2021 TRUST FUND ANNUAL REPORT Trust Funds & Partner Relations Development Finance Introduction TABLE OF CONTENTS Message from the Vice President i Executive Summary: Toward Greater Resilience iv 1. OPTIMIZING EXTERNAL FUNDING AND PARTNERSHIPS 1 1.1 Value Proposition of Trust Funds 1 1.2 World Bank Group and Trust Funds 1 1.3 Enhancing Effectiveness Through Institutional Changes 7 1.4 Transitioning to Umbrella 2.0 Programs 10 1.5 Bringing the Best of WBG to Trust Fund Partnerships 18 2. RESPONDING TO THE COVID-19 CRISIS 23 2.1 Trust Fund and FIF Contributions 23 2.2 Stories from the Field 30 3. BUILDING RESILIENCE NOW AND INTO THE FUTURE 35 3.1 World Bank Trust Funds 36 3.2 IFC Trust Funds 46 3.3 Financial Intermediary Funds 48 4. FINANCIAL ANALYTICS OF WORLD BANK GROUP TRUST FUNDS AND FIFS 51 4.1 Inflows 55 4.2 Outflows 61 4.3 Assets 69 4.4 Externally Financed Outputs 75 ANNEXES 77 Annex A. Abbreviations and Acronyms 77 Annex B. List of Boxes, Figures, and Tables 78 Annex C. List of Umbrella 2.0 Programs as of June 30, 2021 80 Annex D. List of Trust Funds and FIFs Referenced in this Report 83 Acknowledgments 88 Throughout this report, the term “World Bank” and the abbreviated “Bank” refer only to IBRD and IDA; the term “World Bank Group” and the abbreviated “Bank Group” refer to the five institutions: IBRD, IDA, IFC, MIGA, and ICSID. The terms “donors” and “development partners” are also used interchangeably throughout the report. MESSAGE FROM THE VICE PRESIDENT This was a year dominated by COVID-19 and the ensuing global health and economic crisis. The pandemic has taken lives and disrupted livelihoods in every corner of the world. It has raised the urgency of mitigating severe economic impacts on poverty and overcoming the dangers of climate change, systemic inequality, social instability, financial risks, declining growth rates, and conflicts. The World Bank Group’s ongoing response to the COVID-19 crisis has been massive and decisive, with trust funds and financial intermediary funds (FIFs) contributing to immediate relief initiatives and providing strategic support to countries as they rebuild for a resilient recovery. This report highlights the important work trust funds and FIFs are supporting to help shorten the crisis and lay a strong foundation for a future that is more prosperous and better prepared for disasters like COVID-19. Ongoing trust-funded activities are part of the World Bank Group’s efforts to build this foundation of greater resilience. Looking across the thematic areas of health, climate action, gender, social protection and jobs, and debt management, this report shows how trust fund and FIF resources—disbursing $51.62 billion from fiscal years 2017 to 2021—support the World Bank Group’s goals to end extreme poverty and promote shared prosperity through greener, more inclusive and more resilient development. Trust funds and FIFs complement the core funding and activities of the World Bank Group, increase the scope and reach of its activities, and further its knowledge and learning agenda. They help address global and regional issues that transcend national boundaries and make it possible to support countries, such as non-members and those in arrears, where the World Bank Group cannot provide financing from its own resources. This report also examines how the World Bank Group brings value to trust-funded partnerships. Its convening power, at both the international and country level, optimizes coordinated action on shared development priorities to achieve impact at scale. Partners benefit from the World Bank Group’s extensive technical expertise, country experience and supervision capacity, and its ability to monitor and report on results. Ongoing reforms in trust fund and FIF management also ensure strategic alignment, efficiency, transparency, collaboration, and predictability in the use of resources. As part of the drive to enhance financial sustainability, new measures are also being implemented to recover costs in delivering externally funded activities. Partnerships are at the core of trust fund and FIF success, and we thank all our development partners, implementing partners, and client countries for their engagement, collaboration, and dedication to our shared mission and vision. Our work ahead is more critical than ever. Together, we are building on forward momentum to generate a resilient recovery that ensures a broad and lasting rise in prosperity for all. Akihiko Nishio Vice President Development Finance, World Bank Group WBG Trust Fund Annual Report 2021 Introduction i World Bank WORLD BANK GROUP TRUST FUNDS AND FINANCIAL INTERMEDIARY FUNDS • • • • • • ii WBG WBG Trust Fund Trust Annual Fund Report Report 2021 Annual2021 Introduction Introduction iii EXECUTIVE SUMMARY: The World Bank Group’s crisis response has provided an opportunity to support a strong, TOWARD GREATER RESILIENCE durable recovery that tackles rising poverty and deepening inequality while addressing both the immediate devastation wrought by the COVID-19 pandemic and the longer-term challenge of The COVID-19 crisis has affected economies around The World Bank Group has mounted a broad climate change. Green, resilient, and inclusive the world and shocked every sector from health and decisive response to the crisis—the largest development, or GRID, is the Bank Group’s and the environment to education and jobs to the in its history. From April 1, 2020 through June 30, renewed and refocused approach to collective macroeconomy and government debt, to name just 2021, the World Bank Group committed over $157 action on interlinking challenges. a few. The impacts of the pandemic have cascaded billion, including $45.6 billion in financing from This Trust Fund Annual Report, Toward Greater into developing markets and hit vulnerable the International Bank for Reconstruction and Resilience, speaks to the many ways that trust populations especially hard. COVID-19 has severely Development (IBRD) for middle-income countries, funds and financial intermediary funds (FIFs) disrupted access to many essential health services, $53.3 billion in concessional financing and grants are contributing to the World Bank Group’s particularly in the poorest nations with the most from the International Development Association effort to help client countries respond to the fragile health systems, and has spawned the worst (IDA) for the poorest countries, $42.7 billion from the ongoing health and economic crisis stemming crisis to education and learning in a century. Rising International Finance Corporation (IFC) to private from COVID-19 and recover without significant global inequalities, lagging progress in economic companies and financial institutions, $7.6 billion setbacks to their long-term development agendas. and social development, multiple prolonged violent in guarantees from the Multilateral Investment Covering July 1, 2020 to June 30, 2021 (fiscal year conflicts, and increased forced displacement have Guarantee Agency (MIGA) to support private 2021 or FY2021), this year’s report provides an all been exacerbated by the pandemic. Women and sector investors and lenders, and $7.9 billion for overview of the World Bank Group’s trust funds girls have borne the brunt of impacts at work and recipient-executed activities supported by trust and FIFs totaling $40.24 billion in funds held in in the home. fund resources (Figure 0.1). trust as of June 30, 2021. The report focuses on their core strengths, institutional efficiencies and FIGURE 0.1 World Bank Group Crisis Response Commitments (April 1, 2020–June 30, 2021) reforms, key results and impacts from the field, and financial trends and analytics. Highlighted activities illustrate the strong commitment and support of contributing development partners in addressing the development objectives of client countries. TRUST-FUNDED ACTIVITIES ADD VALUE Trust funds and FIFs are an integral part of the World Bank Group’s development assistance architecture. They complement the core funding and activities of the Bank Group’s institutions—IBRD, IDA, IFC, and MIGA—by providing financial resources and contributing to development knowledge and operational innovations. The flexibility and responsiveness of trust funds and FIFs help to expand World Bank Group lending operations, generate new knowledge, and pilot projects. They help test cutting-edge approaches for scale up, advance development finance innovations, iv WBG Trust Fund Annual Report 2021 Victor Idrogo / World Bank Introduction v and provide technical assistance, advice, and pandemic preparedness and response. Many FIFs training to build stakeholder capacity and enhance look to the World Bank Group as an implementing sustainability. Trust funds and FIFs also build on the partner of choice. Trust funds and FIFs also allow World Bank Group’s convening power and global a broader pool of contributors, including non- and local presence to bring value to clients. governmental entities, to channel funds toward World Bank efforts to enhance global public goods. In FY2021, the World Bank Group disbursed $3.82 billion in trust fund resources (not including FIFs), Moreover, trust-funded activities allow the World the bulk of which, $3.57 billion, was disbursed by Bank Group to provide development resources the World Bank (IBRD and IDA combined). Almost to non-member countries, countries in arrears, three-quarters of World Bank-disbursed trust and non-sovereign entities that cannot receive fund financing, or $2.55 billion, went to recipient- Bank Group financing. MIGA, for example, works executed activities on the ground, representing with development partners to leverage its limited GEF approximately 5 percent of the World Bank’s total resources and to increase the risk appetite of project disbursements. IDA-only countries were private investors in challenging environments. the largest recipients at 66 percent, followed by By collaborating with development partners to IDA trust funds had committed $1.13 billion to 248 In East Africa, the Umbrella Facility for Gender • IBRD countries (17 percent), IBRD-IDA blend establish specialized guarantee trust funds, MIGA World Bank operations that are helping countries Equality (UFGE) has funded research and a pilot countries (7 percent), and the balance to global or mobilizes guarantee capacity in high-risk states respond directly to the COVID-19 crisis. They are program that is showing how digital financial regional activities. affected by fragility, conflict, and violence (FCV), enhancing access to lifesaving COVID-19 vaccines service providers can tailor their product where its operations would be limited. and treatment, and keeping students learning and offerings and marketing to attract more The World Bank disbursed the remaining $1.03 governments solvent, among many other actions. women in agriculture. billion in trust fund resources toward Bank-executed IBRD/IDA trust fund grants are also a critical activities, including knowledge generation, analytical financing source for investments and technical As the Bank Group looks ahead with its GRID In Zambia, the Girls’ Education and Women’s • activities, and project implementation support. assistance for recipient-executed activities in FCV approach, it brings into focus progress already Empowerment and Livelihood (GEWEL) Multi- Over the past five years, trust fund disbursements situations. In FY2021, about 50 percent of total trust being made in strengthening resilience across Donor Trust Fund is helping to expand the for Bank-executed activities have represented 25 fund disbursements for recipient-executed activities systems and society. The report showcases results successful Social Cash Transfer Program, which percent of the Bank’s administrative expenditures, were made to FCV-affected countries, concentrated stories from the field that illustrate how, over the seeks to reach 30 percent of the Zambian including 63 percent of total expenditures for in five locations: Afghanistan, Sudan, West Bank and past five years, trust funds and FIFs have supported population and 50 percent of the poor by 2022. advisory services and analytics (ASA). Gaza, Mozambique, and the Democratic Republic World Bank Group projects and programs in health, of the Congo. Effective implementation of these climate action, gender, social protection and jobs, In Georgia, ongoing engagement through the • IFC Advisory trust funds are a small but critical part activities is subject to the shifting circumstances on Debt Management Facility (DMF) had enabled and debt management—all essential building blocks of IFC’s overall budget, and are used to build the the ground in some of these countries. the country to build a framework for greater for greater resilience. capacity of private sector clients, especially in IDA resilience in government debt management, so countries. IFC trust funds increasingly support IFC’s In Cambodia, the Health Equity and Quality • that it was able to respond effectively when the Creating Markets Upstream approach to create TRUST-FUNDED ACTIVITIES Improvement Program (H-EQIP) Multi-Donor COVID-19 pandemic shocked the economy. bankable projects in the most challenging settings. HELP BUILD RESILIENCE Trust Fund is driving reforms across the health In the Middle East and North Africa, funding • IFC’s blended concessional finance trust funds are sector that have helped to reduce the proportion Trust funds and FIFs are making important from IFC’s MENA Micro, Small and Medium also an important and growing tool for creating of households vulnerable to high health care contributions to all three stages of the World Bank Enterprises (MSME) 2.0 Trust Fund and the markets and stimulating development. The strategic costs by 43 percent from 2015 to 2020. Group’s pandemic response: relief, restructuring, Partnership for Resilient Efficient and Sustainable use of concessional funds for projects with high and resilient recovery. This report sheds light on In Colombia, funding from the Global • SMEs Facility supported the development of an development impact can catalyze private financing the ways in which trust-funded activities are fast- Environment Facility (GEF) has played a interactive webinar series that is helping MSMEs that would not otherwise be available and support tracking funding to emergency needs, boosting critical role in reducing deforestation, conserving increase their business resilience in the wake of the creation of new markets. support for the most vulnerable, and extending the biodiversity, and fostering climate resilience in the COVID-19 crisis. World Bank Group trust funds and FIFs also World Bank Group’s reach to help countries around the Amazon, including piloting a community- support global public goods that help advance the world end the pandemic and emerge stronger, based approach to land-use planning that the key development issues that transcend national more united, more equitable, and more prepared Government of Colombia is scaling up across boundaries, including climate change, fragility, and for future challenges. By the end of FY2021, IBRD/ the Colombian Amazon. vi WBG Trust Fund Annual Report 2021 Introduction vii REFORMS MAKE FUNDING continuously improve the effectiveness of trust combining existing IBRD/IDA trust funds, as well fund resources and activities. The World Bank’s as establishing new programs. This has enabled the MORE EFFECTIVE latest reform to transition the IBRD/IDA trust World Bank to mobilize resources more strategically, The World Bank Group is organized to work across fund portfolio into fewer and larger Umbrella 2.0 efficiently, and effectively to help client countries the entire development spectrum, at the country, Programs aims to deliver transformative solutions for achieve their development objectives. regional, and global levels, to facilitate coordinated client countries and development partners through action for solutions that support its mission to end A new Cost Recovery Framework for IBRD/IDA improved strategic alignment, increased efficiency, extreme poverty and promote shared prosperity. trust funds was launched in FY2021. Building reduced fragmentation and transactions costs, and The Bank Group’s increased presence in more than on the previous one, this framework is simpler, enhanced management oversight. 