76415
             Republic of South Sudan: Local Governance and Service Delivery Project
                                               IDA Credit


                                    SUMMARY OF DISCUSSION ∗

                                   Meeting of the Executive Directors

                                              March 28, 2013


       The Executive Directors approved a credit in the amount of SDR 32.5 million (US$50
million equivalent) to the Republic of South Sudan for the Local Governance and Service
Delivery Project on the payment terms and conditions set out in the President’s Memorandum
(IDA/R2013-0039).
        Directors welcomed this first project under the Interim Strategy Note that was endorsed
by the Board in late February. They considered its focus on local governance and improved
service delivery to be highly relevant for South Sudan and noted that the project is intended as
the first phase of a longer-term engagement by the Bank and development partners. Directors
appreciated that the project design incorporates lessons learned from the 2011 World
Development Report on Conflict, Security and Development, the implementation of the Multi-
Donor Trust Fund for South Sudan, and the experience gained from operations in other fragile
contexts.
        Directors welcomed the emphasis on capacity building for local governments and
community engagement which are essential to address critical needs for basic infrastructure and
services after years of conflict. They noted that the project supports important long-term
objectives such as institutional development, increasing government’s accountability to citizens,
building confidence within government and among stakeholders, and enhancing government
ownership of development processes. Directors underscored the need to mitigate risks related to
governance, environmental and social safeguards, fiduciary standards, security, and the
macroeconomic context. They acknowledged the merits of the project within the challenges of a
fragile environment. Directors highlighted project features that would help to ensure successful
outcomes, such as the inclusion of a results matrix with specific targets, ensuring responsiveness
to the needs of vulnerable populations, careful monitoring and supervision in collaboration with
the government and development partners, strengthened fiduciary capacity, and an emphasis on
sustainability.




∗
    This Summary is not an approved record.