WORKING FOR THE PEOPLE IN MASHREQ IRAQ, LEBANON, JORDAN, IRAN AND SYRIA FOR MORE INFO, PLEASE CONTACT: Mona Ziade, mziade@worldbank.org Zeina El Khalil, zelkhalil@worldbank.org The World Bank Group WORKING FOR THE PEOPLE PHOTO CREDITS Front Cover-Left: Gerhard Jörén/World Bank Front Cover-Center: Mohamad Azakir/World Bank Front Cover-Right: Mohamad Azakir/World Bank IN MASHREQ Page 8: World Bank Photo Collection Page 12: World Bank Photo Collection Page 13: Mohamad Azakir/World Bank Page 16: World Bank Photo Collection Page 17: Arne Hoel/World Bank Page 19: Mohamad Azakir/World Bank IRAQ, LEBANON, JORDAN, IRAN AND SYRIA Page 20: World Bank Photo Collection Page 22: Mohamad Azakir/World Bank Page 23: Mohamad Azakir/World Bank Page 25: World Bank Photo Collection Page 26: Dominic Chavez/World Bank Page 28: World Bank Photo Collection Page 29: Bulent Kilic/AFP/Getty Images Page 31: Ahmad Al Hayali Page 32: Dominic Chavez/World Bank Page 34: Dominic Chavez/World Bank Page 35: Dominic Chavez/World Bank Page 37: Dominic Chavez/World Bank Page 38: World Bank Photo Collection Page 40: Mohamad Azakir/World Bank Working for the People in Mashreq H I G H LI G HTE D PROJ EC T S Table of Contents Economic Opportunities for Jordanians and Syrian Refugees (Jordan) 16 Emergency Social Stabilization and Resilience Project (Iraq) 16 Micro, Small and Medium Enterprise Development for Inclusive Growth Project (Jordan) 18 Supporting Innovation in Small and Medium Enterprises Project (Lebanon) 19 Who We Are 5 Roads and Employment Project (Lebanon) 19 Main World Bank Financing Instruments 7 Baghdad Water Supply and Sewerage Improvement Project (Iraq) 21 The World Bank Group Middle East and North Africa Strategy 8 Greater Beirut Public Transport Project (Lebanon) 22 The World Bank in the Mashreq 10 Water Supply Augmentation Project (The Bisri Dam) (Lebanon) 24 Strengthening the Resilience of Poor and Vulnerable Groups 13 Emergency/Municipal Services and Social Resilience Project (Jordan) 25 Growth for Jobs 17 Social Fund for Development (Iraq) 27 Maximizing Finance for Development 20 National Volunteer Service Program (Lebanon) 28 Climate-Smart Infrastructure for Essential Services 23 Damage and Needs Assessment (Iraq) 30 Citizen Engagement 26 Emergency Operation for Development Project (Iraq) 31 Building Back Better 29 Syria Economic and Social Impact Assessment: The Toll of War (Syria) 31 Capturing Human Capital 32 Education Reform Support Program (Jordan) 33 Effective Governance, Finance and Markets 35 Lebanon Health Resilience Project (Lebanon) 34 Supporting Reforms and Strengthening Service Delivery 38 Modernization of Public Financial Management Systems Project (Iraq) 36 Promoting Financial Inclusion Policies Project (Jordan) 37 Lebanon Economic Opportunities Diagnostics (Lebanon) 37 Analytical Work in Iran/Iran Economic Monitor (Iran) 37 Emergency Fiscal Stabilization, Energy Sustainability, and State-Owned Enterprise Transparency Development 39 Policy Financing/ Second Expenditure Rationalization, Energy Efficiency and State-Owned Enterprise Governance Programmatic Development Policy Financing (Iraq) First and Second Programmatic Energy and Water Sector Reforms Development Policy Loans (Jordan) 40 2  WHO WE ARE The World Bank Group as a Global Institution T he International Bank for Reconstruction and Development (IBRD) was founded in 1944 to help rebuild countries devastated by World War II. Headquartered in Washington, DC, the World Bank works like a cooperative made up of 189 member countries—or shareholders—who are represented by Since then, it has expanded from a single institution a Board of Governors, the ultimate policy makers at to a closely associated group of five development the World Bank. Specific duties are delegated to a institutions working to end poverty around the world. 25-member board of Executive Directors, who work on In addition to the International Bank for Reconstruction site at the Bank. With more than 10,000 employees and Development (IBRD), which operates in middle- in more than 120 offices worldwide, the World Bank income countries, the World Bank Group (WBG) operates under the day-to-day leadership and direction includes the International Development Association of the president, management, and senior staff. (IDA), which supports the poorest countries through interest-free or very low interest credits and grants; the International Finance Corporation (IFC), which provides loans, equity and advisory services to stimulate private sector investment in developing countries; the Multilateral Investment Guarantee Agency (MIGA), and the International Centre for the Settlement of Investment Disputes (ICSID). References to the “World Bank” typically mean the IBRD and IDA. 4  5 WHO WE ARE The World Bank Group as a Global Institution Main World Bank Financing Instruments Since 2013, the World Bank has redoubled its efforts at zero and low interest credits, and grants support a wide array achieving two overarching goals: of investments in education, health, public administration, • Ending extreme poverty by reducing the share of the global infrastructure, urban and social development, financial and BANK INSTRUMENTS, PRODUCTS AND FUNDING SOURCES population living on less than $1.90 per day to 3 percent private sector development, agriculture, and environmental Bank Instruments Financial Products by 2030; and and natural resource management. These investments are