160 offices worldwide helps to understand better, easier to communicate and more predictable. The work more effectively with, and provide more timely For development partners, the reform elevates the new framework aims to support and maintain the services to its partners in those client countries. World Bank-donor partnership to focus on strategy, budget sustainability, including implementing This geographic spread—combined with a renewed enables collective action at scale on development targeted efficiencies and economies of scale, and delivery model that strengthens cooperation among challenges, supports knowledge exchange, and increasing cost recovery. The new framework also sectoral and regional teams across the World Bank strengthens results reporting and visibility. For increases the recovery of the World Bank’s indirect Group and increases focus on fragile states—help to clients, the reform facilitates better alignment of costs associated with trust funds over time, while strategically align resources with the Bank Group’s trust fund activities with country priorities and maintaining some level of contribution from the priorities and rising demand from client countries to enables trust fund resources to be better integrated Bank in recognition of the partnership nature of achieve better development outcomes. in World Bank country programs. trust funds. The role of trust funds has evolved dramatically During FY2021, the World Bank continued IFC has initiated a proactive and strategic review during the last few decades, and the World Bank the transition to 72 Umbrella 2.0 Programs by of its fundraising efforts and use of trust funds to Group has undertaken initiatives and reforms to consolidating, redesigning, rebranding, and/or ensure alignment with its 3.0 Strategy and Creating Markets Upstream approach in support of private sector investment opportunities. The trust fund reform process has centered around IFC’s new corporate Funding Needs Assessment (FNA), which has allowed IFC to streamline governance and align development partner fundraising with its strategic goals and ensure development partner funds are appropriately balanced with IFC’s resources. By the end of FY2021, the FNA was fully integrated into IFC’s annual budgeting process, thereby facilitating more focused strategic partnerships with development partners. The World Bank Group also began implementing an updated FIF Management Framework in FY2020. This is helping to increase upstream engagement with development partners and shape the dialogue around the continuum of financing instruments available to meet development objectives and keep aid fragmentation in check. Discussions around new proposals now systematically include consideration of building on the existing aid architecture, including existing FIFs. No new FIFs have been established Arne Hoel / World Bank since FY2018. viii WBG Trust Fund Annual Report 2021 Introduction Orlando Barría / World Bank READING THIS REPORT Chapter 4 provides financial information and analytics on the activities of World Bank Group This report and its accompanying volumes delve trust funds and FIFs, as well as externally financed deep into the contributions of World Bank Group outputs. It examines five-year trends on trust trust funds and FIFs during the past five years fund and FIF inflows, outflows, and assets under (FY2017–21). It has the following structure: management—all of which demonstrate the World Chapter 1 explains institutional reforms and how Bank Group’s position as the partner of choice in trust fund programs add value to the World Bank advancing development agendas in countries, Group mission and complement the work of its regions, and around the globe. various arms. It examines how the Bank Group’s 2021 Yearbook of Trust-funded Results is a separate, convening power and technical capacities complementary document that expands on the trust- strengthen international partnering initiatives to funded activities referenced in the report. It shines achieve collective goals more efficiently than one more light on development partner contributions, as partner could achieve by itself. well as the work of beneficiaries and stakeholders Chapter 2 looks at how trust funds and FIFs have on the ground. supported the World Bank Group’s response to the Lessons from the Umbrella 2.0 Transition is a COVID-19 crisis. Fast-acting and targeted trust- separate, complementary document that offers funded activities have helped in relief, restructuring, useful insights and lessons on how IBRD/IDA and resilient recovery efforts to save lives, protect trust funds are being integrated into Umbrella the poor and vulnerable, ensure sustainable 2.0 Programs. business growth and job creation, and strengthen policies, institutions, and investments. Chapter 3 takes a broader view to showcase how trust funds and FIFs have supported World Bank Group public and private sector efforts in health, climate action, gender, social protection and jobs, and debt management during the past five years. These themes illustrate the diversity and strategic value of trust-funded activities in building the foundations for greater resilience now and into the future. x WBG Trust Fund Annual Report 2021 Introduction Victor Idrogo / World Bank TOWARD GREATER RESILIENCE AROUND THE WORLD World Bank Group trust funds and FIFs support a broad range of development activities that are helping UZBEKISTAN communities, businesses, countries, and regions around the world build toward greater resilience. This IFC trust funds scaling up report features the following 39 trust-funded activities, which are further detailed in the 2021 Yearbook of solar energy Trust-funded Results. AFGHANISTAN ARTF and GFF accelerating health service transformation GLOBAL ACTIVITIES CGAP helping microfinance GovTech promoting public PAKISTAN institutions weather COVID-19 sector modernization We-Fi supporting legal reforms EGPS supporting artisanal ID4D refreshing principles GEORGIA on gender equality and small-scale miners on IDs for development DMF building a framework for greater fiscal resilience KYRGYZ REPUBLIC EGPS supporting women GPP improving public in oil, gas, and mining procurement systems GTP improving tax administration and services FIRST improving PPIAF advancing gender equality in PPPs GREECE environmental, social, and governance data Europe2020 reducing NEPAL inequalities through SPF supporting victims of FoodSystems2030 social protection gender-based violence championing sustainable food systems CAMBODIA REGIONAL ACTIVITIES H-EQIP supporting pro-poor approach to health services AFRICA PPIAF building markets for pay-as-you-go solar PHILIPPINES HAITI PPIAF navigating ESMAP providing solar EAST AFRICA COVID-19 impacts energy to health care facilities on PPPs UFGE connecting women in agriculture to digital finance SRI LANKA ID4D launching a COLOMBIA IFC trust fund boosting national digital ID system SAHEL women’s private sector GEF fostering low-carbon participation development in the Amazon SASPP building climate resilience via adaptive social protection IFC trust funds helping cities TUVALU during COVID-19 WEST AFRICA ZAMBIA QIIP informing climate- IFC trust funds strengthening GEWEL improving effectiveness resilient infrastructure the tourism industry of social protection SUDAN EUROPE AND CENTRAL ASIA TUNISIA STARS supporting sustainable STEP-UP strengthening institutions livelihoods and entrepreneurship to support development TERI supporting COVID-19 vaccine roll-out MIDDLE EAST AND NORTH AFRICA SOMALIA IFC trust funds building capacity of IFC trust funds promoting LIBERIA SMEs during COVID-19 private sector investment GFF protecting basic health SOUTHEAST ASIA services during COVID-19 ETHIOPIA Bank-executed (BE) activity IFC Advisory services SEADRIF establishing disaster risk insurance facility MAURITANIA CSF advancing green Recipient-executed (RE) activity IFC Blended finance growth strategies CIIP engaging women in the fisheries sector KENYA InfoDev researching women in tech and entrepreneurship xii WBG Trust Fund Annual Report 2021 Introduction xiii T rust funds are financing instruments that of the World Bank’s analytical work and provide accept contributions from one or more funding to pilot innovative ideas, support the quality and development impact of operations, and make it donors that are held in trust by the World possible for the Bank Group to provide development Bank Group as a trustee and disbursed resources to non-member countries, countries in according to the provisions of the Bank arrears, and other institutions that cannot receive Group’s Administrative Agreement with Bank Group financing. the donor(s) to each trust fund. Trust funds Trust funds are used to mobilize development often create platforms and partnerships for finance. For countries lacking the development financial, knowledge and other forms of finance to achieve their own goals, trust funds complement IBRD and IDA in helping governments collaboration between the Bank Group, its build their capacity to mobilize revenue, manage donors, its client countries, and others at public expenditure and public debt, and improve the global, regional, and country levels. their procurement and public financial management systems. Trust funds support the development of innovative financial solutions and the mobilization of Trust funds combine the advantages of multilateral new, nontraditional sources of development finance. aid (such as larger geographic presence, economies Trust funds are used to address global and of scale, lower administrative costs, and proven regional issues that transcend national boundaries, implementation capacity) with those of bilateral such as climate change, communicable diseases, assistance (targeted assistance in areas such as and other shared challenges. Individual countries fragile situations where donors have limited or can be reluctant to borrow for county-level no presence). Trust funds can also bring down investments that contribute to the provision of transactions costs and reduce the proliferation of global or regional public goods, the benefits bilateral programs. Channeling trust funds through of which transcend national boundaries. Trust multilateral institutions, like the World Bank Group, funds facilitate assembling global and national can also facilitate the integration of global priorities stakeholders into partnerships to support the global into country programs. aspects of public goods. For example, trust funds are helping to boost climate resilience by scaling 1.1 VALUE PROPOSITION OF up the implementation of renewable energy and TRUST FUNDS energy efficiency measures. They are also helping to enhance countries’ response to the COVID-19 Trust funds support the achievement of the World pandemic and preparedness for future pandemics. Bank Group’s goals to end extreme poverty and promote shared prosperity in a sustainable way by providing financial resources, contributing to 1.2 WORLD BANK GROUP AND the knowledge agenda, and building on the Bank TRUST FUNDS Group’s convening power and global and local The World Bank Group consists of five institutions: presence to contribute to country, regional, and the International Bank for Reconstruction and 1 OPTIMIZING EXTERNAL global development. Trust funds complement core World Bank Group Development (IBRD), the International Development Association (IDA), the International Finance FUNDING AND PARTNERSHIPS financing. Trust funds enhance global, regional, and country-level knowledge and provide targeted Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the International support to clients to complement the World Bank Centre for the Settlement of Investment Disputes Group’s own financing. They fund nearly two-thirds (ICSID). IBRD and IDA (collectively the “World Bank”) PHOTO CREDIT: World Bank Chapter 1. Optimizing External Funding and Partnerships 1 administer the largest number of trust funds. IFC and MIGA manage fewer trust funds both in number and BOX 1.1 Bank-executed activities are part of the World Bank’s work program volume. IBRD also manages financial intermediary funds (FIFs)—tailored financing mechanisms that enable the international community to provide a Research activities increase understanding of the economic and social issues critical to the success coordinated response to global priorities. of WBG operations, inform policy dialogue, and influence development thinking more generally. Knowledge products inform global engagements; share existing knowledge; establish World Bank IBRD/IDA TRUST FUNDS and international standards, indicators, and various methodologies; and inform existing and new client IBRD is the largest development bank in the world. engagements. It provides loans, guarantees, risk management Advisory services and analytics (ASA) are services with an external client to inform the World Bank’s products, and advisory services to middle-income policy dialogue and engagement strategy with a country or specified audience (such as think tanks, and creditworthy low-income countries, and academia, NGOs, development partners, governments, and the general public) and to stimulate public coordinates responses to regional and global debate about development challenges and actions at a country, regional, or global level. ASA includes challenges. IDA, the Bank Group’s fund for the innovative, proof-of-concept, and pilot activities leading to the development of diagnostic tool kits that poorest countries, aims to reduce poverty by may be used in subsequent analytical activities. providing zero to low-interest loans and grants for programs that boost economic growth, reduce Technical assistance helps strengthen the capacity of specific institutions and individuals involved in inequalities, and improve people’s living conditions. policy-making or managing investments to enhance project preparation, design, implementation, or the sustainability of project outcomes after a project has closed. As of June 30, 2021, the World Bank had 529 active trust fund accounts at the trustee level, into which donors make their contributions. The World Bank managing unit for each trust fund account disburses Recipient-executed (RE) activities support and Gaza), and non-state recipients, such as civil these resources to support either Bank-executed projects that are typically executed by country- society organizations (CSOs), which cannot receive activities or recipient-executed activities. level recipients, similar to IBRD or IDA financing. direct funding through regular Bank instruments Like IBRD/IDA projects, Bank staff appraise and like IBRD loans or IDA credits and grants. They also Bank-executed (BE) activities are performed by supervise the projects to ensure that the recipients complement IBRD and IDA in providing immediate the World Bank, and constitute part of the Bank’s execute them in accordance with World Bank assistance in response to emergencies, natural work program. Therefore, trust fund disbursements policies and procedures. The recipients who execute disasters, and countries dealing with an influx for BE activities are comparable to and contribute these projects are mostly sovereign governments of refugees. toward the Bank’s administrative expenditures. BE or their agencies, as well as UN agencies or non- activities support the World Bank’s work over the Trust-funded RE activities can either be stand- governmental organizations (NGOs). Therefore, entire range of the project cycle, from upstream alone grants or provide co-financing to projects trust fund