projects; the Cassa Bridge was constructed under the Emergency Infrastructure Rehabilitation Project; the The World Bank Group 2005 Trust Funds Annual Report 51 Annex F Post-Conflict Reconstruction and Natural Disasters Petroleum Technical Assistance Project contributed to the drafting of legislation for petroleum production, taxation, and revenue management, as well as increased Government revenues by improving audits of Timor Sea taxpayers; and the Small Enterprises Project rehabilitated 19 markets, delivered entrepreneurial and financial training to a total of 7,000 people, and established an export and investment promotion agency. 108. Disbursements have slowed down in the past fiscal year, reflecting the overall winding down of TFET and the associated closing of several projects. As of March 31, 2005, $177.9 million had been contributed to TFET and $177.6 million had been committed to projects. Thus, TFET was running a small surplus of more than $ 0.3 million. In alignment with the Sector Investment Programs, Government and donors agreed at the Timor-Leste Development Partners Meeting in April 2005 to allocate this surplus to the Power Sector Priority Investment Project. Timor-Leste Transition Support Program (TTSP) Timor-Leste Transition Support Program FY2005 $'million Cash Contributions received during the year 26 Disbursements made during the year 26 109. The rationale behind the Timor-Leste Transition Support Program (TTSP) is to provide bridging finance that will allow this new nation to put in place and strengthen key governance institutions, develop day-to-day service functions, and implement a modest development program in the lean years before substantial oil and gas revenues come on stream. Fiscal year 2005 was the third phase of TTSP operation, also known as the Third TSP. 110. The program focuses on the following three thematic areas: (i) Strengthening Good Governance especially through State and oversight institutions, public sector management, public expenditure management, and the justice sector; (ii) Service Delivery for Poverty Reduction with a focus on efficiency and effectiveness in the health and education sectors; and (iii) Job Creation especially through private sector development and agriculture. 111. During fiscal year 2005, the program was financed by an IDA Grant amounting to $4.9 million and bilateral co-financing through eight World Bank-administered trust funds amounting to $26 million (with contributions from Australia, Canada, Finland, Ireland, New Zealand, Norway, Sweden, the United Kingdom, and the United States). Portugal also contributed a parallel fund of $3 million directly to the Government. Multi-Country Demobilization and Reintegration Program (MDRP) Multi-Country Demobilization and Reintegration Program FY2005 $'million Cash Contributions received during the year 12 Disbursements made during the year 40 112. The Multi-Country Demobilization and Reintegration Program (MDRP) Multi-Donor Trust Fund was established in May 2002. The MDRP brings together over 40 donors, the UN, and multilateral and national government partners in an effort to address the challenges of demobilization and reintegration of members of national armies and informal armed groups of the countries involved in or affected by the conflict in the greater Great Lakes Region of Africa. Seven countries receive active support under the MDRP, and an estimated 455,000 ex-combatants are expected to benefit. The World Bank Group 2005 Trust Funds Annual Report 52 Annex F Post-Conflict Reconstruction and Natural Disasters 113. The MDRP supports three broad areas of activities: (i) National Programs; (ii) Special Projects; and (iii) Regional Activities. Since activation of the MDRP multi-donor trust fund in May 2002, grants have been approved for: Angola ($48.4 million for the National Program and $4.3 for a Special Project); Burundi ($41.8 million for the National Program and $3.5 million for a Special Project); Central African Republic ($9.8 million for a Special Project); the Democratic Republic of Congo ($100 million for the National Program and $38.3 million for eight special projects); Rwanda ($14.4 million for the National Program); and Uganda ($4.2 million for a Special Project). A new application from the Republic of Congo is currently in process. 114. During fiscal year 2005, the MDRP multi-donor trust fund received cash contributions equivalent to about $12 million, and some $40 million was disbursed. ProVention Consortium (PVC) ProVention Consortium FY2005 $'million Cash Contributions received during the year 0 Disbursements made during the year 0.3 115. The ProVention Consortium (PVC) is a global coalition of governments, international organizations, academic institutions, the private sector and civil society organizations dedicated to increasing the safety of vulnerable communities and to reducing the impact of disasters in developing countries. The main objectives of ProVention are to: forge linkages and closer interaction between members of the Consortium; develop and demonstrate innovative approaches to the practice of disaster risk management; advocate for disaster risk management among senior policy makers in international organizations, national governments and the private sector; and share knowledge and information about good practices, tools and resources for disaster risk management. 116. Since its inception in 2000, ProVention has generated a large body of research on the linkages between disasters and poverty, and the need to integrate disaster risk reduction into development activities. The research is internationally recognized as high quality, and used to promote changes at the policy level within the World Bank, developing country governments, and a number of international agencies. ProVention has also supported a large number of learning events, training more than 1,000 professionals between 2001 and 2004. 117. While there is a growing appreciation of the increasing frequency and severity of natural disasters and their social, economic and environmental impact on developing countries, there is also a recognition that the international system of disaster reduction is still relatively weak, and a realization that there is a need to generate high level political support for disaster risk management. As a result ProVention continues to have an influential role as a relatively informal and flexible network that: The World Bank Group 2005 Trust Funds Annual Report 53 Annex G Financial Sector Strengthening and Crisis Management Annex G Financial Sector Strengthening and Crisis Management From an array of 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 Funds FY2005 $'million Cash Contributions received during the year 8 Disbursements made during the year 8 118. The ASEM trust fund was established in 1998 to provide support to East Asian crisis-hit countries. 