45347 2007 TRUST FUNDS Annual Report THE WORLD BANK The World Bank Group 2007 Trust Funds Annual Report Year ended June 30, 2007 Trust Fund Operations Department Concessional Finance and Global Partnerships The World Bank 1818 H Street N.W., Washington DC 20433, USA The World Bank Group ______________________________ International Bank for Reconstruction and Development (IBRD)ª International Development Association (IDA)ª International Finance Corporation (IFC) Multilateral Investment Guarantee Agency (MIGA) International Center for Settlement of Investment Disputes (ICSID) _____________________________ ªIBRD and IDA are collectively known as The World Bank or The Bank Abbreviations and Acronyms AAA Analytic and Advisory Activities GAVI Global Alliance for Vaccines and Immunization ACBF Africa Capacity Building Foundation IEG Independent Evaluation Group ACGF Africa Catalytic Growth Fund IFAD International Fund for Agricultural Development ADB Asian Development Bank IFC International Finance Corporation AfDB African Development Bank IFFIm International Finance Facility for Immunisation AHI Avian and Human Influenza IFRC International Federation of Red Cross and Red ARTF Afghanistan Reconstruction Trust Fund IMF International Monetary Fund ASTAE Asia Sustainable Alternative Energy infoDev Information for Development Program APOC Africa Program for Onchocerciasis Control ISDR International Strategy for Disaster Reduction BioCF BioCarbon Fund ISPP Indonesia Strategic Poverty Partnership BETF Bank-Executed Trust Fund IRTF Iraq Reconstruction Trust Fund BNPP Bank - Netherlands Partnership Program JSDF Japan Social Development Fund BRF Brazilian Rain Forest KCP Knowledge for Change Program CAP Cities Alliance Program LDC Least Developed Countries Fund for Climate Change CAS Country Assistance Strategy LICUS Low Income Countries Under Stress CDCF Community Development Carbon Fund MDF Multi Donor Fund for Aceh and Nias CEBTF China Education Blending Trust Fund MDG Millennium Development Goals CGAP Consultative Group to Assist the Poor MDRP Multi-country Demobilization and Reintegration Program CGIAR Consultative Group on International Agricultural Research MDTF Multi Donor Trust Fund CLIFF Community Infrastructure Finance Facility MIGA Multilateral Investment Guarantee Agency CPA Comprehensive Peace Agreement NBI Nile Basin Initiative CSP Consolidation Support Program NBTF Nile Basin Trust Fund DCF Danish Carbon Fund NCDMF Netherlands Clean Air Development Mechanism Facility DGF Development Grant Facility NECF Netherlands European Carbon Facility DRF Debt Reduction Facility NELSAP Nile Equatorial Subsidiary Action Program DS Debt Service NGO Non-Governmental Organization EFA-FTI Education For All ­ Fast Track Initiative NSDS National Strategies for the Development of Statistics ENSAP Eastern Nile Subsidiary Action Program OCP Onchocerciasis Control Program ENTRO Eastern Nile Technical Regional Office ODA Official Development Assistance EPDF EFA-FTI Program Development Fund OiE Organisation Mondiale de la Santé Animale (World Organization for Animal Health) ERPA Emissions Reduction Purchase Agreement OTF Ozone Trust Fund ESMAP Energy Sector Management Assistance Program PACT Partnership for Capacity Building in Africa ESSP Emergency Services Support Project PCF Post-Conflict Fund FAO Food and Agriculture Organization PCF Prototype Carbon Fund FDI Foreign Direct Investment PHRD Policy and Human Resources Development Fund FIAS Foreign Investment Advisory Service PPIAF Public-Private Infrastructure Advisory Facility FIF Financial Intermediary Fund PREM Poverty Reduction & Economic Management GEF Global Environment Facility PRSP Poverty Reduction Strategy Paper GEFSEC Global Environment Facility Secretariat PRSTF Poverty Reduction Strategy Trust Fund GFA GAVI Fund Affiliate PSI Private Sector Infrastructure GFATM Global Fund to fight AIDS, Tuberculosis, and Malaria RETF Recipient-Executed Trust Fund GFDRR Global Facility for Disaster Reduction and Recovery SCCF Special Climate Change Fund GoNU Government of National Unity SPLM Sudan People's Liberation Movement GoSS Government of Southern Sudan SSATP Sub-Saharan Africa Transport Policy Program GRSF Global Road Safety Facility Stop TB Global Partnership to Stop Tuberculosis GPEP Global Program to Eradicate Poliomyelitis TFET Trust Fund for East Timor GPOBA Global Partnership on Output-based Aid TFESSD Trust Fund for Environmentally and Socially Sustainable Development GPP Global Programs and Partnerships TFGWB Trust Fund for Gaza and West Bank HDN Human Development Network TFL Trust Fund for Lebanon HIPC Heavily Indebted Poor Countries Initiative TFMF Trust Fund Management Framework IBRD International Bank for Reconstruction and Development TFSCB Trust Fund for Statistical Capacity Building Program ICF Italian Carbon Fund UNAIDS United Nations Program on HIV/AIDS ICR Implementation and Completion results Report UNDP United Nations Development Programme ICSID International Centre for Settlement of Investment Disputes UNEP United Nations Environment Programme ICT Information and Communications Technology UNFPA United Nations Population Fund ICT4D Information and Communications Technology for Development UNECA United Nations Economic Commission for Africa IDA International Development Association VPU Vice Presidential Unit IDF Institutional Development Fund WBG World Bank Group GDLN Global Development Learning Network WBI World Bank Institute FIRST Financial Sector Reform and Strengthening Initiative WHO World Health Organization FY Fiscal Year WSP Water and Sanitation Program Contents Preface..........................................................................................................................................................................1 1. Financial Highlights and Aggregate Trends in the Fiscal 2007 World Bank Group-Administered Trust Fund Portfolio..............................................................................................................................................................2 Financial Highlights.............................................................................................................................................2 Cash Contributions...............................................................................................................................................4 Donor Rankings based on Fiscal 2007 Cash Contributions.................................................................................6 Disbursements......................................................................................................................................................8 Funds Held in Cash, Investments and Promissory Notes.....................................................................................9 2. Composition of the Fiscal 2007 Trust Fund Portfolio...................................................................................11 3. Trust Funds and Results..................................................................................................................................20 Annexes A ­ H: ..........................................................................................................................................................22 Description of Selected Trust Fund Programs ...................................................................................................22 Annex A......................................................................................................................................................................23 Debt Service and Debt Reduction......................................................................................................................23 Heavily Indebted Poor Countries Initiative (HIPC)...........................................................................................23 Debt Reduction Facility for IDA-only Countries (DRF) ...................................................................................24 Annex B ......................................................................................................................................................................25 Sustainable Development...................................................................................................................................25 B.1. Environment and Sustainable Agriculture ........................................................................................................25 Global Environment Facility (GEF)...................................................................................................................25 Least Developed Countries Fund for Climate Change (LDC) ...........................................................................27 Special Climate Change Fund (SCCF)...............................................................................................................27 Carbon Finance: Prototype Carbon Fund (PCF)...............................................................................................28 Carbon Finance: Netherlands Clean Development Mechanism Facility (NCDMF)..........................................28 Carbon Finance: The Netherlands European Carbon Facility (NECF).............................................................29 Carbon Finance: Community Development Carbon Fund (CDCF)...................................................................29 Carbon Finance: BioCarbon Fund (BioCF).......................................................................................................30 Carbon Finance: Italian Carbon Fund (ICF)....................................................................................................30 Carbon Finance: Danish Carbon Fund (DCF)..................................................................................................31 Trust Fund for Environmentally and Socially Sustainable Development (TFESSD) ........................................31 Pilot Program to Conserve the Brazilian Rain Forest (BRF) .............................................................................32 Consultative Group on International Agricultural Research (CGIAR)..............................................................33 Nile Basin Initiative (NBI).................................................................................................................................33 B.2. Infrastructure......................................................................................................................................................35 Public-Private Infrastructure Advisory Facility (PPIAF)...................................................................................35 Foreign Investment Advisory Service (FIAS)....................................................................................................36 Global Partnership on Output-Based Aid (GPOBA)..........................................................................................36 Energy Sector Management Assistance Program (ESMAP)..............................................................................37 Water and Sanitation Program (WSP) ...............................................................................................................38 Cities Alliance Program (CAP)..........................................................................................................................39 i The World Bank Group 2007 Trust Funds Annual Report Sub-Saharan Africa Transport Policy Program (SSATP) ..................................................................................40 Asia Sustainable and Alternative Energy (ASTAE) Program............................................................................41 Information for Development (infoDev) Program .............................................................................................41 Global Road Safety Facility (GRSF) .................................................................................................................42 Annex C......................................................................................................................................................................44 Health and Human Development............................................................................................................................44 Global Fund to Fight AIDS, Tuberculosis, and Malaria (GFATM)...................................................................44 Global Partnership to Stop Tuberculosis (Stop TB)...........................................................................................45 Global Program to Eradicate Poliomyelitis (GPEP) ..........................................................................................46 African Program for Onchocerciasis Control (APOC) ......................................................................................46 Education for All-Fast Track Initiative: Catalytic Fund (EFA-FTI)..................................................................47 Education for All-Fast Track Initiative: Program Development Fund (EPDF).................................................48 China Education Blending Trust Fund (CEBTF)...............................................................................................48 Avian and Human Influenza (AHI) Facility.......................................................................................................48 Bangladesh Health, Nutrition and Population Sector Multi-Donor Trust Fund.................................................49 Annex D......................................................................................................................................................................52 Poverty Reduction and Social Development...........................................................................................................52 Japan Social Development Fund (JSDF) ...........................................................................................................52 Poverty Reduction Strategy Trust Fund (PRSTF)..............................................................................................53 Indonesia Strategic Poverty Partnership (ISPP).................................................................................................53 Africa Catalytic Growth Fund (ACGF) .............................................................................................................54 Annex E ......................................................................................................................................................................55 Capacity Building and Technical Advisory Services ..............................................................................................55 Policy and Human Resource Development (PHRD) Fund ................................................................................55 Bank-Netherlands Partnership Program (BNPP) ...............................................................................................56 Africa Capacity Building Foundation (ACBF) ..................................................................................................56 World Bank Institute (WBI) Partnerships..........................................................................................................57 Global Development Learning Network (GDLN) .............................................................................................58 Trust Fund for Statistical Capacity Building (TFSCB)......................................................................................59 Knowledge for Change Program (KCP) ............................................................................................................59 Annex F ......................................................................................................................................................................61 Post-Conflict Reconstruction and Natural Disasters..............................................................................................61 Post-Conflict Fund (PCF) ..................................................................................................................................61 Low-Income Countries Under Stress (LICUS) Implementation Trust Fund .....................................................62 Iraq Reconstruction Trust Fund (IRTF) .............................................................................................................63 Afghanistan Reconstruction Trust Fund (ARTF)...............................................................................................64 West Bank and Gaza: Trust Fund for Gaza and West Bank (TFGWB)..............................................................64 West Bank and Gaza: The Emergency Services Support Project (ESSP) ..........................................................65 Timor Leste: Trust Fund for East Timor (TFET)..............................................................................................65 Timor-Leste: Consolidation Support Program (CSP) ......................................................................................66 Multi-Country Demobilization and Reintegration Program (MDRP)................................................................67 Multi-Donor Fund for Aceh and Nias (MDF)....................................................................................................67 Sudan Multi-Donor Trust Funds........................................................................................................................68 Global Facility for Disaster Reduction and Recovery (GFDRR).......................................................................69 Trust Fund for Lebanon (TFL)...........................................................................................................................70 Annex G......................................................................................................................................................................71 Financial and Private Sector Development............................................................................................................71 Financial Sector Reform and Strengthening (FIRST) Initiative.........................................................................71 ii The World Bank Group 2007 Trust Funds Annual Report Consultative Group to Assist the Poor (CGAP).................................................................................................72 Annex H......................................................................................................................................................................73 Trust Funds Administered by IFC and MIGA.........................................................................................................73 International Finance Corporation (IFC)............................................................................................................73 Multilateral Investment Guarantee Agency (MIGA) .........................................................................................75 Annex I .......................................................................................................................................................................79 1. Introduction......................................................................................................................................................81 2. Trust Funded Operations ­ Financial Highlights .........................................................................................82 3. Trust Funds Held as Cash and Investments ..................................................................................................84 4. Cash and Investments......................................................................................................................................85 5. Promissory Notes..............................................................................................................................................86 6. Contributions and Disbursements by Program.............................................................................................87 7. Contributions by Donor...................................................................................................................................88 8. Disbursements by Managing Unit ..................................................................................................................89 9. Disbursements by Category ...........................................................................................................................90 Annex J.......................................................................................................................................................................91 Trust Fund Glossary...........................................................................................................................................91 Annex K......................................................................................................................................................................93 Webpage Addresses...........................................................................................................................................93 iii The World Bank Group 2007 Trust Funds Annual Report Preface In recent years, Trust Funds (TFs) administered by the World Bank Group have increasingly mobilized and directed concessional resources to key strategic development priorities at the country level, while also supporting partnerships with other development actors in addressing global and regional challenges. The Bank's objective is to ensure that it accepts and administers trust funds in a manner that contributes to the objectives of aid effectiveness and harmonization as laid out in the Paris Declaration of March 2005 -including, in particular, complementarity with country-based multilateral instruments, suchasthe International Development Association (IDA). In fiscal 2007, the Bank's TF portfolio grew in temlS of the number of funds and donors, as well as the volume of contributions and disbursements. At the end of fiscal 2007, the Bank Group held a total of $21.4 billion in trust ($13.8 billion cash and $7.6 billion promissory notes). These resources were administered through 1,015 active funds supported by 339 sovereign and non-sovereign donor agencies. The World Bank Group also contributes some of its own resources to selected TFs. The portfolio -reflective of larger trends in the aid architecture -is composed of Bank-Executed, Recipient- Executed, and Financial Intemlediary Funds. While many of the Recipient-Executed funds support more traditional country-based investments, the rapidly growing portfolio of Financial Intemlediary Funds support "vertical" approaches that target specific global priorities or themes of interest to the international development community. The Bank has made concerted efforts since 2001 to strengthen management of its TF portfolio. These included the development of standard policies and controls, a more robust organizational framework, a mandatory accreditation program, and an integrated information system to support TF management. More recently, a new TF Management Framework was discussed and endorsed by the Bank's Board of Executive Directors on October 30, 2007. Designed to improve the strategic relevance, risk management and cost-effectiveness of the Bank's overall TF portfolio, the Framework aims to (i) Promote a More Strategic Approach to ensurerelevance and rigor in the selection of different types of TFs, consistent with the Bank's business needs; (ii) Strengthen Risk Management and Controls with continued refinement and enforcement of controls and systematic mitigation of portfolio-wide risks; and (iii) Enhance Operational Efficiency and Sustainability through continued improvements in the efficiency of TF administration and introduction of a new TF fee structure. Reforms and policies implemented by the Framework are also being mainstreamed into the Bank's operational policies and procedures. The scopeof analysis provided in this year's Annual Report has beenexpandedto reflect the new TF typology introduced under the TF Management Framework, and to highlight the growing significance of promissory notes as a form of donor contributions and TF assets. We would welcome feedback on this report, or on its format, to donorgueries@worldbank.org. !:::~:~::::==:- PHILIPPELE HOuEROU Vice President ConcessionalFinanceandGlobalPartnerships The World Bank Group 2007 Trust Funds Annual Report 1 Section 1 Financial Highlights and Aggregate Trends in FY2007 Trust Funds Portfolio 1. Financial Highlights and Aggregate Trends in the Fiscal 2007 World Bank Group-Administered Trust Fund Portfolio Financial Highlights 1. Trust funds have emerged as an important vehicle for channeling Official Development Assistance (ODA). The World Bank Group (WBG)-administered trust funds have been the primary channel for trust-funded aid, in comparison to other multilateral agencies. Other major multilateral agencies channeling trust-funded aid include the United Nations Development Programme (UNDP), United Nations Children's Fund (UNICEF), Inter-American Development Bank (IADB), United Nations Population Fund (UNFPA), African Development Bank (AfDB) and Africa Development Fund (ADF). CY2006 Contributions to Trust Funds Administered by Multilateral Agencies 7,334 n illiom$SU insniotuibrtnoC 3,800 1,725 1,138 134 33 6 WBG UNDP UNICEF UNFPA AfDB ADF IADB (FY07) 2. In fiscal 2007, the WBG's trust fund portfolio grew at an accelerated pace in terms of the number of funds and donors, as well as the volume of contributions and disbursements. By all indications, the portfolio, which had grown exponentially during fiscal 2003-2006 period, increased even more rapidly in fiscal 2007. Fiscal 2007 growth in TF cash contributions, disbursements, funds held in cash, investments and promissory notes, and the total number of active TF accounts surpassed the average annual growth experienced in the previous four years. FY03-06 FY07 Fiscal Year FY03 FY04 FY05 FY06 FY07 avg. annual annual growth growth Cash Contributions (US$ million) 3,899 4,939 4,750 5,214 7,334 10% 41% Disbursements (US$ million) 2,561 3,276 4,128 4,374 5,808 20% 33% Cash and Investments (US$ million)1 6,887 8,587 9,308 10,554 13,768 15% 30% Promissory Notes (US$ million) n/a n/a 2,255 2,561 7,631 n/a 198% Number of Active Trust Funds 933 903 840 929 1,015 0% 9% 1FY03-05 figures reflect cash only, whereas those for FY06-07 reflect both cash and investments. 2 The World Bank Group 2007 Trust Funds Annual Report Section 1 Financial Highlights and Aggregate Trends in FY2007 Trust Funds Portfolio Number of Trust Funds and Trust Fund Donors 3. Overall, the number of WBG-administered TFs has continued to grow. The total number of active main trust funds2 rose from 929 at the end of fiscal 2006 to 1,015 at the end of fiscal 2007. Of these, 81 percent (821 funds) were managed by (IBRD/IDA, 18 percent (185 funds) by IFC, and about one percent (nine funds) by the Multilateral Investment Guarantee Agency (MIGA). It is important to note that a single initiative may actually be funded by several TF accounts, in order to facilitate the donors' requirements. For instance, multiple accounts on a single initiative are created as a way to facilitate the Bank's administration of specific donor contributions, and various donors' financial and budgetary requirements, time periods and areas of focus. More than half (522) of the total number of TFs were managed under 101 program and partnership initiatives, some of which are described in Annexes A-H; while the remaining were freestanding TFs that may or may not be linked to Bank operations. Number of WBG-Administered TFs at end FY2007 MIGA, 9 IFC, 185 WORLD BANK (IBRD / IDA), 821 4. Growth in the number of funds has been matched by a significant growth in the number of donors. In fiscal 2007, a total of 339 donor agencies contributed funds through WBG-administered trust funds. These represented 157 sovereign agencies from 78 countries, and 182 multilateral agencies, Funds, foundations, and other non-sovereign agencies. The number of non-sovereign agencies -- mainly Funds, foundations and other non-multilateral agencies -- more than doubled during the fiscal 2003-2007 period. Donor Category FY03 FY04 FY05 FY06 FY07 Sovereign Number of Countries 63 73 67 73 78 Number of Agencies 123 149 149 165 157 Non-Sovereign Multilaterals 8 8 5 6 5 Funds, Foundations, Agencies, etc. 70 93 125 119 177 78 101 130 125 182 Total Number of Different Agencies 201 250 279 290 339 2One main TF account can have multiple program windows and disbursing child funds created under it for Bank administration purposes. 3 The World Bank Group 2007 Trust Funds Annual Report Section 1 Financial Highlights and Aggregate Trends in FY2007 Trust Funds Portfolio Cash Contributions 5. Cash contributions reached a new peak of US$7.33 billion in fiscal 2007, with an increase of US$2.12 billion (or 41 percent) during the year. This was a much higher growth rate than the average annual growth of 10 percent over the fiscal 2003-2006 period. At the same time, almost US$20 billion in new pledges were committed by donors during the year through signed legal agreements (including US$5 billion in promissory notes), of which US$4.86 billion (24 percent) were encashed during the fiscal year. The amount of these new pledges in fiscal 2007 was about double that in fiscal 2006. Cash Contributions to WBG-Administered TFs FY03-07 FY2007 7,334 FY2006 5,214 FY2005 4,750 FY2004 4,940 FY2003 3,899 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 $ million 6. The Global Fund to Fight AIDS, Tuberculosis and Malaria (GFATM) continued to receive the highest cash contributions from donors. GFATM attracted US$2.06 billion, or 28 percent of all fiscal 2007 contributions. The next four programs receiving highest amount of donor contributions or cash proceeds from capital markets were: the Global Environment Facility (GEF) receiving US$831 million, or 11 percent; the Global Alliance for Vaccines and Immunization (GAVI) receiving US$758 million, or 10 percent3; the Afghanistan Reconstruction Trust Fund (ARTF) receiving US$463 million, or six percent; and IFC trust funds receiving US$288 million, or four percent of all fiscal 2007 contributions. Altogether, these top five programs received about US$4.4 billion, or 60 percent of all fiscal 2007 cash contributions. 