83466
                                                 Somalia

                                Interim Strategy Note FY14-16
                                             and
               Establishment of aProgrammatic Multi-Partner Fund for Somalia

                                           Joint Chair Summary*
                                            December 17, 2013
        Executive Directors considered and endorsed the Joint IDA/IFC FY14-16 Interim
Strategy Note (ISN) for Somalia (IDA/R2013-0294/1[IFC/R2013-0383/1]). They also approved
the establishment of the Multi-Partner Fund for Somalia (IDA/R2013-0292), with IDA to serve
as its Administrator, on the terms and conditions set out in the President’s Memorandum. Ms.
Aviel wished to be recorded as abstaining on the Multi-Partner Fund proposal.

        Directors welcomed the recent progress Somalia has achieved towards stability,
reconciliation, and reconstruction after years of conflict and congratulated the authorities on the
endorsement of the Somali Compact, a new partnership based on mutual accountability between
Somalia and its international partners. They emphasized the need for the authorities to sustain
the transition by establishing a track record of sound economic governance and delivering a
tangible peace dividend to the population.

        Directors welcomed the Bank Group’s re-engagement with the Federal Government and
agreed that it marks a new phase in international engagement in Somalia, focused on the
establishment of sustainable Somali institutions. Directors strongly supported the ISN’s
approach to laying the foundations for poverty reduction and shared prosperity by focusing on
strengthening core economic institutions and expanding economic opportunity. They welcomed
the ISN’s alignment with the Somali Compact, as well as its focus on a differentiated regional
approach within an emerging national framework. They emphasized the importance of
integrating women’s empowerment, inclusion and capacity into the transition agenda. Directors
noted that security, improved governance, and political progress will remain the overriding
influences on ISN delivery. And while recognizing that the program will need to remain flexible
to adapt to changing circumstances on the ground, the importance of the Bank’s fiduciary and
environmental safeguards was also highlighted.

        In endorsing the ISN and approving the Bank’s role as administrator of the MPF, the
Directors stressed the high risk nature of the Bank’s proposed engagements and urged the Bank
to ensure that the program is sufficiently staffed and resourced to ensure effective
implementation. They welcomed the emphasis on collaboration and cooperation with the United
Nations, the African Development Bank, and the IMF, among others, and stressed the need to
ensure that a coordinated approach is maintained across security, political, and development
spheres.

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*This summary is not an approved record.