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. Before it closed in December 2002, the original trust fund (ASEM TF1) supported more than 70 activities in social welfare and safety nets and financial and corporate restructuring in seven East Asian countries. A second trust fund (ASEM TF2) became operational in April 2001 with contributions from China, the European Commission, Denmark, Finland, France, Korea, the Netherlands, Sweden, and the United Kingdom. It maintains the focus on social welfare and safety nets and financial and corporate restructuring, and its active portfolio is composed of 59 grants totaling $33.4 million. To date, there have been promising results under 12 closed grants ($4.8 million), in terms of both financial sector deepening and social sector reforms. One ASEM TF2 grant was cancelled due to lack of any progress. Total grant disbursements as of end June 2005 were $15.6 million (40 percent), of which $8 million was disbursed in fiscal year 2005. 119. A pattern has emerged where strong ownership and positive results are achieved when the In- Country Steering Committees (ICSCs) approve and proactively monitor activities. However, implementation progress has been slow for several grants. To address implementation issues, the ASEM Partners endorsed an action plan presented by the Bank at the ASEM TF2 Annual Review Meeting in April 2005. The key elements of the action plan are: (i) a desk review of slow disbursing grants; (ii) a time-bound action plan for each grant to speed up implementation; (iii) cancellation of some grants, and reallocation of funds to extend activities in high-performing grants where there is demand, absorptive capacity and good potential for replicating and achieving results that support ASEM objectives; (iv) increased role of ICSCs in monitoring implementation, with quarterly reviews; and (iv) capacity building of implementing agencies. The World Bank Group 2005 Trust Funds Annual Report 54 Annex G Financial Sector Strengthening and Crisis Management Financial Sector Reform and Strengthening (FIRST) Initiative Financial Sector Reform and Strengthening Initiative FY2005 $'million Cash Contributions received during the year 10 Disbursements made during the year 8 120. Established in 2003, the Financial Sector Reform and Strengthening (FIRST) Initiative is a multi- donor program (with pledges totaling $66 million equivalent) that supports capacity building and policy development projects in the financial sectors in developing countries. FIRST delivers technical assistance and capacity building support to eligible low- and middle-income countries on such financial sector issues as accounting and auditing, anti-money laundering, insurance, payment systems and pensions. 121. Requests for assistance have come from all regions of the world and cover a variety of needs. Projects have provided support in such diverse areas as improving access to finance for the microfinance and SME sectors, corporate governance related to Islamic finance, livestock and third-party liability insurance, and secondary mortgage markets. By the end of June 2005, FIRST had approved 168 projects with commitments totaling in excess of $28 million, of which thirty-eight had been completed. Besides country-specific projects, FIRST funds multi-country technical assistance. It has provided hands-on training to regional peer reviewers working against money laundering and the financing of terrorism, and leadership training to bank supervisors. Before approval of any project, a due diligence process is initiated whereby relevant bilateral and multilateral donor agencies are consulted to ensure that the project builds on work done previously. Besides FIRST donors, projects have benefited from the experience of the Asian Development Bank, the Inter-American Development Bank, and the US Agency for International Development. The Initiative is also collaborating with international standard-setters, such as the International Organization of Securities Commissions (IOSCO) and the International Association of Insurance Supervisors (IAIS). 122. FIRST has launched the Information Exchange, an online portal to disseminate information on financial sector development assistance. The Information Exchange includes the most comprehensive global database of financial sector development projects with over 1,700 projects in 144 countries. To expand upon this resource, FIRST established AskFIRST, a help-desk service for all inquiries regarding financial sector development, as well as to serve as a general point of contact for all queries related to FIRST. 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 FY2005 $'million Cash Contributions received during the year 13 Disbursements made during the year 14 123. The Consultative Group to Assist the Poor (CGAP) is a global partnership of 30 bilateral, multilateral, and private donor institutions working together to expand financial services to poor people. CGAP was created in 1995 at the instigation of the World Bank, other major development agencies, and leading microfinance practitioners to help build a sustainable microfinance industry. To this end, it functions as a resource center to the industry, by facilitating the development of standards and operational tools, providing technical and advisory services, delivering training, and disseminating information on best practices and lessons learned in microfinance. CGAP also serves as a convening platform for diverse stakeholders to interact and to develop consensus on standards and guidelines. The World Bank Group 2005 Trust Funds Annual Report 55 Annex G Financial Sector Strengthening and Crisis Management 124. CGAP is currently mid-way into its third phase (2003-2008). Its Phase III strategy is to exponentially scale up microfinance so that it reaches the millions of poor people who still lack access to basic financial services. To this end, CGAP's work focuses on the following five strategic areas: (i) promoting a diversity of financial service providers that serve the poor; (ii) developing a broader range of financial services that are tailored to the needs of poor clients; (iii) improving the policy and regulatory framework; (iv) building financial transparency; and (v) improving donor practices and aid effectiveness in microfinance. In fiscal year 2005, CGAP launched several new initiatives at the global and regional level, which included: G8 MENA Initiative. The Retail Advisory Service. Global Database on Microfinance Legislation and Supervision. Savings Research. Financial Transparency Award. New Donor Good Practice Guidelines. The World Bank Group 2005 Trust Funds Annual Report 56 Annex H Private Sector and Infrastructure Development Annex H Private Sector and Infrastructure Development From an array of 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) NOTE: The table below does not reflect funds transferred from other programmatic sources. Such transfers are reflected in the corresponding tables for the originating source programs. Public-Private Infrastructure Advisory Facility FY2005 $'million Cash Contributions received during the year 12 Disbursements made during the year 14 125. This multi-donor technical assistance facility helps developing countries improve their infrastructure through private sector involvement. Launched in 1999, PPIAF is directed by its 14 participating donors, 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). 