7. Annual cash contributions from most donor groups increased between fiscal 2006 and fiscal 2007. Compared to the previous fiscal year, cash contributions from Sovereign Governments were about US$1.64 billion higher. Intergovernmental Organizations, including the European Commission, UN bodies, multinational and regional development banks, and international financial institutions, contributed US$211 million more than in the previous fiscal year. Cash contributions from private non-profit entities and for-profit organizations also grew significantly by US$230 million and US$59 million, respectively, compared to the previous fiscal year. In contrast, cash contributions from the WBG were slightly lower (by US$14 million) -- from US$421 million in fiscal 2006 to US$407 million in fiscal 2007 ­ moving the WBG from being the fifth biggest donor 3This included US$753 million proceeds from IFFIm's issuance of bonds and US$4 million from GAVI Fund Affiliate's investment income. 4 The World Bank Group 2007 Trust Funds Annual Report Section 1 Financial Highlights and Aggregate Trends in FY2007 Trust Funds Portfolio in fiscal 2006 to seventh position in fiscal 2007. IBRD's cash contributions in fiscal 2007 were 12 percent (US$32 million) lower than in the previous fiscal year, mainly due to the declining schedule of IBRD contributions to IDA's HIPC debt relief program (from US$210 million in fiscal 2006 to zero in fiscal 2007). On the other hand, IFC's cash contributions in fiscal 2007 were 13 percent higher (by US$18 million) than in fiscal 2006. Cash Contributions from the WBG FY2003-07 FY2007 407 FY2006 421 FY2005 562 FY2004 465 FY2003 329 0 100 200 300 400 500 600 $ million 8. As in previous years, Sovereign Governments contributed the bulk of cash contributions to WBG-administered trust funds in fiscal 2007. Seventy-nine percent of cash contributions in fiscal 2007 were provided by Sovereign Governments, either directly or through their agencies. Intergovernmental Organizations constituted the next biggest group of donors, together providing 11 percent of all fiscal 2007 cash contributions, followed by the World Bank Group with six percent, Private Non-Profit Entities with three percent, and Private For-Profit Organizations with one percent of overall cash contributions. Of the US$407 million contributed from net income or surpluses of WBG institutions, 60 percent (US$245 million) came from IBRD and 40 percent (US$162 million) from IFC. FY 2007 Cash Contributions by Donor Types Donor Type US$ million percentage Sovereign Governments 5,799 79% Intergovernmental Organizations 790 11% World Bank Group 407 6% Private Non-Profit Entities 250 3% Private For Profit Organizations 88 1% Total Cash Contributions 7,334 100% 9. In fiscal 2007, the United Kingdom was the top cash contributing donor to WBG- administered trust funds, with total cash contributions of US$1.19 billion. Among the category of "Other Donors", the Gates Foundation contributed the most with total cash contributions of US$229 million, which were provided mainly for GFATM (US$200 million), the Water and Sanitation Program (US$14.2 million), and CGAP (US$6.2 million). 5 The World Bank Group 2007 Trust Funds Annual Report Section 1 Financial Highlights and Aggregate Trends in FY2007 Trust Funds Portfolio Donor Rankings based on Fiscal 2007 Cash Contributions Cash Contribution by Donor (US$ million) 12 Months 12 Months 12 Months 12 Months Donors ended ended ended ended June 30, June 30, June 30, June 30, 2007 2006 2007 2006 Sovereign Countries and the European Community United Kingdom 1190 654 South Africa 7 1 Netherlands 766 514 China 7 5 United States 747 735 Czech Republic 7 1 European Community 652 493 Others a/ 40 39 Canada 533 217 Subtotal 6,438 4,646 Japan 412 392 World Bank Group Germany 332 165 Institutions France 288 177 IBRD 245 277 Serbia 234 - IFC 162 144 Sweden 230 166 Subtotal 407 421 Norway 209 273 Spain 203 107 Other donors Italy 97 293 Gates Foundation 229 - Denmark 95 101 UNEP 123 57 Australia 81 56 GFATM Secretariat 12 10 Belgium 78 33 IFRC 10 Switzerland 56 47 UN Foundation 9 15 Finland 52 45 UNAIDS 7 6 Ireland 45 49 Endesa, S.A. 7 Austria 24 25 Others b/ 92 59 Russia 16 28 Subtotal 489 147 Luxembourg 14 10 Portugal 12 10 New Zealand 11 10 Total contributions 7,334 5,214 a/ Includes 14 donors (notably Saudi Arabia, India, Argentina, Brazil, Kuwait, and South Korea) each contributing US$1-5 million for a total of about US32 million, and 37 other donors each contributing amounts below US$1 million for a total of about US$8 million. b/ Includes 25 donors (notably RWE AG, Trading Emissions PLC, Mitsui & Co. Ltd, Canadenis Acquisition Ltd, and Tamarisk Acquisition Corp) each contributing US$1-$5 million for a total of about US$56 million, and 147 other donors each contributing amounts below US$1 million for a total of about US$36 million. Most of these contributions went to Carbon Finance transactions. 6 The World Bank Group 2007 Trust Funds Annual Report Section 1 Financial Highlights and Aggregate Trends in FY2007 Trust Funds Portfolio 10. In terms of cumulative cash contributions received over the past five fiscal years, the United States remained the top donor to WBG-administered trust funds with a total of US$3.46 billion, followed by the United Kingdom with US$3.17 billion, the European Community with US$2.55 billion, the Netherlands with US$2.29 billion, and Japan with US$2.22 billion. Donor Cumulative Cash Contributions FY2003- FY2007 4000 3,458 3500 3,171 3000 2,551 onllii2000 2500 2,292 2,217 2,184 m$1500 1,421 1,164 1,046 987 1000 500 0 A US UK EC therlands Japan WBG Canada France Germ any Norway Ne 11. In fiscal 2007, the bulk of IBRD's cash contributions went to trust funds supporting World Bank-administered post-conflict and capacity building programs. Twenty-nine percent of the IBRD's cash contributions (US$70 million) went to the Trust Fund for Lebanon, 20 percent (US$50 million) to the West Bank and Gaza Trust Fund, about 20 percent (US$48 million) to the Africa Capacity Building Foundation (ACBF), 12 percent (US$30 million) to the Low Income Countries Under Stress (LICUS) Implementation Fund, around seven percent (US$16 million) to the Institutional Development Fund (IDF), and more than four percent (US$10 million) each to the Debt Reduction Facility (DRF) and the Caribbean Catastrophe Risk Insurance Facility. The rest was split between the program for Onchocerciasis control (US$2 million), the Foreign Investment Advisory Service (FIAS, US$1.2 million), the Consultative Group to Assist the Poor (CGAP, US$0.5 million), and various other Development Grant Facility initiatives (DGF, US$7.1 million). 12. IFC's cash contributions were primarily devoted to technical assistance and advisory services managed by IFC itself. Of the US$162 million contributed by IFC in cash, 98 percent (US$159 million) went to a number of IFC-managed TFs for technical assistance and advisory services, two percent (US$3.2 million) to the Public-Private Infrastructure Advisory Facility (PPIAF), and one grant of less than half a million dollars to CGAP. 7 The World Bank Group 2007 Trust Funds Annual Report Section 1 Financial Highlights and Aggregate Trends in FY2007 Trust Funds Portfolio Disbursements 13. Disbursements out of WBG-administered trust funds also continued to show exponential growth during fiscal 2007. TF disbursements during fiscal 2007 amounted to US$5.81 billion, an increase of US$1.43 billion (33 percent) compared to the previous fiscal year. This represented a significantly higher increase compared to the annualized growth rate of 20 percent in fiscal 2003-2006. WBG TF Disbursements FY2003-07 FY2007 5,808 FY2006 4,374 FY2005 4,128 FY2004 3,277 FY2003 2,561 0 1,000 2,000 3,000 4,000 5,000 6,000 US$ million 14. As in previous years, TF disbursements in fiscal 2007 constituted an increasingly larger share of total WBG support delivered to IDA-eligible countries and IBRD countries. Annual TF disbursements as a proportion of total IDA, IBRD and TF disbursements grew from 12 percent in fiscal 2003 (US$2.56 billion) to 23 percent in fiscal 2007 (US$5.81 billion). As a share of all concessional finance provided through the WBG (i.e., as a share of TF and IDA disbursements), TF disbursements constituted 40 percent in fiscal 2007. This increase is largely attributable to the growth of vertical funds, such as the Global Environment Facility (GEF), the GFATM, and IFFIm/GAVI Fund Affiliate. In fiscal 2007, about 60 percent of TF resources were provided to regional and global activities, 29 percent to IDA countries, six percent to IBRD countries, and five percent to blend countries. Total IBRD, IDAand TF Disbursements (US$ Millions) 30,000 TFs 25,000 4,374 5,808 2,561 4,128 IDA 20,000 3,276 8,444 6,700 8,579 15,000 6,461 8,488 IBRD 10,000 12,150 12,223 10,391 10,094 11,055 5,000 0 FY03 FY04 FY05 FY06 FY07 8 The World Bank Group 2007 Trust Funds Annual Report Section 1 Financial Highlights and Aggregate Trends in FY2007 Trust Funds Portfolio Funds Held in Cash, Investments and Promissory Notes 15. At the end of fiscal 2007, the WBG was holding a total stock of US$21.4 billion in trust fund assets, of which US$13.77 billion were in the form of cash and investments, and US$7.63 million in promissory notes. Ninety-six percent (US$13.16 billion) of the cash and investments at the end of fiscal 2007 were for the IBRD/IDA-administered portfolio, four percent (US$560 million) for the IFC-administered portfolio, and less than half a percent (US$41 million) for the MIGA-administered portfolio. About 48 percent (US$6.6 billion) of all funds held in cash and investments belonged to the three largest global programs: GFATM (US$3.25 billion), GEF (US$2.45 billion), and the HIPC Debt Initiative (US$851 million). Cash and Investments Held under Trust by WBG at end FY2007 (US$ million) IFC, 560 MIGA, 41 World Bank (IBRD/IDA), 13,167 16. In addition to cash and investments, promissory notes have become an increasingly important form of trust fund assets since fiscal 20054 . Contributions pledged by donors through promissory notes, which have increasingly been received under certain trust-funded programs, tripled during fiscal 2007 alone. Promissory notes held at the end of fiscal 2007 amounted to US$7.63 billion, up 198 percent from US$2.56 billion at the end of fiscal 2006. This significant increase was mainly attributable to legally binding and irrevocable payment obligations pledged by donors for the IFFIm/GAVI Fund Affiliate. More than 93 percent (US$7.11 billion) of all promissory notes held belonged to three programs: IFFIm/GFA US$4.16 billion, Carbon Funds US$1.69 billion, and GEF US$1.26 billion. 4In certain programs, contributions pledged by donors are settled through deposit of demand notes, or other forms of financial instrument. These are recorded as promissory notes when received, and are then encashed and recorded as cash contributions, based on schedules agreed with the donors. 9 The World Bank Group 2007 Trust Funds Annual Report Section 1 Financial Highlights and Aggregate Trends in FY2007 Trust Funds Portfolio Funds Held in Cash, Investments and Promissory Notes in FY2003-07 FY2007 13,768 7,631 FY2006 10,554 2,561 FY2005 9,308 2,255 FY2004 8,587 FY2003 6,887 0 5,000 10,000$millions15,000 20,000 25,000 Cash and Investments PNs 17. The stock of funds held in cash and investments was invested in accordance with the Bank's investment guidelines. At the end of fiscal 2007, the fair market value of the TF cash and investments portfolio stood at US$13.77 billion -- an increase of US$3.2 billion (30 percent) from US$10.55 billion at the end of fiscal 2006. Thirty-six percent (US$4.96 billion) of this portfolio was invested in money market and cash instruments, 23 percent (US$3.17 billion) in domestic government bonds, 11 percent (US$1.47 billion) in mortgage-backed securities, 17 percent (US$2.4 billion) in asset-backed securities, and 13 percent (US$1.75 billion) in agency bonds. The investment income earned from such investments is credited to TF accounts based on the arrangements with donors. 18. The rate of return on the cash and investments portfolio improved significantly in fiscal 2007. The return on the cash and investments portfolio, based on market value of the portfolio, was 5.48 percent in fiscal 2007 compared with 2.36 percent in fiscal 2006. The average return was 3.37 percent for the three years ended fiscal 2007, and 2.95 percent for the five years ended fiscal 2007. FY2007 TFCash and Investments Portfolio stood at $ 13,768 million 100% 15* 401 1753 1290 80% 2395 1,346 1473 60% 2,355 3,171 40% 5,162 20% 4,961 0% FY2007 $13,768million FY2006 $10,554million Money Market and Cash Domestic Govt Bonds Mortgage backed Securities(MBS) Asset Backed Securities(ABS) Agency Bonds * Sovereign/Government Guarantees 10 The World Bank Group 2007 Trust Funds Annual Report Section 2 Composition of FY2007 TF Portfolio 2. Composition of the Fiscal 2007 Trust Fund Portfolio By Region, Sector, and Type of Fund Composition by Region and Country Context 1. In fiscal 2007, as in previous years, the largest share of disbursements under World Bank-administered trust funds went to countries in Africa. Nearly a third of TF disbursements were made to Africa (31 percent), followed by East Asia and Pacific (14 percent), South Asia (12 percent), Europe and Central Asia (6 percent), Latin America and the Caribbean (4 percent), and Middle East and North Africa (3 percent). The remaining third of disbursements were made under global and regional programs (29 percent). 2. IDA-eligible countries received the lion's share of TF disbursements, followed by global and regional programs, and then IBRD countries. More than half of TF disbursements were made to IDA-eligible countries (52 percent) in fiscal 2007, followed by global and regional facilities (35 percent), and IBRD countries (13 percent). IDA-eligible countries in Africa received more than half of all fiscal 2007 TF disbursements (52 percent), followed by those in South Asia (24 percent), East Asia and Pacific (16 percent), Europe and Central Asia (5 percent), Latin America and the Caribbean (2 percent), and Middle East and North Africa (1 percent). In IBRD-eligible countries, those in East Asia and Pacific dominated TF disbursements (36 percent) in part due to large multi-donor TFs established for post-disaster recovery. IBRD- eligible countries in Europe and Central Asia received the second largest share (25 percent), followed by Latin America and the Caribbean (19 percent), Africa (10 percent), and Middle East and North Africa (10 percent). Fiscal 2007 TF Disbursements by Region and Country Context Region IDA IBRD Global/ Regional TF Total % of Total AFR 1,585 73 167 1,825 31% EAP 478 274 37 790 14% ECA 147 188 21 356 6% LCR 64 147 37 248 4% MNA 37 78 72 186 3% SAR 714 - 5 719 12% Global - - 1,686 1,686 29% Total 3,026 760 2,025 5,811 100% Note: Disbursement data for GFATM is based on data from the Global Fund. As a result, the total disbursement is $5.811b instead of $5.808b, as reported in other tables. Composition by Sector 3. In fiscal 2007, TF disbursements in terms of sectoral distribution followed the pattern observed in previous years. Over fiscal 2003-2007, disbursements were heavily focused on health, debt service, post-conflict/disaster recovery, and the environment. The 11 The World Bank Group 2007 Trust Funds Annual Report Section 2 Composition of FY2007 TF Portfolio focus on health and environment is explained by the recent exponential growth in vertical funds such as the GEF, IFFIm, GFATM,5 the Ozone Phase-out Trust Fund, and the Carbon Funds. The post-conflict and post-disaster recovery programs included multi-donor TFs for Aceh, Afghanistan, East Timor, Iraq, and West Bank-Gaza. Sector/Theme FY03 FY04 FY05 FY06 FY07 FY03-07 Health 95 442 950 1,145 2,368 5,000 Debt Service 801 1,005 878 771 267 3,722 Post Conflict/Disaster Recovery 343 432 657 679 776 2,887 Environment 483 490 529 642 684 2,830 Other Bank-Executed 409 421 383 304 271 1,786 Other Recipient-Executed 131 171 263 261 370 1,195 Others 60 66 153 234 632 1,145 Infrastructure and Finance 164 150 187 177 189 867 IFC, MIGA and ICSID 73 99 128 160 240 700 Education 0 0 0 2 11 13 TOTAL 2,561 3,276 4,128 4,374 5,808 20,147 Composition by Type of Fund 4. The IBRD/IDA-administered portfolio is characterized by three broad categories of TFs, based on the types of services provided and the execution role assumed by the Bank: Bank-Executed Trust Funds (BETFs) are those for which the Bank has spending authority, in support of: (i) key elements of the Bank's own work program, including analytical and advisory activities (AAA), (ii) project-related activities, in conjunction with IBRD/IDA-financed or free-standing operations, and (iii) partnership secretariats and TF administration activities. Recipient-Executed Trust Funds (RETFs) are those which the Bank passes on to a third-party recipient for development activities, typically financing the investment and recurrent needs of service delivery, capacity building and technical assistance. They are either explicitly linked to Bank-financed operations or designed as stand-alone funds, and are most similar to IDA and IBRD lending programs supporting country-based initiatives. For these funds, the Bank normally plays an operational role including appraisal and supervision of funded activities. Financial Intermediary Funds (FIFs) comprise a heterogeneous mix of TFs not covered by either BETFs or RETFs.6 They include funds with financial engineering and 5In the case of GFATM, the funds disbursed do not flow through the Bank's country programs, but are implemented separately by external agencies. 6FIFs are highly diverse in terms of their objectives, their financial and operational design, and the roles the Bank plays in their implementation. For some FIFs, the Bank's primary role is that of a financial trustee with limited functions (holding funds and disbursing them to external entities). The Bank's provision of limited fiduciary 12 The World Bank Group 2007 Trust Funds Annual Report Section 2 Composition of FY2007 TF Portfolio complex financial schemes, or arrangements in which the Bank provides specific administrative or financial services with a limited fiduciary or operational role. They typically encompass multi-donor financial initiatives designed to implement international agreements in support of global partnerships and programs. The major funds in this category include the Heavily Indebted Poor Countries Initiative (HIPC), the Global Environment Facility (GEF), the Global Fund to Fight AIDS, Tuberculosis and Malaria (GFATM), Carbon Funds, and the International Finance Facility for Immunization (IFFIm). 5. In volume terms, FIFs represented the largest category of trust funds in fiscal 2007, with 54 percent of total disbursements. RETFs formed the second largest category (36 percent of total disbursements), and BETFs accounted for the smallest portion of overall disbursements (6 percent). While most TFs fell within one of the three main categories, 149 of the total 821 IBRD/IDA-administered TFs (or 18 percent) were hybrids supporting combinations of Recipient- and Bank-Executed grants.7 % % of Disbursements by TF Category FY03 FY04 FY05 FY06 FY07 Increase FY07 FY03- Total (US$ million) 07 Disb Bank-Executed 184 236 274 283 330 79% 6% Recipient-Executed Linked to Lending Projects 313 283 478 495 960 207% 17% Linked to GEF Projects 108 127 159 174 179 65% 3% Stand-Alone 564 741 851 787 971 72% 17% 984 1,151 1,488 1,456 2,111 114% 36% Financial Intermediary Debt Relief 801 964 878 771 267 -67% 5% Limited Fiduciary Arrangements 492 784 1,318 1,589 2,785 466% 48% Other 26 43 42 117 75 188% 1% 1,318 1,791 2,238 2,476 3,127 137% 54% Other Bank Group IFC 73 92 118 148 222 206% 4% MIGA 1 1 2 1 3 266% 0% ICSID 0 6 8 11 15 n/a 0% 73 99 128 160 240 226% 4% TOTAL 2,561 3,276 4,128 4,374 5,808 127% 100% 6. Annual disbursements from BETFs virtually doubled from US$184 million in fiscal 2003 to US$330 million in fiscal 2007. In fiscal 2007, these included US$25 million from the Consultant Trust Fund (CTF) program, US$24 million from the Water and Sanitation Program (WSP), US$18 million from the Public-Private Infrastructure Advisory Facility (PPIAF), and services through FIFs does not necessarily preclude it from providing an operational input. In each case, the Bank's role is a function of the design of the specific partnership and the associated FIF. 7TFs typically contain fund, program, and activity/grant-level disbursing accounts. 13 The World Bank Group 2007 Trust Funds Annual Report Section 2 Composition of FY2007 TF Portfolio US$11 million from the Trust Fund for Environmentally and Socially Sustainable Development (TFESSD). In fiscal 2007, BETFs accounted for 57 percent of Bank spending on technical assistance, and 27 percent of spending on economic and sector work (ESW), thus providing important support to the Bank's day-to-day operational work in lower- and middle-income countries. 7. Disbursements channeled through RETFs more than doubled from US$984 million in fiscal 2003 to US$2.1 billion in fiscal 2007, broadly reinforcing IBRD/IDA lending patterns across sectors and thematic areas. Over the fiscal 2003-2007 period, 66 percent of RETF disbursements were through multi-donor or pooled arrangements.8 Ninety-two percent of RETF disbursements in fiscal 2007 were for cofinancing of IBRD/IDA and stand-alone projects, with the remaining eight percent for GEF-related projects. The share of RETF disbursements linked to IBRD/IDA-financed operations increased from 32 percent in fiscal 2003 to 46 percent in fiscal 2007; US$961 million was disbursed in fiscal 2007 to support the preparation or cofinancing of Bank lending operations. Stand-alone fund disbursements in fiscal 2007 (US$970 million) were primarily devoted to post-crisis and fragile states and to country-level efforts in support of global/regional priorities. 8. In fiscal 2007, RETFs continued to serve as a versatile instrument of Bank support in a diversity of country settings. For instance, RETF support included post-conflict assistance as well as blending grant and IBRD financing in support of global public goods in middle income countries. RETF disbursements to fragile states (especially post-conflict countries) nearly doubled from US$386 million in fiscal 2003 to US$749 million in fiscal 2007.9 RETF flows to IBRD-eligible countries rose from US$159 million in fiscal 2003 to US$292 million in fiscal 2007. This represented a significant, albeit slightly declining, share of RETF disbursements overall, decreasing from 16 percent in fiscal 2003 to 14 percent in fiscal 2007. By sector, 30 percent of RETF disbursements in fiscal 2007 supported activities in Law, Justice and Public Administration, 15 percent each went for Health and other social services, and for Education, and 10 percent for agriculture, fishing and forestry. 8In fiscal 2007, 85 percent (185) of 219 RETFs were supported by single donors, but accounted for only 53 percent of total RETF disbursements. The remaining 34 multi-donor RETFs accounted for the bulk of the volume growth. 9Cumulative RETF disbursements to fragile states-related activities totaled $3 billion over the FY03-07 period. Of this, more than fifty percent went to Afghanistan. 14 The World Bank Group 2007 Trust Funds Annual Report Section 2 Composition of FY2007 TF Portfolio Sector Shares in FY07 Disbursements IBRD/IDA Lending (%) RETFs(%) Law, Justice & Public Administration 22 30 Health, Other Social Services 11 15 Education 8 15 Agriculture, Fishing & Forestry 7 10 Industry & Trade 5 8 Finance 7 4 Water, Sanitation & Flood Protection 12 7 Energy and Mining 7 3 Other 0 2 Transportation 20 5 Information & Communication 1 1 TOTAL 100 100 9. Over the fiscal 2003-2007 period, the distribution of RETF commitments across IDA- eligible countries did not follow a discernible pattern with regards to country performance or needs.10 From an aid architecture perspective, the TF Management Framework recently approved by the World Bank's Executive Directors underscored the importance of monitoring the distribution of RETF commitments11 and disbursements, particularly in IDA countries. The analysis conducted for this report did not suggest any relationship between RETF commitments and country policy and institutional performance. However, it indicated a significant positive correlation between TF commitments and income levels for IDA- eligible countries that were not emerging from conflict. The relationship remains the same ­ albeit weaker ­ when post-conflict countries are included. Put simply, the richer the IDA-eligible country, the higher the TF commitments. While this may raise concerns about the degree to which TFs are needs-oriented, it is important to note that a substantial portion of TF commitments go to post-disaster and post- conflict settings. Such emergency response needs could be weighted more heavily than more traditional investment needs. 10. For all IDA-eligible countries, RETF disbursements are much more clearly and positively correlated with country performance. Higher disbursements in better performing IDA-eligible countries can be explained by higher levels of institutional capacity. It is important to note, however, that when the blend countries are excluded from the analysis, poorer performing IDA countries benefit from a higher level of RETF disbursements. This is mainly explained by high levels of commitments and disbursements in Afghanistan, which accounts for 14 percent of total RETF disbursements during fiscal 2003-2007 period.12 In addition, TFs in post-conflict or post-disaster settings tend to benefit from more intensive supervision and implementation support, as well as other drivers that may be associated with turnaround cases. 10Performance was measured using IDA's Country Performance Rating, which reflects inter alia policy and institutional performance. Income was measured in terms of GNI per capita. 11RETF commitment is the grant amount indicated in the grant agreement signed between the Bank and Recipient. 12During the fiscal 2003-07 period TF disbursements were made to eight IDA post-conflict countries, which accounted for 18 percent of total RETF disbursements. 15 The World Bank Group 2007 Trust Funds Annual Report Section 2 Composition of FY2007 TF Portfolio 11. Annual disbursements under FIFs grew by 137 percent during fiscal 2003-2007, from US$1.31 billion in fiscal 2003 to US$3.1 billion in fiscal 2007. This rapid growth in FIFs signaled the emergence of vertical funds and innovative finance mechanisms as primary instruments for supporting key sectoral initiatives. About half (US$1.61 billion) of FIF disbursements in fiscal 2007 were made under the GFATM. IFFIm/GFA, with US$735 million, accounted for 24 percent of total fiscal 2007 disbursements, GEF (US$335 million) for 11 percent; HIPC (US$224 million) for seven percent, and other remaining FIFs (US$226 million) for seven percent. Disbursements from Financial Intermediary Funds in FY07 US$ million percentage GFATM 1,607 51% IFFIm/GFA 735 24% GEF 335 11% HIPC 224 7% Others 226 7% Total 3,127 100% 12. To varying degrees, all three categories of trust funds supported an increasing number of global programs and partnerships (GPPs). In the fiscal 2003-2007 period, the number of GPPs increased significantly from 112 to 178, and the share of TF disbursements supporting GPPs also increased from 35 percent to 45 percent. Seventy-five percent of disbursements under FIFs and over a fourth of RETF disbursements supported GPPs in fiscal 2007. The bulk of these were in support of Environment (15 percent), Education (14 percent), and Health, Nutrition and Population (13 percent). FY03 FY04 FY05 FY06 FY07 Number of GPPs (excl. Instit'l Collaborations) 112 135 160 169 178 Share of total TF disbursements linked to GPPs 35% 38% 44% 46% 45% 13. The size of individual trust funds varied considerably across the portfolio, and was a function of fund type, donor interests, and recipient needs. FIFs are frequently larger than US$100 million in size, while BETFs and RETFs cover the full spectrum from the minimum US$200,000 to billions of dollars. Ninety-seven FIFs (10 percent of the total number of TFs) accounted for 54 percent of total TF disbursements in fiscal 2007. On the other hand, even though BETFs accounted for only six percent of total fiscal 2007 disbursements, they were supported by 419 TFs (41 percent of the total number). Overall, 24 percent (243) of the 1,015 funds managed in fiscal 2007 were relatively low-value TFs under US$1 million. 16 The World Bank Group 2007 Trust Funds Annual Report Section 2 Composition of FY2007 TF Portfolio FY07 Disbursements Number of Active TFs Trust Fund Category US$ millions % FY07-end % IBRD/IDA-Administered TFs 5,568 96% 822 81% Bank Executed 330 6% 419 41% Recipient Executed 2,111 36% 304 30% Financial Intermediary 3,127 54% 97 10% Other Bank Group-Administered TFs 240 4% 195 19% TOTAL 5,808 100% 1,015 100% TF Value13 Bank- Recipient- Financial Executed Executed Intermediary Non-Bank Total < 1$ million 144 32 16 51 243 24% $1 million - $ 5 million 157 97 9 78 341 34% Subtotal < $5 million 301 129 25 129 584 58% $5 million - $10 million 51 53 8 30 142 14% $10 million - $30 million 49 73 19 21 162 16% Subtotal $5 - $30 million 100 126 27 51 304 30% $30 million - $100 million 15 27 19 12 73 7% > $100 million 3 22 26 3 54 5% Subtotal > $30 million 18 49 45 15 127 13% TOTAL 419 304 97 195 1,015 100% Issues of Fragmentation and Proliferation 19. The growing number of trust funds supporting similar or same initiatives within the same sector is indicative of aid fragmentation and donor proliferation within the portfolio. The number of different funds supporting initiatives by the Bank's Human Development Network (HDN), for instance, grew steadily over the past five years. By the end of fiscal 2007, HDN managed a total of 23 TFs for health and education initiatives, and disbursed more than US$500 million. The numbers are much higher in the Sustainable Development Network (SDN), which managed 161 TFs in diverse sectors such as the environment, infrastructure, agriculture and social development; and disbursed about US$2.35 billion. 13TF amount as committed by donors through signed legal agreements. 