Advisory Services and Analytics • Promoting shared prosperity by increasing the income underpinned and complemented by cutting-edge analytical Investment Project Finance (IPF) General Financing (ASAs): Providing research, growth of the bottom 40 percent of the population of every and advisory services, leveraging the WBG’s global knowledge Project support, disbursement based on Grants, Credits, and Loans reimbursement of expenditures ring-fenced analysis and technical assistance country in a sustainable manner. and country-level expertise. Hedging Products is a vital part of the World Bank’s for a defined set of activities. With capital currently totaling over $250 billion, the World In fiscal 2017, the WBG’s global commitments grew to $64.2 Interest Rate, Currency, and Commodity. contribution to development. Bank is a vital source of financial and technical assistance to billion in loans, grants, equity investments, and guarantees Development Policy Finance (DPF) These services aim to assist Disaster Risk Financing developing countries around the world. Low-interest loans, supporting partner countries and private businesses. General, non-earmarked budget support- Insurance pools, weather hedges, among member governments in their disburses against policy/institutional others. adoption of better policies, actions. programs and reforms that can WBG – EVOLVING TO MEET GLOBAL CHALLENGES Program for Results (Pfor R) lead to greater economic growth Expenditure program support, uses and poverty reduction. Products government systems and disburses against range from reports on key issues, achievement of defined and verified results. to policy notes, to workshops and conferences. 1944 1956 1960 1966 1988 IBRD established to provide IFC established in recognition of IDA established to address the ICSID established to address the MIGA established to address Funding Sources long-term finance to post-war the role of the private sector as need for softer loan terms, advice need to promote international the need to enable financial reconstruction. Evolved to sharpen an enabler of development; aimed and grants to boost economic investment by providing investment and enhance the IDA, IBRD, Trust Funds, and recent financing initiatives (e.g. Global Concessional its focus on developing countries to address the need to provide growth, reduce inequalities and confidence in the dispute flow of capital and technology to and addressing global poverty. financing for the private sector improve living conditions in the resolution process disputes developing countries, consistent Financing and Pandemic Emergency Financing Facilities) in areas deemed “too risky” for poorest countries. between states and foreign private with developmental needs and commercial finance. investors. objectives. 1950s 1960s 1970s 1980s 1990s 2000s 2010s 6 7 Working for the People in Mashreq The WBG Middle East and North Africa The Strategy is built around the following four pillars: (MENA) Strategy puts the goal of promoting 1. Renewing the social contract – to generate a new development model peace and social stability in the MENA that is built on greater citizen trust; more effective protection of the region at its center, and aims to use the poor and vulnerable; inclusive and accountable service delivery; and WBG’s strengths to generate, curate and a stronger private sector that can create jobs and opportunities for transfer knowledge, convene power as a MENA’s youth; global institution, and leverage its own financial resources and expertise to help 2. Regional cooperation – particularly around regional public goods and meet financing needs. sectors such as education, water, and energy to foster greater trust and collaboration across MENA countries; 3. Resilience – to refugee and migration shocks by promoting the welfare of refugees, internally displaced persons (IDPs), and host communities by focusing on building trust and building their assets; and 4. Reconstruction and recovery – through a dynamic approach that brings in external partners, leverages large scale financing, and move beyond humanitarian response to longer-term development wherever and whenever conflict subsides. The World Bank Group Middle East and North Africa Strategy 8 The World Bank Group Middle East and North Africa Strategy 9 Working for the People in Mashreq The Mashreq Region—Iraq, Lebanon, Between fiscal year 2014 and 2018, the World Bank financed around 35 Jordan, Iran and Syria—has a rich history IBRD/IDA projects in the Mashreq Region, totaling approximately US$8 and culture, shaped by great ethnic, social, billion. This includes loans and guarantees which support a wide array of political, economic, religious and geographic investments in education, health, public administration, infrastructure, diversity. Still, the Region faces a myriad urban and social development, financial and private sector development, job of challenges: strained public finances creation, agriculture, and environmental and natural resource management. and service delivery; high unemployment Lending operations have been complemented by several grant-funded rates, especially for women and youth; projects in different sectors, particularly municipal services, poverty increasing poverty and inequalities; poor targeting, social protection and capacity building. The Mashreq portfolio environmental and natural resource is also leveraged by innovative concessional