126. In fiscal year 2005, PPIAF approved the financing of 82 activities for a total of $17.4 million. The largest amount of funding went to Africa (25 percent) followed by Europe and Central Asia and East Asia and the Pacific (both at 18 percent), and Latin America and the Caribbean (15 percent). South Asia's share of PPIAF activities stood at 6 percent, followed by the Middle East and North Africa region at 3 percent. Outlays for global products, such as toolkits and dissemination of emerging best practices, accounted for 15 percent of the total portfolio. Foreign Investment Advisory Service (FIAS) Foreign Investment Advisory Service FY2005 $'million Cash Contributions received during the year 9 Disbursements made during the year 3 127. The Foreign Investment Advisory Service (FIAS) is a joint operation of the World Bank and the International Finance Corporation (IFC), which advises developing-country governments on how to The World Bank Group 2005 Trust Funds Annual Report 57 Annex H Private Sector and Infrastructure Development attract and retain foreign direct investment (FDI) and maximize its impact on poverty reduction by focusing on six core areas: investment climate diagnostics, FDI policies and regulations, administrative barriers reform, investment promotion, sector-focused solutions, and corporate social responsibility. Since its founding in 1985, FIAS has advised more than 130 countries in more than 600 projects. 128. FIAS completed 74 projects in fiscal year 2005--a record high--with the largest programs in East Asia and Pacific (17) and Sub-Saharan Africa (15), followed by Europe and Central Asia (11), Latin America and the Caribbean (8), South Asia (6) and Middle East and North Africa (1). Investing in knowledge management was also a major theme of the year, resulting in 16 separate activities, including four regional private sector development learning events (see below), 30 best-practice notes, seven four- page notes, four research papers, and five government workshops. Overall, FIAS completed 43 projects in frontier countries (high risk, low income countries) in fiscal year 2005, an increase of over 74 per cent in the total number of completed country projects. New products piloted covered: access to finance; corporate social responsibility; contract enforcement; industry sector-focused solutions; and land markets. 129. The current three year strategy (fiscal years 2005-2007) has a stronger emphasis on a multi-year and multi-product programmatic approach in working with committed clients whereby initial diagnostic studies are followed by solution design and eventually the implementation of priority recommendations. This ensures a greater focus on outcomes and thereby ensures the sustainability of the reform process in client countries. Fiscal year 2005, the first year of this strategy, very much reflected these shifts with many of our projects including a greater emphasis on broader stakeholder engagement, sequencing of the implementation of different recommendations, choice of institutions, and skills and incentives that determine the behavior of authorities charged with implementing the reforms. This approach is being successfully used in Kenya, Sierra Leone, Turkey, and Fiji, amongst others. This requires greater collaboration with the development partners of FIAS within the World Bank Group and beyond. FIAS also participated with the World Bank on 29 projects, with the project development facilities on 39 projects, and, with external donors on 19 projects. 130. FIAS also developed and co-sponsored during fiscal year 2005 the global Private Sector Development (PSD) Learning Program--a series of comprehensive knowledge development workshops on key investment climate issues such as contract enforcement, administrative barriers, access to finance, land markets, and reform management to help PSD practitioners sharpen their skills in diagnosing, designing, and implementing reforms. These workshops were carried out in Washington, Cape Town, Bangkok and Istanbul to allow for maximum participation of the regional offices. The learning materials were also used in training workshops with the governments of Bangladesh and Senegal. Global Partnership on Output-Based Aid (GPOBA) Global Partnership on Output-Based Aid FY2005 $'million Cash Contributions received during the year 3 Disbursements made during the year 1 131. The Global Partnership on Output-Based Aid (GPOBA) is a multi-donor trust fund set up in 2003 by the United Kingdom's Department for International Development and the World Bank. GPOBA's goal is to help increase access to reliable basic infrastructure and social services for the poor in developing countries by broadening the use of output-based aid (OBA) approaches. 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. The World Bank Group 2005 Trust Funds Annual Report 58 Annex H Private Sector and Infrastructure Development 132. GPOBA's pilot demonstration projects aim to draw lessons on targeting eligible beneficiaries, defining performance requirements, determining payment structures, and designing monitoring arrangements. Prior to March 2005, GPOBA only funded technical assistance and dissemination activities relating to OBA approaches. However, since that time, as a result of an increase in funding, GPOBA is also able to fund subsidy payments relating to OBA projects, and has significantly scaled up its operations to design and fund OBA projects, with first subsidy disbursements expected to occur in fiscal year 2006. 133. As of fiscal year 2005, GPOBA had cumulatively approved funding of about $7.6 million for 34 projects. Also, in fiscal year 2005, total donor contributions were $3.3 million, and total disbursements were $1.4 million. Energy Sector Management Assistance Program (ESMAP) Energy Sector Management Assistance Program FY2005 $'million Cash Contributions received during the year 6 Disbursements made during the year 5 134. The Energy Sector Management Assistance Program (ESMAP) is a long-standing, global partnership for technical assistance, established in 1983. It provides policy advice for governments, access to technical assistance, and support to 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 600 activities covering a broad range of energy issues. As of June 30, 2005, ESMAP had a portfolio of 96 projects under implementation, out of which 40 had been launched during the fiscal year. The total portfolio was worth $20.3 million. 