17 The World Bank Group 2007 Trust Funds Annual Report Section 2 Composition of FY2007 TF Portfolio Human Development Network VPU Sustainable Development Network VPU 24 600 180 2500 160 23 500 140 2000 s 22 400 s 120 TF TF 1500 ofr DSU( ofr 100 DSU( 21 300 st s be be 80 nte )n m en no ) 1000 Nu 20 200 Num 60 mes ioill m 40 500 19 100 semrubsiD illim urbsiD FT 20 TF 18 0 0 0 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 Fiscal Year Fiscal Year Total TF Disbursements Total Number of TFs Total TF Disbursements Total Number of TFs 20. The Bank has worked with donor partners to manage the risks of fragmentation by encouraging a move towards multi-donor trust funds and joint dialogue with donors. Over fiscal 2007, HDN disbursed almost US$400 million (78 percent of its total TF disbursements) through eight multi-donor TFs (MDTFs); SDN disbursed more than US$1.88 billion (80 percent of its total TF disbursements) through 60 MDTFs. SDN has sought to improve coordination and joint dialogue among donors that support similar initiatives. Human Development Network VPU - MDTFs Sustainable Development Network VPU - MDTFs 10 450 70 2000 65 9 400 1800 60 1600 8 350 sFTD s 55 300 1400 7 TFD 50 1200 M DSU( DSU( 250 s M 45 ofreb 65 1000 200 nte ) ofreb 40 stne )n 800 io 150 mes noilli 35 ill Num m umN 600 semru m 4 urbs 30 100 Di 25 400 sbiD 3 50 TFD 20 200 FTD M M 2 0 15 0 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 Fiscal Year Fiscal Year MDTF Disbursements # of MDTFs MDTF Disbursements # of MDTFs 21. The move towards pooling donor resources through MDTFs in the Human and Sustainable Development Networks is part of a larger trend across the Bank. Over the fiscal 2003-2007 period, MDTFs accounted for the lion's share of total disbursements. The number of multi-donor funds increased from 118 to 285 during fiscal 2003-2007, accounting for US$14.35 billion, or 71 percent of total disbursements over the period. Most of these disbursements were made under Financial Intermediary Funds (US$8.91 billion) and Recipient- Executed Trust Funds (US$4.72 billion). At the same time, the number of single-donor funds 18 The World Bank Group 2007 Trust Funds Annual Report Section 2 Composition of FY2007 TF Portfolio decreased from 815 to 730, accounting for the remaining US$5.8 billion, or 29 percent of fiscal 2003-2007 disbursements -- mostly under Recipient-Executed Trust Funds (US$2.47 billion) and Financial Intermediary Funds (US$2 billion). As the Bank and donors continue to move increasingly toward MDTF arrangements, there will be need to develop standardized and streamlined processes for administering such funds, whether they support global programs or post-conflict efforts within specific countries. TF Disbursements FY03-07 US$ million Multi-Donor TFs 12,000 Single Donor TFs 9,000 8,913 6,000 4,723 3,000 269 445 2,466 2,037 1,039 255 0 Bank Executed Recipient Financial Other WBG Executed Intermediary 19 The World Bank Group 2007 Trust Funds Annual Report Section 3 Trust Funds and Results 3. Trust Funds and Results 1. While attributing country or global impact to trust-funded activities remains a challenge, overall they appear to be broadly achieving their intended objectives. A sample of TF Results, as reported by Bank task managers during fiscal 2007 (see Box 1), indicates that, in general, TFs are considered effective instruments for piloting and promoting sector reforms, organizational improvement, and knowledge exchange. Box 1: Sample of TF Results Reported During FY2007 Technical Assistance TFs: 1. Development of integrated learning program on e-government, governance, public finance and trade; and establishment of two Global Development Learning Network (GDLN) hubs in Europe. The learning program proved to be a key focus for development of an international network in the field of governance, comprising over 11,000 people, including top level officials from government and public institutions, and the private sector. 2. Development of training programs and establishment of nine Distance Learning Centers (DLCs) in Western China and a network hub in Beijing. This led the Government to create the China Development of Distance Learning Network, with 75 courses on various developmental topics and over 15,000 participants. 3. Financing of infoDev program experimentation, analytical work and capacity building under the themes of Access, Mainstreaming and Innovation and Entrepreneurship. These led to: (i) generation of knowledge on a variety of ICT4D issues; (ii) a variety of ICT pilot projects with demonstrated impact and scalability; (iii) innovations of ICT model strategies and applications; (iv) facilitation of ICT linkages among sector applications, investment, policy, regulation, technical innovation, infrastructure, etc.; and (v) facilitation of joint donor and other stakeholder actions that helped in development of common frameworks and solutions for ICT4D challenges. 4. Delivery of Living Standards Measurement and Panel Surveys, and establishment of data-users group in Albania. These led to: (i) creation of a reliable and sustainable system of household surveys for timely production of reliable statistical information to assist policy-makers in design, implementation and evaluation of economic and social programs; (ii) analytical capacity built within the Government to utilize statistical information generated; and (iii) institution-building with strengthening capacity in monitoring, targeting and evaluation of social programs. Cofinancing TFs supporting larger IBRD/IDA projects: 1. Capacity building TA and training supporting key reforms in Romania's public and private sectors, including legislation/regulations on local public finance, capital markets and tariffs aligned with EU norms. 2. Poverty Reduction Support Operations facilitating policy dialogue and legal/institutional reforms in Vietnam, including strengthening of public financial management systems linked to policy, planning and budgeting. These provided the enabling environment for broad-based growth and a remarkable record in poverty reduction. 3. Strengthening capacity to protect and manage natural forests through improved management planning, boundary demarcation, training and awareness programs in Vietnam. In addition, livelihoods of residents were developed to reduce dependency on protected areas. 4. In Bangladesh, issues of poverty alleviation, women's empowerment and improved nutrition were addressed, in which more services, interaction and learning of nutritional and health needs were facilitated. Supplementary food was also provided to about 60,000 under-nourished women, 22,000 lactating women and 99,000 malnourished infants. 20 The World Bank Group 2007 Trust Funds Annual Report Section 3 Trust Funds and Results 2. Independent evaluations of large trust-funded programs also demonstrate that they have added value and yielded positive impacts on growth and poverty reduction. The reviews also highlighted strategic areas for improvement, to ensure achievement of longer term development impact and sustainability. A sample of TF Results as reported through these independent evaluations during fiscal 2007 period is provided in Box 2. Box 2: Sample Summaries of Independent Evaluation Findings Reported During FY2007 1. Global Forum for Health Research (GFHR): GFHR was created in 1998 as an independent international organization devoted to help address the 10/90 gap in health research, i.e. the huge imbalance between the magnitude of the health problem and resources devoted to it. GFHR aims to focus research efforts on health problems of the poor through improvement in allocation of research funds, support of better priority-setting processes and methodologies, promotion of relevant research, support for concerted health research and dissemination of research findings. The evaluation found that although there was room for improvement in some areas, substantial achievements were made overall. These include the Annual Forum Meetings, the increased profile of priority-setting of health research, the emphasis on the relationship between poverty and health, and the development of framework, tools and methodologies for bias-free health research and policy making. The Forum also helped develop a framework for public-private partnerships for health product developments. 2. Cities Alliance (CA): Established in 1999 as a global coalition of cities and their development partners committed to scaling up successful approaches to poverty reduction, the CA aims to improve the quality of urban development cooperation and lending, strengthen the impact of grant-funded urban development cooperation, expand the level of resources reaching the urban poor and provide a structured vehicle for advancing collective know-how. The evaluation found that the CA has continued to be a successful partnership initiative and valuable player in the international assistance scene. Effects are demonstrated on the ground, through TA grants for city upgrading or strategic planning initiatives, which contributed to taking project experience to a nationwide or city-wide scale of action. The CA has also had success in improving the coherence of efforts in urban development, and leveraging follow-up investments, though there is room for strengthening its role in generating policy coherence and increasing synergies among different actors, and in influencing national and global development agendas. 3. The Consultative Group to Assist the Poor (CGAP): As a donor consortium and resource center whose vision is to build inclusive financial systems that work for the poor, CGAP provides a variety of services to stakeholders at all levels of the financial system: advising on legal and regulatory issues; researching, publishing and disseminating good practices and standards; delivering tailored change-management support to funders who wish to improve their effectiveness; and developing and funding experimental initiatives that can make financial services accessible to more of the world's poor. The evaluation found that CGAP's work continues to be of central relevance to the development of microfinance, with important contributions to the success of microfinance globally. It is particularly recognized and valued as an intelligence provider on emerging industry-wide topics and innovative practices. It has helped broaden the conception of microfinance providers beyond the NGO MFI model, creating awareness of the variety of financial institutions that serve the poor and bringing private commercial banks into the picture. 4. Japan Social Development Fund (JSDF): Established in June 2000, JSDF supports innovative programs that directly respond to the needs of the poorest and most vulnerable groups of society, providing rapid and demonstrable benefits which can be sustained, and building capacity, participation and empowerment of civil society, local communities and NGOs. The evaluation found that JSDF has been successful in all these areas, including through safety net and productivity schemes, innovation, and capacity building. Substantial capacity was raised particularly in technical areas and participatory/facilitation processes and skills, while the most common form of innovation was in community development and in ways of working with institutions and in partnership with national NGOs. 21 The World Bank Group 2007 Trust Funds Annual Report Annexes Descriptions of Selected Trust Fund Programs Annexes A ­ H: Description of Selected Trust Fund Programs 22 The World Bank Group 2007 Trust Funds Annual Report Annex A Debt Service and Debt Reduction Annex A Debt Service and Debt Reduction From the trust funded programs in this area, the following were selected to give a flavor of the type of work being carried out with resources provided by donors 1. Heavily Indebted Poor Countries Initiative 2. Debt Reduction Facility for IDA-only Countries Heavily Indebted Poor Countries Initiative (HIPC) Highly Indebted Poor Countries Debt Initiative FY2007 US$'million Cash Contributions received during the year 165 Disbursements made during the year 224 NOTE: The table above does not reflect funds transferred from other programmatic sources. Such transfers are reflected in the corresponding tables for the originating source programs. All figures in these annexes are rounded to the nearest million. 1. The HIPC Debt Initiative Trust Fund was established in 1996 as a mechanism to facilitate the fulfillment of commitments of certain multilateral creditors to provide debt relief to heavily indebted poor countries (HIPC) under the HIPC Initiative. Countries become eligible under the Initiative based on the income and indebtedness criteria set under the HIPC Initiative. As of June 30, 2007, 40 countries have become eligible for assistance under the HIPC Initiative. Since inception of the HIPC Initiative through June 30, 2007, 30 countries have benefited from debt relief under the HIPC Initiative. Of these, 22 countries had reached completion point and eight had reached decision point by the end of fiscal 2007. Debt relief allows beneficiary governments to allocate more resources for development and encourages reforms in public financial management. 2. As of June 30, 2007, IDA has provided US$4.0 billion of debt relief under the HIPC Initiative. The HIPC trust fund has reimbursed close to US$2.8 billion towards the cost of debt relief to IDA out of allocations from IBRD's net income and creditor-specific contributions made by donors to the HIPC Trust Fund. From May 2006 onwards, donor contributions under the IDA14 arrangements were used to cover IDA's cost of HIPC debt relief. 3. The HIPC Trust Fund also provides financial support to the debt relief efforts of eligible regional and sub-regional creditors, of which the largest is the African Development Bank. During fiscal 2007, donors to the HIPC Trust Fund agreed to grant the International Fund for Agricultural Development (IFAD) access to the general resource of the HIPC Trust Fund. To date, donors have pledged close to US$4.0 billion to the HIPC Trust Fund to support these The World Bank Group 2007 Trust Funds Annual Report 23 Annex A Debt Service and Debt Reduction creditors, and have contributed more than US$3.7 billion in the form of cash and promissory notes. Disbursements from the HIPC Trust Fund to eligible regional and sub-regional creditors now total more than US$2.8 billion. Debt Reduction Facility for IDA-only Countries (DRF) Debt Reduction Facility FY2007 US$'million Cash Contributions received during the year 26 Disbursements made during the year 0 4. The Debt Reduction Facility (DRF) was established in the context of the debt crisis of the 1980s, as a vehicle to reduce the stock of official external debt owed to commercial creditors by poor countries. Its beneficiaries are countries that are eligible to borrow from the World Bank Group only on the concessional terms offered by IDA. Since its establishment in 1989, the DRF has financed 23 operations in 21 countries. About US$4.5 billion of external commercial debt principal and about US$3.5 billion of associated interest arrears and penalties have been settled. 5. Soon after the start of fiscal 2005, the Bank's Executive Directors agreed to extend the DRF to July 2007, with commitment to replenish it by a US$50 million contribution from IBRD net income over the period and incorporating some changes in its operational practices, in order to increase creditors' participation under the HIPC Initiative. The additional resources will help the DRF to address some of the remaining commercial debts of HIPC Initiative countries, by complementing HIPC in coming years. In March 2006, the administration of the DRF was transferred from the Infrastructure Vice-Presidency to the Poverty Reduction and Economic Management (PREM) Vice Presidency. Since PREM also administers the World Bank's involvement in the HIPC Initiative, this will help strengthen linkages between the DRF and the HIPC Initiative. In April 2007, the Board extended the life of the DRF by a further five years, to July 2012. In October 2007, the Mozambican authorities closed the 23rd DRF-supported buyback, following Board approval of the operation in April 2007. In October 2007, the Nicaraguan authorities launched an invitation to creditors to tender their debt for a DRF- supported buyback approved by the Board in July 2007 and which will be the 24th DRF- supported buyback. 6. The DRF is also providing support for financial and legal advisers recently procured to assist with the preparation of a commercial debt reduction operation in the Democratic Republic of Congo. 24 The World Bank Group 2007 Trust Funds Annual Report Annex B Environment and Sustainable Agriculture Annex B Sustainable Development B.1. Environment and Sustainable Agriculture From the trust funded programs in this area, the following were selected to give a flavor of the type of work being carried out with resources provided by donors 1. Global Environment Facility 2. Least Developed Countries Fund for Climate Change 3. Special Climate Change Fund 4. Carbon Finance: Prototype Carbon Fund 5. Carbon Finance: Netherlands Clean Development Mechanism Facility 6. Carbon Finance: The Netherlands European Carbon Facility 7. Carbon Finance: Community Development Carbon Fund 8. Carbon Finance: BioCarbon Fund 9. Carbon Finance: Italian Carbon Fund 10. Carbon Finance: Danish Carbon Fund 11. Trust Fund for Environmentally and Socially Sustainable Development 12. Pilot Program to Conserve the Brazilian Rain Forest 13. Consultative Group on International Agricultural Research 14. Nile Basin Initiative Global Environment Facility (GEF) Global Environment Facility FY2007 US$'million Cash Contributions received during the year 831 Disbursements made during the year 544 NOTE: Disbursements include those made under GEF, GEF-Bank Implementing Agency and GEF Secretariat 7. The Global Environment Facility (GEF), established in 1991, is an independent financial mechanism for providing new and additional grants and concessional funding to meet the agreed incremental costs of measures to achieve agreed global environmental benefits. GEF grants 25 The World Bank Group 2007 Trust Funds Annual Report Annex B Environment and Sustainable Agriculture support projects related to biodiversity, climate change, international waters, land degradation, the ozone layer, and persistent organic pollutants. 8. As the financial mechanism for four international environmental conventions, the GEF helps fund initiatives that assist developing countries in meeting the objectives of the conventions. It consists of an Assembly of all participating countries, a Council, a Secretariat, a Scientific and Technical Advisory Panel. The GEF Secretariat, headed by the CEO, serves and reports to the Assembly and Council. The Secretariat coordinates the implementation of GEF projects and programs, and the formulation of policies and operational strategies applicable to the GEF programme. 9. The GEF operates on the basis of collaboration and partnership with GEF's Implementing agencies - the United Nations Development Programme (UNDP), the United Nations Environment Programme (UNEP), and the World Bank. Together, they play key roles in managing GEF projects on the ground. In 1999, under the GEF´s expanded opportunities policy, the GEF Council expanded opportunities for seven organizations to contribute to the implementation of GEF projects. These organizations are known as "Executing Agencies" comprising four regional development banks, i.e. AfDB, AsDB, EBRD, IDB and three other specialized UN agencies, i.e. FAO, UNIDO and IFAD. Through this partnership arrangement, the GEF has quickly amassed a diverse project portfolio serving more than 160 countries around the world. 10. The GEF also administers two other Funds, namely the Least Developed Countries Fund for Climate Change (LDCC) and the Special Climate Change Fund (SCCF), both of which are described below. The implementing agencies include the World Bank, UNDP and UNEP. 11. The active portfolio of World Bank-implemented GEF projects at the end of 2007 constituted 219 projects with total net GEF Grant amount commitments of US$1.6 billion. In terms of approvals, the GEF grant amount approved by the World Bank Board in 2007 was US$220 million (22 projects). 12. The funds, assets and receipts of the GEF are held in trust. The World Bank serves as the GEF Trustee and as such is accountable to the GEF Council for the performance of its fiduciary responsibilities. It administers the GEF Trust Fund in accordance with the applicable provisions of the Instrument and decisions of the GEF Council. It mobilizes resources for the Fund under the process of replenishments. At its fourth Replenishment in 2006, 32 donor countries pledged an equivalent of US$3.13 billion to fund operations between 2006 and 2010. As Trustee, the Bank manages the Fund including the investment of its liquid assets, the disbursement of funds to the Agencies and the financial reporting of the investment and use of the Fund's resources. 26 The World Bank Group 2007 Trust Funds Annual Report Annex B Environment and Sustainable Agriculture Least Developed Countries Fund for Climate Change (LDC) Least Developed Countries Fund for Climate Change FY2007 US$'million Cash Contributions received during the year 25 Disbursements made during the year 50 13. The LDC was established in November 2002 to address the needs of least developed countries whose economic and geophysical characteristics make them especially vulnerable to the impact of global warming and climate change. In its initial phase the fund supports the preparation of national adaptation programs of action. The World Bank serves as Trustee of the LDC. Since inception of the Fund, and as of the end of September 2007, 18 countries have pledged contributions to the Fund. The total amount pledged is US$ 163.3 million equivalent, with total cash and notes received of US$ 67.3 million equivalent. Special Climate Change Fund (SCCF) Special Climate Change Fund FY2007 US$'million Cash Contributions received during the year 22 Disbursements made during the year 2 14. The SCCF was established in November 2004 to finance activities, programs and measures relating to climate change that are complementary to those funded by resources from the GEF Trust Fund and by bilateral and multilateral funding. The Program for Adaptation and the Program for Transfer of Technology are the two sub programs approved to date. 15. The World Bank also serves as Trustee of the SCCF. Since its inception, and as of the end of September 2007, thirteen countries have pledged contributions to the Fund. The total amount pledged is US$ 70 million equivalent, with cash and notes received of US$ 59.8 million equivalent. 27 The World Bank Group 2007 Trust Funds Annual Report Annex B Environment and Sustainable Agriculture Carbon Finance: Prototype Carbon Fund (PCF) Prototype Carbon Fund FY2007 US$'million Cash Contributions received during the year 18 Disbursements made during the year 8 NOTE: For all carbon finance programs, contributions include transfers from prepaid TF accounts and disbursements include transfers to the Umbrella Carbon Facility. 16. The PCF was established in 1999 as a multi-donor trust fund. The fund uses contributions from companies and governments to purchase emission reductions from projects developed and implemented in consistency with the Clean Development and Joint Implementation Mechanisms defined under the Kyoto Protocol. The PCF aspires to promote sustainable development, demonstrate the possibilities of public/private partnerships, and offer opportunities to its stakeholders for learning by doing. Six governments and 17 major multinationals have contributed US$180 million to the PCF. 17. The PCF reached an important milestone in 2007, as it closed its portfolio by signing the ERPA for its 24th and last project (Brazil Lages Cogen Facility project) in January 2007. The primary focus of these projects is on renewable energy technologies, waste management, coalmine methane recuperation, and biomass energy technology. Specific projects include: the West Nile hydropower project in Uganda; sustainable fuelwood and charcoal production for the pig iron industry in Minas Gerais, Brazil; afforestation on degraded agricultural land in Romania; wind farms in both Costa Rica and Colombia; solid waste management in Latvia; an alternative fuel and cement component in Indonesia; and a municipal solid waste-to-energy project in Durban, South Africa. Carbon Finance: Netherlands Clean Development Mechanism Facility (NCDMF) Netherlands Clean Development Mechanism Facility FY2007 US$'million Cash Contributions received during the year 9 Disbursements made during the year 4 18. The NCDMF was a pioneer in the Carbon Finance business, as the first bilateral Fund through the World Bank, established in 2002. The NCDMF supports projects in developing countries by purchasing greenhouse gas emission reduction credits. The Facility has an overall target of purchasing up to 38 million metric tons of CO2-equivalent emission reductions. The Facility purchases emission reductions from a wide range of technologies, including renewable energy resources (such as wind, small-scale hydro and geothermal energy), improvements in energy efficiency, heavy industrial gases and coal mine methane. 28 The World Bank Group 2007 Trust Funds Annual Report Annex B Environment and Sustainable Agriculture 19. The agreement with the World Bank is part of a larger program of the Netherlands to obtain 100 million tons of carbon dioxide equivalents of greenhouse gas emission reductions from various bilateral and multilateral sources in order to meet their commitments under the Kyoto Protocol while contributing to sustainable development. Carbon Finance: The Netherlands European Carbon Facility (NECF) The Netherlands European Carbon Facility FY2007 US$'million Cash Contributions received during the year 0 Disbursements made during the year 1 20. The NECF, established in 2004, is co-managed by IBRD and IFC. The Facility purchases emission reductions from Central and Eastern Europe under the Joint Implementation flexible mechanism of the Kyoto Protocol. The Facility aims to develop the market for emission reductions, mitigate climate change and support sustainable livelihood and poverty reduction through environmental improvement. The NECF has been an important instrument in development of the Joint Implementation mechanism, addressing and overcoming many first- mover constraints. Carbon Finance: Community Development Carbon Fund (CDCF) Community Development Carbon Fund FY2007 US$'million Cash Contributions received during the year 11 Disbursements made during the year 5 21. During the past year CDCF continued to place its emphasis on small projects in poor countries and the poor areas of developing countries. With almost 50 percent of its initial capitalization ofUS$128.6 million committed, CDCF has been able to commit 59 percent of its funds to buy emission reductions from small-scale projects located in least developed countries and IDA borrowing countries, the majority of which are located in Sub-Saharan Africa. Twenty emission reductions purchase agreements have been signed so far, with an additional 27 projects in the CDCF pipeline, out of which 6 are at the carbon finance document stage. 22. In order to help achieve CDCF's goals, the World Bank has also established a technical assistance facility, called CDCFplus, which is dedicated to building local capacity in preparing CDCF projects. CDCFplus builds and strengthens the capacity of project developers in these countries to prepare pilot carbon finance projects, including the identification of community development benefits. 29 The World Bank Group 2007 Trust Funds Annual Report Annex B Environment and Sustainable Agriculture Carbon Finance: BioCarbon Fund (BioCF) BioCarbon Fund FY2007 US$'million Cash Contributions received during the year 0 Disbursements made during the year 2 23. The BioCF was established to foster land use projects that mitigate climate change. It provides financing for projects that sequester or conserve greenhouse gases in forests and agro- ecosystems. It will help poor farmers and rural communities in developing and transition countries find new value in their agricultural lands and forests, as they earn income from sequestering or conserving carbon. 24. The BioCarbon Fund is composed of two Tranches. The first Tranche established in 2004 is made up of fourteen governments and companies from Japan, Europe and Canada have contributed US$53.8 million, of which 56 percent were from private companies and 44 percent from government entities. About 150 project proposals have been reviewed, from which 20 projects have been selected to be supported in the form of emission reduction purchase agreements (ERPAs). Tranche One was closed to further contributions on August 31, 2005. As of October 2007, 16 ERPAs have been signed. 25. Tranche Two became operational in March 2007. It currently has six participants that have contributed US$36 million, of which 50 percent were from private companies and fifty percent from governments. As of end fiscal 2007, Tranche Two still remained open to contributions. Project proposals were being reviewed and the project pipeline was being developed. The first ERPA is expected be signed by June 2008. Carbon Finance: Italian Carbon Fund (ICF) FY2007 Italian Carbon Fund US$'million Cash Contributions received during the year 15 Disbursements made during the year 10 26. The ICF facilitates opportunities for the private and public sectors in Italy to participate in projects that generate cost effective emission reductions and clean technology transfer. As of end fiscal 2007, the capitalization of the Italian Carbon Fund (ICF) stood atUS$155.6 million. The ICF has signed five emission reductions purchase agreements and participated in the China HFC-23 investment for a total purchase of 15.4 million tons of carbon dioxide equivalent. The small remaining capital will likely be invested in joint implementation projects to diversify its portfolio risk. 30 The World Bank Group 2007 Trust Funds Annual Report Annex B Environment and Sustainable Agriculture Carbon Finance: Danish Carbon Fund (DCF) FY2007 Danish Carbon Fund US$'million Cash Contributions received during the year 4 Disbursements made during the year 3 27. The DCF became operational in January 2005 and has a total capitalization of 58 million. The DCF is well on its way to commit its available funds to purchase emission reductions, as the Fund has now signed Emissions Reduction Purchase Agreements (ERPAs) for four projects, including the DCF's participation in the World Bank's Umbrella Carbon Facility, with a cumulative value of close to 35 million. The DCF has a large and healthy pipeline compared to what is needed to fill the portfolio. The final portfolio of the DCF is expected to include about six projects in addition to the DCF's participation of US$5.1 million (approximately 3.6 million) in the World Bank managed Community Development Carbon Fund. 28. The Danish Carbon Fund is positively contributing to broadening the coverage of the CDM and complementing the private market by having signed ERPAs in Kenya, Nigeria, Mexico and China. At least one ERPA will be signed in Eastern Europe or Central Asia, to comply with the minimum requirement of an 11.4% being sourced from that region. The DCF purchases emission reductions from a wide range of sectors, including waste management, energy efficiency, renewable energy, oil and gas and HFC-23 reduction. Trust Fund for Environmentally and Socially Sustainable Development (TFESSD) Trust Fund for Environmentally and Socially Sustainable FY2007 Development US$'million Cash Contributions received during the year 15 Disbursements made during the year 11 29. The TFESSD is a multi-donor trust fund supported by Finland and Norway that provides grant resources for World Bank activities aimed at mainstreaming the environmental, social and poverty reducing dimensions of sustainable development into Bank work. It develops Bank and client country capacity, promotes inclusion of sustainable development issues into Bank operations, and fosters cooperation between different units in the World Bank and with external agencies and groups. TFESSD currently funds around 135 activities in 80 countries, with 50 percent of the funding earmarked to Sub-Saharan Africa. Cumulative commitments since inception in 2000 have reached 94 million, of which US$74 million have been disbursed. 