financing initiatives, provided management; public sector inefficiencies through the Global Concessional Financing Facility which was established and limited private sector engagement; in 2016 to support Middle Income Countries impacted by a massive influx all of which are exacerbated by volatile of refugees. geopolitical and security conditions. As Over the coming years, the World Bank’s strategy in the Mashreq Region such, there are significant opportunities, focuses on (i) promoting inclusive economic growth and job creation, (ii) and demand, to drive economic growth and financing climate-smart infrastructure, (iii) scaling up access to and quality increase social cohesion through building of service delivery, and (iv) mitigating the economic and social impact of capacity and performance in governance, The World Bank fiscal management, private sector-led job creation, resilience to climate change, and human capital development, namely recent and ongoing crises in the Region in order to safeguard development gains and promote peace and stability. in the Mashreq education and health. 10 The World Bank in the Mashreq 11 These investments continue to be complemented by a robust Partnership with Other Development Actors program of analytical and advisory services, leveraging the The World Bank Group works closely with national, regional, World Bank Group’s ability to generate, curate and transfer and global actors, including the International Monetary Fund knowledge, as well as its convening power as a global institution. (IMF), the United Nations (UN), other International Financial This work includes economic monitoring, damage and needs Institutions, donor institutions, civil society organizations, and assessments, and technical assistance across several sectors, the private sector, building on the recognition that innovative including energy, water and wastewater management, poverty, approaches are needed to address development needs of finance and markets, environmental and natural resources, Mashreq countries. While humanitarian assistance will continue health and education. These services, in high demand by World to be of the essence, various actors are collectively working to Bank client countries, will be used to inform effective projects, reduce humanitarian needs and vulnerabilities and build a solid policy and programming to meet the current and future needs foundation of economic growth and sustainable development.  of the people. Furthermore, this work will continue to be done in parallel with IFC investments and advisory work to increase employment opportunities through support to private sector development. Strengthening the Resilience MIGA will continue to work together with IFC to identify potential opportunities for support through its guarantee products. of Poor and Vulnerable Groups 12 The World Bank in the Mashreq 13 Working for the People in Mashreq More than 11 million Syrians have fled their In each country, basic public services – such as water, sanitation, education, SUPPORTING PROJECTS WORTH: $1.7 BILLION homes since the outbreak of the conflict in and electricity – have become strained, while housing, infrastructure, labor FUNDING APPROVED TO DATE: $313 MILLION Syria in March 2011. Over five million have markets, and broader economic stability have all been stretched beyond the *Numbers as of March 2018 become refugees. The crisis has had an limits. In line with the WBG MENA Strategy, the Mashreq Region is working Benefiting Project Name Implementation Total Project Amount GCFF Allocation enormous impact on neighboring countries. to prioritize the needs of the poor and vulnerable groups, including refugees, Country Support Agency More than two million Syrian refugees IDPs, host communities, women and youth. Economic Opportunities for Jordanians and Syrian Refugees World Bank $300 million $51 million today live in Lebanon, Jordan and Iraq. As a PforR share of their populations, Lebanon has the Ain Ghazal Wastewater Project EBRD $48 million $2 million highest number of refugees per population SUPPORTING COUNTRIES DEALING WITH THE REFUGEE globally. This places enormous pressure on BURDEN Jordan Second Programmatic Energy and Water Sector World Bank $250 million $25 million host communities in both countries. In Iraq, Reforms DPL The Global Concessional Financing Facility Jordan the war against the Islamic State of Iraq Jordan Emergency Health Project World Bank $150 million ($50 million WB, $34.9 million and Syria (ISIS-Daesh) has led to the death In Jordan and Lebanon, the added costs of hosting large numbers of refugees IsDB $100 million IsDB) of thousands and the internal displacement have caused acute financial pressure and caused significant debt increases. Jordan West Irbid EBRD $51 million $2.5 million of over five million people, a large majority At the request of both countries, the World Bank Group, working closely Jordan Education Reform PforR World Bank $200 million $52.3 million of them women and children. Over 11 million with the United Nations, the Islamic Development Bank, the European Bank for Reconstruction and Development and other development partners, Total Jordan $998 million $167.7 million Iraqis need humanitarian assistance and three million people remain internally launched in April 2016, the Global Concessional Financing Facility (GCFF) Lebanon Lebanon Health Resilience Project World Bank $150 million ($120 million WB, $30.1 