disbursements for RE activities form part activities (such as research, learning, and advisory being financed by the World Bank, IFC, FIFs, or of the Bank’s investment project portfolio. services and analytics, or ASA) to country-level other donor financing. In many instances the RE technical assistance and capacity building to support Trust fund support for RE activities enables the Bank grants effectively lower the interest rate charged for project preparation, design, implementation, to expand and complement its lending program to borrowers. They are typically accompanied by and impact evaluations (Box 1.1). In FY2021, trust in several contexts, such as situations of fragility, trust-funded BE activities that support the Bank’s fund disbursements for BE activities represented a conflict, and violence (FCV) or when the Bank’s preparation, appraisal, and implementation of the quarter of the Bank’s administrative expenditures, resources are limited by IDA’s assistance envelope RE grants. Trust-funded RE activities represented including 63 percent of total ASA expenditures. or by the availability of IBRD’s lending resources. RE 5 percent of World Bank disbursements to client grants can also extend the Bank’s reach to countries countries in FY2021. in arrears, non-members (such as the West Bank 2 WBG Trust Fund Annual Report 2021 Chapter 1. Optimizing External Funding and Partnerships 3 Ayesha Abeyratne / IFC IFC TRUST FUNDS IFC uses blended finance to crowd in private sector financing that would otherwise not be available. IFC advances economic development and improves Relatively small amounts of concessional donor the lives of people by encouraging the growth of the funds allow to mitigate specific investment risks and private sector in developing countries. IFC does help rebalance risk-reward profiles of pioneering, this by creating new markets, mobilizing other high-impact investments so that these have the investors, and sharing expertise—all of which help potential to become commercially viable over time. to create jobs and raise living standards, especially IFC takes a disciplined and targeted approach to for the poor and vulnerable. Private investment and blended finance governance, including following key private sector solutions are essential to meet the blended finance principles for development finance World Bank Group’s twin goals of ending extreme institutions: rationale for blended concessional poverty by 2030 and boosting shared prosperity, finance, crowding-in and minimum concessionality, especially given the longer-term economic impact commercial sustainability, reinforcing markets, and of COVID-19. promoting high standards. IFC’s Creating Markets Upstream approach IFC’s blended finance portfolio encompassed 20 envisions a continuum of work, beginning with donor-funded programs at the end of FY2021, Advisory services (to help create the conditions for compared to 10 programs at the end of FY2017, with new investment through reform and development $1.45 billion in active contributions from 11 donors, of promising business sectors) and continuing with including the IDA Private Sector Window.1 support for developing specific projects in which IFC may invest. MIGA TRUST FUNDS Through Advisory programs, IFC works with Sarah Farhat / World Bank MIGA facilitates foreign direct investments into clients, including companies, financial institutions, developing countries by providing guarantees industries, and governments, to transform ideas into (political risk insurance and credit enhancement) increased private sector investment, green growth, Going forward, MIGA plans to augment these Most often launched at high-level, multilateral to investors and lenders. MIGA guarantees protect inclusive job creation, and bankable projects. IFC two existing trust funds with two new trust forums, FIFs enable the international community investments against noncommercial risks and can trust funds are the main instrument for financing IFC fund accounts: one focused on renewable to provide a direct and coordinated response to help investors obtain access to funding sources Advisory services, and increasingly its Upstream energy and another on advisory services to global priorities. They serve as multi-contributor with improved financial terms and conditions. agenda, with funding coming from development address the critical sustainability issues of collaboration platforms, typically governed partners, IFC, and its clients. While donor trust funds MIGA has two active trust fund accounts that help to governance, gender, and environmental and independently, that focus on providing large-scale are an important contributor to delivery of IFC’s expand its guarantee work in FCV countries where social compliance. All four trust funds will be pooled funding in support for global public goods, strategy, they account for a small portion of IFC’s MIGA’s operations would otherwise be limited: the brought under one coordinating MIGA Strategic such as preventing communicable diseases, total resources. Conflict-Affected and Fragile Economies Facility Priorities Framework to ensure internal alignment responding to climate change, and food security. and the West Bank and Gaza Trust Fund. These and a consistent and coordinated approach. Based on data for FY2020 and 2021, partner funding The World Bank manages a large and diverse promote the stability and growth of FCV countries accounted for 13 to 15 percent of total annual portfolio of FIFs. It facilitates the establishment and resources. As of June 30, 2021, IFC had 158 active by catalyzing private capital flows from investors FINANCIAL INTERMEDIARY FUNDS operation of FIFs by offering to perform a set of roles and financial institutions to these countries through donor trust fund accounts, 54 percent of which were FIFs are important tools in the development finance and responsibilities tailored to the circumstances the mobilization of political risk insurance products focused on IDA countries. IFC’s Advisory portfolio toolbox, offering customized financing platforms of each FIF. The World Bank is a valued partner from both MIGA and the global political risk had 806 projects spanning 100 countries, with for partnership programs and special financing as a trustee for FIFs, building on well-established insurance industry. disbursements of more than $1.3 billion over the mechanisms that can catalyze a variety of public financial, investment management, and accounting past five years. and private resources in support of international platforms developed over the past two decades, initiatives. The World Bank supports FIFs and on specialized legal and treasury services. In through tailored administrative, financial, legal, or addition, the World Bank often hosts FIF secretariats, operational services. serves as an implementing entity for many FIFs, and in some cases hosts an evaluation office (Table 1.1). 1 As part of the 18th replenishment of IDA, the World Bank Group created a $2.5 billion IDA-IFC-MIGA Private Sector Window, to catalyze  private sector investment in IDA-only countries, with a focus on FCV-affected states. The window became operational on July 1, 2017 and is administered as a trust fund. 4 WBG Trust Fund Annual Report 2021 Chapter 1. Optimizing External Funding and Partnerships 5 Major Replenishments in FIFs (in chronological order of previous or TABLE 1.1 World Bank Group’s Roles and Services in FIFs during FY2021 TABLE 1.2 upcoming replenishments) Standard Additional Customized Pledging Session Current or Next Previous Replenishment Bank Services Financial Financial Financial Number FIF (previous or Replenishment Bank Roles Management Management Management of FIFs upcoming) Cycle Period Amount ($ billions) Servicesa Servicesb Servicesc Global Fund October 2019 FY2020–22 FY2017–19 14.0 Trustee + Implementing GCF October 2019 FY2020–23 FY2015–19 10.0 Entity + Secretariat + GEF, LDCF, SCCF, 5 GAFSP October 2020 FY2020–25 FY2010–20 1.5 Independent Evaluation NPIF, CBIT Office GPE July 2021 CY2021–25 CY2018–20 4.0 DRTF, GAFSP, Tentative upcoming replenishments Trustee + Implementing HRF, GPE, CIF (CTF, SCF), AF, PEF d 12 No formal Entity + Secretariat MENATF, GIF, GCFF CIF FY2020–22 n.a. 8.0a WE-Fi replenishment Trustee + Secretariat PAF 1 GEF Spring 2022 FY2022–26 FY2018–22 4.1 Trustee + GRIF, GCF, a For CIF, this amount represents pledges since inception 3 Implementing Entity CREWS CGIAR, AgResults, Global Fund, Trustee 6 CEPI IFFIm, AMCe Number of FIFs 13 8 6 27 FIFs financed a significant portion (28 percent) 1.3 ENHANCING of total RE disbursements to project supervision by the World Bank over the last five years. During EFFECTIVENESS THROUGH In each cell of this table, the FIFs are listed in chronological order of establishment according to the dates at which each FIF trust fund was activated. See Annex D for full FIF names. FY2017–21, the largest FIF contributors to Bank- INSTITUTIONAL CHANGES a S  tandard financial management services include managing contributions, holding funds received in trust, investing such funds pending supervised RE activities were the Global Partnership disbursement, and committing and transferring funds to the implementing/supervising entities. for Education (GPE) ($1.22 billion), the Climate WORLD BANK b  Additional financial management services include replenishment support, cash flow projections, and reflows/repayment management. Investment Funds (CIF) ($0.98 billion), and the The IBRD/IDA trust fund portfolio upholds the c C  ustomized financial management services include customized treasury management services and reporting, e.g. for AMC, IFFIm, and Global Fund. This also includes Certified Emission Reductions (CERS) management for AF, support for pandemic bonds and insurance Global Environment Facility (GEF) ($0.75 billion). World Bank’s country-based, demand-driven in the PEF, and managing auctions and bond issuances for PAF. delivery model, in which the Bank strives to The Global Agriculture and Food Security Program d  The PEF term expired on April 30, 2021, and it is in the process of financial closure in FY2022. achieve its developmental goals through activities (GAFSP) launched its FY2020–25 replenishment e The Pneumococcal Advance Market Commitment (AMC) operationally closed on December 31, 2020, as agreed at the outset of the  at the country level, based on decisions made by program and is in the process of financial closure in FY2022. cycle in October 2020, during which it received sovereign country authorities. This requires deep $300 million in pledges for the first year of the and customized analysis of the economic and replenishment period, with the goal of receiving $1.5 social conditions in each country, and a careful The World Bank served as limited trustee and/ three FIFs with external secretariats: Climate Risk billion over the full replenishment period (Table 1.2). assessment of government priorities and of the or financial or treasury manager for 27 FIFs that and Early Warning Systems (CREWS), the Green In June 2021, donors announced plans to commit up Bank Group’s comparative advantage within were active during FY2021. Of these, the World Climate Fund (GCF), and the Guyana REDD+ to $2 billion to CIF to support its new Accelerating each country. Bank provided the legal personality for 19 FIFs, Investment Fund (GRIF). Two FIFs were closed in Coal Transition initiative. Donors also pledged $4 hosted the secretariats for 18 FIFs, and served as FY2021: the Advanced Market Commitments (AMC) billion to the GPE at the Global Education Summit The World Bank has realigned senior responsibilities an implementing entity for 20 FIFs. The World Bank for Pneumococcal Vaccines and the Pandemic in July 2021. within its Global Practices to strengthen links and takes on an implementing entity role for most FIFs Emergency Financing Facility (PEF), reducing the cooperation between sectoral and regional teams, whose secretariat is hosted by the World Bank. The total number of FIFs to 25 at the end of FY2021. while maintaining the flexibility of the renewed World Bank also acts as an implementing entity for delivery model. This is also expected to enhance contestability as well as the quality of the Bank’s knowledge products. 6 WBG Trust Fund Annual Report 2021 Chapter 1. Optimizing External Funding and Partnerships 7 As part of this realignment, a large portion of the is also changing the way it identifies partner funding The primary objective of the updated FIF IBRD/IDA trust fund portfolio has been remapped needs and develops funding arrangements with Management Framework has been to raise to the Regions. This move, along with the development partners. awareness of the challenges of some FIFs in continuing efforts of operational business units to responding to calls for a collective response across In FY2020, IFC embarked on a trust fund reform consolidate their trust funds into fewer Umbrella the development community and to put forward process centered around a new corporate 2.0 Programs (Section 1.4), is enabling the Bank to more concrete actions to address them, including Funding Needs Assessment (FNA). It has mobilize resources more efficiently and effectively the following: streamlined governance to align development to help client countries achieve their development Strengthening FIF selectivity, in part, by providing • objectives, including the 17 Sustainable partner fundraising with IFC’s strategic goals and ensure development partner funds are a menu of options that the World Bank Group Development Goals (SDGs). Larger, consolidated could support to respond to global calls for programs have greater flexibility to be strategically appropriately balanced with IFC’s resources. By the end of FY2021, the FNA had been fully collective action and by reserving new FIFs aligned and responsive to country needs. The for situations where there are no reasonable Bank will be able to integrate trust fund activities integrated into IFC’s annual budgeting process to ensure alignment with country strategies. alternatives. into its annual strategy and planning processes, intermediating the supply of trust fund resources IFC’s new approach to fundraising for its trust Deepening application of a risk-based approach • managed by Global Practices, and ensuring this is funds works to ensure all aspects of the business for approval of new and restructured FIFs and in informed by client needs garnered from the Regions’ are addressing key development challenges. This relation to major changes during a FIF’s lifecycle. engagement with client countries. approach delivers a number of advantages: Providing the World Bank Group’s Board with • A new Cost Recovery Framework for trust funds Enables more focused strategic partnerships • more regular information on FIFs, including went into effect on January 1, 2021. Consistent with and coordinated engagement with its new FIFs under development, FIFs that seek guidance from the Executive Board and feedback development partners restructuring, and information on the FIF Chhor Sokunthea / World Bank received from development partners and staff, this portfolio as a whole. Presents a holistic view of IFC’s activities across • framework is simpler, easier to communicate and various themes and regions to ensure alignment Clarifying the Bank Group’s expectations and • Increasing FIF selectivity and oversight. more predictable than the previous one. It aims with partners’ strategic priorities accountabilities in FIFs, particularly as the host of Since FY2020, early discussions have been to support and maintain budget sustainability, FIF secretariats and as an implementing entity. held systematically with internal and external including implementing targeted efficiencies and Improves collaboration with the World Bank • economies of scale and increasing cost recovery. counterparts on the most appropriate mechanism In FY2020, the World Bank’s Development Finance