30. TFESSD activities are managed under four different Windows, which correspond to the four Bank Sector Boards (Environment, Social Development, Poverty, and Social Protection) 31 The World Bank Group 2007 Trust Funds Annual Report Annex B Environment and Sustainable Agriculture managing the fund. Activities in the Environment Window primarily support strategic environment work in the whole World Bank Group. Activities in the Social Development Window serve as a catalyst for mainstreaming the social development agenda into World Bank lending and advisory support to governments. Activities in the Poverty Window support the development of poverty reduction strategies, poverty analysis, and the design, implementation, monitoring, and evaluation of poverty reduction. Activities in the Social Protection Window primarily support thematic and cross-cutting work on social protection, disability, and labor. 31. Funding is provided based on open calls and technical reviews of the proposals. The themes are changed annually in agreement between the Bank and the donors. The governance structure of TFESSD includes a Reference Group consisting of Finnish and Norwegian development experts that advise the donors on strategic directions and dialogue with the Bank on environmentally and socially sustainable development. Pilot Program to Conserve the Brazilian Rain Forest (BRF) Pilot Program to Conserve the Brazilian Rain Forest FY2007 US$'million Cash Contributions received during the year 1 Disbursements made during the year 9 32. The BRF Pilot Program was launched in 1992 as a joint initiative of the Government of Brazil, civil society and the international community--with an initial financial contribution of US$250 million from Germany, the European Community, UK, US, Netherlands, Japan, Italy, France and Canada. Over time cumulative contributions have grown to some US$430 million. Brazil contributes about 10 percent in counterpart funds. Out of this amount, some US$166 million are administered by the World Bank. In addition to counterpart funding, government agencies in Brazil make available their own infrastructure and personnel to carry out projects. Project participants, such as local communities, also contribute to the Program, mostly in the form of labor and materials. 33. The Program's long-term objectives are to: (i) demonstrate the feasibility of harmonizing economic and environmental objectives in tropical rain forests; (ii) help preserve the biodiversity of the rain forests; (iii) reduce the Brazilian rain forests' contribution to global carbon emissions; and (iv) provide a concrete example of cooperation between developed and developing countries on global environmental issues. 34. Over the past 15 years, the Pilot Program has yielded significant and tangible results including: (i) the demarcation of 460,000 square kilometers of indigenous land and establishment of over 20,000 square kilometers of Extractive Reserves; (ii) 200 natural resources management projects successfully implemented by communities; (iii) development of good forest management initiatives; and (iv) training of thousands of community leaders in fire prevention. These and other results being generated by this program provide a growing knowledge base for 32 The World Bank Group 2007 Trust Funds Annual Report Annex B Environment and Sustainable Agriculture broad dissemination of lessons learned, best practices and practical experiences for the conservation and sustainable use of the forests of Brazil. Consultative Group on International Agricultural Research (CGIAR) Consultative Group on International Agricultural Research FY2007 US$'million Cash Contributions received during the year 89 Disbursements made during the year 94 35. The Consultative Group on International Agricultural Research (CGIAR), established in 1971, is a strategic partnership of countries, international and regional organizations, and private foundations supporting 15 international agricultural research Centers. In collaboration with national agricultural research systems, civil society and the private sector, the CGIAR fosters sustainable agricultural growth by applying high-quality science to benefit the poor through stronger food security, better human nutrition and health, higher incomes, and improved management of natural resources. Some highlights of the beneficial impacts of CGIAR research, include: (i)Waterproof" rice to protect farmers from devastating floods; (ii)Drought tolerant maize to benefit farmers from droughts, infertile soils and climate change; and (iii)Technologies that improve soil fertility using on-farm resources. 36. In its continuing efforts to deepen the reform program that started in 2001, the CGIAR organized an Alignment Forum in the spring of 2007, which arrived at the following conclusions: (i) Rapid changes in the CGIAR's external environment call for a careful analysis of opportunities and threats; (ii) There is a need to drive a change of corporate culture and System governance; and harness the energy of the Centers; and (iii) CGIAR should continue to focus on efficiency, good governance and increased accountability. Building on these conclusions, the CGIAR agreed to initiate a facilitated change management process. This initiative will benefit from an independent evaluation of the CGIAR that was launched in late calendar year 2007, the first since the Third System Review of 1998 and the OED/IEG meta evaluation of 2003. Nile Basin Initiative (NBI) Nile Basin Initiative FY2007 US$'million Cash Contributions received during the year 28 Disbursements made during the year 23 NOTE: The table above does not reflect funds transferred from other programmatic sources.. Such transfers are reflected in the corresponding tables for the originating source programs. 37. The Nile Basin Trust Fund (NBTF) was established in January 2003 at the request of the Nile Basin Council of Ministers as the preferred mechanism to administer and harmonize donor partner support pledged to the NBI. This multi-donor trust fund is currently administered by the 33 The World Bank Group 2007 Trust Funds Annual Report Annex B Environment and Sustainable Agriculture World Bank, on behalf of all donors who contribute to the fund for the benefit of the Nile Basin riparian countries. Ten development partners have pledged about US$140 million to the NBI projects financed through the NBTF. Of the total pledges, donors have cumulatively deposited US$105 million into the Trust Fund as of end fiscal 2007. 38. A significant feature of the NBTF is that funds are executed by the NBI. NBI Secretariat, the executing agency for majority of NBTF projects, has overall responsibility for the delivery of the Program including Shared Vision Program (SVP) ­ a multi-sectoral, basin-wide program to build trust, capacity and the enabling environment for investment. ENTRO is the executing agency for Eastern Nile Subsidiary Action Program (ENSAP) and NELSAP - Coordination Unit is working together with the Nile Secretariat on Nile Equatorial Subsidiary Action Program (NELSAP). This ensures riparian ownership of NBI activities and contributes to building institutional capacity to implement regional projects. 39. The Bank and NBI institutions have entered into grant agreements for 16 projects amounting to US$ 93.5 million and allocated US$ 7.7 million to Bank-executed activities by end of fiscal 2007. 34 The World Bank Group 2007 Trust Funds Annual Report Annex B2 Infrastructure B.2. Infrastructure From the trust funded programs in this area, the following were selected to give a flavor of the type of work being carried out with resources provided by donors 1. Public-Private Infrastructure Advisory Facility 2. Foreign Investment Advisory Service 3. Global Partnership on Output-Based Aid 4. Energy Sector Management Assistance Program 5. Water and Sanitation Program 6. Cities Alliance Program 7. Sub-Saharan Africa Transport Policy Program 8. Asia Sustainable and Alternative Energy Program 9. Information for Development Program 10. Global Road Safety Facility Public-Private Infrastructure Advisory Facility (PPIAF) Public-Private Infrastructure Advisory Facility FY2007 US$'million Cash Contributions received during the year 25 Disbursements made during the year 18 NOTE: The table above does not reflect funds transferred from other programmatic sources. Such transfers are reflected in the corresponding tables for the originating source programs. 40. The PPIAF is a multi-donor technical assistance facility that works with developing countries to improve their provision of infrastructure through private sector involvement. Launched in 1999, PPIAF is directed by its participating members, which include bilateral and multilateral development agencies, and international financial institutions. The facility awards technical assistance to governments in developing countries to explore public-private partnerships. Members commit to both core and non-core funds (use of the latter is restricted to particular themes, activities, or regions). 41. In fiscal 2007, PPIAF approved the financing of 87 activities for a total of US$17.2 million. The largest share went to Africa (44), followed by South Asia (11 percent), East Asia and the Pacific (14 percent), Europe and Central Asia (14 percent), Latin America (6 percent), and Middle East and North Africa (5 percent). Outlays for global products, such as toolkits and dissemination of emerging best practices, accounted for 6 percent of the total portfolio. 35 The World Bank Group 2007 Trust Funds Annual Report Annex B2 Infrastructure 42. At the end of fiscal 2007 PPIAF launched a three-year pilot, the Sub-National Technical Assistance Program, to help sub-national entities improve their creditworthiness. The aim is to help mobilize local capital for improvements in infrastructure services and promote the development of local financial markets. Foreign Investment Advisory Service (FIAS) Foreign Investment Advisory Service FY2007 US$'million Cash Contributions received during the year 7 Disbursements made during the year 16 43. The FIAS is a multi-donor investment climate advisory service managed by the International Finance Corporation (IFC), and supported by the Multilateral Investment Guarantee Agency (MIGA) and the World Bank (IBRD). It is an integrator of a core set of services to improve the business-enabling environment of member countries. FIAS advises governments of developing and transition countries on regulatory simplification, investment policy and promotion, and industry-specific investment climate issues. In its 20 years as a donor-funded operation, FIAS has completed more than 760 projects in all regions of the world. 44. The FIAS program grew in fiscal 2007 as a result of continued strong client demand and donor support. Total project-related expenditures increased 22 percent to US$12.5 million from US$10.2 million in fiscal 2006, although the actual number of projects completed was about the same year to year. The average project size increased by 22 percent to US$117,000, as more projects included the solution design and implementation stages. The FIAS completed 83 projects and had a pipeline of 80 assignments at various stages of preparation or implementation by the end of the fiscal year. 45. As outlined in the FIAS strategy for fiscal 2008 to 2011, FIAS delivers advisory projects based on seven core products: regulatory governance & licensing, business taxation, trade logistics, secured lending, sub-national Doing Business, investment policy & promotion, and industry competitiveness. FIAS has also created the Doing Business Rapid Response Unit to address growing worldwide demand among country governments for support in improving their Doing Business rankings. Global Partnership on Output-Based Aid (GPOBA) Global Partnership on Output-Based Aid FY2007 US$'million Cash Contributions received during the year 22 Disbursements made during the year 5 36 The World Bank Group 2007 Trust Funds Annual Report Annex B2 Infrastructure 46. The GPOBA is a multi-donor Program set up in 2003 by the UK and the Bank. Since then, the IFC, the Netherlands and Australia have also joined as donors and Sweden, the EU and Spain also plan to contribute to the Program. GPOBA's goal is to help increase access to reliable basic infrastructure and social services (water, sanitation, energy, ICT, transport, health and education) for the poor in developing countries by broadening the use of output-based aid (OBA) approaches. 47. OBA involves the use of explicit performance-based subsidies to delegate service delivery to third parties--typically private firms, but also possibly NGOs, community-based organizations and state-owned companies--under contracts that tie the disbursement of public funding to the services or outputs that are actually delivered. GPOBA's pilot projects aim to draw lessons on targeting eligible beneficiaries, defining performance requirements, determining payment structures, and designing monitoring arrangements. As of end fiscal 2007, GPOBA has been involved in over 59 projects through direct provision of subsidies for investment, technical assistance, and dissemination-related support. 48. As of end fiscal 2007, GPOBA had cumulatively approved funding of about US$41.5 million for 59 projects. Also, in fiscal 2007 total donor contributions were US$22 million, which included funding from the Netherlands and DFID. Total disbursements in fiscal 2007 for the Program were US$5 million. Energy Sector Management Assistance Program (ESMAP) Energy Sector Management Assistance Program FY2007 US$'million Cash Contributions received during the year 7 Disbursements made during the year 7 49. The ESMAP is a long-standing, global partnership for technical assistance, and is the think tank for the Bank on cutting edge energy issues. ESMAP undertakes cutting edge analytical work on sector issues, contributes to the transfer of knowledge among stakeholders and practitioners and pioneers implementation and financing mechanisms for delivering environmentally sustainable energy services. ESMAP has operated in some 110 countries through approximately 700 activities covering a broad range of energy issues. As of June 30, 2007, ESMAP had a portfolio of 164 projects under implementation and the total portfolio was worth US$31.8 million. 50. The close collaboration with the Bank's regional energy teams has allowed for a strong focus on policy dialogue, inter-regional learning opportunities and well-informed project preparation. ESMAP's own global projects continue to generate new cutting-edge knowledge and analytic results. In fiscal 2007, ESMAP placed a significant focus on renewable energy and energy efficiency while working closely with the World Bank's team on the Clean Energy Investment Framework (CEIF). ESMAP remains a key support mechanism for upstream analytical work on clean energy and climate change ­and is considered vital to the implementation of the clean energy investment framework. 37 The World Bank Group 2007 Trust Funds Annual Report Annex B2 Infrastructure 51. Highlights of ESMAP's expanded work program in 2007 included: (i) Energy Efficiency: energy efficiency strategy development in China, Brazil, Morocco, Ukraine and Uganda; scaled- up thermal power rehabilitation projects in India and Ukraine; development of heating projects in Lithuania and Mongolia; best practices dissemination, training and investor awareness sessions in China, Morocco and Japan; (ii) Renewable Energy: think tank activities such as re-educating Wien Automatic System Planning (WASP) to account for risk in power systems planning Phase 1, operational leveraging through cross support to Egypt large scale wind program support, China Wind Turbine Technology Transfer, global sub critical mass wind projects, Yemen wind project assessment; (iii) Energy Security: analytical work such as "Coping with higher oil prices", East Asia Regional Energy Flagship Study, Southern Cone Gas Integration in South America; (iv) Energy SME/Energy Poverty: 14 projects are underway including a regional program in Africa all working towards building capacity of over 1,000 SMEs in the delivery of energy services, developing over 20 business models and pilots for decentralized energy services; extending electricity and lighting services to over 280,000 households, addressing regulatory, legal and financing framework and policy constraints for energy SMEs; (v) Market Efficiency and Governance: dialogue on market efficiency, sector reform and energy poverty alleviation with an empirical study called-"Power sector reforms in Africa: Assessing the impact on the poor and influencing policy decisions". Water and Sanitation Program (WSP) Water and Sanitation Program FY2007 US$'million Cash Contributions received during the year 46 Disbursements made during the year 25 52. Established in 1979, the Water and Sanitation Program is a unique, field based, learning and policy facilitation network, supported through a partnership of the world's leading development agencies. It has a thirty years established track record and a compelling mission to help the poor to gain sustained access to improved water supply and sanitation services (WSS). This is achieved through two means: (a) direct means to support implementation of innovations, knowledge exchange and capacity building; and (b) indirect means to help WSPs immediate clients to build large scale sustainable programs that serve their clients, in particular the poor. WSP provides services in 25 focus countries in four regions (Africa, East Asia Pacific, Latin America & Caribbean and South Asia) through a combination of a small management team in Washington and regional hubs in Kenya, Indonesia, Peru and India, and field staff in the country offices. 53. At the end of fiscal 2007, the WSP work program included 137 multi-year projects with the total expenditure US$28.3 million. The portfolio expanded by about 15% (from 114 projects at the end of fiscal 2006) while the expenditures increased by about 36% between the two fiscal years. 38 The World Bank Group 2007 Trust Funds Annual Report Annex B2 Infrastructure 54. Many of WSP projects have already yielded impressive results, including the following: (i) Ethiopia: the "Sector Coordination and Road mapping for Achievement of WSS MDG/PASDEP Targets" project has already increased the efficiency and effectiveness of the sector through leveraging steady increase in financial flows into the sector and through a capacity building pooled fund; (ii) Kenya: an effort is being made to use micro-financing for community water projects, which has attracted private financing in an innovative partnership between K-Rep, PPIAF, GPOBA and WSP; (iii) India: Rural Water Supply and Sanitation sector assessments have been carried out in 22 states to identify sector priorities and to provide a basis for the development of state sector transformation plans; (iv) Pakistan: Continuous inputs have been provided to improve WSS access within the decentralization framework and a National Sanitation Policy has been finalized and approved by the Cabinet; (v) Indonesia: Under the Water Supply and Sanitation Policy Formulation and Action Planning (WASPOLA) initiative, WSP is facilitating the articulation of district strategic plans; (vi) Cambodia: Under the Improving Household Drinking Water Quality initiative, a field assessment of two household treatment technologies (biosand water filters and arsenic removal filters) has been completed and one is currently in trials. Cities Alliance Program (CAP) Cities Alliance Program FY2007 US$'million Cash Contributions received during the year 13 Disbursements made during the year 10 NOTE: The table above does not reflect funds transferred from other programmatic sources. Such transfers are reflected in the corresponding tables for the originating source programs. 55. The CAP was established in 1999 as a global coalition of cities and their development partners committed to scaling up the impacts of successful approaches to urban poverty reduction. There are two interrelated priorities, the achievement of cities without slums through citywide and nationwide slum upgrading, and City Development Strategies (CDS)--linking the process by which local stakeholders define their vision for their city and its prospects for economic growth, with financing strategies and investments. Members of the Alliance include all G-7 Governments, plus Brazil, Chile, Ethiopia, Netherlands, Nigeria, Norway, Philippines, South Africa and Sweden, the Asian Development Bank, the European Union, UN-HABITAT, UNEP, the World Bank, and local authorities represented by the United Cities and Local Governments and Metropolis. 56. The Cities Without Slums Action Plan has been incorporated into the MDGs and a growing number of countries are adopting comprehensive slum upgrading programs, setting development targets, undertaking reforms to prevent growth of new slums, and improving lives of slum dwellers. CDS have emerged as key tool for local economic development and city-wide inclusion strategies. The Alliance has also demonstrated how improving the lives of slum dwellers provide a strategic opportunity for the international development community to target poverty where it is growing the fastest--in cities of all sizes. 39 The World Bank Group 2007 Trust Funds Annual Report Annex B2 Infrastructure 57. Fiscal 2007 saw the transition to new management consolidated, following the second independent evaluation of the Program. The Alliance reaffirmed its commitment to programmatic support to cities undertaking long term reforms, such as Sao Paulo, Yangzhou, Ekurhuleni and Mumbai, consistent with the preparation of a medium term strategy that will build upon the knowledge that the Program generates through its activities. Cities Alliance partners were successful in working with the new state Government of Bahia, Brazil ,to retain the existing statewide upgrading program; and in commencing the expansion of the successful Community Led Infrastructure Finance Facility (CLIFF) to the Philippines. The Alliance's ongoing urban finance initiative is attracting more support, and will develop into a significant learning exercise with international local government partners working with the Bank. Developing country membership of the Cities Alliance continued to expand in fiscal 2007, with Chile and the Philippines joining. Sub-Saharan Africa Transport Policy Program (SSATP) Sub-Saharan Africa Transport Policy Program FY2007 US$'million Cash Contributions received during the year 6 Disbursements made during the year 4 58. The SSATP is a growing partnership of 35 Sub-Saharan Africa countries and all the Sub- Saharan Africa Regional Economic Communities, who share a vision in which the implementation of sound transport sector strategies will lead to sustainable growth and poverty reduction. Created as an initiative of the World Bank and the UN Economic Commission for Africa (UNECA) in 1987, it is now a fully fledged partnership financed mainly by the European Commission with substantial support from Denmark, Ireland, France, Norway, Sweden and the World Bank (which also manages the Program). Partner countries and regional organizations contribute through significant human resources and physical facilities. Ownership is firmly rooted at the country and regional levels, and program activities are driven by stakeholder demand. 59. Over the years, the SSATP has achieved recognition as the principal transport policy development instrument in the region, and as one of the most important, trusted, and relevant sources of knowledge on transport-related matters in Africa. The SSATP has been able to provide its partner States with reliable and tested practices and processes--from the development of pro-poor strategies, through good practices on the setting up of effective financial and institutional measures, to the development of legal and practical measures to improve cross- border transport and reduce transport costs. SSATP is the only regional trust funded program in Africa and its role is considered as the main transport sector tool in helping Sub-Sahara Africa achieve the MDG and facilitate donors and partners operations. 60. The major SSATP accomplishments to date include: (i) Linking sound transport sector policies with poverty reduction through the Poverty Reduction Transport Sector Review Process 40 The World Bank Group 2007 Trust Funds Annual Report Annex B2 Infrastructure (PRTSR) initiated by SSATP; (ii) Improving Road Management and Financing: The institutional and financial policy reforms for the road sector promoted by SSATP under the Road Management and Financing (RMF) work program have made significant contributions to many SSA countries' road sector institutions and financing; (iii) Promoting regional integration through the development of sound regional transport Corridor management strategies across corridors: SSATP in partnership with the Regional Economic Communities has developed and promoted sound regional transport corridor management strategies facilitating the efficient movement of goods and people. Asia Sustainable and Alternative Energy (ASTAE) Program Asia Sustainable and Alternative Energy Program FY2007 US$'million Cash Contributions received during the year 1 Disbursements made during the year 0 61. The mission of the ASTAE is to scale-up the use of sustainable energy options in Asia to reduce energy poverty and increase investments in renewable energy and energy efficiency options. ASTAE has supported the preparation and implementation of over 45 World Bank and/or GEF projects in 15 countries in Asia. 62. Through fiscal 2007, 38 of the 43 projects supported by ASTAE were approved by the Bank Board. Projects approved during the period 2004 -2007 will provide access to modern energy sources to about 876,000 households and improve the electricity services of another 600,000 households, avoid directly over 250 MW electricity generating capacity equivalent as a result of energy efficiency improvements (and indirectly an additional 3.5 GW equivalent), install directly over 300 MW renewable electricity generating capacity (and indirectly an additional 4.9 GW), and reduce directly over 60 million tons CO2 in greenhouse gas emissions (and indirectly an additional 1,240 million tons). 63. During fiscal 2007, ASTAE was supported by the Netherlands, and Sweden. The Bank's Board and GEF Council approved, inter alia, the following ASTAE-supported projects: The Mongolia Renewable and Energy Efficiency project; the first Renewable Energy and Energy Efficiency Project for Timor Leste; and the Sustainable Energy Finance Project for the Pacifics. Information for Development (infoDev) Program Information for Development Program FY2007 US$'million Cash Contributions received during the year 2 Disbursements made during the year 7 41 The World Bank Group 2007 Trust Funds Annual Report Annex B2 Infrastructure 64. The infoDev is a partnership of international development agencies, coordinated and served by an expert Secretariat housed at the World Bank, one of its key donors and founders. It acts as a neutral convener of dialogue, and as a coordinator of joint action among bilateral and multilateral donors--supporting global sharing of information on information and communication technologies (ICT) for development (ICT4D), and helping to reduce duplication of efforts and investments. The infoDev also forms partnerships with public and private-sector organizations who are innovators in the field of ICT4D. 65. The infoDev's mandate is to help maximize the impact of ICT in global efforts to achieve the Millennium Development Goals. The infoDev helps donors and their developing country partners identify ways ICT can contribute to objectives such as improving education and health services, making public institutions more efficient and transparent, supporting rural livelihoods, and contributing to economic growth by supporting small and medium-sized enterprises that use ICT for their business. The infoDev sponsors cutting edge research and analysis to help identify global best practice in the use of ICT4D and uses this knowledge to develop workshops, training seminars, toolkits, handbooks and briefs to support donors, policy makers and practitioners in their efforts to mainstream ICTs in development programs. The infoDev's priority themes are: (i) mainstreaming ICT as a tool of development and poverty reduction; (ii) enabling access for all; and (iii) innovation and entrepreneurship in developing countries. Supporting these three themes are selected research and knowledge products in areas such as monitoring and evaluation. In fiscal 2007, the infoDev produced several important knowledge products in each of these areas, including a toolkit and handbook for policy makers on ICT and education, a Regulatory toolkit comprising six modules on key aspects of telecoms regulation, and four regional networks of business incubators which support the development of over 72 incubators in over 60 countries. 