million displaced today. in April 2016. The Facility is an innovative financing initiative that brings IsDB $30 million IsDB) down the cost of borrowing for middle-income countries that are coping Lebanon Roads and Employment World Bank $200 million $45.4 million with large influxes of refugees. As of January 2018, the GCFF approved nine Grater Beirut Public Transport Project World Bank $345 million ($295 million WB) $69.8 million projects in the value of US$313 million, including seven World Bank Bank- funded operations, leveraging US$1.7 billion in total. Total Lebanon $695 million $145.3 million Grand Total $1,693 billion $313 million 14 StStrengthening the Resilience of Poor and Vulnerable Groups StStrengthening the Resilience of Poor and Vulnerable Groups 15 JORDAN - ECONOMIC OPPORTUNITIES IRAQ - EMERGENCY SOCIAL STABILIZATION FOR JORDANIANS AND SYRIAN REFUGEES AND RESILIENCE PROJECT This PforR aims to improve the investment climate in Jordan, The objective of this Project is to strengthen resilience and as well as the country’s investment promotion capacities while rebuild the social contract between citizens and the state increasing access for Syrian refugees to the labor market. through transparent targeting of resources and beneficiaries, Specifically, it supports the Government of Jordan to: 1) grant and delivering essential services in liberated areas that have 130,000 Syrian refugees work permits to allow for more been marginalized in Iraq. The Project, through generating short- active (formal and legal) participation in the labor force, 2) term employment, provision of productive cash transfers, and improve Jordan’s investment climate through systematic and livelihood opportunities, coupled with clear citizen accountability broad-based reforms (i.e. regulatory reforms), and 3) attract mechanisms, will further support renewal of the social contract investments through more proactive investment promotion and and protect vulnerable groups, including returning IDPs, women facilitation activities in key sectors, including manufacturing, and youth. It is expected to benefit over one million households. agribusiness and construction. Loan Amount: Implemented by: Loan Amount: Implementing Agency: Growth for Jobs Loan Amount: US$300 million (IBRD Ministry of Planning US$200 million Iraqi Ministry of Labor PforR with support from GCFF/IDA and International Cooperation (IBRD IPF) and Social Affairs PforR) 16 St Strengthening the Resilience of Poor and Vulnerable Groups 17 Job creation secures a pathway out of JORDAN - MICRO, SMALL AND MEDIUM ENTERPRISE (MSME) poverty. Jobs for women can change the DEVELOPMENT FOR INCLUSIVE GROWTH PROJECT way households spend money and invest The Project aims to improve access of finance for MSMEs to contribute in the education and health of children. In to sustainable private sector jobs, the development of entrepreneurship turbulent environments, jobs for young LEBANON - SUPPORTING INNOVATION IN SMALL AND LEBANON - ROADS AND EMPLOYMENT PROJECT capacities and reduction of poverty, and overall economic growth; men can serve as an alternative to violence MEDIUM ENTERPRISES (SME) PROJECT particularly for women and other vulnerable groups in Jordan. So far, the This was the first GCFF initiative approved for Lebanon. Its and help restore peace. The World Bank project has resulted in the creation of over 2,000 private sector jobs. 85 This pilot program aims to fill a financing gap and to encourage objectives are to both improve the transport connectivity along continues to support job creation in fragile percent of the beneficiaries of the Project are women-owned enterprises. the equity investment market to increase the supply of early select portions of the country’s paved roads and create short- and conflict-affected states through a wide Youth, who suffer from the highest unemployment rates, represented more stage investment finance for financially viable, new, and existing term jobs for Lebanese and for Syrian refugees. The $200 variety of operational approaches, bringing than 45 percent. The project also focused on supporting MSMEs outside innovative Lebanese start-up firms. Start-ups play a critical role million project is expected to directly create about 1.5 million a focus on private sector-led growth and of Amman, where unemployment and poverty rates are high, to address in job creation, particularly for the youth, whose unemployment work days through short-term jobs in the construction industry. ensuring that incentives from short-term employment needs in lagging regions (62 percent of beneficiaries). rate reaches 34 percent. Since inception, the program has Substantial additional jobs will be created in Lebanon’s supply interventions do not distort long-term development goals. provided 80 grants to entrepreneurs to develop their business chain industries and engineering and consultancy services. concepts, and 8 equity co-investments, alongside other Local economies will benefit from increased demand for local Loan Amount: Implementing Agency: institutional investors, such as Venture Capital funds. Several of goods and services, while business competitiveness will improve US$120 million (IBRD IPF) Central Bank of Jordan the firms have received awards and recognition, including three due to improved road connectivity. which have been named to Forbes’ list of 50 Startups to Watch in the Arab World. Loan Amount: Implemented