The new framework also increases the recovery Increases efficiencies in the areas of trust funds, •  for new high-profile initiatives. In each case to date, Vice Presidency (DFi) led the implementation of the of the Bank’s indirect costs associated with trust particularly in preparing proposals for partners it has been agreed that there was no need for a framework by working in close consultation with funds over time while maintaining some level of and in allocating funds new FIF, but rather, objectives could be achieved as other Vice-Presidential Units throughout the Bank. contribution from the Bank in recognition of the well or better through alternative options, including This involved the following actions: partnership nature of this instrument. FIF MANAGEMENT FRAMEWORK existing FIFs. Policy amendments. The World Bank’s Board of The World Bank updated its FIF Management ncreasing information sharing. In line with the I Executive Directors approved a new Trust Fund IFC Framework in 2019 in response to a number of commitment in the FIF Management Framework to Policy (OP 14.40) in FY2021 and Management Since launching its Creating Markets strategy in issues arising from the rapid growth in the FIF increase information sharing on the FIF portfolio, the will issue a series of policy documents for staff in December 2016, IFC has embarked on a series of portfolio from nine to 27 FIFs between 2008 and Bank presented key developments at the Annual FY2022 that will further support its implementation. internal reforms that have strengthened World Bank 2018. This growth added to the fragmentation Meetings and Trust Fund Forum meetings in FY2020 Group collaboration while taking a more focused and complexity of the aid architecture, with some  IF directives, procedures, and guidance notes. F and 2021. This included sharing references to recent approach to market creation. IFC’s partners will unintended consequences for clients. FIFs can also Extensive work has been undertaken to translate reviews and evaluations of FIFs and information on play an increasingly important role, by providing raise significant risks for the Bank in the different the direction of the Management Framework into upcoming replenishments. This Trust Fund Annual funding to support sector transformation and roles it plays and at various points in their lifecycles. updated FIF directives, procedures and guidance, Report maintains the Bank’s commitment to provide capacity building and through blended finance. IFC which will be formalized in FY2022. at least annual reporting on the FIF portfolio. 8 WBG Trust Fund Annual Report 2021 Chapter 1. Optimizing External Funding and Partnerships 9 1.4 TRANSITIONING TO resources by strengthening internal oversight and integration with the Bank’s strategy and planning BOX 1.2 Umbrella 2.0 Principles UMBRELLA 2.0 PROGRAMS processes while further reducing transactions costs A 2017 review of the IBRD/IDA trust fund portfolio for mutual benefit. revealed significant fragmentation, with about 70 1.  A single governance structure, a percent of the trust fund accounts contributing The process to transition the IBRD/IDA trust fund Partnership Council, that provides to only around 7 percent of the overall trust fund portfolio to one based on Umbrella 2.0 Programs strategic guidance and direction on the resources. The World Bank’s current reform of its trust began in early 2020 following World Bank Senior implementation of all trust fund activities fund portfolio through fewer and larger Umbrella 2.0 Management endorsement of the reform vision— in the Umbrella 2.0 Program Programs aims at delivering transformative solutions the culmination of a three-year, Bank-wide effort to define the design and implementation of the trust Options for development partners to 2.  for client countries and for development partners fund reform. Through this transition, the Bank is express preferences for a specific theme through improved strategic alignment, increased reducing the number of IBRD/IDA trust funds from or geographic area efficiency, and enhanced oversight. a fragmented portfolio of 529 trust found accounts  results framework developed in 3. A Umbrella 2.0 Programs are more strategically aligned to 72 proposed Umbrella 2.0 Programs. consultation with development partners with Bank priorities and are expected to increase Each of the World Bank’s Global Practices and to help monitor and assess how the use of development partners’ contributions to Regions prepared “roadmaps” in FY2020 to identify individual activities are contributing to achieve better outcomes for client countries. During a future trust fund portfolio architecture that would the overall development objectives of FY2021, the World Bank continued the transition support strategically driven fundraising for their the Umbrella 2.0 Program to Umbrella 2.0 Programs by consolidating, redesigning, rebranding, and/or combining existing objectives and priorities. By the end of FY2021, 4. A  Communication and Visibility Plan IBRD/IDA trust funds, as well as establishing 72 programs were identified, of which 48 were addressing stakeholder analysis, new programs. confirmed to meet the Umbrella 2.0 Principles (Box branding and recognition 1.2). The complete list of Umbrella 2.0 Programs is available in Annex C. 5. U  nified reporting at the program level ROADMAP TO A LESS FRAGMENTED with a strong focus on results TRUST FUND PORTFOLIO The reform has benefited from extensive The role of trust funds has evolved dramatically engagement with internal and external stakeholders during the last few decades, and the World and funding partners, generating many valuable Bank has undertaken initiatives and reforms to recommendations on addressing the challenges 2.0 Program reform, and program managers were promote continuous improvement in the efficiency, and opportunities. In FY2021, “Deep Dives” with convened as a network for peer learning and mutual strategic alignment, and robust oversight of trust donor agencies, consultations, and events at support. In FY2022, a series of policy documents fund resources and the activities they support. the World Bank–International Monetary Fund for staff will be issued pursuant to the new Trust Prior reforms had enabled significant progress in (IMF) Annual and Spring Meetings and regular Fund Policy that the World Bank’s Executive Board transitioning trust funds to World Bank operational, communication buttressed development partner approved in FY2021. financial, and administrative controls, including support and buy-in. As the Bank’s Practice Groups, Regions, and implementation of the trust fund fiduciary Internally, continued engagement across the Development Economics Vice Presidency transition framework, which is now fully mainstreamed into World Bank’s Global Practices and Regions to a more strategic trust fund architecture, FY2022 regular business processes. helped maintain internal momentum and enabled will see an increased focus on improving the The current trust fund reform aims to reduce continued roll-out of the reforms. Staff training was upstream integration of trust fund resources in the fragmentation of trust funds. Its cornerstone is modernized and updated to reflect the Umbrella Bank’s planning cycle. organizing the trust fund portfolio around a limited number of Umbrella 2.0 Programs. These are strongly aligned with the World Bank’s priorities and seek to enhance the effectiveness of development 10 WBG Trust Fund Annual Report 2021 Chapter 1. Optimizing External Funding and Partnerships 11 Dominic Chavez / World Bank Umbrella 2.0 Programs provide scale and efficiency while working with FIGURE 1.1 development partners’ requirements Rama George-Alleyne / World Bank KEY FEATURES OF Umbrella 2.0 Programs offer options for UMBRELLA 2.0 PROGRAMS development partners who are interested in supporting a specific theme or geographic area. Umbrella 2.0 Programs embody a flexible approach These options can accommodate situations where to trust fund organization and management that development partners are unable to contribute enables development partners and the World Bank to the main MDTF due to their internal policies to partner and finance mutual priorities. Designed or regulations that require dedicated financial Umbrella 2.0 Programs provide scale and efficiency Senior Management and partners to the same to address the persistent challenge of a large and reporting to track their contributions. Such situations for enhanced development impact and effectiveness, table around common development objectives, fragmented trust fund portfolio (many small funds are handled by establishing separate associated by offering the following benefits: helps avoid fragmentation of resources, and with highly customized features), Umbrella 2.0 trust funds, which support activities within the increases efficiency. Programs strengthen the link between funding and A more strategic way to partner with the geographic and thematic scope of the umbrella. the strategic priorities of the World Bank, its clients World Bank and to finance priorities. Umbrella Opportunities to collectively address global and partners, and promote impact at scale. The overarching development objective of an 2.0 Programs offer an approach to organizing and and local development challenges and achieve Umbrella 2.0 Program is that of the anchor MDTF. managing trust funds in support of one or more meaningful results at scale. Through participation A trust fund portfolio grounded in Umbrella 2.0 shared strategic priority areas. Their broad scope An Umbrella 2.0 Program can be global, regional, in the Partnership Council, development partners Programs means fewer, larger, more strategically and clear strategic focus elevate the dialogue with or single country in scope and can support one review progress against the unified results aligned funding initiatives. The umbrella architecture partners around shared priorities and mutually or more priority areas of a World Bank Global framework; provide strategic advice on setting also upholds the Bank’s country-based, demand- desired outcomes, while accommodating partners’ Practice or Region as set out in its business plan. priorities, including adjusting to changes in the local driven delivery model and takes advantage of recent interests and aligning with the World Bank’s Associated trust funds support the Umbrella 2.0 or global context; and collaborate in and benefit corporate realignments that deepen coordination planning and budgeting framework. Program development objective and contribute to from knowledge-sharing activities. This strategic, between World Bank Regions and Global Practices. the overarching results framework of the Umbrella program-level dialogue allows the World Bank and Increased access to the World Bank’s Senior Each Umbrella 2.0 Program is anchored by a primary 2.0 Program. They have a thematic and geographic partners to work together to help advance policy Management in the context of high-level policy multi-donor trust fund (MDTF) and, in some cases, scope that is within the scope of the anchor MDTF. dialogue and to ensure that individual activities are and strategy dialogue. Umbrella 2.0 Programs may include associated trust funds (Figure 1.1). In provide greater opportunities for development aligned around common outcomes. The Partnership all cases, the anchor MDTF and the associated partners and the World Bank to work together Council endorses the Umbrella 2.0 Program’s trust funds retain common governance, results strategically and efficiently and deliver better annual work program and budget after which framework, and reporting in the new umbrella results for clients. A single governance structure the World Bank allocates program resources to program. The anchor MDTF is a programmatic for all funds in a program brings the World Bank’s individual activities. trust fund with a relatively broad thematic or geographic scope. 12 WBG Trust Fund Annual Report 2021 Chapter 1. Optimizing External Funding and Partnerships 13 mproved narrative and results reporting and I The progress made on the Umbrella 2.0 Program During FY2021, the FIAS team updated its strategy greater attention to communications and visibility rollout and enhanced management oversight of for FY2022–26, with a pipeline of projects in support for development partners. The Results Framework fundraising have made it possible for the Bank to of IFC’s Creating Markets Upstream agenda. FIAS for each Umbrella 2.0 Program is developed in avoid a moratorium on donor outreach for trust will be the fundraising vehicle of choice for IFC consultation with development partners. This covers fund contributions during an IDA replenishment Advisory services projects at the preparatory end, activities funded by all trust funds in a program. year, as had been the case in the past. This new what IFC calls “Creating Markets with Sector The results framework is the key monitoring tool to Responsible Fundraising approach has ensured Interventions.” These involve sectoral or market- assess how individual activities are contributing to that IDA20 replenishment remains the top priority wide interventions that will facilitate private sector a program’s overall development objectives. Results in 2021, supplemented by strategic trust fund investment and for which IFC could be a potential progress reporting is provided at the Umbrella 2.0 fundraising plans complementary to and supportive financing partner. Program level and may highlight contributions from of IDA and IBRD. Moving forward, the streamlined associated trust funds in a comprehensive report. SEFF will be an annual management exercise LEARNING FROM UMBRELLA for reviewing and updating strategic priorities for 2.0 PROGRAMS Increased  access to knowledge sharing fundraising and authorizing changes in the trust fund opportunities on key development issues. The transition to a trust fund portfolio based on portfolio architecture. Umbrella 2.0 Programs develop Communication Umbrella 2.0 Programs is an iterative process that and Visibility Plans (CVP) that are discussed with In parallel with the World Bank’s transition to began in FY2019 with a handful of pilot programs. the Partnership Council. The CVP ensures that the Umbrella 2.0 Programs, IFC has undertaken a These have helped the World Bank to learn by strategic communication needs of each Umbrella similar exercise designed to consolidate fundraising doing and to avoid a one-size-fits-all approach 2.0 Program are considered and implemented. in trust funds that can house multiple projects in designing umbrella programs. The pilot phase This may include stakeholder analysis, audience and programs in a single, efficient administrative has given way to the launch of full-fledged segmentation, key messaging and channel selection, structure. The Facility for Investment Climate Umbrella 2.0 Programs. and how these can support the overall program Advisory Services (FIAS), one of the World Bank Table 1.3 features nine recently established programs goals and drive for results. The CVP also ensures Group’s oldest and largest multi-donor trust funds, that are implementing the Umbrella 2.0 principles, appropriate branding of a program, participating is one of the key vehicles for IFC’s approach. FIAS including governance arrangements, preferencing, development partners, and the World Bank. supports IFC Advisory services that foster inclusive results frameworks, reporting, and communications. private sector growth in client countries, with a Their implementation experiences offer lessons that STRATEGIC FUNDRAISING focus on IDA, fragile states, and Africa. can help guide the continuing transition process. The Strategic External Funds Framework (SEFF) During the FY2017–21 FIAS strategy cycle, 16 donor These and other lessons from early Umbrella 2.0 exercise was launched in FY2021 to support Bank countries and organizations supported FIAS-backed Programs continue to be collected to develop Management in furthering the evolution to a more IFC teams in helping to bring about 200 reforms expanded knowledge-sharing activities. strategy-driven approach to fundraising. The that are making it easier to invest, start, and grow Each of these programs began their Umbrella 2.0 exercise consolidated progress made in the shift businesses in developing countries. More than half journey from a different starting point and each to a streamlined Umbrella 2.0 trust fund portfolio of these reforms took place in IDA countries, and is at a different stage of implementation. The architecture and allowed for Management to review about one-fourth were in FCV-affected situations. featured programs have diverse origins, including fundraising plans and ensure their alignment with The strong working-level ties that IFC teams have long-standing legacy programs, restructuring of priorities. Based on the plans laid out in the SEFF, 90 developed with their clients paid dividends as the existing programs, consolidation and mergers of percent of trust fund fundraising will be channeled COVID-19 crisis unfolded and projects in the FIAS existing programs, and new programs being built through the proposed 72 Umbrella 2.0 Programs, a portfolio pivoted to meet urgent client demand. from scratch. Their objectives are well aligned higher share than previously expected at this early with the GRID approach of green, resilient, and stage in the reform implementation.2 inclusive development. More insights are detailed in the accompanying Lessons from the Umbrella 2.0 Transition. Victor Idrogo / World Bank 2 n some limited circumstances, the Bank may establish stand-alone trust funds (outside of umbrella programs), for example, to I co-finance an IBRD or IDA project, or when it would not be possible or practical to channel donor resources in an umbrella as determined by Management. See, for example, the Cambodia Health Equity and Quality Improvement Program on page 37. 