66. Fiscal 2007 trust funds disbursements totaled US$7 million, excluding US$1.9 million disbursements made under DGF. This is slightly less than the total disbursements for the previous year, largely due to a decrease in staff costs. Disbursements for knowledge work and grants increased in fiscal 2007, by almost 15%. Global Road Safety Facility (GRSF) Global Road Safety Facility FY2007 US$'million Cash Contributions received during the year 2 Disbursements made during the year 0 67. The Global Road Safety Facility (GRSF) was established in 2006 in response to a mandate from the United Nations for increased global and regional support to low and middle- income countries, following the landmark World Report on Road Traffic Injury Prevention launched on World Health Day 2004 by the World Health Organization and the World Bank. The Facility continues its mission to increase the awareness and understanding of the growing scale of road crash deaths and injuries in low- and middle-income countries, and to support initiatives aimed at strengthening global, regional and country capacity to improve road safety 42 The World Bank Group 2007 Trust Funds Annual Report Annex B2 Infrastructure outcomes. The principal development objective of the Facility is to reduce the negative impacts of the economic and social losses incurred by road crashes which can prevent people escaping poverty or push them back into it. Measured as a global burden of disease, road deaths and injuries surpass the health losses associated with malaria and tuberculosis and by 2015 are projected to be the leading cause of health losses for children (ages 5 to 14), and the second cause for men by 2030. 68. In fiscal 2007 the Facility completed its start-up phase by finalizing its governance arrangements, its ten-year strategic plan, and committing/initiating a series of grants. Highlights during the year included: establishing a road traffic training center in Hubei, China in coordination with provincial and national authorities; funding road safety management capacity reviews in World Bank client countries following explicit requests for assistance from these Governments; launching the Global Traffic Safety Police Network phase one, a multi-year initiative designed to facilitate dialogue between law enforcement agencies at global, regional and national levels. The Facility also provides ongoing assistance to global and regional partners such as the World Health Organization to support their UN mandated coordination efforts, the Global Road Safety Partnership to support the dissemination of good practice training toolkits, and the Global Road Safety Forum to support regional advocacy initiatives in the Latin American and Caribbean region. 43 The World Bank Group 2007 Trust Funds Annual Report Annex C Health and Human Development Annex C HEALTH AND HUMAN DEVELOPMENT From the trust funded programs in this area, the following were selected to give a flavor of the type of work being carried out with resources provided by donors 1. Global Fund to Fight AIDS, Tuberculosis, and Malaria 2. Global Partnership to Stop Tuberculosis 3. Global Program to Eradicate Poliomyelitis 4. African Program for Onchocerciasis Control 5. Education for All-Fast Track Initiative: Catalytic Fund 6. Education for All-Fast Track Initiative: Program Development Fund 7. China Education Blending Trust Fund 8. Avian and Human Influenza (AHI) Facility 9. Bangladesh Health, Nutrition and Population Sector Multi-Donor Trust Fund 10. International Finance Facility for Immunisation (IFFIm) 11. GAVI Fund Affiliate (GFA) Global Fund to Fight AIDS, Tuberculosis, and Malaria (GFATM) Global Fund to Fight AIDS Tuberculosis and Malaria FY2007 US$'million Cash Contributions received during the year 2,060 Disbursements made during the year 1,607 69. The Global Fund to Fight AIDS, Tuberculosis and Malaria (the Global Fund) was established in 2002 with the objective to make a sustainable contribution to the reduction of infections, illness and death caused by three communicable diseases: HIV/AIDS, Tuberculosis and Malaria. Since the inception of the Global Fund, the Bank has been working with the organization as a development partner in fighting these diseases, and as Trustee for the Global Fund Trust Fund. According to the agreement between the Bank and the Global Fund, the Bank is engaged in a limited Trustee role, whereby grant commitments and disbursements are executed only upon instruction from the Global Fund Secretariat. The Trustee is neither responsible for the identification or implementation of Global Fund projects, nor for ensuring that the funds received are used for the purposes intended. 70. The Global Fund has continued to experience rapid growth in fiscal 2007. As of June 30, 2007, the Global Fund had received close to US$ 7.5 billion in contributions in the form of cash and promissory notes from about 47 Donors. This is a reflection of donors' continued support 44 The World Bank Group 2007 Trust Funds Annual Report Annex C Health and Human Development and strong commitments to the Global Fund's objectives. During fiscal 2007 alone, donors have contributed close to US$ 2.5 billion to the Global Fund Trust Fund in cash and promissory notes. Since inception, the Global Fund has committed US$ 6.3 billion for projects. Approximately 55 percent of this funding has gone to Africa. Approximately 57 percent of the funding is used to combat HIV/AIDS, 25 percent for Malaria and 18 percent for fighting Tuberculosis. As a reflection of the Global Fund's expanding operations, there was a continued increase in the level of both commitments and disbursements in 2007. The Trustee recorded grant commitments of US$ 2.1 billion and disbursed US$ 1.6 billion to project grant recipients including administrative costs during fiscal 2007. The Global Fund trust fund had a cash balance of US$ 3.2 billion as of June 30, 2007. Global Partnership to Stop Tuberculosis (Stop TB) Global Partnership to Stop Tuberculosis FY2007 US$'million Cash Contributions received during the year 0 Disbursements made during the year 0 71. The Stop TB Partnership seeks to improve coordinated action against the worsening pandemic of tuberculosis (TB), which kills nearly 2 million people each year, mostly the poor. Stop TB aims to control the disease and reduce its impoverishing effects, through effective control strategies and new technologies. The partnership has grown to include over 517 partners, including countries where TB is more common, civil society, industry, foundations, technical agencies, academia, and bilateral and multilateral organizations. In January 2006, Stop TB published a Global Strategic Plan, which involves reducing the incidence of TB, in line with the MDGs, and reaching the Partnership's targets for 2015 of halving TB prevalence and death compared with 1990 levels. 72. Advocacy, communication and social mobilization, and resource mobilization, remained at the core of the Partnership's activities. During calendar year 2006 the total income of the Stop TB Partnership Secretariat rose to US$58 million; this was a 69% increase over 2005. The catalytic effect of the Stop TB Partnership is reflected in the improvement of TB case detection and cure rates. 73. The Global Drug Facility (GDF) built on its reputation as a highly successful initiative. In calendar year 2006 the DGF approved access to 3.3 million anti-TB drug patient treatments. It approved 43 countries for new grants and placed new orders totaling US$29 million for recipients of its grants. The GDF brokered technical assistance missions to 58 countries by drug management and TB experts. The procurement functions of the Green Light Committee were merged with the GDF. During the year the Committee approved 24 applications covering more than 12,000 patients with multidrug-resistant TB; this was double the number in 2005. 45 The World Bank Group 2007 Trust Funds Annual Report Annex C Health and Human Development Global Program to Eradicate Poliomyelitis (GPEP) Global Program to Eradicate Poliomyelitis FY2007 US$'million Cash Contributions received during the year 9 Disbursements made during the year 19 74. Launched in fiscal 2003, this partnership with the Bill and Melinda Gates Foundation, Rotary International, and the United Nations Foundation is to support the WHO-led Global Polio Eradication Initiative working to eradicate poliomyelitis worldwide. The program works by establishing performance-based funding for countries required to make large investments in polio eradication activities. An IDA credit is prepared with agreed performance targets. Once these performance targets are achieved, donor funds are used to write off the credit to the country concerned, effectively turning the credit into a grant. Currently Pakistan and Nigeria have polio projects with donor funding available to write-off (buy-down) the credit to grant terms once the performance targets are achieved. By the end of fiscal 2007, a number of trust funds had been established to support this program, with contributions totaling over US$75 million. African Program for Onchocerciasis Control (APOC) African Program for Onchocerciasis Control FY2007 US$'million Cash Contributions received during the year 8 Disbursements made during the year 16 NOTE: The table above does not reflect funds transferred from other programmatic sources. Such transfers are reflected in the corresponding tables for the originating source programs. 75. Onchocerciasis, or river blindness, is a parasitic disease with an insect vector that breeds in water. It is the world's second leading cause of infectious blindness. The Onchocerciasis Control Program in West Africa (OCP) (1974­2002) halted transmission and virtually eliminated the disease throughout ten countries. The success of OCP led in 1995 to the launch of the APOC, which includes the 19 endemic African countries outside the OCP area. APOC treats people in tens of thousands of communities each year, using a proven delivery mechanism known as community-directed treatment. In calendar year 2006 alone, 119 projects in more than 117,000 communities used this approach to treat 53 million people with Mectizan, a drug donated free of charge by its developer, Merck & Co. Inc., on an unlimited basis. The Program is also providing increased access to health services for poor remote and under-served communities and an opportunity to address other important health problems (including tropical diseases such as Malaria, Lymphatic Filariasis, Trachoma, Intestinal Helminthes, Schistosomiasis) and micronutrient deficiency. 76. 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 2007, donors had cumulatively committed about US$115 million to APOC Phase I and Phase II. 46 The World Bank Group 2007 Trust Funds Annual Report Annex C Health and Human Development The WHO is the executing agency for APOC, with a Program headquarters office in Ouagadougou. The Bank and the WHO are joined by UNDP as sponsoring agencies of APOC. 77. The duration of APOC is being extended from 2010 to 2015. The priority thrusts for the years to come are to ensure sustained Onchocerciasis control especially in post conflict countries and to fully integrate Onchocerciasis control activities into national health systems. Education for All-Fast Track Initiative: Catalytic Fund (EFA-FTI) Education for All-Fast Track Initiative Catalytic Fund FY2007 US$'million Cash Contributions received during the year 345 Disbursements made during the year 74 NOTE: The table above does not reflect funds transferred from other programmatic sources. Such transfers are reflected in the corresponding tables for the originating source programs. 78. Education for All (EFA) is a global international commitment adopted in 1990 to bring the benefits of education to "every citizen in every society". The EFA FTI is a partnership of donor and developing countries, created to help low-income countries achieve the Millennium Development Goal of universal completion of primary education by 2015. The EFA-FTI Catalytic Fund was established in November 2003, to provide transitional financial assistance to low-income countries that have completed a poverty reduction strategy and whose education sector plans have been endorsed by donors through the FTI review process, but which have difficulty mobilizing additional external funding. 79. Countries assisted by the fund are required to demonstrate a reasonable and effective effort that is tracked by common indicators. Transitional 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, Canada, Denmark, the European Commission, France, Germany, Ireland, Italy, Japan, the Netherlands, Norway, Russia, Spain, Sweden and the UK have made commitments of over US$ 1.2 billion to the Fund from 2004-09. Twenty three countries have received grant allocations amounting to a total of US$799.7 million: Benin, Cambodia, Cameroon, Djibouti, the Gambia, Guyana, Ghana, Kenya, Kyrgyz Republic, Lesotho, Mauritania, Madagascar, Mali, Moldova, Mongolia, Mozambique, Nicaragua, Niger, Rwanda, Sierra Leone, Tajikistan, Timor Leste and Yemen. 47 The World Bank Group 2007 Trust Funds Annual Report Annex C Health and Human Development Education for All-Fast Track Initiative: Program Development Fund (EPDF) Education for All-Fast Track Program Development Fund FY2007 US$'million Cash Contributions received during the year 28 Disbursements made during the year 9 80. The Multi Donor EPDF was established by the FTI in November 2004 to enable more low-income countries to access the FTI and accelerate progress towards universal primary education. The EPDF commitments amounted to about US$ 83 million for the period of 2005- 2009 with pledges made by the following donors: Canada (US$3.4 million), France (US$ 7 million) , Japan (US$1.2 million), Norway (US$ 34.87 million), the United Kingdom (US$ 12.3 million), Sweden (US$2.6 million), Ireland (US$ 3.41 million), Luxemburg (US$ 2.17 million), Russia (US$3.2 million) and the Netherlands (US$13.5 million). China Education Blending Trust Fund (CEBTF) China Education Blending Trust Fund FY2007 US$'million Cash Contributions received during the year 11 Disbursements made during the year 9 81. The CEBTF was established through a grant of US$34.6 million from the UK Department for International Development (DFID). It will be used to pre-pay part of a US$100 million World Bank loan to China for Basic Education in Western Areas, which is expected to decrease the effective interest rate on the loan to about two percent a year. Providing affordable nine-year compulsory education in western regions is a priority of the Chinese Government's Western Development Strategy and the World Bank's country assistance strategy for China. 82. The trust fund supports a project that will provide better access to quality basic education for a significant number of poorer children in 112 counties within five of China's western provinces and autonomous regions: Gansu, Sichuan, Ningxia, Yunnan, and Guangxi. The project is estimated to reach 2.4 million children at the primary and junior secondary levels of education, 19 percent of who are from ethnic minorities, and to directly affect some 1,700 schools in 112 counties. Avian and Human Influenza (AHI) Facility Avian and Human Influenza (AHI) Facility FY2007 US$'million Cash Contributions received during the year 45 Disbursements made during the year 3 48 The World Bank Group 2007 Trust Funds Annual Report Annex C Health and Human Development 83. The multi-donor AHI Facility became operational in the fourth quarter of fiscal 2006 with the goal of minimizing the risk and socio-economic impact of avian influenza by helping client countries meet their financing gaps in their AHI integrated country actions plans, and by increasing human influenza pandemic preparedness more generally. The AHI Facility support also helps to ensure that countries are able to control and eliminate avian influenza and to avoid a possible human pandemic. The AHI Facility concept grew out of the International Pledging Conference organized jointly by the Government of the People's Republic of China, the European Commission, and the Bank in January 2006. As of the end of June 2007, a combined commitment of about US$ 86 million equivalent had been pledged to the Facility by nine donors. 84. The Facility provides support for the elaboration and implementation of integrated country action plans, and for a wide range of related activities. In order to receive support, action plans must be consistent with protocols of the FAO, the World Organization for Animal Health (OiE), and WHO. Each plan must also be endorsed in accordance with the in-country procedures of the Facility's governance structure, and the Bank's Country Director must confirm that other relevant sources of financing cannot be made available. Grant requests of US$3 million or more must undergo an additional review step by an Advisory Board, consisting of the AHI Facility's major donors. At the end of June 2007, twenty-five grants with the total amount of US$58.2 million have been approved. Bangladesh Health, Nutrition and Population Sector Multi-Donor Trust Fund Bangladesh Health, Nutrition and Population Sector Multi- FY2007 Donor Trust Fund US$'million Cash Contributions received during the year 120 Disbursements made during the year 44 85. This US$475 million trust fund, together with a US$300 million IDA credit, support the Government of Bangladesh in implementing its Strategic Investment Plan (2003­2010) to modernize the health sector and accelerate progress towards meeting the health-related Millennium Development Goals. The Bangladesh program for 2005­2010, focuses on: (i) strengthening public health sector management and leadership role of the Government to ensure that poor get better health care services; (ii) developing alternative ways of providing services using both the public and private sectors; and (iii) motivating the poor to demand for essential services through advocacy and innovative financing mechanisms like vouchers for care of pregnant women. 86. Donor support is modeled along the "Sector-Wide Approach" and following the principles of the Paris Declaration on Donor Harmonization. Five development partners have pooled their finances with IDA including UK, European Community, Sweden, Netherlands, and UNFPA, while Canada and Germany have expressed their intentions to join the multi-donor trust fund (MDTF). The Bangladesh HNPSP MDTF is a good example where a large group of donors have worked intensively together towards harmonized procedures for common disbursements to the program. Besides providing large amounts of regular support to the program, the pooled 49 The World Bank Group 2007 Trust Funds Annual Report Annex C Health and Human Development funds have also been able to react in a flexible manner to emergencies. For example, during this year's large flooding, medicines were procured using HNPSP funds. The pooled funds also have proven to be an effective tool for a coordinated approach to dealing with global health issues, such as polio eradication and avian influenza. International Finance Facility for Immunisation (IFFIm) IFFIm FY2007 US$'million Cash Contributions received during the year* 1,000 Disbursements made during the year 753 * Cash contributions reflect the cash proceeds from bonds issuance 87. In the Fall of 2003, the Gates Foundation proposed to the UK Government that the International Finance Facility concept should be piloted to provide funding for immunization. The result is IFFIm, the International Finance Facility for Immunisation, a UK charity and a new international development institution. IFFIm was created to accelerate the availability of predictable, long-term funds for health and immunization programmes through the GAVI Alliance (formerly the Global Alliance for Vaccines and Immunization). IFFIm was established in November 2006 with the World Bank as its Treasury Manager. Bank services to IFFIm include the development and execution of market-based financing strategies and funding operations, multi-donor grant and payment tracking, liquidity and investment management, risk monitoring and asset-liability management, and accounting and reporting. IFFIm will raise funds in the international capital markets over the next ten years, up to a prudently limited proportion of the sovereign obligations. IFFIm repays bondholders using funds provided by donors pursuant to the agreed and legally binding payment obligations. IFFIm's USD 1 billion inaugural bond was launched in November 2006 and was substantially oversubscribed. IFFIm anticipates raising more funds from the capital markets early in 2008. 88. IFFIm's financial base consists of very long-term, legally binding grant obligations from its sovereign donors. These countries (the United Kingdom, France, Italy, Spain, Sweden, Norway, and South Africa) have agreed to pay these obligations in a specified schedule of payments totaling US$ 3.9 billion, in net present value terms, over 20 years. 89. From IFFIm inception at November 14, 2006 to June 30, 2007, the IFFIm Account disbursed US$ 753 million of its bond proceeds to the GAVI Fund Affiliate (GFA) account for IFFIm approved program disbursements to procure needed vaccines and to support recipient countries. The IFFIm expects to disburse an approximately US$ 200 million more to the GFA Account by the end of calendar year 2007. The IFFIm Account had a cash balance of US$ 302 million as of June 30, 2007. 50 The World Bank Group 2007 Trust Funds Annual Report Annex C Health and Human Development GAVI Fund Affiliate (GFA) GFA FY2007 US$'million Cash Contributions received during the year 758 Disbursements made during the year 735 90. The GAVI Fund Affiliate enters into pledge agreements with IFFIm donors, assigns these pledges to the IFFIm Company so that they can be securitized, and approves funding of programs with the IFFIm proceeds. The World Bank serves as the Account Administrator for the GAVI Fund Affiliate (GFA) Account, which receives bond proceeds from the IFFIm Account and makes the disbursements for approved GAVI Alliance programs to procure needed vaccines and to support recipient countries. 91. Since the inception of IFFIm on November 14, 2006 until June 30, 2007, the GFA Account had total receipts of US$ 753 from transfers from the IFFIm account, and US$ 4 million from investment income, for total receipts of US$ 758 million. During that time period, the GFA Account disbursed US$ 735 million for GAVI Alliance approved program disbursements. The GFA Account had a cash balance of US$ 22 million as of June 30, 2007. 51 The World Bank Group 2007 Trust Funds Annual Report Annex D Poverty Reduction and Social Development Annex D POVERTY REDUCTION AND SOCIAL DEVELOPMENT From the trust funded programs in this area, the following were selected to give a flavor of the type of work being carried out with resources provided by donors 1. Japan Social Development Fund 2. Poverty Reduction Strategy Trust Fund 3. Indonesia Strategic Poverty Partnership 4. Africa Catalytic Growth Fund Japan Social Development Fund (JSDF) Japan Social Development Fund FY2007 US$'million Cash Contributions received during the year 54 Disbursements made during the year 56 92. The JSDF, originally established to assist World Bank clients to tackle the poverty and social consequences of the 1997-99 global economic and financial crises, today supports innovative programs which directly respond to the needs of the poorest and most vulnerable groups of society. JSDF grants complement Bank-financed operations, financing programs compatible with the development objectives of Bank country assistance strategies, client countries' poverty reduction strategy papers, or the poverty reduction elements of sector strategies. The grants focus on activities that: (i) respond directly to the needs of the poorest; (ii) encourage testing of innovative methods; (iii) support initiatives that lead to rapid demonstrable benefits with positive prospects of developing into sustainable activities; and (iv) build ownership, capacity, empowerment and participation of civil society groups. 93. During fiscal 2007, eleven Regular Program grants were approved for approximately US$27 million. Four of these grants were made to countries in the East Asia and the Pacific region, six in Africa, four in Latin America and the Caribbean, four in Europe and Central Asia and two in South Asia. Multi-sector grants in social development, gender and inclusion, trade and integration, social protection and risk management, and environment and natural resources management accounted for 62 percent of total grant value; agriculture, fishing and forestry 17 percent; health and other social services nine percent; public administration, law, and justice five percent; education four percent; and transportation three percent. Also in fiscal 2007, the Government of Japan approved two grants of about US$2.4 million to aid in post-tsunami reconstruction efforts in the Seychelles. Fiscal 2007 also saw the approval of twelve Seed Fund 52 The World Bank Group 2007 Trust Funds Annual Report Annex D Poverty Reduction and Social Development grants, for a combined total of US$0.57 million, to support activities related to the participatory process for preparing JSDF grant proposals. 94. During fiscal 2007 the Government of Japan made additional contributions to the JSDF general fund of US$54 million (including administrative fee). Poverty Reduction Strategy Trust Fund (PRSTF) Poverty Reduction Strategy Trust Fund FY2007 US$'million Cash Contributions received during the year 0 Disbursements made during the year 1 95. The PRSTF was established in 2001. Activities that have been supported include: (i) setting up or institutionalizing the participatory process; (ii) improving diagnostics and analytic foundations; (iii) improving costing and public expenditure management systems; (iv) strengthening monitoring and evaluation systems for the PRSP; and (v) logistical support including translation and dissemination of poverty reduction strategy documents. Approval of country prepared grant applications is made by an in-country steering committee consisting of representatives of the Bank, UNDP, government, and contributing donors. The fund is currently supported by contributions from Japan, the Netherlands and Switzerland. The closing date for the Trust Fund was extended from its initial four-year timeframe (2001-2005) to October 31, 2008, to afford the opportunity for more countries to be recipients of grant resources. Currently, thirty seven grants have been approved for activities in thirty two countries. 96. Proposals approved in fiscal 2007 amounted to about US$2.3 million. Countries in Africa received the largest share (67 percent) and the remainder went to Europe and Central Asia (33 percent). The grants focused on a wide range of activities, including institutionalizing the participatory process, capacity building to develop a second generation PRSP, capacity development for a result-based strategic management and budgeting system, and enhancing PRS monitoring and evaluation systems. By the end of fiscal 2007, cumulative grant approvals amounted to US$14.9 million, and cumulative disbursements were about US$10 million. Indonesia Strategic Poverty Partnership (ISPP) Indonesia Strategy Poverty Partnership FY2007 US$'million Cash Contributions received during the year 0 Disbursements made during the year 3 97. The ISPP was established in February 2003, with funding of nearly US$13.5 million, to support background work for the development of strategies for alleviating poverty in Indonesia. 53 The World Bank Group 2007 Trust Funds Annual Report Annex D Poverty Reduction and Social Development The key overall achievement of the program is to place Indonesian poverty within a framework of improved governance and institutional reform. 98. The Strategic Poverty Partnership is now largely complete. Overall, the Partnership made a substantial contribution towards achieving the governance and poverty goals described by the Country Assistance Strategy. Some highlights include: (i) Support for the development of the two pillars of what has become the President's national poverty reduction strategy -- a conditional cash transfer program and a national program of community empowerment; (ii) Comprehensive work on the poverty impact of reductions in fuel subsidies; (iii) Use of anti- corruption action plans across the entire Bank Indonesia portfolio, designed with the assistance of the Partnership funded anti-corruption advisor; (iv) Development of the Aceh post conflict reintegration program; (v) Analytical work on Indonesian women migrant workers; and (vi) Seed funding for the multi-donor office for Eastern Indonesia. Africa Catalytic Growth Fund (ACGF) Africa Catalytic Growth Fund FY2007 US$'million Cash Contributions received during the year 175 Disbursements made during the year 1 99. The ACGF was made operational in November 2006 with receipt of the initial pledge from the United Kingdom. The ACGF is designed to provide flexible, targeted support to three categories of borrowers that are under-funded by the current aid allocation system: high performing economies that can achieve accelerated growth and serve as regional models; transformation economies that can demonstrate recent and sustained commitment to reform based on strong leadership; and regional integration initiatives that can increase multi-country public goods or boost competitiveness. 100. The ACGF targets countries and investments that can deliver results -- to break constraints to growth, achieve hard to reach MDGs or improve regional integration. The fund also seeks to 'crowd in' other development finance for specific opportunities in Africa. 101. There are three categories of entry points for accessing ACGF funds: (i) high performing countries that can achieve higher growth rates and become regional "star players" by breaking a binding constraint to growth or reinforcing new export opportunities; (ii) transformation countries that can demonstrate recent and sustained commitment to reform based on strong political leadership; (iii) regional integration initiatives that can increase the supply of multi- country public goods or deliver growth opportunities. 