by: Loan Amount: Implemented by: US$30 million (IBRD IPF) Kafalat US$200 million (IBRD IPF with Lebanese Council for Development support from GCFF) and Reconstruction (CDR) 18 Growth for Jobs Growth for Jobs 19 Working for the People in Mashreq The World Bank Group (WBG) has IRAQ - BAGHDAD WATER SUPPLY AND SEWERAGE embarked on an effort to help countries IMPROVEMENT PROJECT maximize finance for development (MFD) This operation aims to improve the quality of drinking water supply and by crowding in the private solutions for wastewater services in Baghdad which faces challenges including water development to meet increasing financial shortages and the outbreak of waterborne diseases due to inadequate needs for development, while leveraging and infrastructure, rapid population growth, and the inflow of internally preserving scarce public resources for the displaced people. Direct beneficiaries of the project include approximately most critical investments. When there are five million residents of Baghdad (over 80 percent of the total Baghdad significant obstacles to private investment, population) who will have increased access to reliable, safe water supply, as there are in the Mashreq Region, the and improved sanitation. The project will create opportunities for greater WBG will support key policy and regulatory private sector investments through identifying infrastructure or services reforms or identify WBG risk instruments which could potentially be financed privately or through Public Private (including those of IFC and MIGA) to Partnerships. encourage private investment. Public and concessional financing will be used as a last option. Initial implementation of MFD is Loan Amount: Implemented by: focused on infrastructure, but will be scaled US$210 million (IBRD IPF) Mayoralty of Baghdad up to other sectors. Maximizing Finance for Development 20 Maximizing Finance for Development 21 LEBANON - GREATER BEIRUT PUBLIC TRANSPORT PROJECT The development objective of the Greater Beirut Public Transport Project for Lebanon is to improve the speed, quality and accessibility of public transport for passengers in Greater Beirut and at the city of Beirut’s northern entrance. This project is the first mass transit and regular transport system in Lebanon in over 50 years. It is considered a vital operation with environmental, social and economic benefits; including, reducing congestion and greenhouse gas emissions and improving air quality, improving the mobility of women, youth and persons with disabilities, improving connectivity between various regions, and creating two million labor days in construction for low-income Lebanese and Syrians. It also aims at mobilizing substantial commercial financing for the purchase of the bus fleet by private operators, in line with the MFD approach. Loan Amount: Implemented by: US$295 million (IBRD IPF with support Lebanese Council for Development and Climate-Smart Infrastructure from GCFF) Reconstruction (CDR) for Essential Services Maximizing Finance for Development 22 23 Working for the People in Mashreq The Mashreq Region is already experiencing LEBANON – WATER SUPPLY AUGMENTATION PROJECT JORDAN – EMERGENCY/MUNICIPAL SERVICES AND SOCIAL the impacts of climate change – including (THE BISRI DAM) RESILIENCE PROJECT droughts, floods, more intense and frequent The Bisri Dam is a crucial part of Lebanon’s National Water Sector Strategy. The Emergency Services and Social Resilience Project was launched in natural disasters, and sea-level rise – and It will store 125 million cubic meters of water, and will fill up naturally in the 2013 to help Jordanian municipalities and host communities effectively the poor and vulnerable are often hit the winter to be used during the dry season in summer and fall. The water will respond to the increased demand for services due to the large influx of hardest. Engagements that lead to more flow to the Greater Beirut and Mount Lebanon area entirely by gravity and Syrian refugees. The Project provided direct grants and capacity building to energy-efficient construction, low-carbon be distributed through networks that are currently being rehabilitated as strengthen service delivery capacity, support local economic development transport solutions and/or sustainable and a part of the Greater Beirut Water Supply Project. As a result, 1.6 million and job creation, and foster social cohesion. This included funding for solid resilient water and wastewater management residents in the project area will have access to improved water service waste collection, rehabilitation of basic infrastructure, roads network are crucial to increase resilience to climate levels and will incur a reduction in costs to supplement currently lacking improvements, lighting in the streets, easing rising community tensions. As change impacts, reduce greenhouse gas public water services. of December 2017, the Project’s services reached over two million people of emissions, and meet the needs of the whom 250,000 were Syrians. The Project, renamed to the Municipal Services communities that they serve. The World and Social Resilience Project, received Additional Financing to scale up and Bank is working to enable investment and Loan Amount: Implementing Agency: intends to reach over three million of whom 500,000 will be Syrians. scale up climate-smart infrastructure US$617 million (IBRD IPF) Lebanese Council for Development and as a key to safeguard