14 WBG Trust Fund Annual Report 2021 Chapter 1. Optimizing External Funding and Partnerships 15 TABLE 1.3 Implementing Umbrella 2.0 Principles, Nine Featured Programs TABLE 1.3 Implementing Umbrella 2.0 Principles, Nine Featured Programs (cont.) Preferencing Preferencing Governance & Results Reporting and Governance & Results Reporting and Program Objectives Origins and Associated Program Objectives Origins and Associated Management Framework (RF) Communications Management Framework (RF) Communications TFs TFs Public-Private Helping national, Long-standing Historically Retaining its Climate Supporting Restructuring NDC Partnership, No associated Infrastructure sub-national legacy program established existing RF Support Facility developing and renaming UNDP, WRI, and TFs Advisory Facility and cross- that was a number of developed in (CSF) countries in of existing IMF are invited (PPIAF) border entities founded in 1999 TFs, which are collaboration accelerating programs, to strengthen to strengthen now formally with donors over their transition to Climate Resilient the policy, public and associated TFs 20 years low-carbon and and Low-Carbon regulations and market climate-resilient Development and institutions that institutions to development the NDC Support enable private enable private before mid- Facility, founded participation in participation in century and in 2014 and 2018, infrastructure infrastructure elevate the respectively investments decarbonization agenda Rapid Social Developing Continuation In all instances Currently revising Foundational Strengthening The association UNICEF, Global Includes some Reflects Retaining existing Response– adaptive social of a legacy in table, make its RF to reflect Learning policy of several MDTFs Partnership existing funds as consolidation branding for Adaptive and protection and program associated the new umbrella Compact (FLC) frameworks as with the Systems for Education associated TFs of existing RFs, programs such as Dynamic Social jobs programs founded in 2009 TFs lower case structure with well as system Approach for and UNESCO while honoring the Early Learning Protection and systems along with the associated TFs anchor and and institutional Better Education Institute for the intent behind Partnership that Program that help protect consolidation associated TFs capacity so Results (SABER), Statistics to funds with have strong brand (RSR-ADSP) individuals of related trust that all children established in Council are pre-existing RFs identification and families, funds under everywhere can 2011 and being invited especially the one umbrella have access to transformed into poor/vulnerable program relevant, quality, the umbrella from shocks and and equitable anchor crises, but also early childhood, the near-poor primary, and who risk falling secondary into destitution education Sustainable Enabling cities Continuation Includes some The visibility of Global Supporting A new program Includes some Developed its Urban and and regions of a legacy existing funds as legacy programs Partnership for countries’ efforts with new a existing funds as RF based on Regional in developing program associated TFs will persist during Sustainable to improve conceptual associated TFs lessons learned Development countries to founded in 2010 a transition phase, and Resilient livelihoods framework being from PROFOR, (SURGE) function as along with the while starting to Landscapes while tackling built from scratch the Forest Action drivers of consolidation reflect SURGE (PROGREEN) environmental Plan, and other sustainable of related trust support and and climate risks previous forest and inclusive funds under affiliation and landscape economic one umbrella engagements development program Human Rights, Increasing and Restructuring No associated FoodSystems Building the A new program No associated Developed an Inclusion and strengthening the and renaming TFs 2030 foundations for with new a TFs overarching RF Empowerment understanding of an existing sustainable food conceptual embedded in the (HRIE) and application program, the systems that framework umbrella’s Theory of human rights Nordic Trust deliver improved being built of Change principles in the Fund, founded livelihoods and from scratch Bank’s work in 2009 safe, affordable, and nutritious diets for all Sudan Transition Providing fiscal Restructuring Government No associated Has revised its and Recovery space for an and renaming of Sudan is TFs RF to align with Note: More detailed information about these programs is available in the supplement, Lessons from the Umbrella 2.0 Transition. Support IMF program of an existing a decision- the themes/ Program and other much program, the making member. pillars of the (STARS) needed reforms, Sudan Multi- Sudanese restructured and to finance an Partner Fund, Minister of county umbrella extensive social founded in 2014 Finance co- impact mitigation chairs Council, program (the United Nations, Sudan Family AfDB, and Support non-contributing Program) donors are supporting invited. macro-economic reforms 16 WBG Trust Fund Annual Report 2021 Chapter 1. Optimizing External Funding and Partnerships 17 1.5 BRINGING THE BEST Trust funds as a partnering mechanism have been in international development networks, data and and Central Asia (ECA), by contributing its technical in place for decades and have been instrumental research, and its ability to work across sectors and to expertise, global experience, and ability to structure OF WBG TO TRUST FUND in building upon the expertise and resources of design and apply innovative financial instruments.3 and deliver large-scale operations. The new PARTNERSHIPS multiple development partners and the World Bank Strategic European Partnerships Umbrella 2.0 As the following examples illustrate, the World Bank The World Bank Group contributes to trust-funded Group. They are the most commonly used vehicle Program (STEP-UP) is the most recent iteration of Group has a unique ability to convene partners, programs, such as Umbrella 2.0 Programs, through for funding partnerships in which the Bank Group, this partnership, focusing on a) harnessing relevant draw upon its deep professional expertise and the partnership elements inherent in them. When development partners, and other stakeholders work knowledge and expertise, b) ensuring shared policy knowledge as a thought leader, provide trusted the Bank Group engages as one of the partners in together to tackle a specific development issue or priorities for institutional strengthening, and c) sources of development data and analysis, facilitate a trust-funded program, it is not simply a contractor find new ways to approach problems at the global, leveraging areas of complementarity between EU consensus on approaches to key development for hire that provides services for the contributing regional, or country level (Box 1.3). Umbrella 2.0 and Bank priorities. issues, and then activate these approaches in the donors. Rather, it brings all its institutional capacities Programs are now becoming the primary way to Bank Group’s country operations. These abilities Since 2019, the World Bank has been convening to bear to achieve shared objectives more efficiently partner with the World Bank through trust funds. enable the Bank Group to use trust funds for the partners around Gov-Tech, a whole-of-government than one partner could achieve by itself. A 2020 evaluation by the Independent Evaluation purpose of partnership. See more information about approach to public sector modernization that From the international coalition of development Group (IEG) found that trust funds and FIFs provide these activities and their contributing development promotes simple, efficient, and transparent partners and clients that constitute the World important convening opportunities for the World partners in the accompanying 2021 Yearbook of government with the citizen at the center of Bank Group to engagement with UN agencies, Bank Group to bring together relevant actors to Trust-funded Results. reforms. The GovTech approach is at the forefront international NGOs, foundations, and civil society address global, regional, and local development of supporting countries to digitally transform their to an increasing focus on leveraging private challenges. This is because trust funds and FIFs, CONVENING MULTIPLE ACTORS governments to boost their effectiveness and capital—the World Bank Group has long recognized as financial vehicles, are the essential components improve service delivery using technologies already The World Bank Group is able to convene a broad the transformative power of partnership where around which global partnership programs and available and accessible in most countries. The range of actors around an agenda. For example, new ideas, perspectives, and experiences are other global initiatives are constructed and operate. GovTech Global Partnership has subsequently under the FoodSystems2030 Umbrella 2.0 Program, combined with the necessary financial resources. The evaluation also found that the Bank Group both supported readiness assessments and new the World Bank is bringing together stakeholders— Partnerships require more than financial resources leads and supports convening in different instances. GovTech strategies for digital public service delivery from farmers to government policy makers—to to be successful; they need buy-in to legitimize the The leaders of partner organizations view the Bank in a range of countries. repurpose agricultural policies to make food systems collaboration and advocacy that can extend their Group’s comparative advantages in convening as more resilient, sustainable, and fit-for-purpose from reach beyond the immediate partners. its global reach, country presence, central place the point of view of people, the economy, and the planet. What started as a policy note to COP24 in The GovTech Global Partnership is “ Why development partners choose to partner with the World Bank Group 2018 became a critical contribution to the UN Food at the forefront of advancing the use BOX 1.3 through trust funds System Summit in September 2021 and a key lever for mobilizing action under the cross-cutting theme of government technology solutions on Nature at COP26 in 2021. • To support innovative or emerging policy areas, which partners view as a priority for sustainable development and • To build on the World Bank Group’s convening power, at both the international and country level, to ENGAGING AS A PROGRAM PARTNER showing how we, as development maximize coordinated action and achieve impact at scale Once programs have been established, the World partners, can make a difference.” To provide grant funding in countries affected by fragility, conflict and violence, and other complex • Bank Group actively engages as a partner, by situations enabling the Bank Group to engage and provide critical assistance where traditional Elisabeth Gruber, Head of Department facilitating agreements on approaches to key instruments are not well-suited or are unavailable for International Financial Institutions, development issues, and then operationalizing these Ministry of Finance, Austria approaches in the Bank Group’s country operations. To benefit from the Bank Group’s extensive technical expertise, country experience and supervision • capacity, and its ability to monitor and report on results Since the formulation of its first strategy for working with the European Union (EU) in 2010, the World To align and scale up funding support with other development partners within agreed strategic • Bank has been a critical partner of the EU in Europe frameworks, including for global public goods 3  Independent Evaluation Group, 2020, The World’s Bank: An Evaluation of the World Bank Group’s Global Convening, p. ix. 18 WBG Trust Fund Annual Report 2021 Chapter 1. Optimizing External Funding and Partnerships 19 In 2017, the World Bank played an essential role as a 2019. Today, the primer is playing a key role in moving facilitator, thought leader, and convener of a broad PPP practitioners in development banks and client group of development partners, UN agencies, and countries toward a more systematic integration of the private sector to create a shared vision for “good” gender considerations in PPP projects. ID systems in the Principles of Identification for To share and build greater knowledge among Sustainable Development. Since then, through the governments, academia, industry, and civil society Identification for Development (ID4D) Program, on actions that could enhance gender equality the Bank has deeply infused these principles into its in oil, gas and mining, the Extractives Global support for civil registration and ID systems globally, Programmatic Support Program (EGPS) and including analytical work, technical assistance, and the Inter-American Development Bank jointly over $1.5 billion in World Bank financing. Three years organized the Second Gender Oil, Gas and Mining later, the same group of stakeholders came together Conference, held virtually in March 2021. The World to revisit the Principles to ensure that they continue Bank contributed its deep professional expertise and World Bank to reflect new realities and good practices. knowledge to the conference to assist participants IFC’s Global Cities Platform connects in bringing about improvements in all people’s lives municipalities, regional governments, and the working in the sector. Since 2016, the Global Procurement Partnership RALLYING IN-COUNTRY ACTORS private sector around complex cities transformation (GPP) has supported innovative activities for The World Bank Group can also convene country- initiatives and underlying development challenges. procurement reforms at the global and country level partners to enable trust funding. The World The platform has enabled IFC to refocus its work The first conference was a “ levels, including