54 The World Bank Group 2007 Trust Funds Annual Report Annex E Capacity Building and Technical Advisory Services Annex E CAPACITY BUILDING AND TECHNICAL ADVISORY SERVICES From the trust funded programs in this area, the following were selected to give a flavor of the type of work being carried out with resources provided by donors 1. Policy and Human Resources Development Fund 2. Bank-Netherlands Partnership Program 3. Africa Capacity Building Foundation 4. World Bank Institute Trust Funds 5. Global Development Learning Network 6. Trust Fund for Statistical Capacity Building 7. Knowledge for Change Program Policy and Human Resource Development (PHRD) Fund Policy and Human Resource Development Fund FY2007 US$'million Cash Contributions received during the year 30 Disbursements made during the year 78 102. Established in 1990, the PHRD Fund is financed wholly by the Government of Japan. Its goal is to help alleviate poverty, by developing capacity and supporting the transfer of knowledge and skills with which developing countries can build foundations for sustainable development. In fiscal 2007, 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. 103. In fiscal 2007, the Government of Japan contributed US$412 million to World Bank trust funds, of which about US$30 million was provided to the PHRD Fund. During fiscal 2007, 99 technical assistance grants were approved, totaling US$99.2 million. The largest share of fiscal 2007 grants went to EAP region (US$31.3 million), followed by ECA (US$25.9 million) and AFR (US$14.5 million). The grants focused mainly on public administration, law, and justice (16 grants amounting to US$17.2 million, or 17 percent of total funding); agriculture, fishing and forestry (14 grants amounting to US$15.9 million, or 16 percent of total approvals); and health and other social services (15 grants amounting to US$15.0 million, or 15% of total approvals). 104. In fiscal 2007, with US$11.9 million, the Joint Japan-World Bank Graduate Scholarship program was able to finance 288 scholars from 78 developing countries, some being from the 55 The World Bank Group 2007 Trust Funds Annual Report Annex E Capacity Building and Technical Advisory Services poorest countries in the world. About forty four percent of the scholarships have been awarded to candidates from African countries. Bank-Netherlands Partnership Program (BNPP) Bank-Netherlands Partnership Program FY2007 US$'million Cash Contributions received during the year 68 Disbursements made during the year 27 105. The strategic objective of the BNPP is to strengthen the development and institutional effectiveness of the World Bank by financing knowledge and capacity development activities at the global, regional and cross-country levels. The aim is to mainstream results of BNPP activities into the overall World Bank activities in low income countries, particularly in the Sub-Saharan Africa Region. These activities help address regional and global issues such as environmental threats, communicable diseases (HIV/AIDS), improving reproductive health, achievement of universal primary education, better governance through better service delivery, trade facilitation and regional integration. The interrelated pillars that underpin the BNPP priorities include building the climate for investment, providing knowledge, advisory services, capacity building and gender-specific interventions. 106. During the first half of fiscal 2007, 36 grants amounting to US$18.2 million were approved to support BNPP activities in four Networks. The largest share of the grants went to PREM Network (16 proposals for Good Governance and Trade amounting to US$6.5 million) followed by the SDN Network (11 proposals for environmental sustainability amounting to US$5.9 million), the HD Network (7 proposals amounting to US$5.1 million) and the PSD Network (2 proposals for Private Sector Development activities amounting to US$0.7 million). 107. Since program inception, the Government of the Netherlands has contributed more than US$593 million to the BNPP. Total contributions during fiscal 2007 amounted to US$68 million. This includes contributions through the BNPP to multi-donor programs such as ESMAP ($9.7 million), GPOBA ($11 million), Nile Basin Initiative II (US$5 million). Africa Capacity Building Foundation (ACBF) Africa Capacity Building Foundation FY2007 US$'million Cash Contributions received during the year 55 Disbursements made during the year 45 108. The Partnership for Capacity Building in Africa (PACT) was initiated as a collaborative effort among the World Bank, the African Development Bank, and UNDP in 1995. In January 56 The World Bank Group 2007 Trust Funds Annual Report Annex E Capacity Building and Technical Advisory Services 2000, the ACBF, which was established in 1991 as an element of the "African Capacity Building Initiative", assumed responsibility for PACT. The program provides grants and technical support to some 40 countries in sub-Saharan Africa and to about 34 regional and continental institutions. ACBF currently has 37 funding partners, including four multilaterals, 13 non- African bilaterals, and 20 African countries, some of whom are represented on its Board of Governors. 109. Currently, the Foundation supports 125 projects and programs including regional organizations and/or programs, 26 national focal points in capacity and 72 SAFEWIND and Seed grants support in some 40 sub-Saharan African countries and plans to achieve full coverage of the region by 2011. It has, since commencing operations in 1991, committed more than US$360 million to capacity building and disbursed more than US$172 million as of December 29, 2006. World Bank Institute (WBI) Partnerships World Bank Institute FY2007 US$'million Cash Contributions received during the year 5 Disbursements made during the year 5 110. Trust Funds for WBI programs support WBI's mission to enable the World Bank's partner countries to acquire, share, and apply global and local knowledge to address development challenges, make informed choices, order priorities, and plan and implement policies, projects, and programs. WBI helps develop country capacity in close collaboration with the Bank's regional operations and other partners, by designing and delivering customized programs for countries; by delivering global and regional activities to address issues that go beyond country boundaries; and by developing diagnostic tools to assess country capacity needs. 111. Partnerships are critical to WBI as they allow the Institute to enrich the content of its programs, scale them up, intensify their outreach, and continue to support them far beyond what would have been possible working alone. Partnering with donor institutions -- development cooperation agencies, multilateral institutions, foundations, and private corporations -- leverages WBI's resources and makes its programs more cost-effective by coordinating activities and harmonizing approaches. Almost half of the Institute's working capital comes from such donor partners. 112. The majority of financial contributions in trust funds come from the bilateral donors, such as Austria, Belgium, Canada, Denmark, Finland, France, Ireland, Italy, Korea, Norway, Spain, Sweden, Switzerland, the United Kingdom, and the United States. WBI has also receives trust funds from the Hewlett and Flora Foundation and other World Bank-administered trust fund programs, such as the WBI Capacity Development Grants Window of the Japan-supported PHRD fund, the BNPP, and the TFESSD. 113. In fiscal 2007, some US$23.7 million, including funding from other Bank-wide trust fund programs, such as PHRD, BNPP, and TFESSD, were available to WBI in trust, of which 57 The World Bank Group 2007 Trust Funds Annual Report Annex E Capacity Building and Technical Advisory Services US$11.0 million14 were directly from donors for WBI Partnerships program. Of the US$11.0 million available, WBI received US$4.8 million as new contributions in fiscal 2007. Of the total available for WBI, the disbursements during the year were US$11.8 million, of which US$5.1 million were disbursed from WBI Partnerships trust funds. With the support of these contributions, the Institute delivered some 700 courses, seminars, and other knowledge-sharing activities for clients, reaching 75,000 participants. 114. The relationships with donors go beyond the provision of finance where WBI engages with them in the areas of strategy and content, operations, communications and external affairs, and institutional learning. Global Development Learning Network (GDLN) Global Development Learning Network FY2007 US$'million Cash Contributions received during the year 0 Disbursements made during the year 4 115. Initiated by the World Bank in June 2000, GDLN is a partnership of organizations that offer learning services to the development community for cost-effective and timely knowledge sharing. By applying state-of-the-art information and communication technologies to learning programs, Affiliates bring relevant and applied knowledge from around their world to local audiences. 116. The World Bank supports GDLN in a variety of ways. The World Bank Institute hosts a GDLN Secretariat that looks after global strategy, policies and communication, as well as a logistics team to support GDLN clients. Coordination teams in the regional vice presidencies work with regional GDLN associations on partnership and program development. The Information Solutions Group provides the technology backbone for setting up videoconferences and connecting those Affiliates who would otherwise not have access to service providers. 117. At the end of fiscal 2007 the Network counted more than 120 Affiliates in over 80 countries. In many middle income countries, GDLN Affiliates reach far beyond capital cities by connecting with commercial and academic in-country networks. GDLN Affiliates host close to 1000 activities a year on behalf of their clients. Most activities are organized by small government agencies and NGOs. 14This figure excludes trust funds for WBI-administered scholarship program and Carbon Finance-Assist Program. 58 The World Bank Group 2007 Trust Funds Annual Report Annex E Capacity Building and Technical Advisory Services Trust Fund for Statistical Capacity Building (TFSCB) Trust Fund for Statistical Capacity Building FY2007 US$'million Cash Contributions received during the year 5 Disbursements made during the year 2 NOTE: The table above does not reflect funds transferred from other programmatic sources. Such transfers are reflected in the corresponding tables for the originating source programs. 118. Established in fiscal 2000, the TFSCB is a multi-donor trust fund that is part of a worldwide effort to improve the supply of, and demand for, statistical data relevant to poverty alleviation, and to foster a culture of evidence-based decision making. In particular, TFSCB helps developing countries set out a medium to long-term strategic vision for their statistical systems, to prepare programs and plans to put this vision into effect, and then to implement specific capacity building projects. A follow-on trust fund (TFSCB-II) was set up in 2004, and the original fund was closed at the end of calendar year 2005. 119. The TFSCB finances two types of projects: (i) technical and financial support to the preparation of National Strategies for the Development of Statistics (NSDS), which define the best national long-term strategy to develop an efficient and sustainable statistical system in the recipient country; and (ii) non-NSDS projects, which provide support to capacity building in specific priority sectors. These projects may target the implementation of one or more critical components of the NSDS. All non-NSDS projects are based on a formal assessment of the statistical system and demonstrate how they will address the main capacity weaknesses. 120. So far, TFSCB (I and II) has invested over US$ 22.1 million in 116 statistical capacity building projects across the world. These projects have helped countries address key capacity constraints in their statistical systems and develop strategic approaches to building efficient and effective national statistical systems. TFSCB supported the development of NSDSs in 57 countries. TFSCB has also succeeded in stimulating additional investments from other sources, an additional US$28 million, including from government budgets of the recipient countries. In order to streamline statistical capacity building activities with the Bank's overall operations and to improve the supervision and implementation of individual projects, TFSCB-III was established more recently, and un-disbursed funds from TFSCB-I are being transferred to this fund. Knowledge for Change Program (KCP) Knowledge for Change Program FY2007 US$'million Cash Contributions received during the year 4 Disbursements made during the year 4 59 The World Bank Group 2007 Trust Funds Annual Report Annex E Capacity Building and Technical Advisory Services 121. The KCP serves as an effective, transparent and efficient vehicle for the pooling of intellectual and financial resources for data collection, analysis, and research supporting poverty reduction and sustainable development. It encourages and facilitates the Bank's dialogue with partner agencies, developing country clients, and other interested parties. A subsidiary objective is to assist data collection, analysis, and research capacity in the Bank's client countries. The focus of the KCP is to move quickly into areas and development issues where the creation of new knowledge is likely to assist the formulation of better policies with a greater impact on poverty. 122. The three trust funds established under the KCP support activities related to overarching themes of (i) poverty dynamics and delivery of basic services; (ii) growth/investment climate and trade and integration; and (iii) global public goods. The first addresses issues at the heart of poverty reduction, empowerment and sustainable development; the second focuses on the major elements of a business program conducive to growth, with emphasis on the role of small and medium-scale industries; and the third focuses on global issues that require collective action and coordination across countries because lack of action or progress in some countries could undermine benefits for all. 123. As of June 30, 2007, the KCP had funded 83 projects, and the total cumulative amount pledged and received from KCP donors was US$22 million. 60 The World Bank Group 2007 Trust Funds Annual Report Annex F Post-Conflict Reconstruction and Natural Disasters Annex F POST-CONFLICT RECONSTRUCTION AND NATURAL DISASTERS From the trust funded programs in this area, the following were selected to give a flavor of the type of work being carried out with resources provided by donors 1. Post-Conflict Fund 2. Low-Income Countries Under Stress Trust Fund 3. Iraq Trust Fund 4. Afghanistan Reconstruction Trust Fund 5. Trust Fund for Gaza and West Bank 6. West Bank and Gaza: The Emergency Services Support Project (ESSP) 7. Trust Fund for East Timor 8. Timor-Leste Transition Support Program 9. Multi-Country Demobilization and Reintegration Program 10. Multi Donor Fund for Aceh and Nias 11. Sudan Multi Donor Trust Funds 12. Global Facility for Disaster Reduction and Recovery 13. Trust Fund for Lebanon Post-Conflict Fund (PCF) Post-Conflict Fund FY2007 US$'million Cash Contributions received during the year 8 Disbursements made during the year 5 124. The PCF was established in 1997 to enhance the World Bank's ability to support innovative activities in conflict-affected countries and countries transitioning from conflict to sustainable peace and development, activities which are often not possible under regular Bank operations. The PCF supports implementation, piloting and analysis of ground-breaking activities through grants to a wide range of partners (NGOs, UN agencies, transitional authorities, governments, and other civil society institutions), in order to provide earlier and broader Bank assistance to conflict-affected countries. The PCF favors innovative approaches to address conflict and development issues, and partnerships with donors and executing agencies. 125. Since its inception the PCF has received US$81.6 million from the World Bank's Development Grant Facility and an additional US$8.7 million from bilateral and multilateral donors. During fiscal 2007, the PCF approved US$10 million through 17 new grants. As of June 61 The World Bank Group 2007 Trust Funds Annual Report Annex F Post-Conflict Reconstruction and Natural Disasters 30, 2007, the PCF had approved a total of US$94.6 million for 188 grants, and disbursed US$74.6 million. The grants cover a wide range of interventions. In Tajikistan, the Youth and Economic Opportunity Grant offers the most disadvantaged youth in the poor areas of the North and the South a safe and inclusive space for learning and skills development, complementary to the formal school system. In Lebanon, the PCF responded quickly to finance the establishment of a fund for National Reconstruction to ensure proper management of donor funds and transparently achieve the highest and most efficient impact. Another grant for Lebanon supported a Rapid Social and Livelihood Assessment to inform the strategic planning processes related to post-conflict reconstruction. In Sri Lanka, a new approach to PCF projects was adopted as the country team developed a "Strategic Menu of Priorities". This was applied as a basis for selecting a range of projects for funding, which collectively are expected to have significant impact on understanding conflict and peace processes in the country. In Indonesia, a grant is funding activities that work to increase efficiency of Indonesia's conflict strategy in relation to its regional conflicts, while at the same time building global knowledge on conflict sensitive development interventions in middle income countries with a functioning state. Low-Income Countries Under Stress (LICUS) Implementation Trust Fund Low-Income Countries Under Stress Implementation Trust FY2007 Fund US$'million Cash Contributions received during the year 32 Disbursements made during the year 11 126. The LICUS Implementation Trust Fund was established in January 2004 with a US$25 million grant from the World Bank's surplus income to support integrated re-engagement strategies in the most severe LICUS in non-accrual status with the Bank. In fiscal 2006 and 2007, LICUS was replenished with an additional US$25 and US$30 million grant respectively. A contribution of US$2 million was also received from external donors. The fund is designed to support those countries that have the most severe governance problems and are most vulnerable to conflict. The fund primarily finances integrated programs that are outlined in a country re- engagement note, rather than one-off activities. It is an important source of funding for transition activities in post-conflict countries that are not yet eligible for post-conflict grant financing from IDA. While IDA includes provisions for pre-arrears clearance assistance to post-conflict countries, such assistance requires an agreed arrears clearance plan, which may take considerable time to develop in countries with complex and large arrears. The LICUS Trust Fund can help to fill this gap. Grants focus primarily on capacity building to support governance reform and strengthening social service delivery. 127. Up to June 30, 2007, the fund had committed US$59.2 million to thirteen countries (Central African Republic, Comoros, Cambodia, Guinea Bissau, Haiti, Liberia, Somalia, Sudan, Togo, Timor-Leste, Zimbabwe, and Côte d'Ivoire) with disbursements totaling US$29.6 million in grant packages. These grant programs cover a broad range of interventions. In Guinea Bissau, grants support economic governance, donor harmonization and a national framework for 62 The World Bank Group 2007 Trust Funds Annual Report Annex F Post-Conflict Reconstruction and Natural Disasters dialogue and peace building to enhance national capacity and the consolidation of peace. In Cambodia, a range of initiatives are supported to engage citizens in strengthening accountability and reforming governance while laying the ground work for a future Demand for Good Governance World Bank project. A second grant package in Central African Republic builds on the achievements of the fiscal 2005 program through the strengthening of revenue collection systems and public expenditure management; an assessment of the mining sector; support to the National Program for the fight against Aids and the establishment of a community-driven approach that helps build social capital, provides critical social services, and restarts economic activity in rural districts. Iraq Reconstruction Trust Fund (IRTF) Iraq Trust Fund FY2007 US$'million Cash Contributions received during the year 4 Disbursements made during the year 44 NOTE: The table above does not reflect funds transferred from other programmatic sources. Such transfers are reflected in the corresponding tables for the originating source programs. 128. In October 2003, the international donor community approved the International Reconstruction Fund Facility for Iraq, comprising the World Bank IRTF and the United Nations Development Group Iraq Trust Fund, which share a common governance structure to ensure close coordination. The IRTF was established in January 2004 to support the reconstruction and rehabilitation of Iraq. It finances emergency operations and capacity building programs that support priority areas identified by the Government of Iraq. The IRTF will close in December 2010. 129. As of end fiscal 2007, seventeen donors had deposited US$460 million into the IRTF. The trust fund finances sixteen grants, valued at US$437 million, thereby committing nearly all IRTF available funds. Thirteen of the sixteen grants (US$425 million) are projects implemented by Iraqi institutions that focus on building institutional systems to improve the delivery of services in education, health, urban and rural water supply, telecommunications, and power throughout Iraq. Three projects, totaling US$12 million, are Bank-executed technical assistance projects, which aim to strengthen economic management skills and modernize public administration and social protection programs. 130. Over the past year, in collaboration with the Government of Iraq, the Bank has emphasized the critical need for Iraq to strengthen institutions to improve public finance management, focusing on the processes and institutions for effective budget planning and execution, decentralized public finance management, and promoting good governance. Strengthening the systems and institutions for public resource management aims to help Iraq to use its own resources, as well as international aid, in an effective manner, access international capital markets, and attract foreign investment. 63 The World Bank Group 2007 Trust Funds Annual Report Annex F Post-Conflict Reconstruction and Natural Disasters Afghanistan Reconstruction Trust Fund (ARTF) Afghanistan Reconstruction Trust Fund FY2007 US$'million Cash Contributions received during the year 463 Disbursements made during the year 428 131. The ARTF was established in May 2002 to serve as a coordinated financing mechanism for the government's recurrent budget and priority reconstruction programs and projects. To date, ARTF has successfully mobilized US$ 2.22 billion in grant contributions from 27 donors, of which US$453 million were paid in the Afghan Government's last fiscal year SY1385 (21 March 2006­20 March 2007), and US$514 million are pledged for the current fiscal year, SY1386 (21 March 2007-20 March 2008). 132. ARTF is governed by a Management Committee consisting of representatives of the Asian Development Bank, Islamic Development Bank, UNDP and the World Bank, with day-to- day fund administration performed by the World Bank. The Government of the Islamic Republic of Afghanistan participates in the Management Committee meetings as an observer. A Monitoring Agent has been appointed by the World Bank to ensure proper fiduciary management on recurrent cost financing. A Donor Committee is regularly convened to discuss the management and administration of ARTF and provide strategic and policy guidance. 133. ARTF is the primary instrument for financing the civilian operating budget. As of June 30, 2007, US$ 1.13 billion had been disbursed to fund civil servants' salaries and the Afghan Government's operations and maintenance expenditures. There are 11 ongoing investment projects with a combined allocation of US$309 million, of which US$175 million had been disbursed. To enhance the strategic use of ARTF resources, the Government is preparing a medium-term fiscal and expenditure framework to underpin resource allocations for priority programs. It is envisaged that in fiscal 2008, ARTF Donor agreement will be reached to extend the ARTF to June 30, 2020. Plans are also underway for an independent evaluation of the ARTF to be conducted in fiscal 2008. West Bank and Gaza: Trust Fund for Gaza and West Bank (TFGWB) Trust Fund for Gaza and West Bank FY2007 US$'million Cash Contributions received during the year 50 Disbursements made during the year 28 134. 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 64 The World Bank Group 2007 Trust Funds Annual Report Annex F Post-Conflict Reconstruction and Natural Disasters for membership of the IMF or the World Bank Group, and is therefore not eligible for the sources of financing normally available to member countries. Instead, the Bank's Board of Governors on November 11, 1993 approved a US$50 million grant to be transferred from surplus into TFGWB. To date, the Trust Fund has been replenished six times for a total allocation of US$510 million, most recently in January 2006. The West Bank and Gaza portfolio currently consists of 11 projects, a number of which have been designed to respond to the current emergency facing the Palestinian population. The Trust Fund disbursed US$28 million in fiscal 2007. West Bank and Gaza: The Emergency Services Support Project (ESSP) Trust Fund for Gaza and West Bank FY2007 US$'million Cash Contributions received during the year 65 Disbursements made during the year 17 135. This project was initiated in 2002 with the objective of mitigating the deterioration in social services resulting from the economic crisis by financing the non-salary recurrent expenditures of the core social service-delivery ministries of health, education, and social affairs. The ESSP was revived in 2006 through a US$62 million multi-donor trust fund funded by DFID, EC, Sweden, Norway, Italy, France, Belgium, Spain, Austria, Australia and Switzerland. All funds have to date been committed, however, disbursements have been slow, in part due to the closure in Gaza. Timor Leste: Trust Fund for East Timor (TFET) Trust Fund for East Timor FY2007 US$'million Cash Contributions received during the year 5 Disbursements made during the year 8 136. The multi-donor TFET, one component of the overall assistance pledged to Timor-Leste during a December 1999 donor meeting in Tokyo, provides grants in support of reconstruction and development activities focused on physical rehabilitation of social and economic infrastructure, sectoral policy development, and recovery of the private sector. The allocation of funds among sectors and the prioritization of projects are decided by Timorese representatives. All activities are implemented by agencies of the Government of Timor-Leste, with support from the World Bank and the ADB. During fiscal 2007, three out of nine active TFET projects were closed. The Financial Agreement for a new TFET financed project, Gas Seep Harvesting Project was signed on May 30, 2007 and is now effective. 137. Under the Second and Third Agriculture Rehabilitation Projects, 3,570 hectares of irrigation schemes (above target of 3,000 hectares) and 68 kilometers of access roads were 65 The World Bank Group 2007 Trust Funds Annual Report Annex F Post-Conflict Reconstruction and Natural Disasters rehabilitated, and eight policies were drafted of which three were approved - MAFF Policy and Strategy, Food Security Policy and Water Policy. With the assistance of the Fundamental School Quality Project, 75 new primary schools and four new Escolas Basicas were constructed and 23 Escolas Primárias (EP) have been refurbished. Under the Health Sector Rehabilitation and Development project; the construction of new hospitals in Oecussi and Maliana has been completed, Maubisse and the Central Laboratory as well as the rehabilitation work for the National Hospital are on going. About 250 km of roads were also rehabilitated/ stabilized under the second Emergency Infrastructure Rehabilitation Project. Further, the Small Enterprises Project rehabilitated 34 small markets, completed construction of 14 new markets, delivered entrepreneurial and financial training to more than 8,000 people, and established an export and investment promotion agency. 138. As of end fiscal 2007, cumulative donor contributions to TFET, in the form of cash and promissory notes, remained at US$177.9 million, and out of those, US$177.6 million had been committed to projects. In alignment with the Sector Investment Programs, government and donors agreed at the Timor-Leste Development Partners Meeting in March 2006 to allocate this surplus to the Gas Seep Harvesting Project. Timor-Leste: Consolidation Support Program (CSP) Timor-Leste Consolidation Support Program FY2007 US$'million Cash Contributions received during the year 6 Disbursements made during the year 11 139. For three years, the annual Transition Support Program provided a framework for grant financed multi-donor budgetary support to the implementation of the National Development Plan (NDP) in Timor-Leste. The Transition Support Program focused on three thematic areas: (i) service delivery for poverty reduction; (ii) job creation; and (iii) good governance reflecting the country's strategic priorities. The CSP continued these foci with the addition of infrastructure under service delivery. 