135. The ESMAP new Business Plan 2005-2007 was prepared and approved by the World Bank and the Consultative Group in March 2005. It presents a new business model which includes four thematic areas -- Energy Security, Renewable Energy, Energy and Poverty Reduction, and Market Development and Governance -- and three functional areas -- Think Tank/analytical work, Knowledge Dissemination, and Operational Leveraging. In addition, ESMAP will adopt a new portfolio management method consisting of decentralizing some of the program to the Regions through programmatic contracts with regional Bank units, implementing an expanded work program managed by the ESMAP team, and organizing limited calls for proposals under an innovation fund. 136. ESMAP's activities in fiscal year 2005 included: (i) advising on energy policy, legislative and regulatory changes (such as the clean air initiative for Sub Saharan Africa, opportunities for power trading in Nile River Basin, and renewable energy strategies for Nicaragua and Mexico), (ii) developing sector management and analytical tools (such as the development of impact measurement methodologies, and new instruments for the analysis of the environmental impact of alternative power sector plans), (iii) generating and disseminating new knowledge (such as best practices of grid rural electrification, innovative introduction of the energy stability concept in sector planning), and (iv) facilitating resource mobilization (such as the Zambia Energy Sector Restructuring project which laid the foundation for a follow-up energy access project financed by the World Bank). 137. The methodologies developed by ESMAP to measure the impact of electrification on poverty reduction have been used in the design of the Kenya Living Standards Measurement Study (LSMS), the Rural Electrification Strategy in Peru, and the monitoring and evaluation component of a Rural Electrification Loan in Bangladesh. The impact of ESMAP's activities extends beyond countries: TERI in India replicated, with resources from USAID, the approach developed in Bangladesh to create a women's micro-enterprise which assembles lamps and components for solar home systems. The World Bank Group 2005 Trust Funds Annual Report 59 Annex H Private Sector and Infrastructure Development 138. During fiscal year 2005, the Global Village Energy Partnership (GVEP) saw the transfer of the host organization for the Technical Secretariat from ESMAP to ITDG, a UK-based NGO. ESMAP continues to support the functioning of the Technical Secretariat both through the financing of administration costs of the host organization and other service contracts, and with its own expertise. In addition, ESMAP financed over 10 GVEP country and regional projects, of which five were new country programs (Brazil, Mexico, Mali, Niger, and Zambia), and one East Asia Regional workshop. Preparation of GVEP Energy-Poverty Action Plan in Cameroon has been included by Cameroon, the Bank and the IMF as one of the HIPC completion points. More than 700 partners were registered as of June 2005 and committed to GVEP's Statement of Principles. Water and Sanitation Program (WSP) Water and Sanitation Program FY2005 $'million Cash Contributions received during the year 20 Disbursements made during the year 14 139. The Water and Sanitation Program (WSP) was established in 1979. Its mission is to help poor people gain sustained access to improved water and sanitation services. The core of WSP's work is at the country level to enhance clients' efforts to achieve the Millennium Development Goals12 (MDGs) through accelerated implementation of sector reforms, and improved governance, policies, strategies, and design of programs to expand sustainable access to water, sewage and sanitation (WSS) and maximize poverty impact. WSP is uniquely placed to provide these types of services due to its specialist knowledge, global and regional presence, wide network of partnerships, and potential to leverage World Bank operations. This enables WSP to implement global/regional-national learning that is so crucial in the transfer of knowledge and influencing action at the country level. WSP is supported by 14 donor countries. 140. During fiscal year 2005, WSP pursued work on a number of fronts: developing pro-poor solutions for the urban sector; championing the unique concerns of small towns; scaling up sustainable solutions for rural areas; advocating for sanitation and hygiene promotion and links to health; supporting governments in reforming policies and institutions; and supporting development of country strategies and roadmaps for achieving the MDGs. Selected highlights of fiscal year 2005 included work on: MDGs in Africa. Water Supply and Sanitation Policy and Action Planning (WASPOLA) in Indonesia. Strengthening WSS services in small towns in Latin America. Utility/City Level Reforms in South Asia. WSP-Global: The Public-Private Partnership to Promote Hand-washing (PPP-HW). 141. WSP had budgeted $16.6 million for the fiscal year 2005 work plan. As of June 30, 2005, $17.4 million had been expended (105 percent of the budgeted amount). This increase was due to securing additional funds secured over the course of the year. Sweden, the United Kingdom, Switzerland and Australia were among the leading donor financiers of WSP during fiscal year 2005. In addition, WSP's financial situation benefited from the signing of five new trust funds, for a total of over $34 million, with the United Kingdom, Netherlands, Belgium, Ireland and Luxembourg. These trust funds are in support of global, regional, thematic, and country-specific initiatives. 12Goal Number 7, target 10: "Halve, by 2015, the proportion of people lacking sustainable access to safe drinking water and basic sanitation". The World Bank Group 2005 Trust Funds Annual Report 60 Annex H Private Sector and Infrastructure Development Cities Alliance Program NOTE: The table below does not reflect funds transferred from other programmatic sources. Such transfers are reflected in the corresponding tables for the originating source programs. Cities Alliance Program FY2005 $'million Cash Contributions received during the year 13 Disbursements made during the year 11 142. In a generation, the world's urban population will have swelled by a further two billion. Ninety- eight percent of this expansion will take place in developing countries, and many cities in Asia and Africa will nearly double their populations in the next 15 years. Nearly 30 percent of the developing world's urban population already lives below official poverty lines. 143. Cities Alliance 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--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, Netherlands, Nigeria, Norway 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. 144. 