existing resources, Reconstruction (CDR) facilitate growth, respond to development Loan Amount: Implementing Agency: needs, and foster social cohesion. US$84.63 million (IBRD IPF) Jordanian Ministry of Municipal Affairs 24 CClimate-Smart Infrastructure for Essential Services CClimate-Smart Infrastructure for Essential Services 25 Working for the People in Mashreq Citizen engagement is at the core of the IRAQ - SOCIAL FUND FOR DEVELOPMENT (SFD) World Bank strategy in the Mashreq The overarching goal of the SFD in Iraq is to deepen stabilization efforts in the countries. The World Bank acknowledges country, restore citizen-state trust, and institute measures to strengthen that citizens play an important role in social cohesion and local development priorities. The establishment of the designing and reinforcing the development SFD provides a mechanism to ensure targeted support to poor and vulnerable agenda through active engagement in households in a transparent manner, strengthened by a clear governance decision-making processes. Mainstreaming structure and accountability mechanisms which will further support the citizen engagement in operations is critical renewal of the social contract and citizens’ trust in the Government. Overall, for improving development results and for the Project expects to benefit 1.5 million households and create over 10 providing innovative solutions to complex million employment days, leading to improved, sustainable access to basic development challenges. Furthermore, services and increased social cohesion. social stability and service delivery, secured and safeguarded through a clear governance structure and accountability mechanism, Total Amount: Implementing Agency: are key to enabling trust between citizens US$300 million (IBRD IPF) Iraqi Ministry of Planning and the Government. Citizen Engagement 26 CCitizen Engagement 27 LEBANON - NATIONAL VOLUNTEER SERVICE PROGRAM (NVSP) The NVSP aims to improve social stability and service delivery in the most vulnerable Lebanese communities hosting Syrian refugees through youth volunteering, soft skills development, and psychosocial awareness activities. The NVSP is considered a best practice example for promoting social cohesion and youth employment. To date, more than 6,800 youths and more than 125 different NGOs, universities, schools and municipalities have participated in the project’s activities. More than half of the participating youth are women; they belong to more than five different confessions; and include persons with disabilities and Syrian refugee youth. Total Cost: Implementing Agency: US$4 million (State and Peace Building Lebanese Ministry of Social Affairs Fund IPF) Building Back Better 28 CCitizen Engagement 29 The intensity, duration and destruction IRAQ - EMERGENCY OPERATION FOR DEVELOPMENT PROJECT caused by the recent and ongoing conflicts (EODP) in the Mashreq Region are significant. The EODP supports the recovery, reconstruction and rehabilitation of Recovery and reconstruction cannot be priority infrastructure to restore delivery of public services across Iraq reduced to replenishing physical capital, but and facilitate the return of internally displaced people to their homes. The IRAQ - DAMAGE AND NEEDS ASSESSMENT (DNA) SYRIA - SYRIA ECONOMIC AND SOCIAL IMPACT must include reform of the economic and initial operation financed activities in the water and sanitation, electricity, ASSESSMENT (ESIA): THE TOLL OF WAR social fabric of countries in a sustainable, In preparation for the Kuwait International Conference for the health, transport and municipal services sectors, with significant impacts: inclusive, participatory manner. Accordingly, Reconstruction of Iraq in February 2018, the Ministry of Planning The Syria ESIA, prepared by the World Bank in close coordination restoring the access of two million people to drinking water, improving social assistance to the poor and vulnerable in Iraq and the World Bank published a Damage and Needs with partners, estimates the destruction and long-term sanitation and electricity connectivity, and reconnecting 2.5 million should be prioritized, closely followed by Assessment that estimates the cost of reconstruction and consequences of the Syrian conflict, using satellite imagery people through reconstructing transport infrastructure. Furthermore, the improvements in the delivery of basic recovery needs in seven of the most affected Iraqi governorates. cross-checked with social media postings and other available reconstruction process created thousands of employment opportunities for services, followed by the development of The DNA assesses the effects and impact of the Iraq conflict information, and compares it to a model which allows it to the Iraqi people. Additional Financing, approved in October 2017, expands livelihoods and employment opportunities— across 19 sectors and thematic areas. The assessment relied disentangle the effects of the conflict. The report captures that the scope of the project to include agriculture, irrigation, urban services, all while building the capacity and primarily on ground-based data provided by the relevant beyond physical damage and loss of lives, the invisible impacts and education services, as well as additional cities that have been recently transparency of institutions and governance ministries and was complemented by data from social media of the conflict, such as human development