140. The rationale for continuing multi-donor budget support under CSP is two-fold. On the policy side, the Government of Timor-Leste argued that the program brings critical support in: (i) establishing priorities and assisting the government to focus on critical areas; (ii) monitoring progress in policy implementation and achievement of results; (iii) building government capacities; and (iv) donor coordination and harmonization. On the funding side, due to increased oil revenues and savings, budgetary support is not critical. Nonetheless, the CSP provides a framework for policy prioritization, implementation and monitoring, and donor coordination and harmonization around the NDP. 66 The World Bank Group 2007 Trust Funds Annual Report Annex F Post-Conflict Reconstruction and Natural Disasters Multi-Country Demobilization and Reintegration Program (MDRP) Multi-Country Demobilization and Reintegration Program FY20067 US$'million Cash Contributions received during the year 56 Disbursements made during the year 58 141. Launched in 2002, the MDRP supports demobilization and reintegration (D&R) of an estimated 415,000 combatants in Angola, Burundi, the Central African Republic, the Democratic Republic of Congo, the Republic of Congo, Rwanda and Uganda. The MDRP aims to contribute to overall stabilization and recovery in the greater Great Lakes region, and to lay the groundwork for sustainable development. The program's underlying principles are partnership and national ownership. 142. Program activities fall under one of three areas: (i) National D&R Programs executed by national governments; (ii) Special Projects executed by NGOs and UN agencies that provide targeted D&R support in specific circumstances (e.g. child soldiers); and, (iii) Regional Activities that address cross-cutting issues (e.g. Combatants on Foreign Soil, security sector reform, AIDS). 143. The estimated overall cost of the program is about US$560 million. To date, donors have committed approximately US$252 million to a Multi-donor Trust Fund, while IDA has provided an additional US$212 million in financing. The current MDRP funding gap, once estimated grant savings and additional Bank-executed expenditures are taken into account, is US$44 million, once estimated grant savings, investment income, additional Bank-executed expenditures and further anticipated IDA financing are taken into account. Efforts are ongoing to raise additional resources and reduce grant commitments as appropriate. Multi-Donor Fund for Aceh and Nias (MDF) Multi-Donor Fund for Aceh and Nias FY2007 US$'million Cash Contributions received during the year 156 Disbursements made during the year 104 The December 26, 2004 earthquake and tsunami caused unprecedented destruction to several countries surrounding the Indian Ocean. The province of Aceh in Indonesia was worst affected, with approximately 130,000 people confirmed dead and another 37,000 missing. On March 28, 2005, another strong earthquake caused further destruction on the island of Nias, off the coast of Sumatra near Aceh in Indonesia. The Government of Indonesia established a dedicated Agency for Rehabilitation and Reconstruction (BRR) to coordinate and oversee the entire US$7.5 billion 67 The World Bank Group 2007 Trust Funds Annual Report Annex F Post-Conflict Reconstruction and Natural Disasters reconstruction process that includes implementing the Government's US$2.1 billion recon- struction portfolio. The Government also requested that the World Bank set up the MDF as a mechanism to ensure efficient and coordinated delivery of financial support. To date, the MDF contributions from fifteen donors have increased from US$538 million reported in fiscal 2006 to US$ 663 million in fiscal 2007. 144. The MDF aims to contribute to the recovery process by reconstructing communities, restoring large-scale infrastructure, rebuilding capacities of local government and private sector entities, sustaining the environment and rebuilding livelihoods. As of September 2007, the MDF Steering Committee had endorsed seventeen projects valued at US$ 492 million. The Fund had disbursed US$ 270 million. All projects undergo a BRR selection process prior to approval to ensure that they fill key financial gaps in priority sectors of the reconstruction. The strong partnership between the Government and the MDF is reflected in BRR's commitment to co- finance several MDF projects with US$220 million. These included the following areas: recovery of communities, recovery of infrastructure, environment, rebuilding governance and restoring livelihoods. Sudan Multi-Donor Trust Funds Sudan Multi-Donor Trust Funds FY2007 US$'million Cash Contributions received during the year 146 Disbursements made during the year 98 145. The two Sudan Multi-Donor Trusts, one for the Government of National Unity (GoNU) for war-affected areas in the North and the transition zones, and the other for the government of Southern Sudan (GoSS), are the testimony of the Comprehensive Peace Agreement agreed between the Government of Sudan and the Sudan People's Liberation Movement (SPLM) that was signed in January 2005. The Comprehensive peace Agreement (CPA) specified that the Funds be established to facilitate the coordination of external donor financing of Sudan's reconstruction and development needs as laid out in the Joint Assessment Mission. The World Bank was chosen as the Administrator of these two Funds. 146. The MDTF implementation strategy, from the outset, was to deliver peace dividends in the post conflict setting of Sudan, characterized by high needs, limited capacity and high oil revenues. It does so through two main implementing channels: government ministries and UN agencies; likewise, NGOs and the private sector are envisaged as implementing partners. In South Sudan, implementation using government ministries would also foster good governance, through a cost-sharing arrangement whereby the government would use World Bank fiduciary practices and thus begin functioning on a solid fiduciary footing. 147. To date, US$586.2 million have been committed to the two MDTFs (National (N): US$217.6 million and South Sudan (SS): US$368.6 million) and of that amount, US$492.1 million have been paid into the Funds (N: US$178.9 million and SS: US$313.2 million), including a US$10 million contribution from Bank net income. Twenty-two Grant Agreements 68 The World Bank Group 2007 Trust Funds Annual Report Annex F Post-Conflict Reconstruction and Natural Disasters have been signed, worth US$333.8 million (N: US$145.5 million and SS: US$188.3 million); and all projects are effective. The projects are co-financed by government and leverage an additional US$195 million (N: US$30 million and S: US$165 million). Additional projects are in the pipeline. Disbursements from the MDTF are now picking up and amount to US$161.8 million (N: US$59.8 million and SS: US$102 million). Global Facility for Disaster Reduction and Recovery (GFDRR) GFDRR FY2007 US$'million Cash Contributions received during the year 3 Disbursements made during the year 1 148. In June 2006, the World Bank's Board of Directors endorsed establishment of the GFDRR, a longer term partnership under the International Strategy for Disaster Reduction (ISDR) system to reduce disaster losses by mainstreaming disaster risk reduction in development, particularly upstream country strategies and processes, towards fulfillment of principal goals of the Hyogo Framework of Action (HFA). 149. GFDRR pursues its objectives at global, regional and country levels and it addresses disasters both ex ante and ex post through its three tracks of financing. Track I supports annual work program of ISDR Secretariat to enhance global and regional advocacy, partnerships, and knowledge management in disaster risk reduction. Track II of GFDRR is designed to provide ex ante support, primarily through a 3-year technical assistance program to enhance investments in risk reduction and risk transfer mechanisms. Track III is deployed to strengthen mobilization of international assistance for disaster recovery and supports low-income countries to accelerate recovery operations. 150. With initial contribution of US$ 5 million a year from the World Bank's Development Grant Facility and additional US$ 50 million from several donors, GFDRR is assisting several countries15, regional and international organizations in identifying the disaster risks, developing risk mitigation and risk financing strategies, establishing institutional and legal systems for risk reduction, and strengthening regional cooperation in early warning, knowledge sharing and emergency preparedness. 15 Priority for FY 07: Mozambique, Malawi, Nepal, Nicaragua and Vietnam; Priority for FY 08: Algeria, Bolivia, Colombia, Comoros, Ecuador, El Salvador, Ethiopia, Guatemala, India, Indonesia, Jamaica, Kenya, Madagascar, Maldives, Papua New Guinea, Philippines, Rwanda, Seychelles, Solomon Islands, Turkey and Yemen; Priority for FY 09: Albania, Bangladesh, Bhutan, Burkina Faso, Cambodia, Rep. of Congo, Costa Rica, Djibouti, Eritrea, Fiji, Kiribati, Kyrgyz Republic, Morocco, Marshall Islands, Niger, Panama, Senegal, Swaziland and Tunisia 69 The World Bank Group 2007 Trust Funds Annual Report Annex F Post-Conflict Reconstruction and Natural Disasters Trust Fund for Lebanon (TFL) TFL FY2007 US$'million Cash Contributions received during the year 70 Disbursements made during the year 2 151. The Trust Fund for Lebanon (TFL) was established on September 7, 2006, with a transfer of US$70 million from IBRD surplus. Adverse economic conditions, as a result of 34 days of hostilities between Israel and Hezbollah, precluded any further lending under the Country Assistance Strategy, and the TFL enabled the Bank to respond to remain engaged and scale up its operations in a period of exceptional need. The TFL's primary purpose was to assist in the rehabilitation of damaged infrastructure, provide technical assistance to key sectors for recovery and jump-start economic activity. However, in light of the political stalemate which has prevailed since December 2006, and to support the Government's comprehensive reform program, the focus of TFL has shifted to include capacity building to advance critical components of the reform program in the areas of distinct Bank comparative advantage. 152. Three operations for a total of US$50 million were approved in fiscal 2007. A US$30 million grant is assisting in the rehabilitation of basic services and infrastructure in affected municipalities. A US$15 million grant is addressing emergency needs in the water and wastewater sector in areas particularly badly affected by the hostilities. A US$5 million grant is building capacity in the energy sector to speed reforms. Progress has been satisfactory and US$2 million was disbursed in fiscal 2007. 153. A major focus of the TFL will be to revive the private sector and US$15 million will be used by IFC for technical assistance in credit guarantees and as a first loss grant for a risk sharing facility with Lebanese Banks. The remaining funds will be used for operations supporting key social and fiscal reforms. 70 The World Bank Group 2007 Trust Funds Annual Report Annex G Financial and Private Sector Development Annex G FINANCIAL AND PRIVATE SECTOR DEVELOPMENT From the trust funded programs in this area, the following were selected to give a flavor of the type of work being carried out with resources provided by donors 1. Financial Sector Reform and Strengthening Initiative 2. Consultative Group to Assist the Poor Financial Sector Reform and Strengthening (FIRST) Initiative Financial Sector Reform and Strengthening Initiative FY2007 US$'million Cash Contributions received during the year 11 Disbursements made during the year 13 154. The FIRST Initiative is a US$100 million, multi-donor program whose overall objective is to strengthen financial systems in developing countries. FIRST provides technical assistance grants to government authorities in low- and middle-income countries for capacity building and policy development in financial sector regulation, supervision, and development. 155. FIRST is supported by the World Bank, the International Monetary Fund (IMF), and five bilateral donors: the Department for International Development of the United Kingdom, the Canadian International Development Agency, the State Secretariat for Economic Affairs of Switzerland, the Ministry of Foreign Affairs of the Netherlands, and the Swedish International Development Cooperation Agency. FIRST is guided by a Governing Council comprised of senior representatives from the agencies that support it. As of March 1, 2007, the World Bank manages FIRST's work program on behalf of donors through a Program Management Unit. As of end fiscal 2007, FIRST had approved 245 projects with total commitments of US$45.3 million. 71 The World Bank Group 2007 Trust Funds Annual Report Annex G Financial and Private Sector Development Consultative Group to Assist the Poor (CGAP) Consultative Group to Assist the Poor FY2007 US$'million Cash Contributions received during the year 15 Disbursements made during the year 17 156. The CGAP is a global partnership of 33 funding organizations ­ bilateral and multilateral development agencies, international financial institutions, and private foundations ­ working together to expand poor people's access to sustainable financial services. Its goal is to scale up microfinance by helping to build inclusive financial systems. Its work in fiscal 2007 focused on the following strategic areas: (i) Promoting diverse institutions and delivery channels: 10 commercial banks have developed new microfinance services or made substantial improvements to existing products, and increased their outreach to low-income clients with technical assistance from CGAP's bank-downscaling service; (ii) Developing diverse pro-poor financial services: CGAP and the Ford Foundation have joined forces to develop a methodology in which social safety net programs partner with microfinance institutions to "graduate" the poorest out of food insecurity into sustainable livelihoods, through a careful sequencing of grants, skills training and asset building, followed by financial services; (iii) Lowering costs and increasing scale through technology: recognizing the potential of technology to reduce costs and increase scale in access to finance, CGAP began a major expansion of its technology program in fiscal 2007 through grant funding for demonstration projects, market research, and policy advice to governments; (iv) Building transparency: more than 1,000 microfinance providers and 95 microfinance funders reported data to the Microfinance Information Exchange (MIX), the leading business information provider for the microfinance industry. In addition, the Rating Fund, a multi-donor initiative funded by CGAP, the IBD, and the European Commission, had co- financed more than 400 MFI ratings, all publicly disclosed on the CGAP website; (v) Improving the policy and regulatory environment. CGAP provided short-term policy advice in almost 30 countries, which included awareness-building seminars and workshops, diagnostic assessments of policy constraints and reform opportunities, and critical reviews of draft microfinance strategies, laws and regulations; (vi) Improving microfinance funders' practices. CGAP's aid effectiveness work in fiscal 2007 focused on monitoring funding flows into microfinance, promoting standards among funders, and providing advisory services to funding organizations that have allocated significant resources to microfinance. 72 The World Bank Group 2007 Trust Funds Annual Report Annex H Trust Funds Administered by IFC and MIGA Annex H TRUST FUNDS ADMINISTERED BY IFC AND MIGA In addition to the trust funded activities carried out by the World Bank (IBRD and IDA) described above, the following institutions of the World Bank Group also administer donor funded trust funds and programs 1. International Finance Corporation 2. Multilateral Investment Guarantee Agency International Finance Corporation (IFC) International Finance Corporation FY2007 US$'million Cash Contributions received during the year 288 Disbursements made during the year 188 157. The IFC's Advisory Services is a growing and dynamic business. By design, advisory projects are less sensitive to many of the risks that constrain IFC's investment work. Those same risks also contribute to the demand that makes advisory services the lead instrument for IFC in many countries. IFC has advisory work active in more than 97 countries, 62 percent of which are frontier markets. Of the 35 conflict-affected member countries, IFC has advisory projects committed in 23, including Afghanistan, Haiti, Liberia, Nigeria, and Rwanda. Advisory Services employs over 1,100 full time staff, a 125 percent net growth since fiscal 2002. 158. In fiscal 2007, IFC's total expenditures for advisory services (AS) were US$197 million, which consist of all AS programs managed and implemented by IFC, whereas total disbursements for IFC-managed trust funds were US$188 million. IFC began 349 projects in 84 countries, with the largest shares going to Sub-Saharan Africa (23 percent), followed by Europe and Central Asia (20 percent), and East Asia and the Pacific (19 percent). The shares of other regions: Middle East and North Africa, Latin America and the Caribbean, and South Asia in IFC's advisory activity were 10 percent, 8 percent, and 6 percent respectively. 159. Donor governments account for the largest share of partner contributions, but IFC's share has increased due to the greater use of own retained earnings as a funding mechanism. Fee income from clients is also increasing, in part because IFC established pricing guidelines for its advisory work during fiscal 2007. The policy has two guiding principles. Where possible, all clients should make some contribution, to demonstrate commitment; and pricing is determined according to the nature of the product or service--for example, a public good or a private good. 73 The World Bank Group 2007 Trust Funds Annual Report Annex H Trust Funds Administered by IFC and MIGA 160. The AS work is organized into five business lines: (i) Access to Finance; (ii) Business Enabling Environment; (iii) Environmental and Social Sustainability; (iv) Infrastructure; and (v) Value Addition to Firms. Access to Finance 161. IFC's AS in this business line expand the availability of financial services to micro and small businesses and low-income households. Projects cover banking, credit bureaus, housing and property finance, insurance, microfinance, municipal finance, securities markets, and trade finance. IFC provides AS at two levels: (i) Institution-building for individual banks and non- bank financial institutions. This includes advice on expanding lending to small businesses, credit underwriting, risk management, and product development; and (ii) Improving the enabling environment. This involves legal and regulatory advice, awareness-raising events, market studies, and other sector development work. Business Enabling Environment (BEE) 162. IFC's AS are helping client countries improve their investment climate. IFC is focusing its BEE work in four areas: regulatory simplification (in business registration, licensing, taxation, collateral, access to land, and trade facilitation); sub-national expansion of the Doing Business project; alternative dispute resolution; and investment policy and promotion. In fiscal 2007, IFC was active in 76 countries through 221 advisory projects, with expenditures of US$18.4 million. The largest share of this work was in Sub-Saharan Africa (22 percent) and East Asia and the Pacific (22 percent); 60 percent of projects were in frontier markets. 163. IFC advises on design and implementation of reforms at the national and sub-national level. In January 2007, MIGA's Board decided to integrate its AS into FIAS, the multi-donor facility of IFC and the World Bank with global expertise in attracting foreign investment to developing countries. IFC is also a founding member of the Investment Climate Facility for Africa, a public-private partnership to catalyze reform in Africa, and of the Bangladesh Investment Climate Fund. Environmental and Social Sustainability 164. IFC develops and tests innovative environmental and social business models. With IFC's support, these business models become commercially viable and deliver environmental and social benefits in the areas of biodiversity, carbon finance, cleaner technologies, corporate social responsibility, sustainable energy, and sustainable investing. In fiscal 2007, 22 of IFC's 39 sustainability-related projects were in frontier markets. 165. IFC helps demonstrate that sustainability is good business. IFC trains financial institutions on how to achieve social and environmental benefits and work with environmental consulting firms in clean production and energy efficiency. IFC also promotes sustainable business by building the capacity of NGOs and entrepreneurs deliver services for local communities, particularly around extractive industries, and by supporting income-generating 74 The World Bank Group 2007 Trust Funds Annual Report Annex H Trust Funds Administered by IFC and MIGA activities around areas with outstanding biodiversity such as rainforests in Brazil, coral reefs in Indonesia, and a nature reserve in the Kyrgyz Republic. Infrastructure 166. IFC extends development impact by improving access to basic services in road infrastructure, telecommunications, water and energy utilities, health, and education. IFC's advisory work in this area is closely coordinated with IFC's investments. 167. IFC provides AS to national and municipal governments for structuring and implementing private sector participation in ways that balance the interests of investors with public policy considerations. In doing so, IFC helps governments achieve policy objectives and create investment opportunities, both for IFC and for our fellow investors in industrialized and developing countries. This year, IFC completed 14 advisory projects, including work in Romania's health sector, rural electrification in the Philippines, Nigeria's Abuja Airport, the Jeddah desalination plant and Hajj Airport Terminal in Saudi Arabia, a logistics hub in Panama, telecommunications in Kenya, and Jordan's main airport. Another eleven projects are ongoing. Value Addition to Firms 168. IFC helps private firms enhance their competitiveness and productivity, and IFC promotes the growth of small businesses through the development of supply chains. IFC's programs also help clients improve corporate governance and prevent and treat HIV/AIDS in their workforce and local communities. IFC is active in developing grassroots organizations and business associations, and IFC works on many fronts to expand economic opportunities for women. 169. IFC's AS specialists work with investment teams to provide value-added services such as supply chain linkages or corporate HIV/AIDS programs. IFC has also developed tools and products, especially for small business development, that are used in combination with other projects. These include a range of training programs for new entrepreneurs. 170. In fiscal 2007, the most active business lines were the value addition to firms (29 percent), the business enabling environment (21 percent), and the access to finance (21 percent). The shares of infrastructure business line and environmental and social sustainability business line in IFC's advisory activity were 16 percent and 13 percent respectively. Multilateral Investment Guarantee Agency (MIGA) Multilateral Investment Guarantee Agency FY2007 US$'million Cash Contributions received during the year 0 Disbursements made during the year 3 75 The World Bank Group 2007 Trust Funds Annual Report Annex H Trust Funds Administered by IFC and MIGA 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 information services and technical assistance (TA). 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, as well as underwrite guarantees for private sector investments in conflict-affected areas. Technical assistance backed by trust funds 173. Since 1998 MIGA has financed a baseline level of capacity building, investor outreach, and knowledge-sharing services for all its member countries from its administrative budget. Online investment information services and knowledge-sharing portals are made available to all country clients and investors at no charge. For countries seeking to promote themselves as investment locations, MIGA facilitates the use of the internet as a low-cost, effective marketing channel. MIGA's core investment information services, including IPAnet, PrivatizationLink, and FDI Xchange, were initially funded in part by bilateral donors, including Austria and Japan. Their ongoing operation and maintenance costs have now been assumed by MIGA. 174. For country clients requesting assistance for building their capacity to promote foreign direct investment, MIGA has provided capacity building programs to address the needs identified. Many of these programs have been co-financed by bilateral and multilateral donors, through trust funds, or by the beneficiary institution. 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. 175. On January 2007, MIGA's Board of Directors approved the integration of its technical assistance activities into the Foreign Investment Advisory Service (FIAS), a multi-donor service of the International Finance Corporation (IFC) and the World Bank. Through this integration, the institutional landscape for Bank Group stakeholders has been simplified by further consolidating TA in the business enabling environment area. This alignment will strengthen the services that the Bank Group can provide through greater harmony of objectives and consistency of approach, which, together, should increase overall impact and sustainability. Whereas MIGA's TA has focused primarily on providing assistance to investment promotion intermediaries, through its integration with FIAS, comprehensive programs, which range from regulatory simplification to investment policy and industry-specific reform, will be delivered and would further advance MIGA's mandate of facilitating FDI. While day-to-day operations of the facility are managed by FIAS, MIGA plays a direct role in shaping FIAS' strategy through its membership in the four-person Supervisory Committee. Through this oversight, MIGA will ensure that its mandate of promoting FDI continues to be met. Financial contributions from IFC, 76 The World Bank Group 2007 Trust Funds Annual Report Annex H Trust Funds Administered by IFC and MIGA MIGA, the Bank and various external donors fund the FIAS work program. Finalization of the trust fund transfer arrangements is expected to be completed within fiscal 2008. Environmental and Social Policies 176. The MIGA has received a US$1 million grant from the Japanese Government to launch a pilot facility to help foreign investors address environmental and social challenges in Africa. MIGA administers the grant whose focus is on supporting investors to meet MIGA's environmental and social policies, thereby ensuring that investments are environmentally and socially sound, and contribute to achieving environmental sustainability. MIGA clients in Africa include some Small or Medium-scale Enterprise (SME) investors with scarce resources or limited experience in implementing internationally recognized environmental and social best practices for their projects. With assistance from this trust fund, plans and programs to address the possible environmental and social issues and enable the investments to proceed. And with MIGA's strict environmental and social standards being met, MIGA is then better able to provide its political risk insurance guarantees. Guarantees backed by trust funds 177. Donor trust funds that backstop guarantees allow MIGA to further leverage its insurance capacity. They provide the expanded flexibility needed to: (1) jointly develop, with external partners, new products that address the evolving needs of the private sector; (2) help MIGA mobilize guarantee capacity in countries where it could not otherwise operate; and (3) underwrite certain highly developmental projects that it could not otherwise support due to restrictions in the MIGA Convention. Thanks to partnerships with donors and the establishment of specialized guarantee trust funds, MIGA is able to promote FDI in new and innovative ways. 178. The multi-donor Afghanistan Investment Guarantee Facility (AIGF) reflects these principles. The facility was financed through an IDA Credit (US$5 million equivalent), a concessional loan from the Asian Development Bank (US$5 million equivalent) to the Government of Afghanistan, as well as a UK grant of £1 million. These contributions are kept in trust with MIGA and leveraged with co-insurance by both MIGA (up to US$10 million) and the Asian Development Bank (ADB) (up to US$10 million). 179. In fiscal 2007, a US$0.345 million guarantee was issued by MIGA through this facility to Business Humanitarian Forum for its investment in the Baz International Pharmaceutical Company. The project aims to improve the availability, quality and access to essential medicines in Afghanistan and has received the full support of the Afghanistan Ministry of Public Health. The project involves the development of local production for essential generic medicines through the establishment of a pharmaceutical production plant. The project will build, equip and train staff for a low tech, direct tablet compression production facility that will have the capacity for dispensing, compression and packaging processes. This is the first pharmaceuticals plant in Afghanistan adhering to international standards of production and quality control. One of the project partners is the European Generic Medicines Association (EGA), which has designed the technical assistance, standard operating procedures and quality assurance. 77 The World Bank Group 2007 Trust Funds Annual Report Annex H Trust Funds Administered by IFC and MIGA 180. MIGA also provided a guarantee of US$1.5 million in support of the establishment of a Greenfield commercial bank, BRAC Afghanistan Bank (BAB or Bank) in Afghanistan. The project is sponsored by BRAC NGO, an established microfinance non governmental organization (NGO) in Bangladesh, with solid operations in Afghanistan. The Bank will focus on offering financial services to small enterprises, NGOs, and other companies operating in Afghanistan, as well as mobilizing the largely untapped domestic and international remittance market. 