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. City development strategies have emerged as a key tool for local economic development and city-wide inclusion strategies. The Alliance has also demonstrated how improving the lives of slum dwellers provides a strategic opportunity for the international development community to target poverty where it is growing the fastest--in cities. By focusing on the city as a whole, Alliance members are striving to achieve a new coherence of efforts with global, national and local impacts, as well as institutional impacts on the way they work with each other. 145. Since its launch in 1999, the Alliance has committed $60 million, linked to over $6 billion in investments, and its activities have involved 160 cities worldwide. During fiscal year 2005, the Alliance launched a major new municipal finance partnership initiative to assist cities in becoming proactive developers of urban infrastructure by mobilizing domestic long-term capital. To this end, it established a Municipal Finance Task Force (MFTF), which includes experts and practitioners from rating agencies, private financial institutions, bilateral and multilateral banks, and development agencies. Sub-Saharan Africa Transport Policy Program (SSATP) Sub-Saharan Africa Transport Policy Program FY2005 $'million Cash Contributions received during the year 1 Disbursements made during the year 3 146. The Sub-Saharan Africa Transport Policy Program (SSATP), established as an international partnership in fiscal year 2004, seeks to facilitate policy development and related capacity building in the transport sector in Sub-Saharan African countries. By promoting sound policies, it aims to contribute to safe, reliable, and cost-effective transport, which will aid poverty reduction and help developing countries The World Bank Group 2005 Trust Funds Annual Report 61 Annex H Private Sector and Infrastructure Development compete internationally. SSATP helps governments develop transport policies that are coherent, recipient-led, and well-coordinated among stakeholders. It emphasizes cost-effective and affordable transport, focusing on access and the mobility needs of the urban poor. These goals are the main features of the Long-term Development Plan 2004-07 that SSATP stakeholders adopted at their 2003 Annual Meeting. SSATP has five main focus areas: road management; rural travel and transport; urban mobility; trade and transport; and railway restructuring. 147. Currently, SSATP is a growing partnership of 32 SSA countries and all the SSA Regional Economic Communities, who share a vision in which the implementation of sound 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 the aforementioned Development Plan is driven by stakeholder demand. 148. Through its Poverty Reduction Transport Strategy Review (PRTSR) process, SSATP helps partner countries ensure that their transport sector policies are fully anchored in relevant Poverty Reduction Strategies. Nineteen countries are currently engaged in various stages of that process. The outcome of the PRTSR will be fed into the countries' respective poverty reduction strategy (PRS) and transport sector strategy, leading to implementation of transport projects facilitating a pro-poor growth process. 149. Also during fiscal year 2005, 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 alleviation in SSA. Asia Sustainable and Alternative Energy (ASTAE) Program Asia Sustainable and Alternative Energy Program FY2005 $'million Cash Contributions received during the year 1 Disbursements made during the year 2 150. The Asia Sustainable and Alternative Energy (ASTAE) Program, established in 1992, assists in increasing investments by the World Bank Group and its client countries by providing access to energy to millions of households in Asia. It also promotes investments in renewable energy and energy efficiency, resulting in the mitigation of greenhouse gas emissions. ASTAE's strategic goal over the past decade has been to mainstream alternative energy in the World Bank energy sector activities, with the aim of achieving a 10 percent share of renewable energy and energy efficiency components in World Bank- financed energy sector projects in Asia 151. During fiscal years 1998 through 2000, more than 12 percent of the World Bank's power sector lending in Asia was for alternative energy components and projects, and during fiscal year 2004, projects supported by ASTAE constituted 16 percent of total energy lending by the Bank. 152. Responding to the MDG commitments and the World Summit on Sustainable Development (WSSD), ASTAE donors have agreed on new objectives and targets for ASTAE to achieve by the calendar year-ending 2006, which, in turn, would mitigate an estimated 156 tons of CO2 over a 20-year period: The World Bank Group 2005 Trust Funds Annual Report 62 Annex H Private Sector and Infrastructure Development Provision of improved energy services to an additional one million households; Installation of an additional 1 GW of renewable electricity generating capacity equivalent; and Avoiding implementation of an additional 1 GW of conventional electricity generating capacity equivalent through efficiency improvements. 153. ASTAE has supported a number of innovative and path-breaking projects such as the Energy, Gender and Poverty project (ENPOGEN), the Sri Lanka Energy Services Project, which won an award in 2005 from the World Bank's Operations Evaluation Department, and the China Renewable Energy Development Project (REDP). The success of REDP and its successor project the China Renewable Scale-up Project (CRESP) contributed significantly to the Renewable Energy Law passed by the Chinese Government in March 2005. Several ASTAE-supported projects were featured in the BBC's Earth Report Documentary televised in February 2005 and documented in the ASTAE publication, Sustainable Energy: Less Poverty, More Profits. 154. During fiscal year 2005, ASTAE was supported by the Netherlands, Canada, and the United Kingdom. The Bank's Board and GEF Council approved, inter alia, the following ASTAE-supported projects: the Vietnam Rural Energy II project; the China Heat Reform and Building Energy Efficiency Program and the CRESP project, both of which contribute greatly in ASTAE achieving its targets set for calendar year 2006. Information for Development (infoDev) Program Information for Development Program FY2005 $'million Cash Contributions received during the year 1 Disbursements made during the year 5 155. The Information for Development (infoDev) Program is a multi-donor program, which helps the international donor community and developing countries address the opportunities and challenges of information and communications technologies (ICT) for development (ICT4D). With close ties to the global operational capacity of the World Bank and equally strong relationships with a number of key donors, infoDev focuses on making sense of ICT as tools of development and poverty reduction through its research, knowledge products and services, pilots and on-the-ground projects. 