outcomes, erosion liberated from ISIS. for recovery and reconstruction. The World and satellite imagery. The DNA found that overall reconstruction of social trust, and collapsing business networks, have 20 Bank is using its international experience and recovery needs are at US$ 88.2 billion, (US$ 22.9 billion for times greater impact on economic losses than from physical in fragile and conflict-affected states to Loan Amount: Implementing Agency: the short term, and US$ 65.3 billion for the medium term), and destruction alone. As the conflict continues, these costs will not inform the process of building back stronger included targeted recommendations that will inform sustainable only increase, but also become more persistent. If the conflict US$750 million (IBRD IPF) Several Iraqi Ministries and Governorates and more resilient cities, towns and lives. and resilient plans moving forward. ended in 2017, the GDP would recoup about 41 percent of the gap with its pre-conflict level in the next four years. In comparison, if the conflict ends in its 10th year, GDP recoups only 28 percent of the gap in four years. 30 Building Back Better 31 Working for the People in Mashreq Investments in human capital, through JORDAN - EDUCATION REFORM SUPPORT PROGRAM nutrition, health care, education, jobs This PforR will expand access to early childhood education, and to improve and skills development, are key drivers student assessment and teaching and learning conditions for Jordanian to ending extreme poverty and boosting children and Syrian refugee children. The project is particularly timely as inclusive economic growth. Education, the Government’s commitment to protecting Syrian refugee children’s right in particular, is demonstrably one of the to education and integrating them into the public school system--a crucial strongest instruments for reducing poverty element to long-term peace, stability and economic development--has put and improving health, gender equality, a strain on the system. The project will benefit approximately 700,000 peace, and stability. In the Mashreq Region, Jordanian and Syrian refugee children and help train more than 30,000 the quality and performance of health and teachers across Jordan. education sectors has been decreasing, with large gaps for poor and vulnerable communities. The World Bank is committed Project Amount: Implementing Agency: to scaling up investments in human capital US$200 million (IBRD PforR with support Ministry of Education in order to assist countries to build a from GCFF) healthier and more competitive workforce, improve their fiscal performance and rebuild the social contract with their citizens. Capturing Human Capital 32 CCapturing Human Capital 33 LEBANON - HEALTH RESILIENCE PROJECT The project will focus on strengthening the capacity and resilience of both primary and hospital-level institutions. This includes expanding the range and quality of services provided to vulnerable populations, specifically poor Lebanese and Syrian refugees, at the primary health care level, and strengthening physical, technical, and organizational capacity at the hospital level to address the budget limitations hampering the provision of care. The project will provide the targeted population with (i) gender-specific wellness packages; (ii) treatment for the most common non-communicable diseases, such as diabetes and hypertension; (iii) reproductive health services; (iv) mental health services; and (v) services for the elderly. The project, which also benefited from a US$30 million loan from the Islamic Development Bank, is being implemented in 204 primary health care centers and 28 public hospitals over the whole country, and aims to reach up to 715,000 people. Effective Governance, Loan Amount: Implementing Agency: US$120 million (IBRD IPF with support Ministry of Public Health from GCFF) Finance and Markets 34 CCapturing Human Capital 35 IRAQ - MODERNIZATION OF PUBLIC FINANCIAL MANAGEMENT SYSTEMS PROJECT Good governance and resilient, transparent The objective of this project is to provide targeted capacity building and and efficient financial systems are key to strengthened systems and procedures to improve financial information building financial stability, job creation, management and transparency, cash management, public investment poverty alleviation and service delivery management and public procurement modernization at selected federal capacity, and to enabling private sector and governorate agencies in Iraq. Overcoming constraints in public financial growth. Strengthened governance and management will allow the Government of Iraq to address the challenge of public financial management is also maintaining macroeconomic stability, undertaking structural reforms to important to the perception of Government improve the delivery of public services, and recovery and reconstruction in LEBANON - LEBANON ECONOMIC OPPORTUNITIES IRAN - ANALYTICAL WORK IN IRAN/IRAN ECONOMIC efficiency and efficacy, contributing to the recently liberated areas. DIAGNOSTICS (LECOD) MONITOR the status of the social contract. The World Bank Group’s global knowledge and This advisory engagement aims to provide strategic advice The World Bank has published four issues of the Iran Economic Loan Amount: Implementing Agency: expertise are deployed to support clients to to the Government of Lebanon on policies and programs Monitor, which includes recent economic developments, build