78 The World Bank Group 2007 Trust Funds Annual Report Annex I Trust Funded Operations Financial Information Summary Annex I The World Bank Group Trust Funded Operations Financial Information Summary Year Ended June 30, 2007 An electronic copy of this report can also be accessed at http://tf via the link "Resources and Reports" The World Bank Group 2007 Trust Funds Annual Report 79 Annex I Trust Funded Operations Financial Information Summary Table of Contents Page 1. Introduction 81 2. Trust Funded Operations ­ Financial Highlights 82 3. Donor Funds Held as Cash and Investments 84 4. Cash and Investments 85 5. Promissory Notes 86 6. Contributions and Disbursements by Program 87 7. Contributions by Donor 88 8. Disbursements by Managing Unit 89 9. Disbursements by Category 90 Glossary of Terms 80 Annex I Trust Funded Operations Financial Information Summary 1. Introduction This report provides unaudited aggregate financial information on the trust-funded operations administered individually or jointly by the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA) and the International Centre for Settlement of Investment Disputes (ICSID), in this report collectively referred to as the "Bank". Trust-funded operations 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. They contribute to the Bank's poverty reduction mission by supporting innovative approaches to the design and implementation of development projects. Audit requirements for trust funds are contained in the Bank's Operational Policy (OP 14.40), Bank Procedures (BP 14.40), and Trust Fund Hand Book. Trust funds administered by the Bank are subject to the annual "single audit", formally Management's Assertion Regarding Effectiveness of Internal Control over Financial Reporting of Trust Fund Activities, which provides reasonable assurance that the Bank's overall internal control framework surrounding trust funds provides accurate and reliable cash-based financial reports. Additional information regarding individual trust funds and donor-funded programs can be obtained at http://tf. Comparative Information Previous year numbers have been regrouped to make them comparable with current presentation. This report is for general use and is not intended to represent the consolidated financial position of trust funds administered by the Bank. Questions or comments on the report should be addressed to Mr. Brian P. Quinn, Division Manager, Trust Funds Division, at bquinn@worldbank.org. 81 Annex I Trust Funded Operations Financial Information Summary 2. Trust Funded Operations ­ Financial Highlights International Finance Facility for Immunisation (IFFIm): Since October 2006, IBRD has been holding assets and providing treasury manager and trustee services for a new 'AAA' rated financing vehicle, IFFIm and its disbursing arm, GAVI Fund Affiliate (GFA), both of which are United Kingdom-based charitable companies. The financial assets of IFFIm comprise legally binding and irrevocable payment obligations from seven sovereign donors: the United Kingdom, Italy, France, Spain, Sweden, Norway and South Africa. The donors will pay in several installments in accordance with predetermined payment schedules over the next 20 years. As at June 30, 2007, a total of $72 million had been received from seven donors in accordance with these payment schedules and the total nominal value of the remaining donor receivables amounted to $4,161 million. In November 2006, IFFIm launched its inaugural bond issuance raising $1 billion from international capital markets. This allows IFFIm/GFA to disburse funds for immunization and health programs in 70 developing countries before actually collecting funds from the donors. Up to June 30, 2007, such disbursements amounted to $735 million. As at June 30, 2007, IFFIm/GFA's fund balance is $324 million. IFFIm bonds are repayable as a bullet payment in November 2011. Africa Catalyst Growth Fund: This multi-donor fund was set-up with an initial commitment of GBP 200 million by the United Kingdom. Of this commitment, GBP 90 million has been paid during FY07. Ethiopia Protection of Basic Services Project: This "Free-Standing Grant" was set-up with donor pledges from Canada, the Netherlands and the European Community amounting up to US$ 236 million. Of this commitment, US$ 101 million has been paid by the European Community during FY07. Republic of Serbia Trust Fund for Advance Payment of Interest and Service Charges: This "Debt Service Fund" was set-up to support Serbia's economic reform. During FY07, Serbia deposited Euro 177 million to allow for advance payments of interest and service charges on its loans to IBRD over a three year period. Trust Funds Held at June 30, 2007 amounted to $13.8 billion, up by 30% from $10.6 billion at June 30, 2006. At June 30, 2007 and June 30, 2006, trust funds held belonging to the major programs, Global Fund to Fight AIDS, Tuberculosis and Malaria - GFATM; Global Environment Facility - GEF; Heavily Indebted Poor Countries Debt Initiative program ­ HIPC and Debt service and Debt reduction funds ­ DS & DRF accounted for 52% and 55% respectively, of the total trust funds held, with the details as shown below: Jun-07 Jun-06 GFATM GFATM 24% 25% Others Others 48% 45% GEF GEF DS & DRF HIPC 19% DS & DRF HIPC 20% 3% 6% 2% 8% 82 Annex I Trust Funded Operations Financial Information Summary Trust Funded Operations ­ Financial Highlights (Contd.) Contributions received in cash1 during the year ended June 30, 2007 were $7.33 billion, compared to $5.21 billion received during the year ended June 30, 2006, an increase of 41%. The top five external donors during the year ended June 30, 2007 were United Kingdom ($1,190 million), Netherlands ($766 million), United States ($747 million), European Community ($652 million) and Canada ($533 million). The major trust-funded programs, which accounted for 45% of all cash contributions received during year ended June 30, 2007, were GFATM (28%), GEF (11%), and ARTF (6%). Disbursements made in cash2 during the year ended June 30, 2007 totaled $5.81 billion, an increase of 33% from $4.37 billion during year ended June 30, 2006. The major trust-funded programs, which accounted for 50% of all disbursements made during year ended June 30, 2007, were GFATM -- 28%, IFFIm/ GFA3 -- 13%, and GEF -- 9%. Contributions and Disbursements for year ended 8,000 7,334 int no 5,214 illi 6,000 4,750 5,808 Contributions oun m 4,000 mA DSU 4,128 4,374 Disbursements 2,000 - Jun-05 Jun-06 Jun-07 Number of Active Trust Funds June 30, 2007 June 30, 2006 Number of Active Trust Funds 4 1,015 929 1Cash contributions exclude $75 million of funds refunded from Debt Reduction Facility to IBRD, and remitted back to the Facility in FY07 2Disbursement excludes IFFIm's losses from derivatives and interest expense. 3Refer to "Trust Funded Operations ­ Financial highlights" section for more information on International Finance Facility for Immunisation (IFFIm) and its disbursing arm, GAVI Fund Affiliate (GFA). 4Many trust funds are made up of a non-disbursing parent fund and a number of disbursing subsidiary funds. This report consolidates these funds and counts them as a single fund or a program. 83 Annex I Trust Funded Operations Financial Information Summary 3. Trust Funds Held as Cash and Investments Cash contributions received from donors and proceeds received through issuance of IFFIm bonds, but not yet disbursed, are held as cash and investments. (in millions of U.S. dollars) June 30, 2007 June 30, 2006 Major Trust-Funded Programs GFATM 3,249 2,626 GEF 2,497 2,132 HIPC 851 865 IFFIm/GFA3 324 - Other Trust-Funded Programs Greater than $30 million Single Purpose and Programmatic Funds 1,122 1,083 Free-Standing Grants5 1,087 645 Debt Service and Debt Reduction Funds 472 163 International Finance Corporation Funds 463 339 Iraq Reconstruction Fund 392 411 Carbon Finance 365 253 Afghanistan Reconstruction Trust Fund 318 274 Donor Balance Accounts and Holding Funds 219 190 Africa Catalytic Growth Fund 176 - West Bank and Gaza 200 140 Trust Fund for Government of South Sudan 174 159 Funds for Aceh, Indonesia 160 100 Montreal Protocol/Ozone Funds 138 95 African Capacity Building Foundation 120 104 Trust Fund for North Sudan 116 70 Institutional Development Fund 75 71 Nile Basin Initiative Trust Fund 71 58 Lebanon Fund 70 - Low Income Countries under Stress 58 36 Special Climate Change Fund 54 32 Least Developed Countries Fund for Climate Change 50 24 Water and Sanitation Program 42 24 Public-Private Infrastructure Advisory Facility 42 32 EFA-FTI Education Program Development Fund 41 23 Avian and Human Influenza Trust Funds 40 - EFA-FTI 40 - Consultative Group to Assist the Poorest 38 39 Financial Sector Reform & Strengthening 35 36 Other Trust-Funded Programs Less than $30 million 669 530 Total Funds held on behalf of Donors6 13,768 10,554 5Non-programmatic funds that support a specified activity or set of activities in a specific country, region or globally. 6Total funds held on behalf of donors exclude interim advances from IBRD resources which totaled $4 million at June 30, 2007 and $7 million at June 30, 2006. 84 Annex I Trust Funded Operations Financial Information Summary 4. Cash and Investments Cash contributions received from donors for funds administered by the Bank, proceeds received through issue of IFFIm3 bonds and administration fees recovered from funds are managed by the IBRD's Treasury Department, which maintains a single investment portfolio for all the funds that are administered by the World Bank Group. These funds are held separately from the assets of the IBRD/IDA, IFC, MIGA and ICSID. The Bank invests the funds pending their disbursement in liquid instruments such as money market instruments, government and agency obligations, mortgage backed securities and other high grade bonds. The aggregation of such investments is herein referred to as the "Pool". The Pool is managed on a commingled basis considering investment horizons and cash flow profiles of different programs. U.S. dollar and Euro balances in funds with shorter investment horizons (up to one year) are invested in a shorter duration sub portfolio (Tranche 1) within the Pool with a higher proportion of short-term, cash-like investments. U.S. dollar balances in funds with longer investment horizon and a minimum size (currently consisting of major programs) participate in a longer duration sub portfolio (Tranche 2) with a larger proportion of longer term investments. In November 2006, Tranche 3 was established for IFFIm with interest rate sensitivity matching the liabilities funding the IFFIm portfolio. Non-US$/Euro balances are currently passively managed against money market type benchmarks. Average U.S. dollar returns based on the market value of investments for the year ended June 30, 2007, were 5.41% for Tranche 1, 5.64% for Tranche 2, 3.54% (for 8 months only) for Tranche 3 and average EUR return for the year ended June 30, 2007 for Tranche 1 is 3.57%. Similarly, average U.S. dollar returns for the year ended June 30, 2006 were 3% for Tranche 1 and 1.80% for Tranche 2. Average returns for aggregate non-U.S. dollar/Euro currency balances was 4.56% for the year ended June 30, 2007 and average returns for aggregate non-U.S. dollar currency balances was 2.76% for the year ended June 30, 2006. The following table shows composition of investments as at each reporting date. Investment portfolio June 30, 2007 June 30, 2006 (in millions of U.S. dollars) Tranche Tranche Tranche Tranche Tranche 1 2 3 Total 1 2 Total U.S. dollar portfolio Money Market (MM) /Cash 3,407 501 209 4,117 30% 3,376 1,032 4,408 42% Domestic Government Bonds 1,371 1,532 - 2,903 21% 949 1,406 2,355 22% Asset Backed Securities (ABS) 1,255 1,097 43 2,395 17% 410 880 1,290 12% Agency Bonds 1,115 589 49 1,753 13% 162 239 401 4% Mortgage Backed Securities (MBS) - 1,473 - 1,473 11% - 1,346 1,346 13% Subtotal 7,148 5,192 301 12,641 92% 4,897 4,903 9,800 93% EUR Portfolio Money Market (MM) /Cash 584 - - 584 4% - - 457 4% Domestic Government Bonds 268 - - 268 2% - - - - Sovereign/Government Guarantees 15 - - 15 - - - - Subtotal 867 - - 867 - - 457 4% Non ­ U.S. dollar portfolio Money Market(MM)/Cash - - - 260 2% - - 297 3% Total 8,015 5,192 301 13,768 100% 4,897 4,903 10,554 100% 30-Jun-07 30-Jun-06 Agency Agency 13% ABS MMand 12% 4% ABS Cash MBS MMand 17% 36% 13% Cash 49% MBS Domestic Domestic 11% Govt Bonds Govt Bonds 23% 22% 85 Annex I Trust Funded Operations Financial Information Summary 5. Promissory Notes In certain trust-funded programs, contributions pledged by donors are settled through deposit of demand notes or they otherwise meet the definition of a financial instrument. These are recorded as promissory notes when received and they are encashed based on schedules agreed with the donors and are recorded as cash contributions upon encashment. Promissory notes held at June 30, 2007 amounted to $7.63 billion up by 198% from $2.56 billion at June 30, 2006. The significant increase in promissory notes is mainly due to legally binding and irrevocable payment obligations for IFFIm/GFA3. (in millions of U.S. dollars) June 30, 2007 June 30, 2006 IFFIm/GFA3 4,161 - Carbon Finance 1,688 801 Global Environment Facility 1,263 1,541 Global Funds to Fight AIDS, Tuberculosis and Malaria 397 37 Heavily Indebted Poor Countries 118 144 Other Trust-Funded Programs 4 38 Total 7,631 2,561 June 30, 2007 June 30, 2006 Others Others GEF Carbon 7% 9% 17% Finance 31% Carbon IFFIM/GFA Finance 54% 22% GEF 60% 86 Annex I Trust Funded Operations Financial Information Summary 6. Contributions and Disbursements by Program (in millions of U.S. dollars) Contributions Disbursements Year ended June 30, Year ended June 30, 2007 2006 2007 2006 Major Trust-funded Programs Global Fund to Fight AIDS, Tuberculosis and Malaria 2,060 1,313 1,607 1,138 Global Environment Facility 831 720 544 528 Heavily Indebted Poor Countries 165 390 224 769 IFFIm/GFA2,3 72 - 735 - Other Trust-funded Programs Free Standing Grants5 1,288 668 875 414 Afghanistan Reconstruction Trust Fund 463 363 428 335 Single Purpose and Programmatic Funds 332 293 319 274 International Finance Corporation Funds 288 231 188 134 Debt Service and Debt Reduction Funds7 269 16 43 2 Africa Catalytic Growth Fund 175 - 1 - Funds for Aceh, Indonesia 156 218 104 148 Carbon Finance 134 165 41 34 Montreal Protocol/Ozone Funds 123 56 83 61 West Bank and Gaza 115 120 44 119 Consultative Group on International Agricultural Research 89 100 94 102 Trust Fund for Government of South Sudan 86 167 79 9 Lebanon Fund 70 - 2 - Trust Fund for North Sudan 61 73 19 3 African Capacity Building Foundation 55 19 45 25 Water and Sanitation Program 46 18 25 18 Avian and Human Influenza Trust Fund 45 - 3 - Java Reconstruction Program 40 - 18 - EFA ­ FTI 40 - - - Donor Balance Accounts and Holding Funds 34 - - - Low Income Countries under Stress 32 26 11 8 EFA ­ FTI Program Development Fund 28 19 9 2 Nile Basin Initiative Fund 28 16 23 7 Public Private Infrastructure Advisory Facility 25 6 18 17 Least Developed Countries Fund for Climate Change 25 12 1 6 Special Climate Change Fund 22 24 2 - International Centre for Settlement of Investment Disputes 19 13 15 11 Institutional Development Fund 16 16 16 17 Consultative Group to Assist the Poorest 15 8 17 17 Environmentally and Social Sustainable development Fund 15 12 11 12 Financial Sector Reform and Strength 11 9 13 9 Onchocerciasis/Tropical Diseases Research 8 13 16 7 Iraq Reconstruction Fund 4 53 44 37 Consultant trust Funds - 2 25 28 Others 49 55 66 83 Total8 7,334 5,214 5,808 4,374 7Excludes $ 75 Million of funds refunded from DRF to IBRD and remitted back to facility in FY07. 8Cash contributions are reported in the program which first receives the fund and cash disbursements are reported in the program from which they are paid. 87 Annex I Trust Funded Operations Financial Information Summary 7. Contributions by Donor Year Ended June 30, (in millions of U.S. dollars) 2007 2006 Sovereign Countries and the European Community United Kingdom 1,190 654 Netherlands 766 514 United States 747 735 European Community 652 493 Canada 533 217 Japan 412 392 Germany 332 165 France 288 177 Serbia 234 - Sweden 230 166 Norway 209 273 Spain 203 107 Italy 97 293 Denmark 95 101 Australia 81 56 Belgium 78 33 Switzerland 56 47 Finland 52 45 Ireland 45 49 Austria 24 25 Russia 16 28 Luxembourg 14 10 Portugal 12 10 New Zealand 11 10 China 7 5 South Africa 7 1 Czech Republic 7 1 Others 40 39 Subtotal 6,438 4,646 World Bank Group IBRD7 245 277 IFC 162 144 Subtotal 407 421 Other Donors Gates Foundation 229 - UNEP 123 57 GFATM Secretariat 12 10 IFRC 10 - UN Foundation 9 15 UNAIDS 7 6 Endesa, S.A. 7 - Others 92 59 Subtotal 489 147 Total Cash Contributions 7,334 5,214 88 Annex I Trust Funded Operations Financial Information Summary 8. Disbursements by Managing Unit (in millions of U.S. dollars) Year Ended June 30, Recipient- Limited IBRD/IDA Bank- executed executed Fiduciary Total Arrangement Regions 2007 2006 2007 2006 2007 2006 2007 2006 Africa 51 40 652 257 64 34 767 331 South Asia 14 10 553 399 - 3 567 412 East Asia and Pacific 43 39 457 325 13 56 513 420 Europe and Central Asia 7 6 108 129 40 - 155 135 Middle East and North Africa 14 11 129 175 - - 143 186 Latin America and the Caribbean 6 5 97 105 - - 103 110 Subtotal 135 111 1,996 1,390 117 93 2,248 1,594 Other Managing Units Resource Mobilization & Co financing 25 28 - - 2,901 2,250 2,926 2,278 Infrastructure Network /PSI 86 69 33 31 134 132 253 232 Human Development 15 11 24 - - 4 39 15 Private Sector Development 5 3 - - 28 24 33 27 World Bank Institute 20 22 1 1 1 2 22 25 Development Economics / Chief Economist 13 12 2 2 - - 15 14 Legal 1 - 6 1 5 - 12 1 Poverty Reduction and Economic Management 7 5 - - - - 7 5 External Affairs 4 2 - - - - 4 2 GEFSEC - - - - 3 1 3 1 Others 4 6 2 2 - 12 6 20 Subtotal 180 158 68 37 3,072 2,425 3,320 2,620 Other World Bank Group Organizations IFC9 163 126 59 22 - - 222 148 ICSID 15 11 - - - - 15 11 MIGA 3 1 - - - - 3 1 Subtotal 181 138 59 22 - - 240 160 Total Cash Disbursements 496 407 2,123 1,449 3,189 2,518 5,808 4,374 9Recipient executed disbursement for IFC represents Development grant for Bank executed projects. 89 Annex I Trust Funded Operations Financial Information Summary 9. Disbursements by Category 16 (in millions of U.S. dollars) Year ended June 30, 2007 2006 IBRD/IDA Bank Executed (BE) Standard product line 116 96 AAA Client support 77 74 Lending appraisal and supervision 39 41 Others 83 58 Subtotal 315 269 Recipient Executed (RE) Bank financed (IBRD/IDA) project 960 495 Implementing agency arrangements 179 174 Stand alone projects 733 509 Development grants 20 21 Others 172 228 Subtotal 2,064 1,427 Limited Fiduciary Arrangements (FA) Financial Intermediary 2,844 1,626 IBRD/IDA Debt service 267 771 Financing Vehicles 41 34 Others 37 87 Subtotal 3,189 2,518 Other Bank Group IFC 222 148 ICSID 15 11 MIGA 3 1 Subtotal 240 160 Total Cash Disbursements 5,808 4,374 June 30, 2007 June 30, 2006 Other WBG Other WBG IBRD/IDA - BE group group IBRD/IDA - BE 5% 4% 4% 6% IBRD/IDA - RE IBRD/IDA - RE IBRD/IDA - FA 36% 33% 55% IBRD/IDA - FA 57% 16The disbursement by category reported in the table above may not be consistent with that in other sections of this Trust Fund Annual Report. This is because the categorization of disbursements in the table above is based on the nature of trust fund agreement with donors at the overall project level, whereas the categorization of disbursements in other sections is based on the nature of execution arrangement at the disbursing project level. 90 Annex J Trust Fund Glossary Annex J Trust Fund Glossary Term Definition Administration Agreement between the Bank and a donor specifying a trust fund's Agreement purposes and scope of activities. It also defines the nature of the Bank's relationship with the donor and spells out, among others, the arrangements governing the use of funds, progress and financial reporting, cost recovery fee, auditing and disclosure of information. Bank-Executed Trust Funds for which the Bank has spending authority, in support of its own Funds program, including analytical and advisory activities, project-related activities, partnership secretariats and TF administration activities. Cash Contributions Amount received in cash by the World Bank from donors during any fiscal year. Cofinancing An arrangement under which funds are provided by third parties for a specific project also financed by a loan, credit or grant from the Bank. Debt Service and Funds established to assist recipients in servicing or reducing their Debt Reduction Trust external obligations or debt to IBRD, IDA or other creditors. Fund Disbursements Payments made from a trust fund account to eligible recipients, not including transfers from one trust fund to another. Donor Any entity that makes funds available to be held in trust by the World Bank, including governments, international and private organizations. In addition, the World Bank contributes to some trust funds from its net income. Financial Funds that are not covered by either Bank-Executed Trust Funds or Intermediary Funds Recipient-Executed Trust Funds. These include funds involving financial engineering and complex financial schemes, or arrangements in which the Bank provides specific administrative or financial services with a limited fiduciary or operational role (previously referred to as fiscal agent). Free-Standing Trust Non-programmatic funds established to finance a specific activity or set Funds of activities as specified in the administration agreement for the trust fund. Grant Funds provided from a trust fund to an external 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. 91 Annex J Trust Fund Glossary Grant Agreement Agreement between the Bank and an external recipient of a trust fund which governs the use of the donor's grant. It spells out the respective responsibilities of the Bank and the recipient. Multi-Donor Trust A mechanism which combines the contributions of multiple donors, Fund generally 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. Programmatic Trust Funds that finance multiple grants, under a two-stage funding Funds mechanism. 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. Promissory Notes Irrevocable and legally binding contributions pledged by donors through signed administration agreements and settled through deposit of a demand note. The demand note is recorded as promissory note when received, encashed based on schedules agreed with the donor and recorded as cash contribution upon encashment. Recipient Any entity that receives trust fund monies, including governmental, quasi governmental, nongovernmental, or private institutions. The World Bank itself may be the recipient of a trust fund in support of Bank activities. Recipient-Executed Funds that the Bank passes on to a third party recipient for development Trust Funds activities, typically financing the investment and recurrent needs of service delivery, capacity building and technical assistance. The Bank normally plays an operational role for these funds, including appraisal and supervision of funded activities. Technical Activities directly supporting technical assistance and capacity building Assistance/Advisory needs of recipient countries and/or the World Bank's own operational Services work program in 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. 92 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://web.worldbank.org/WBSITE/EX TERNAL/TOPICS/EXTDEBTDEPT/0,, contentMDK:20260411~menuPK:5286 55~pagePK:64166689~piPK:64166646 ~theSitePK:469043,00.html Debt Reduction Facility for IDA only Countries DRF http://web.worldbank.org/WBSITE/EXTERNAL/TOPIC S/EXTDEBTDEPT/0,,contentMDK:21288373~menuPK: 4876087~pagePK:64166689~piPK:64166646~theSitePK: 469043,00.html B.1. Sustainable Development Global Environment Facility GEF http://www.thegef.org Least Developed Countries Fund for Climate LDC http://unfccc.int/cooperation_and_support/financial_mech Change anism/least_developed_country_fund/items/3660.php Special Climate Change Fund SCCF http://unfccc.int/cooperation_and_support/financial_mech anism/special_climate_change_fund/items/3657.php Prototype Carbon Fund PCF http://www.prototypecarbonfund.org Netherlands Clean Development Mechanism NCDMF http://carbonfinance.org/Router.cfm?Page=NCDMF&FID Facility =9711&ItemID=9711 Netherlands European Carbon Facility NECAF http://carbonfinance.org/Router.cfm?Page=NECF&FID= 9712&ItemID=9712 Community Development Carbon Fund CDCF http://carbonfinance.org/Router.cfm?Page=CDCF&ItemI D=9709&FID=9709 Bio-Carbon Fund BioCF http://carbonfinance.org/biocarbon/home.cfm Italian Carbon Fund ICF http://carbonfinance.org/Router.cfm?Page=ICF&ItemID= 9710&FID=9710 Danish Carbon Fund DCF http://carbonfinance.org/Router.cfm?Page=DCF&FID=97 13&ItemID=9713 Trust Fund for Environmentally and Socially TFESSEDhttp://web.worldbank.org/WBSITE/EXTERNAL/TOPIC Sustainable Development S/ENVIRONMENT/0,,contentMDK:20276831~pagePK: 148956~piPK:216618~theSitePK:244381,00.html Pilot Program to Conserve the Brazilian Rain BRF http://www.worldbank.org/rfpp/ Forest Consultative Group on International CGIAR http://www.cgiar.org Agricultural Research Nile Basin Initiative NBI http://www.nilebasin.org B.2. Infrastructure Public/Private Infrastructure Advisory Facility PPIAF http://www.ppiaf.org 93 Annex K Webpage Addresses Foreign Investment Advisory Service FIAS http http://www.firstinitiative.org/ Global Partnership on Output-Based Aid GPOBA http://www.gpoba.org/index.asp Energy Sector Management Assistance Program ESMAP http://www.esmap.org Water and Sanitation Program WSP http://www.wsp.org/ Cities Alliance Program CAP http://www.citiesalliance.org Sub-Saharan Africa Transport Policy Program SSATP http://web.worldbank.org/WBSITE/EXTERNAL/COUN TRIES/AFRICAEXT/0,,contentMDK:20267238~menuP K:538703~pagePK:146736~piPK:226340~theSitePK:258 644,00.html Asia Alternative Energy Program ASTAE http://www.worldbank.org/astae/ Information for Development Program infoDevhttp://www.infodev.org/ Global Road Safety Facility http://web.worldbank.org/WBSITE/EXTERNAL/TOPIC S/EXTTRANSPORT/EXTTOPGLOROASAF/0,,menuP K:2582226~pagePK:64168427~piPK:64168435~theSiteP K:2582213,00.html Health and Human Development Global Fund to fight AIDS, Tuberculosis, and GFATM http://www.theglobalfund.org Malaria Global Partnership to Stop Tuberculosis StopTB http://www.stoptb.org Global Program to Eradicate Poliomyelitis GPEP http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/ 0,,contentMDK:20107918~menuPK:34463~pagePK:3437 0~piPK:34424~theSitePK:4607,00.html African Program for Onchocerciasis Control APOC http://www.worldbank.org/gper Education for All Fast Track Initiative Catalytic EFA-FTIhttp://www1.worldbank.org/education/efafti/ Fund China Education Blending Trust Fund CEBTF http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/ 0,,contentMDK:20127246~menuPK:34470~pagePK:4065 1~piPK:40653~theSitePK:4607,00.html Avian and Human Influenza Facility AHI http://web.worldbank.org/WBSITE/EXTERNAL/TOPIC S/EXTHEALTHNUTRITIONANDPOPULATION/EXT TOPAVIFLU/0,,contentMDK:20917407~pagePK:641684 45~piPK:64168309~theSitePK:1793593,00.html Poverty Reduction and Social Development Japan Social Development Fund JSDF http://www.worldbank.org/rmc/jsdf Poverty Reduction Strategy Trust Fund PRSTF http://web.worldbank.org/WBSITE/EXTERNAL/TOPIC S/EXTPOVERTY/EXTPRS/0,,contentMDK:20177803~p agePK:210058~piPK:210062~theSitePK:384201,00.html Indonesian Strategic Poverty Partnership ISPP http://www.dfid.gov.uk/countries/asia/indonesia.asp Africa Catalytic Growth Fund ACGF http://web.worldbank.org/WBSITE/EXTERNAL/COUN TRIES/AFRICAEXT/EXTPROJECTSPROGRAMS/EX TAFRCATGROFUND/0,,contentMDK:20883627~pageP K:64168427~piPK:64168435~theSitePK:2431705,00.htm l 94 Annex K Webpage Addresses Capacity Building and Technical Advisory Services Policy and Human Resources Development PHRD http://web.worldbank.org/WBSITE/EX TERNAL/EXTABOUTUS/ORGANIZ ATION/CFPEXT/EXTTRUFUN/EXT MAINPRO/EXTPHRD/0,,menuPK:252 4328~pagePK:64168427~piPK:641684 35~theSitePK:2524316,00.html Bank-Netherlands Partnership Program BNPP http://web.worldbank.org/WBSITE/EXTERNAL/COUN TRIES/WBEUROPEEXTN/NETHERLANDSEXTN/0,,c ontentMDK:20248428~menuPK:512792~pagePK:14976 18~piPK:217854~theSitePK:403179,00.html Africa Capacity Building Foundation ACBF http://www.acbf-pact.org/ World Bank Institute WBI http://www.worldbank.org/wbi/home.html Global Development Learning Network GDLN www.gdln.org Trust Fund for Statistical Capacity Building TFSCB http://www.worldbank.org/tfscb Knowledge for Change Program KCP http://web.worldbank.org/WBSITE/EXTERNAL/EXTDE C/EXTRESEARCH/EXTPROGRAMS/EXTKNOWLED GEOFCHANGE/0,,menuPK:491554~pagePK:64168176~ piPK:64168140~theSitePK:491543,00.html Post-Conflict Reconstruction and Natural Disaster Relief Post-Conflict Fund PCF http://web.worldbank.org/WBSITE/EX TERNAL/TOPICS/EXTSOCIALDEVE LOPMENT/EXTCPR/0,,contentMDK:2 0486203~menuPK:1260916~pagePK:14 8956~piPK:216618~theSitePK:407740, 00.html Low-Income Countries Under Stress LICUS http://www1.worldbank.org/operations/licus Implementation Trust Fund Iraq Reconstruction Trust Fund IRTF http://web.worldbank.org/WBSITE/EXTERNAL/COUN TRIES/MENAEXT/IRAQEXTN/0,,contentMDK:202417 01~menuPK:1557462~pagePK:1497618~piPK:217854~t heSitePK:313105,00.html Afghanistan Reconstruction Trust Fund ARTF http://www.worldbank.org/artf Trust Fund for Gaza and West Bank TFGWB http://www.worldbank.org/we 95 Annex K Webpage Addresses Trust Fund for East Timor TFET http://web.worldbank.org/WBSITE/EXTERNAL/COUN TRIES/EASTASIAPACIFICEXT/TIMORLESTEEXTN/ 0,,contentMDK:20185391~pagePK:141137~piPK:14112 7~theSitePK:294022,00.html Consolidation Support Program CSP http://intranet.worldbank.org/WBSITE/INTRANET/INT COUNTRIES/INTEASTASIAPACIFIC/INTEAPREGT OPHEANUT/0,,contentMDK:20678354~menuPK:50276 9~pagePK:34003966~piPK:34003685~theSitePK:502735 ,00.html Multi-Country Demobilization and MDRP http://www.mdrp.org/ Reintegration Program Multi-Donor Fund for Aceh and Nias MDF http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/ 0,,contentMDK:20996834~menuPK:34465~pagePK:3437 0~piPK:34424~theSitePK:4607,00.html Sudan Multi-Donor Trust Funds http://web.worldbank.org/WBSITE/EXTERNAL/COUN TRIES/AFRICAEXT/0,,contentMDK:21033447~menuP K:258657~pagePK:2865106~piPK:2865128~theSitePK:2 58644,00.html Global Facility for Disaster Reduction and GFDRR http://gfdrr.org/index.cfm?Page=home&ItemID=200 Recovery Financial Sector Strengthening and Crisis Management Financial Sector Reform and Strengthening FIRST http://www.firstinitiative.org Initiative Consultative Group to Assist the Poor CGAP http://www.cgap.org Trust Funds Administered by IFC and MIGA International Finance Corporation IFC http://www.ifc.org/tatf Multilateral Investment Guarantee Agency MIGA http://www.miga.org 96 Photo Credits Cover Scott Wallace Thomas Sennett Jim Pickerell Curt Carnemark, Alejandro Lipszyc Copyright© 2006 The International Bank for Reconstruction and Development /The World Bank 1818 H Street NW Washington DC 20433 USA Telephone: 202-473-1000 Internet: www.worldbank.org E-mail: feedback@worldbank.org All rights reserved The findings, interpretations, 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