the Methodology for Assessing Bank set up and activated the Tunisia Economic with three of Colombia’s largest cities during the Procurement Systems (MAPS). This universal Resilience and Inclusion (TERI) Umbrella 2.0 COVID-19 pandemic. It pivoted from catalyzing game changer for me, who diagnostic tool for public procurement systems Program in record time in March 2021 in response investments in sustainable urban infrastructure to assesses the accountability, integrity, and was trained as a well-site to an urgent request from the Tunisian government helping the public sector balance the need to protect transparency of the public procurement systems to help put in place an end-to-end management citizens and slow the spread of the virus with a geologist, and expected to just of countries or jurisdictions, including the legal, and information system before the first COVID-9 desire to reopen economies. In 2020, IFC supported regulatory, and institutional frameworks and market the city of Bogota to define and collect data on the do administrative work behind practices. The partnership has subsequently funded vaccines arrived in the country. The Bank mobilized relevant funds in a very short time period through impact of the quarantine on women, which will be the desk. I am now attending the implementation of 15 MAPS assessments across an initial contribution by the United Kingdom, which used to inform a data-driven gender-sensitive policy five regions, including eight IDA countries and five response. IFC is also preparing Advisory packages this second conference from FCV-affected countries, and supported follow-up enabled the Bank to respond to this request in a challenging and dynamic context. covering smart cities, urban mobility, waste and offshore, with my work vest on, action plans and reforms in some of these countries. water solutions, and environmental and social policies, tailored to the needs of each city. just to show everyone how far In early 2019, the Financial Sector Reform and Strengthening Initiative (FIRST), the Global That the World Bank team was able “ we’ve come.” Program on Sustainability, and several other World ADVANCING CROSS-CUTTING ISSUES Bank trust funds joined forces to improve the to design a program and move it Yijofmen Fienmaih Jane, Chief of Service, The World Bank Group works through trust-funded quality of publicly available environmental, social to implementation under the new Hydrocarbon Exploitation Ministry of partnerships to advance cross-cutting issues and governance (ESG) data. The Sovereign ESG Mines, Industry and Technological inherent in the global consensus underlying the Data Portal helps investors make more informed Umbrella Trust Fund, is testament Development, Cameroon SDGs—in these cases, advancing gender equality. decisions and direct their capital to the countries, to the strong team and the great companies and projects where it is needed to meet Several years ago, the Public-Private Infrastructure the SDGs and the Paris Climate Accord targets. relationship they have with us and Facility (PPIAF) and IFC began a modest initiative PROVIDING GLOBAL PUBLIC GOODS Launched in October 2019, the portal is a free, to advance gender equality in public-private The World Bank is one of the main and most trusted open, and easy-to-use online platform that provides Government of Tunisia partners.” partnerships (PPPs) in infrastructure in the light of sources of national sustainability data and analysis. It users with sovereign-level ESG data, for all World Ianto Jones, Head, Prosperity and Programmes, the World Bank’s 2015–23 Gender Strategy. This fosters collaboration and partnerships by providing Bank countries, so that investors can better engage British Embassy, Tunis investigation of gender equity considerations within global public goods in the form of analytical toolkits sovereign issuers on ESG criteria and policies. PPPs culminated in the publication of a primer on and open-source data portals. Gender Equality, Infrastructure and PPPs in May 20 WBG Trust Fund Annual Report 2021 Chapter 1. Optimizing External Funding and Partnerships 21 T he World Bank Group has mounted Many development partners are making new the fastest and largest crisis response contributions to trust funds and FIFs for these purposes, including channeling resources in their in its history to help developing countries Donor Balance Accounts held by the Bank Group.4 respond and recover from the COVID-19 crisis. This response, which also applies to 2.1 TRUST FUND AND FIF trust funds and FIFs, is taking place across three stages: relief, restructuring, and CONTRIBUTIONS resilient recovery. IBRD/IDA TRUST FUNDS By the end of FY2021, IBRD/IDA trust funds had contributed, in whole or in part, $1.13 billion to 248 The World Bank Group has made available around World Bank operations that are helping countries $157 billion from April 2020 through June 2021, respond directly to the COVID-19 crisis. About 93 including from IBRD, IDA, IFC, MIGA, trust funds, percent of commitments ($1.06 billion) has been in and portfolio allocations. The response recognizes the form of trust-funded RE grants and 7 percent that COVID-19 is not only a health crisis, but also of commitments ($77 million) have been in the a wide-ranging socio-economic crisis that involves form of trust-funded BE grants. About 41 percent of saving lives, protecting poor and vulnerable people, commitments ($481 million) were disbursed by June ensuring sustainable business growth and job 30, 2021. This represents more than 10 percent of creation, and strengthening policies, institutions, all trust fund disbursements during the 15 months and investments (Box 2.1). between April 1, 2020 and June 30, 2021. World Bank Group trust funds and FIFs are all contributing to the COVID-19 response in accordance with their particular niches. BOX 2.1 Pillars of the World Bank Group Response to the COVID-19 Crisis 1. Saving lives: Helping countries stop transmission, deliver health services, ensure vulnerable households access to medical care, and build resilience for future pandemics. 2. Protecting the poor and most vulnerable people: Supporting income and food supplies for the most vulnerable, as well as employment for poorer households, informal businesses, and microenterprises. 3. Ensuring sustainable business growth and job creation: Providing policy and financial assistance to businesses and financial institutions to help companies (especially small and medium- enterprises) preserve jobs, weather the crisis, and return to growth. RESPONDING TO THE 4. Strengthening policies, institutions, and investments: Helping countries prepare for a resilient 2 recovery, with an emphasis on improving governance and institutions. COVID-19 CRISIS Source. World Bank Group, June 2020, “Saving Lives, Scaling-up Impact and Getting Back on Track: World Bank Group COVID-19 Crisis Response Approach Paper, p. vii. 4  Donor Balance Account (DBAs) are administrative accounts that the Bank establishes on behalf of an individual donor agency to temporarily hold funds until such time as they are returned to the donor agency, transferred to another trust fund, or used for purposes as agreed with the donor agency. DBAs are established by donor agency, not by donor country. PHOTO CREDIT: UNOPS / World Bank Chapter 2. Responding to the COVID-19 Crisis 23 Number of IBRD/IDA Trust Fund Activities Supporting Different Types of FIGURE 2.1 FIGURE 2.2 Number of COVID-19 Related Trust Fund Activities by Time Periods COVID-19 World Bank Operations Of the 248 operations, 135 are lending projects, IBRD/IDA trust funds are especially critical for 105 are ASA, and 8 are research and knowledge countries that do not have access to IBRD/IDA activities. The 135 lending projects were supported financing. These include countries in arrears by 137 trust funds for BE activities, 65 co-financing (Zimbabwe and Sudan),5 and non-members (West trust funds for RE activities, and 26 stand-alone trust Bank and Gaza). Syrian refugees in Lebanon and FIGURE 2.3 Approved COVID-19 Related Grant Amounts by Time Periods funds for RE activities. The 105 ASA were supported Jordan, and Venezuelan refugees in Ecuador are by 124 trust funds for BE activities and the 8 research other special cases where trust funds can provide and knowledge products were supported by 9 trust- vital resources because their access to IBRD or IDA funds for BE activities (Figure 2.1). resources is constrained. The COVID-19 pandemic has also exacerbated risks in FCV-affected As shown in Figure 2.2, the number of new trust- countries, such as Afghanistan and Iraq. Five of the funded BE grant commitments for the COVID-19 top 10 countries receiving trust fund support for response accelerated from five commitments in the COVID-19-related activities are affected by FCV and third quarter of FY2020 (January to March 2020) to collectively accounted for 54 percent of total trust 43 commitments in the fourth quarter (April to June fund commitments for COVID-19 response. 2020), and 82 commitments in the first quarter of FY2021 (July to September 2020). The number of For example, the Afghanistan Reconstruction new trust-funded RE grant commitments peaked Trust Fund (ARTF) approved five RE grants totaling one quarter later at 26 grants during the second $470 million during FY2021, alongside IDA financing quarter of FY2021 (October to December 2020). of $420 million, to help the country respond to the Trust fund commitment amounts for both BE and COVID-19 crisis. This included a development policy RE activities peaked during the first quarter of grant to strengthen the policy for relief and recovery FY2021, with BE grants at $27.4 million and RE and four investment projects that aimed to support grants at $297 million (Figure 2.3). critical food supply chains, provide emergency support to households, improve access to and quality of water supplies, and strengthen national systems for public health preparedness. 5  Sudan formally cleared its arrears half way through FY2021, in March 2021. 24 WBG Trust Fund Annual Report 2021 Chapter 2. Responding to the COVID-19 Crisis 25 The Jordan Inclusive Growth and Economic countries.6 About 64 percent of total COVID-19- COVID-19-related Trust-Funded Activities: Top Five Commitments by Opportunities MDTF provided $24.17 million related trust fund commitments have gone to FIGURE 2.5 World Bank Global Practice alongside $350 million of IBRD financing for participating DSSI countries, and another 9 percent the Jordan Emergency Cash Transfer COVID-19 to non-participating eligible countries. Response Project, which was approved in June The transition of the IBRD/IDA trust fund portfolio 2020. Like other small, open economies with strong toward better focused, more consolidated Umbrella links to global markets, Jordan’s real GDP contracted 2.0 Programs is also showing results through the by 1.6 percent in 2020 due to profound impacts on World Bank Group’s crisis response. A total of 27 key sectors of the economy, such as services, travel Umbrella Programs have responded to COVID-19 receipts, and tourism. Economic contraction and with new grant-level commitments, collectively job loss have hit women and youth especially hard. representing 57 percent of the total trust fund The project is providing temporary cash transfers to response of $1.13 billion as of end of FY2021. 270,000 poor and vulnerable households adversely affected by the COVID-19 outbreak. The remainder of the response has come in part from three FIF-supported programs (28 percent) for Low-income countries have received 62 percent which the World Bank is one of the implementing of total COVID-19-related trust fund commitments entities—the Global Partnership for Education, the and lower middle-income countries have received Pandemic Emergency Financing Facility, and the 25 percent. The World Bank and the International Global Concessional Financing Facility—and from Overall, the umbrella framework has facilitated a primary data collection, engagement with local Monetary Fund (IMF) initiated a Debt Service some other large trust-funded programs (14 percent) more rapid response than might otherwise have governments and CSOs, and field visits to supervise Suspension Initiative (DSSI) allowing participating like the West Bank and Gaza MDTF. The top seven been the case. Some programs have streamlined implementation. Working with governments countries to temporarily suspend debt-service programs, led by the Afghanistan Reconstruction grant-making processes to make crisis recovery and CSOs, teams have shifted gears to continue payments to their official creditors. Since its launch Trust Fund, have accounted for 84 percent of funds available to implementing partners as quickly reaching out to marginalized populations. An on May 1, 2020, the initiative has delivered more the grant commitments to COVID-19-related as possible. They have also pivoted existing grants e-learning program was developed in lieu of in- than $5 billion in relief to more than 40 countries activities (Figure 2.4). to address clients’ most immediate needs. These person training, enabling teams to reach much who chose to participate in it, out of the 73 eligible adjustments have enabled programs to free up broader audiences than previously anticipated. resources to support their COVID-19 responses and COVID-19 Related Trust-Funded Activities: Seven Largest Programs by The Debt Management Facility (DMF) has FIGURE 2.4 deliver on the most pressing priorities. Approved Grant Amounts also changed its way of doing business to meet For example, the Global Facility for Disaster client country needs. Instead of traveling to client Reduction and Recovery (GFDRR) has adapted countries to provide technical assistance, it has existing engagements to help countries manage adapted to remote delivery. It has also prioritized the the pandemic. It is supporting the development development of new Massive Online Open Courses of emergency preparedness plans and response (MOOCs) offering self-paced learning opportunities, protocols, identifying and repurposing public as well as adapting other training and learning facilities, and scaling approaches that link disaster opportunities to a virtual format. risk management preparedness and response From a thematic perspective, five World Bank systems to health emergencies. Going forward, Global Practices collectively account for 87 percent GFDRR will work with partners to support of the IBRD/IDA trust fund response to COVID-19, communities and countries to meet the dual starting with the Health, Nutrition and Population challenge of managing natural hazard risks, while Global Practice at 28 percent (Figure 2.5). These mobilizing the disaster risk management community show that the Bank’s COVID-19 response addresses to address the impacts of the pandemic. not just the health crisis, but also the wider socio- The Human Rights, Inclusion and Empowerment economic crisis. (HRIE) program has also adjusted grant implementation to make up for cancelled or 6  or more information on the Debt Service Suspension Initiative, see https://www.worldbank.org/en/topic/debt/brief/covid-19-debt- F postponed on-the-ground activities, such as service-suspension-initiative. 