156. Since its creation in 1995, infoDev has promoted innovative uses of ICT as tools for poverty reduction, sustainable development and knowledge sharing and has promoted policy dialogue on extending the opportunities of ICT to all. Its grant programs, research, workshops and conferences have contributed to increased awareness and action across the development community in harnessing ICT4D. Yet, as initiatives in ICT for economic and social development have proliferated in recent years, donors and other stakeholders have felt a growing need for rigorous knowledge on "what works" and for more effective knowledge sharing and cooperation in their ICT4D efforts. 157. Thus, at the request of its donors, infoDev initiated, in 2004, a fundamental review of its operations, leading to broad rethinking and comprehensive redesign of its work program and priority activities. This rethinking is embodied in a research strategy approved by infoDev's donors in March 2005. The strategy focuses infoDev on helping the development community make sense of the role that ICT can play in promoting development by sponsoring rigorous research, knowledge sharing, capacity building, policy dialogue, and targeted pilot experimentation in ICT applications for social and economic benefits. 158. The research strategy of infoDev 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 The World Bank Group 2005 Trust Funds Annual Report 63 Annex H Private Sector and Infrastructure Development entrepreneurship growth in developing countries, which includes the Japan-funded Incubator Initiative. Supporting these three themes are selected research and knowledge products in cross-cutting areas such as monitoring and evaluation. This strategy is now being implemented through an ambitious two-year work program (fiscal years 2006 and 2007). 159. A transition period during fiscal year 2005 was required to enable infoDev to implement needed internal organizational and operational changes and to develop appropriate policies and procedures in support of the new research strategy and work program. Resources held in existing unrestricted trust funds were channeled towards activities under the new work program. 160. Total disbursements decreased slightly to $5 million in fiscal year 2005, reflecting a continued phasing out of activities under the former infoDev program, while activities under the new work program were either in the preparatory or early implementation phases. In addition, as a result of a new approach and newly-developed tools, disbursements in areas such as knowledge dissemination increased during fiscal year 2005. The World Bank Group 2005 Trust Funds Annual Report 64 Annex I Trust Funds Administered by IFC and MIGA Annex I 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 FY2005 $'million Cash Contributions received during the year 149 Disbursements made during the year 109 161. The donor-funded technical assistance programs of the International Finance Corporation (IFC) complement its investment operations by helping build private sector capacity in developing and transition-economy countries. Hence, IFC's Technical Assistance and Advisory Services (TAAS) are an essential part of IFC's business. TAAS programs help IFC deliver on its mandate to support sustainable private sector development and, when coupled with investments, to help improve development impact and distinguish IFC from other financiers. 162. In fiscal year 2005, IFC had active TAAS programs in more than 70 countries, with most programs being delivered in frontier countries (high risk, low income countries). Today, approximately a third of the Corporation's staff, or close to 700 people, is engaged full-time in the delivery of IFC's TAAS operations. 163. Annually, IFC manages over $110 million in TAAS program expenditures. Project Development Facilities (PDFs) and Private Enterprise Partnership (PEP) programs which are an integral part of regional operations account for more than 50 percent of the TAAS spending, while the Technical Assistance Trust Fund (TATF) program accounts for approximately 17 percent, and the Foreign Investment Advisory Services (FIAS)--see Annex H--and Sustainable Business Advisory programs for another 14 percent. The balance of the spending is in other global programs. Selected programs are described briefly below. Technical Assistance Trust Fund Program (TATF) 164. Since its inception in 1988, the Technical Assistance Trust Fund (TATF) program has supported mainly one-time technical assistance (TA) projects by funding international and local consultants. TATF program currently has a total of 41 active funding agreements from 24 donor countries/agencies, in addition to IFC as a donor. Some of the ideas and initiatives funded by TATF lead to more long-term TA arrangements such as the Philippines TA program (planned for operation in fiscal year 2006) and Renewable and Sustainable Energy Program (RASEP). 165. Under the TATF program, TA projects were carried out in 62 countries. Of the 104 TA projects approved in fiscal year 2005, 88 were country-specific projects, and the rest were regional or global The World Bank Group 2005 Trust Funds Annual Report 65 Annex I Trust Funds Administered by IFC and MIGA projects, of which 86 (85%) were in low and lower middle income countries, and 62 (59%) were in countries with very high risk ratings. 166. As the regional departments within IFC increasingly recognize TA business as an integral part of their operations, more emphasis is given to linking TA with investment operations. More than half of 104 TA projects approved this year were related to IFC's investment projects. These include project identification, feasibility studies, and training programs. At the same time, advisory services to regulatory agencies on the investment climate and enabling environment remain an important portion of the TA projects. Sustainable Business Assistance Program (SBAP) 167. The Sustainable Business Assistance Program (SBAP) was set up in July 2002 as part of IFC's ongoing mission to provide guidance and leadership to shape sustainable private sector activities in emerging markets. It responds to a steady increase in demand among clients for assistance in managing both the risks and opportunities presented by the social and environmental performance of their products and operations. The dedicated services provided by the SBAP in these areas contribute to the unique value-added that IFC offers its clients and the broader market. 