capacity and capable, efficient, open, US$41.5 million (IBRD IPF) Federal Ministry of Finance, Federal Ministry that can further augment private sector-led job creation. medium-term economic outlook and risks, and special focus of Planning, KRG Ministry of Planning inclusive and accountable institutions and The main output sought from this initiative is a Synthesis sections which allow further analysis on priority issues. The financial systems. Note formulating priority recommendations, drawing on the World Bank also provides Iran with analytical work, at technical conclusions of a series of policy diagnostic reports, addressing level, such as on air pollution, poverty, pensions, and supporting JORDAN - PROMOTING FINANCIAL INCLUSION POLICIES PROJECT the following issues: (i) PPP; (ii) Investment Climate; (iii) Iran’s national risk assessment on anti-money laundering/ Competition Policy: Preliminary assessment of current legal combating the financing of terrorism. The project aims to promote financial inclusion and digital financial services and regulatory environment and market structure in leading by supporting the implementation of Jordan’s National Financial Inclusion sectors (e.g. information and communications technology (ICT), Strategy (NFIS). The Bank will support the Central Bank of Jordan in achieving construction, tourism, logistics sectors); and (iv) SME linkages the national goal of increasing financial inclusion from the current level of and Entrepreneurship. 24.6% to 36.6% of adult population by 2020 and, and over the same time, to reduce the gender gap in the Kingdom from 53% to 35%. Loan Amount: Implementing Agency: US$1.25 million (MENA Transition Fund IPF) Central Bank of Jordan 36 Effective Governance, Finance and Market 37 Working for the People in Mashreq Development Policy Financing (DPF), IRAQ - EMERGENCY FISCAL STABILIZATION, ENERGY previously referred to as Development SUSTAINABILITY, AND STATE-OWNED ENTERPRISE (SOE) Policy Loans, the World Bank’s general TRANSPARENCY DEVELOPMENT POLICY FINANCING/ SECOND budget support instrument, provides a EXPENDITURE RATIONALIZATION, ENERGY EFFICIENCY AND rapidly-disbursing loan (in one tranche) to STATE-OWNED ENTERPRISE GOVERNANCE PROGRAMMATIC help a country address actual or anticipated DEVELOPMENT POLICY FINANCING development financing requirements of The first $US1.2 billion loan program, approved in 2015, supported Iraq in domestic or external origins. DPFs aim to strengthening fiscal stabilization and improving efficiency in the energy help countries achieve sustainable poverty sector to help counter the effects of the drop in oil prices and rising security reduction through a program of policy and costs. The operation focused on three pillars: (1) reforming the public institutional actions, such as strengthening wage system, public investment and debt management, and the pension public financial management, improving the scheme in order to improve expenditure allocation; (2) reducing gas flaring, investment climate, addressing bottlenecks expanding gas-to-power generation and reducing electricity subsidies to to improve service delivery, and diversifying support a more sustainable energy supply; and (3) improving transparency the economy. among financial and non-financial state-owned enterprises. This operation The World Bank supported Iraq and Jordan was complemented by the second $1.485 billion loan, approved in 2016, to through a series of consecutive DPFs further reforms to improve efficiency and transparency of the management Supporting Reforms and between 2014 and 2017, providing rapid financing to help the respective governments implement essential reforms in vital sectors of public funds and expand social safety nets to reach the most vulnerable segments of the population. to ensure fiscal stabilization, transparency, Strengthening Service Delivery and increased efficiency in electricity and Loan Amount: Implementing Agency: water. The DPF operations promoted policy US$1.2 billion (IBRD DPF) / US$1.485 billion Iraqi Ministry of Finance reforms and safeguarded service delivery (IBRD DPF) to citizens as the two countries managed 38 crises of different magnitude and gravity. SSupporting Reforms and Strengthening Service Delivery 39 JORDAN - FIRST AND SECOND PROGRAMMATIC ENERGY AND WATER SECTOR REFORMS DEVELOPMENT POLICY LOANS (DPLS) Two consecutive programmatic DPLs, the first of which approved in September 2015, and the second in December 2016, supported substantial reforms to improve the fiscal sustainability and efficiency of the energy and water sectors, including through the diversification of fuel sources for environmentally friendly and sustainable power generation and optimizing water use. DPL-supported reforms have helped ensure that costs in these sectors are spread equitably, infrastructure systems are operated sustainably, and resources are managed efficiently. The Second Programmatic DPL benefited from the GCFF, recognizing the importance of sustained momentum to improve service delivery as Jordan was also addressing the impacts of the Syria crisis. Loan Amount: Implementing Agency: US$250 million (IBRD DPL) / US$250 Jordanian Ministry of Planning million (IBRD DPL with support from GCFF) and International Cooperation 40 SSupporting Reforms and Strengthening Service Delivery www.worldbank.org/ir www.worldbank.org/iq www.worldbank.org/jo www.worldbank.org/lb www.worldbank.org/sy