26 WBG Trust Fund Annual Report 2021 Chapter 2. Responding to the COVID-19 Crisis 27 IFC TRUST FUNDS IFC is also working with the World Bank to ensure largest portfolio of vaccines against COVID-19, that countries have policies and regulations in place it has also awarded forgivable loans to expand The private sector’s role in development has to resolve distressed assets, and that companies’ global manufacturing capacity and established never been more important than it is now, as the underlying operations are restructured to be viable a global network of laboratories to standardize world works to recover from the COVID-19 crisis. to support growth and sustain employment. vaccine assessment. Governments around the world have reallocated resources to combat the spread of COVID-19, IFC has adapted its delivery modes in response to Established in 2006, IFFIm issues Vaccine Bonds making limited public resources scarcer and COVID-19. It has overcome travel restrictions by in capital markets, backed by binding pledges from highlighting the importance of catalyzing private moving to virtual outreach and delivery platforms, donor countries, which provide immediate funding sector investments. including piloting innovative approaches such as for Gavi, the Vaccine Alliance, to purchase and virtual reality assessments. The focus on virtual distribute vaccines. With the World Bank serving IFC is helping countries weather the devastating and remote consultation has spurred clients to as Treasury Manager, IFFIm has played a critical economic impacts of COVID-19 and build a more adopt digital solutions that will facilitate future role in frontloading donor pledges to support the sustainable, inclusive, and resilient future with the engagement. international community’s response to COVID-19 support of the private sector. With insolvencies Victor Idrogo / World Bank pandemic. During 2020, IFFIm provided $272 looming across the developing world, IFC is working FINANCIAL INTERMEDIARY FUNDS million to Gavi for use by CEPI to develop COVID-19 to preserve the private sector, rebuild economies, vaccines. Then in January 2021, IFFIm provided a and work upstream to create projects that will The global initiatives supported by FIFs have Until it closed in April 2021, PEF was a fast- first tranche of $400 million to Gavi for COVAX AMC attract investment back into developing countries. provided much needed leadership and support disbursing financing mechanism to provide surge to fund the purchase of vaccines for 92 of the world’s IFC’s goal is also to help restructure and recapitalize in providing immediate relief to the COVID-19 funding to IDA-eligible countries in the case of major poorest countries, and an additional $380 million for viable financial institutions and companies on their pandemic. Four health-related FIFs have played multi-country disease outbreaks like COVID-19. COVAX AMC as of June 30, 2021. The Vaccine Bonds path to recovery, as well as alleviate bottlenecks in leading roles in COVID-19 vaccine research and Its Cash Window, which has been supported by issued by IFFIm to support these disbursements critical supply sectors such as health care. development, preparedness and response: the traditional donor contributions into a trust fund, have included the first-ever Norwegian Kroner- Coalition for Epidemic Preparedness Innovations had paid out $61.4 million to support the front- For example, IFC has launched a $4 billion Global denominated bonds in July 2020 and the second (CEPI), International Finance Facility for line response to Ebola in the Democratic Republic Health Platform aimed at boosting the production largest issuance of $750 million in April 2021. Immunisation (IFFIm), the Global Fund to Fight of Congo in 2018 and 2019. On March 31, 2020, and supply of critical COVID-19 health care products AIDS, Tuberculosis and Malaria (Global Fund), and Established in 2002, the Global Fund also conditions for a payout from the PEF Insurance in developing countries. The initiative, supported by the Pandemic Emergency Financing Facility (PEF). responded quickly and decisively to the COVID-19 Window were met, releasing the maximum development partners, is focusing on manufacturing In addition, the Advanced Market Commitment crisis, by approving up to $1 billion in April 2020 coverage of $195.84 million to support the COVID-19 products, such as personal protective equipment, (AMC) for Pneumococcal Vaccines has served as to help countries respond to the pandemic; adapt pandemic response in IDA countries. The PEF ventilators and other medical equipment, COVID-19 a model for establishing the COVID-19 Vaccines their HIV, TB and malaria programs; and reinforce Steering Body allocated the whole amount to 64 of test kits, therapeutic drugs, and vaccines. Global Access (COVAX) AMC, which is creating their already overstretched health systems. the world’s poorest countries with reported cases Strong emphasis is being placed on supporting market-based incentives to support more equitable, Through its COVID-19 Response Mechanism, of COVID-19, with special attention given to areas clients operating in low-income and FCV-affected world-wide access to COVID vaccines. the Global Fund has become the primary grant with the most vulnerable populations, especially in countries. To attract foreign direct investment support to low- and middle-income counties for FCV-affected countries. By September 30, 2020, Established in 2018, CEPI was one of the first the entire insurance payout had been transferred to into these more challenging locations, IFC is also obtaining COVID-19 tests, treatments, and personal organizations to start investing in the development support COVID-19 responses, with the World Bank leveraging concessional financing from trust funds. protective equipment. The Global Fund is also a of COVID-19 vaccines. Prior to the COVID-19 serving as one of the main implementing entities for founding partner of the Access to COVID-19 Tools As IFC works to help countries build a resilient pandemic, CEPI had allocated over $140 million to PEF grants. Accelerator (ACT-Accelerator) and co-leads two recovery, trust funds will be important contributors. develop vaccines against MERS, a virus related to of the ACT-Accelerator’s four components: the IFC aims to accelerate the expansion of upstream SARS-CoV-2. During 2020, CEPI was able to pivot Other FIF-supported programs in agriculture, Diagnostics Pillar and Health Systems Connector. activities with the goal of building back better and most of its MERS and platform technology partners education, the environment, and infrastructure This global collaboration of leading public health delivering interventions that meet the short-term to work on COVID-19 and rapidly built up a portfolio have also addressed some of the immediate socio- agencies is working with governments, civil society needs but also maintain a line of sight on longer- of 11 vaccines for SARS-CoV-2. By the end of year, economic effects of the crisis. They have been fully and industry to accelerate the development and term development challenges. Development two of these vaccines had demonstrated high engaged in addressing the question of how the equitable distribution of tests, treatments, and partner support through trust funds will be needed efficacy in preventing severe COVID-19 disease world can end the pandemic and emerge stronger, vaccines and to strengthen health systems. to develop projects quickly, build capacity, and and had received emergency use authorizations, more united, more equitable, and more prepared for support delivery, as well as to mitigate risks and enabling roll out of vaccine doses in early 2021. future known threats. (Section 3.3.) encourage the private sector to invest. Not only has CEPI invested in one of the world’s 28 WBG Trust Fund Annual Report 2021 Chapter 2. Responding to the COVID-19 Crisis 29 2.2 STORIES FROM THE FIELD Many of these grants have been processed as co- and safety net responses to the pandemic. This call financing to new or existing World Bank projects focused on systems to help households cope with Trust-funded programs are contributing to the World that focus on health emergency preparedness and income and job loss, ensure continued access to Bank Group’s COVID-19 response by supporting the client countries’ COVID-19 responses. social and human capital services, and address efforts to save lives, protect poor and vulnerable the disproportionate socio-economic impact of the people, ensure sustainable business growth and job The COVID-19 pandemic has also highlighted virus on women and girls. creation, and strengthen policies, institutions, and the critical need for electricity to save lives. The investments. Many of these activities are detailed in Energy Sector Management Assistance Program PROBLUE has prioritized activities supporting the 2021 Yearbook of Trust-funded Results. (ESMAP) has developed a strong collaboration with fishing communities that have been adversely the World Bank’s Health Global Practice and its impacted by the pandemic, as well as new activities SAVING LIVES global partners to rapidly deliver a climate-informed around water and sanitation issues in the fisheries COVID-19 response. It is focusing on electrification value chain. The Global Financing Facility (GFF) and the of health facilities with renewable energy and Health Emergency Preparedness and Response The Extractives Global Programmatic Support sustainable operational models and on deployment Fund (HEPR) are leading the IBRD/IDA trust funds’ (EGPS) Umbrella Program has established a $5.2 of reliable and climate-smart cold chains to deliver contribution to mitigating COVID-19 transmission, million emergency response facility to provide vaccines. In Haiti, for example, ESMAP is supporting delivering health services, ensuring that vulnerable short-term assistance to a range of international, efforts to install solar hybrid electricity systems households have access to medical care, and regional, and local organizations providing for prioritized health care and water facilities. building resilience for future pandemics. The relief to artisanal and small-scale mining (ASM) Approximately 1 million people are expected to gain Pandemic Emergency Financing Facility (PEF) was communities. The COVID-19 pandemic threatened improved access to health services and clean water also an important contributor until its closure in to reverse the enormous progress that ASM as a result. April 2021 (Figure 2.4). communities have made to formalize the sector. Similar to informal workers worldwide, ASM The GFF has played a complementary role to PROTECTING THE POOR AND communities are disproportionally vulnerable to the the World Bank’s efforts to finance the purchase MOST VULNERABLE COVID-19 crisis due to poor health care, precarious and distribution of COVID-19 vaccines, tests, and Trust funds are also supporting World Bank Group’s working conditions, high incidence of respiratory treatments. Its COVID-19 Essential Health Services efforts to protect incomes and food supplies for diseases, and exposure of vulnerable groups in an grants have enabled partner countries to prioritize the most vulnerable, as well as employment for environment of limited government oversight. and strengthen primary care and community-based poorer households, informal businesses, and services, capacities, and the health workforce that microenterprises impacted by the pandemic. are critical for the equitable and effective delivery of Leading the trust fund contribution to mitigating Some of the poorest and most “ both COVID-19 tools and essential health services. both the immediate and long-term disruptions to The GFF is helping to ensure that as countries vulnerable people work in artisanal and education is the Global Partnership for Education recover and build their next generation health (GPE), a FIF for which the World Bank is an systems, they prioritize access to quality, affordable small-scale mining, and we are deeply implementing entity. This includes more than $175 care for women, children, and adolescents. million in World Bank-supervised RE grants to help concerned by the effects of COVID-19 The World Bank set up the HEPR Umbrella Program children in recipient countries to continue to access learning opportunities, with a focus on girls and on their lives and livelihoods. EGPS is in 2020 to complement regular IBRD/IDA resources. It provides upstream and catalytic funding to poor children, who have been the hardest hit by well-placed to provide significant and help countries prepare for and rapidly respond to school closures. emerging health emergencies, even when they occur concerted support.” The Rapid Social Response–Adaptive and outside their borders. By the end of FY2021, HEPR Monica Rubiolo, Head of Trade Promotion, Dynamic Social Protection (RSR–ADSP) Umbrella had secured over $175 million in donor contributions, Swiss State Secretariat for Economic Affairs Program issued its latest call for grant proposals and allocated nearly $117 million to 24 countries and in early FY2021 to address gender-specific and regional efforts, with 59 percent of grant allocations Orlando Barría / World Bank differentiated concerns as part of social protection to address the COVID-19 pandemic and 41 percent to prepare better for future health emergencies. 30 WBG Trust Fund Annual Report 2021 Chapter 2. Responding to the COVID-19 Crisis 31 SUPPORTING SUSTAINABLE COVID-19 was impacting women differently than have the most significant impact on health. Each aims to build on this optimism, and ensure that, BUSINESS GROWTH AND JOBS men. In response, the SheWorks companies came of its the major work streams, but particularly moving forward, companies have the institutional together for a series of webinars to share lessons Environmental Health, Air Quality Management, framework to help support them to fully recover and World Bank Group trust funds are providing policy learned about how to support employees, especially and Circular Economy, will have strong links to the operate their businesses sustainably. and financial assistance to governments, businesses, women, during the pandemic. They reported that the COVID-19 pandemic in terms of analytical work, and financial institutions to help companies, family-friendly policy frameworks, like flex-work and addressing connections between air pollution and especially small and medium-enterprises (SMEs), remote working that had been put in place due to COVID-19 outcomes. IFC’s advisory support will help “ preserve jobs, weather the crisis, and return SheWorks, enabled them to seamlessly transition to to growth. work from home during lock downs. This COVID-19 PROBLUE is also contributing to a clean recovery Somalia tackle bottlenecks in the through its focus on marine pollution prevention, The Consultative Group to Assist the Poor study has led to two new IFC projects in Sri Lanka for example, by assessing the impacts of single- business environment and enable us (CGAP) has provided guidance to microfinance focusing on SME capacity building and COVID-19 use plastics use in health care facilities and by institutions on navigating the COVID-19 crisis and impacts on employment. to attract more investment from both developing health care waste management plans in improving their resilience to future shocks, and to governments on improving government-to-person cities along rivers and in coastal areas. domestic sources and the Somali payment (G2P) systems. The World Bank and CGAP The business organizations “ diaspora, which is a national priority.” have helped accelerate policy reforms in countries STRENGTHENING POLICIES, that had not yet invested in digital systems and participating in SheWorks INSTITUTIONS, AND INVESTMENTS Gamal M. Hassan, Minister of Planning, Investment, were struggling to distribute relief payments. CGAP and Economic Development, Somalia have provided the proof that Trust-funded activities are also helping countries support to Ecuador, Indonesia, Lebanon, Pakistan, prepare for a resilient recovery, with an emphasis on the Philippines, Sudan, and Zambia, among others, commitment to gender diversity improving governance and institutions. The Global has resulted in reforms being implemented in a few Tax Program (GTP) Umbrella Program responded to To help governments navigate the impacts of months that would normally take years. is good for their businesses.” COVID-19 on their PPPs for infrastructure projects, the COVID-19 crisis by providing countries with just- H.E. David Holly, Australian High Commissioner