168. SBAP facilities are multi-year, donor-funded operations and comprise three donor-funded facilities: the Corporate Citizenship Facility (CCF), the Sustainable Financial Markets Facility (SFMF), and the Environmental Opportunities Facility (EOF). These three facilities allow IFC to go well beyond compliance with its social and environmental requirements and step forward with funding to ensure that the commercial, environmental, and social benefits of sustainable corporate behavior and innovation are passed on to the private sector in emerging market economies. The facilities enable IFC to promote Corporate Social Responsibility (CSR) in IFC client companies, enhance the environmental and social impact of financial intermediaries, and finance innovative projects that promote local environmental benefits. All three facilities emphasize innovation, engagement, replication, and leadership as key themes in choosing initiatives that help reduce poverty and improve governance. Capacity Building Facility (CBF) 169. Through its Capacity Building Facility (CBF), IFC provides grants for innovative and pilot projects that support the development of small and medium enterprises (SMEs). CBF also provides opportunities for IFC to form partnerships with best-practice organizations to enhance the effectiveness of its SME-focused TA activities. Since it was established in 2000, CBF has approved $26.7 million in grant funding for 137 projects. In fiscal year 2005, CBF approved nine new projects, finishing the year with an active portfolio of 57 projects under supervision. In addition to benefiting SMEs, CBF-funded projects allow IFC to test various models for SME development and share the lessons learned, both internally and externally. Funding Mechanism for Technical Assistance and Advisory Services (FMTAAS) 170. In fiscal year 2005, IFC started FMTAAS, which was established under a Board resolution in June 2004. IFC designated $225 million from its fiscal year 2004 retained earnings for FMTAAS. After careful analysis of past profitability trends and to ensure reasonable distribution of funds under this mechanism, IFC management decided to limit annual expenditure allocations under FMTAAS to about $65 million for fiscal year 2006 and beyond. For fiscal year 2005, IFC allocated about $68 million, of which about 75 percent was designated for existing IFC facilities and other donor-funded operations and the balance for various projects for capacity building and other TA needs. The World Bank Group 2005 Trust Funds Annual Report 66 Annex I Trust Funds Administered by IFC and MIGA Multilateral Investment Guarantee Agency (MIGA) Multilateral Investment Guarantee Agency FY2005 $'million Cash Contributions received during the year 15 Disbursements made during the year 2 171. 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 on-line information services. 172. 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, and underwrite guarantees for private sector investments in conflict-affected areas. 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: (i) jointly develop, with external partners, new products that address the evolving needs of the private sector; (ii) help MIGA mobilize guarantee capacity in countries where it could not otherwise operate; and (iii) 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. Established in fiscal year 2005, the multi-donor Afghanistan Investment Guarantee Facility (AIGF) reflects these principles. The facility was financed through an IDA Credit ($5 million equivalent) and a concessional loan from the Asian Development Bank ($5 million equivalent) to the Government of Afghanistan, as well as a grant from the United Kingdom of £1 million. These contributions are kept in trust with MIGA and leveraged with co-insurance by both MIGA (up to $10 million) and ADB (up to $10 million). MIGA aims at mobilizing an additional $30 million of insurance capacity from other public and private insurers, thus leveraging every dollar of donor support with six dollars in coinsurance from its own capital and other providers. 175. AIGF will also increase MIGA's flexibility in product offerings. Guarantees will cover foreign investors as well as local investors, and could also be extended to cover foreign loans without foreign equity participation. Experience from MIGA's past guarantee facilities indicates that this flexibility to accommodate a wide range of eligible investments is essential to support private sector development in conflict-affected environments. 176. MIGA is currently proposing to replicate the AIGF model to assist reconstruction in a number of conflict-affected countries in Sub-Saharan Africa. Technical assistance backed by trust funds 177. 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 The World Bank Group 2005 Trust Funds Annual Report 67 Annex I Trust Funds Administered by IFC and MIGA 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. 178. 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. Long-term capacity building programs to address the identified needs 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. 179. 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. Examples include the European Investor Outreach Program (EIOP) in the Western Balkans and the Tajikistan investment facilitation capacity program. The pilot phase of the EIOP initiative, which is funded by Austria, aims to attract new investment into the Western Balkans, with an initial focus on the automotive components and agribusiness sectors. 180. In some cases, MIGA is also utilizing donor funds to provide client countries with a customized package of services, including both guarantees against political risks and technical assistance to help attract and retain FDI. In this context, the Afghanistan Investment Guarantee Facility, mentioned above, has been complemented by a technical assistance component financed by a grant from Germany. The project will promote foreign direct investment in Afghanistan and build the capacity of the Afghan Investment Support Agency (AISA), the country's principal agent for attracting and servicing investment in the country. 181. The grant agreement between Germany and MIGA involves implementation of four sets of targeted technical assistance activities: (i) short-term technical assistance to AISA to develop its strategic plan; (ii) benchmarking FDI competitiveness in Afghanistan; (iii) participant training for AISA staff on a variety of topics, including investment promotion, market research, on-line services, and guarantee products; and (iv) preparation of promotional materials and an investment guide to Afghanistan. The World Bank Group 2005 Trust Funds Annual Report 68 Annex J Trust Fund Glossary Annex J 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 activities Activities related to lending or non-lending work of the World Bank, including: 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. Consultant Trust The reformed CTF program is funded by grants from some 25 donor countries. Fund (CTF) Program It provides resources that enable the World Bank to engage donor country consultants to carry out Bank activities. The Bank no longer accepts tied trust funds and the program is being phased out. It will close at the end of FY07. 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. 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. The World Bank Group 2005 Trust Funds Annual Report 69 Annex J 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. 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. 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. The World Bank Group 2005 Trust Funds Annual Report 70 Annex J Trust Fund Glossary Recipient activities Activities that are the responsibility of the recipients, such as: project preparation and final design; project implementation including preparation of bidding documents, letters of development policy, and project audits; 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. The World Bank Group 2005 Trust Funds Annual Report 71 Annex K Webpage Addresses Annex K Webpage Addresses Trust Funds and Programs Acronym Webpage Address Debt Service and Debt Reduction Heavily Indebted Poor Countries Initiative HIPC http://www.worldbank.org/hipc Debt Reduction Facility for IDA only Countries DRF http://web.worldbank.org/WBSITE/EXTERNA L/PROJECTS/EXTFININSTRUMENTS/EXT GUARANTEES/0,,contentMDK:20442149~pa gePK:64143534~piPK:64143448~theSitePK:4 11474,00.html Environment and Sustainable Agriculture Global Environment Facility GEF http://www.thegef.org Least Developed Countries Fund for Climate LDC http://unfccc.int/cop9/latest/cp_l9.pdf Change Prototype Carbon Fund PRCF http://www.prototypecarbonfund.org Netherlands Clean Development Mechanism NCDMF http://carbonfinance.org/router.cfm?Page=NLC Facility lean Community Development Carbon Fund CDCF http://carbonfinance.org/cdcf/home.cfm Bio-Carbon Fund BioCF http://carbonfinance.org/biocarbon/home.cfm Italian Carbon Fund ICF http://carbonfinance.org/router.cfm?Page=html /icf.htm Special Climate Change Fund SCCF http://thegef.org/Documents/Council_Documen ts/GEF_C27/C.27.9_Status_Report_on_the_Cli mate_Change_Funds.pdf Consultative Group on International CGIAR http://www.cgiar.org Agricultural Research Danish Carbon Fund DCF http://carbonfinance.org/router.cfm?Page=html /danishcarbonfund.htm Pilot Program to Conserve the Brazilian Rain BRF http://www.worldbank.org/rfpp/ Forests Trust Fund for Environmentally and Socially TFESSED http://web.worldbank.org/WBSITE/EXTERNA Sustainable Development L/TOPICS/ENVIRONMENT/0,,contentMDK: 20276831~pagePK:148956~piPK:216618~the SitePK:244381,00.html Netherlands European Carbon Facility NECAF http://carbonfinance.org/router.cfm?Page=html /necf.htm Nile Basin Initiative NBI http://www.nilebasin.org Mediterranean Environmental Technical METAP http://www.metap.org Assistance Program 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 The World Bank Group 2005 Trust Funds Annual Report 72 Annex K Webpage Addresses Global Program to Eradicate Poliomyelitis GPEP http://web.worldbank.org/WBSITE/EXTERNA L/NEWS/0,,contentMDK:20107918~menuPK: 34463~pagePK:34370~piPK:34424~theSitePK :4607,00.html African Program for Onchocerciasis Control APOC http://www.worldbank.org/gper 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/EXTERNA L/NEWS/0,,contentMDK:20127246~menuPK: 34470~pagePK:40651~piPK:40653~theSitePK :4607,00.html Global Dracunculiasis Eradication Program GDEP http://web.worldbank.org/WBSITE/EXTERNA L/NEWS/0,,contentMDK:20013251~menuPK: 34466~pagePK:34370~piPK:34424~theSitePK :4607,00.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/EXTERNA L/TOPICS/EXTPOVERTY/EXTPRS/0,,conten tMDK:20177803~pagePK:210058~piPK:2100 62~theSitePK:384201,00.html Indonesian Strategic Poverty Partnership ISPP http://www.dfid.gov.uk/countries/asia/indonesi a.asp Capacity Building and Technical Advisory Services Policy and Human Resources Development PHRD http://www.worldbank.org/phrd Consultant Trust Funds Program CTF http://web.worldbank.org/WBSITE/EXTERNA L/EXTABOUTUS/ORGANIZATION/CFPEX T/0,,contentMDK:20135645~menuPK:311038 ~pagePK:64060249~piPK:64060294~theSiteP K:299948,00.html Bank-Netherlands Partnership Program BNPP http://web.worldbank.org/WBSITE/EXTERNA L/COUNTRIES/WBEUROPEEXTN/NETHE RLANDSEXTN/0,,contentMDK:20248428~m enuPK:512792~pagePK:1497618~piPK:21785 4~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/EXTERNA L/EXTDEC/EXTRESEARCH/EXTPROGRA MS/EXTKNOWLEDGEOFCHANGE/0,,menu PK:491554~pagePK:64168176~piPK:6416814 0~theSitePK:491543,00.html The World Bank Group 2005 Trust Funds Annual Report 73 Annex K Webpage Addresses Post-Conflict Reconstruction and Natural Disaster Relief Post-Conflict Fund PCF http://www.worldbank.org/pcf Low-Income Countries Under Stress LICUS http://www1.worldbank.org/operations/licus Implementation Trust Fund Iraq Trust Fund ITF http://web.worldbank.org/WBSITE/EXTERNA L/COUNTRIES/MENAEXT/IRAQEXTN/0,,c ontentMDK:20241701~menuPK:1557462~pag ePK:1497618~piPK:217854~theSitePK:31310 5,00.html Afghanistan Reconstruction Trust Fund ARTF http://www.worldbank.org/artf Multi-Country Demobilization and http://www.mdrp.org/ Reintegration Program Trust Fund for East Timor TFET http://web.worldbank.org/WBSITE/EXTERNA L/COUNTRIES/EASTASIAPACIFICEXT/TI MORLESTEEXTN/0,,contentMDK:20185391 ~pagePK:141137~piPK:141127~theSitePK:29 4022,00.html Timor-Leste Transition Support Program TTSP http://www- wds.worldbank.org/servlet/WDS_IBank_Servl et?pcont=details&eid=000094946_0305280402 5211 Trust Fund for Gaza and West Bank TFGWB http://www.worldbank.org/we West Bank and Gaza ­ Public Financial WBG- http://www- Management Reform Trust Fund PFMRTF wds.worldbank.org/servlet/WDS_IBank_Servl et?pcont=details&eid=000012009_2004041411 1754 The ProVention Consortium PVC http://www.proventionconsortium.org Financial Sector Strengthening and Crisis Management Asia-Europe Meeting Trust Fund 2 ASEM http://web.worldbank.org/WBSITE/EXTERNA TF2 L/COUNTRIES/EASTASIAPACIFICEXT/AS EM/0,,contentMDK:50004541~menuPK:6401 8255~pagePK:64018272~piPK:64018284~the SitePK: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 Private Sector and Infrastructure Development Public/Private Infrastructure Advisory Facility PPIAF http://www.ppiaf.org Foreign Investment Advisory Service FIAS http://www.fias.net Global Partnership on Output-Based Aid GPOBA http://www.gpoba.org/gpoba/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/EXTERNA L/COUNTRIES/AFRICAEXT/0,,contentMDK :20267238~menuPK:538703~pagePK:146736~ piPK:226340~theSitePK:258644,00.html The World Bank Group 2005 Trust Funds Annual Report 74 Annex K Webpage Addresses Information for Development Program infoDev http://www.infodev.org/ Asia Alternative Energy Program ASTAE http://www.worldbank.org/astae/ Other World Bank Group Institutions International Finance Corporation IFC http://www.ifc.org/tatf Multilateral Investment Guarantee Agency MIGA http://www.miga.org International Center for Settlement of ICSID http://worldbank.org/icsid Investment Disputes The World Bank Group 2005 Trust Funds Annual Report 75