in-time fiscal policy advice on developing effective, the Public-Private Infrastructure Advisory to Sri Lanka and the Maldives efficient, and balanced fiscal policy responses. Facility (PPIAF) and the World Bank have launched a COVID-19 PPP Rapid Response Program. It CGAP’s work on G2P payments “ This has included macro-fiscal policy, domestic conducts rapid assessments of countries’ portfolios resource mobilization, expenditure policy, and fiscal organically built on ongoing project The pandemic has also highlighted the critical risk management, plus important cross-cutting to identify fiscal, financial, and social risks; estimate themes, such as poverty and distributional impact, their costs; and inform decision-makers on options work and catalyzed policy reforms. need for water to not only prevent the spread and actions. The program has brought global of the disease, but also to revitalize economies, transparency, and accountability. An additional It looked to apply lessons from India employment opportunities, health outcomes, and $5.4 million in donor contributions is supporting financial, fiscal, technical, and legal expertise to GTP efforts on long-term fiscal sustainability eight countries and one regional engagement the environment. The Global Water Security and to countries such as the Philippines during its first year of operation, including Peru and Sanitation Program (GWSP) has utilized the and resilience. the Philippines. and Peru.” umbrella approach to quickly provide resources In 2020, IFC signed its first national-level agreement across its various business lines to tackle emerging Comments from a confidential evaluation with the Federal Government of Somalia to needs, while also preserving long-term engagements of CGAP’s COVID-19 response provide a road map for the development of the of on the ground. Sustaining the gains of the past and PPIAF provided us deeper “ the nascent private sector. It was part of ongoing putting countries back on track to achieve SDG 6 legal and regulatory Advisory work supported by understanding of PPP fiscal impacts (clean water and sanitation) are fundamental to a Since 2017, IFC’s SheWorks Sri Lanka Partnership, two Somalia Private Sector Development trust resilient and sustainable recovery and will remain a supported by the DFAT-IFC Global Advisory funds. IFC collaborated with partners to conduct and best practices for managing them.” focus for GWSP in the medium to long term. Services Trust Fund, has worked with 15 leading a survey of businesses across the country to help Ferdinand A. Pecson, Executive Director employers across different industries to help identify As governments turn their attention to economic the government assess the impact of COVID-19. of the Public-Private Partnership Center and implement gender-smart business solutions recovery from the COVID-19 pandemic, there are Although the initial impact was devastating—90 of the Philippines to boost women’s participation and business new opportunities to embrace green, resilient, percent of firms experienced decreased liquidity productivity. Twelve of these companies participated and inclusive recovery programs to achieve more and cash flow—the survey found that companies in a 2020 IFC survey in Sri Lanka that demonstrated growth with lower pollution. PROCLEAN activities were optimistic for the future. IFC’s work in Somalia will help tackle the environmental problems that 32 WBG Trust Fund Annual Report 2021 Chapter 2. Responding to the COVID-19 Crisis 33 T he World Bank Group’s COVID-19 crisis Looking back over the last five years, trust funds response has provided an opportunity and FIFs have supported World Bank Group public and private sector efforts in health, climate to support a strong, durable recovery that action, gender, social protection and jobs, and debt tackles rising poverty and deepening management—all essential building blocks for inequality while addressing the longer- greater resilience and key development priorities term challenge of climate change. of client countries. Not only do these themes align with the GRID approach, but they also reveal the diversity and strategic value of trust-funded activities already underway. The Bank Group’s green, resilient, and inclusive development approach, or GRID, calls for scaling up As shown in Table 3.1, social protection and jobs has investments in all forms of capital—human, physical, received more than 42 percent of IBRD/IDA trust natural, and social—to drive growth, create jobs, fund support to these five themes during the last five and contribute to a better future for all, especially years, followed by health (28 percent) and climate vulnerable, low-income populations. Integrated, action (24 percent). About 68 percent of FIF support longer-horizon GRID strategies can repair the has been for health and 31 percent for climate structural damage caused by COVID-19 and action. Together with IFC’s ongoing work with the accelerate climate action while restoring momentum private sector, this represents a strong foundation on poverty reduction and shared prosperity. for greater resilience now and into the future. The World Bank Group is well positioned to help The following activities, which are expanded in the countries with the challenges ahead through 2021 Yearbook of Trust-funded Results, demonstrate its convening power, global reach, and capacity how World Bank Group trust funds and FIFs to mobilize finance, technical assistance, and advance countries’ development priorities and help knowledge for both the public and private sectors build greater resilience. and in cooperation with its development partners. This clear line of sight forward points to progress already being made to strengthen resilience across systems and society. TABLE 3.1 Trust Fund and FIF Support to Five Thematic Areas, FY2017–21 ($ millions) IBRD/IDA Trust Fund Disbursements FIF Cash Thematic Area BE Activities RE Activities Total Transfersa Social Protection 196 1,308 1,504 – & Jobs Health 114 890 1,004 20,590 Climate Action 235 634 869 9,366 Gender 115 49 164 171 Debt Management 16 11 27 182 BUILDING RESILIENCE NOW Total 676 2,892 3,568 30,309 3 AND INTO THE FUTURE a  IF cash transfers include transfers to implementing entities for all purposes, including project preparation, supervision and F implementation costs, and secretariat costs. They do not include transfers made to IBRD/IDA as a FIF implementing entity. Chapter 3. Building Resilience Now and Into the Future 35 3.1 WORLD BANK TRUST FUNDS These platforms are now predominantly funded by HEALTH the government, and strong national ownership is assured by the Payment Certification Agency (PCA), an independent public entity that verifies reimbursements to health facilities. The PCA provides a cost-efficient and sustainable mechanism for managing the HEF system and is well placed to a play a central role as Cambodia progresses toward Ensuring that every man, woman, and child has community health channels and addressing low universal health coverage. access to health care is fundamental to ending service demand. Funding helped modify the delivery poverty and building robust economies. The of routine health services for COVID-19, increase the Service delivery grants now flow to all health facilities pandemic has disrupted delivery of essential health capacity of frontline health care workers, and adapt on time, and the PCA is fully staffed and operational. services, particularly in the poorest nations with the existing programming to address emergency needs. HEFs operate at all public health facilities in the most fragile health systems, threatening to reverse country, and H-EQIP performance monitoring tools The GFF has also worked alongside the World Bank were digitized in 2019 to ease tracking of service years of hard-won gains in health and human capital and the Afghanistan Reconstruction Trust Fund quality. These and other measures have helped to outcomes. Now more than ever there is a need to (ARTF) on the Sehatmandi Project to improve reduce the proportion of households vulnerable strengthen national health systems’ preparedness the delivery and quality of health, nutrition, and to high health care costs by 43 percent from and capacities and ensure continuity of essential Saroeun Bou / World Bank family planning services in 34 provinces across 2015 to 2020. health services. Afghanistan. By the end of FY2021, a first-ever In addition to health interventions related to resource mapping and expenditure tracking exercise An important moment for H-EQIP came in 2020 COVID-19 (Section 2.2), ongoing health sector had helped to assess the impact of investments on CAMBODIA: PRO-POOR when its Contingent Emergency Response investments and research within the World Bank the quality of basic health services. Component (CERC) was activated. This enabled APPROACH TO QUALITY immediate mobilization of $14 million for Cambodia’s are focused on building resilient health systems, with trust funds playing an integral role. A new performance-based system was also HEALTH SERVICES COVID-19 response without interrupting continuity introduced to better manage service provider The Cambodia Health Equity and Quality in the delivery of core health services. For example, the Global Financing Facility for contracts and link payment to performance Improvement Program (H-EQIP) MDTF supports Women, Children and Adolescents (GFF) is in delivering 11 key health services, including a program of the same name that is helping the supporting the World Bank’s Liberia Health System immunization, skilled birth attendance, family Cambodian government improve nationwide access H-EQIP is driving reform across the “ Strengthening Project to improve service delivery planning visits, and growth monitoring of children. to better quality, affordable health services. Despite and health outcomes for women and children. The volume of services delivered under the project dramatic reductions in poverty and improved health health sector and beyond, thanks to its This work had contributed to 24 percent more increased for 10 out of 11 payment indicators. For assisted deliveries and 20 percent more children example, between 2018 and 2019, the number of outcomes (especially in maternal and child health), effective approaches to performance- socio-economic and rural-urban health inequalities being immunized in six at-risk counties, but these couple-years of contraceptive protection provided persist in Cambodia. About one quarter of the based and decentralized financial gains were jeopardized when COVID-19 disrupted by Sehatmandi facilities increased by 49 percent population remains vulnerable to small economic delivery of essential services. The GFF quickly and the number of women giving birth at a health management, its use of information shocks, and out-of-pocket expenditures on health adapted its grant funding to focus on strengthening facility increased by 21 percent. care are around 60 percent—one of the highest and communications technology, and rates in the world. governance reforms.” To improve service quality and help poor households Sarah Wadley, First Secretary, Department of Foreign overcome the cost barrier, H-EQIP helped launch Affairs and Trade, Australia, and Chair, H-EQIP service delivery grants, which are regular payments Multi-Donor Trust Fund Management Committee to health facilities based on performance, and health equity funds (HEFs), which purchase health services on behalf of registered households so that they can access care free of charge. 36 WBG Trust Fund Annual Report 2021 Chapter 3. Building Resilience Now and Into the Future 37 CLIMATE ACTION The threat of climate change remains critical for shocks in the face of climate risks. The first insurance Parques Nacionales de Colombia countries, forcing people to evacuate homes, grapple product, a regional catastrophe risk pool launched in with food insecurity, or the impacts of deforestation 2021, is underpinned by the first regional near-real- and biodiversity loss, even as they also deal with time flood monitoring platform and risk model. This the health and economic impacts of the pandemic. enables governments to make better risk-informed COLOMBIA: FOSTERING signed 558 conservation agreements to preserve standing forests, restore degraded areas, and Left unchecked, climate change will push 132 million decisions before, during, and in the aftermath RESILIENCE AND LOW-CARBON develop agroforestry activities on over 48,000 people into poverty over the next 10 years, undoing of flooding. DEVELOPMENT IN THE AMAZON hectares, conserving more than 40 percent of their hard-won development gains. The Public-Private Infrastructure Advisory Facility Since 2015, the Forest Conservation and farmland. In parallel, the government and research The World Bank Group is the largest multilateral (PPIAF) is helping to expand African markets Sustainability in the Heart of the Colombian institutions are helping rural communities increase provider of climate finance for developing countries, for pay-as-you-go (PAYGO) solar, a fast-growing Amazon Project has played a critical role in reducing incomes and food security through climate- and it is focused on increasing climate ambition business model for off-grid lighting and electricity deforestation, conserving biodiversity, and fostering smart livelihood alternatives that also strengthen and action around the world. Ongoing trust- solutions. Together with IFC, PPIAF created the climate resilience in the Amazon. It represents long- low-carbon development and restore productive funded activities are not only helping countries PAYGO Market Attractiveness Index, which PAYGO term commitment and cooperation among donors, natural resources. cope with climate vulnerabilities that threaten their operators are using to assess demand, supply, and the government, and community organizations, The local planning approach has proven so ongoing development, but also helping them stay enabling factors at a country-by-country level. with co-financing from government resources, successful that the government has expanded it to competitive as the global economy moves toward a Policymakers can also use it to identify gaps and bilateral cooperation agencies, and three rounds of reach 12,000 households in the Amazon region as net-zero future. opportunities for policy interventions and reforms. FIF funding from the Global Environment Facility outlined in the National Development Plan. Newly (GEF) implemented by the World Bank, the most For example, the Sahel Adaptive Social Protection Trust funds are also financing research and approved GEF financing will help scale up efforts to recent of which was approved in 2021. Program (SASSP) is supporting adaptive social knowledge tools to support greater climate strengthen management and financial sustainability protection programs in six Sahelian countries. The resilience and low-carbon growth. The Climate Investments are helping to strengthen the of additional protected areas, and it will build on combination of cash transfers and assistance is Support Facility (CSF) helped Ethiopia assess management of protected areas—including the the results of local community agreements to helping poor and vulnerable households become its Climate Resilient Green Economy Strategy for Serranía de Chiribiquete National Park, the world’s expand the area under sustainable community more resilient to shocks and stresses, particularly mainstreaming into national development plans, largest national tropical rainforest protected area forestry practices. the impacts of climate change. The program has as well as updating its Nationally Determined at 4.3 million hectares—and assisting national helped pilot an early drought response mechanism Contribution ahead of COP26 in November 2021. and subnational public institutions to mainstream that uses satellite data to trigger rapid-response environmental criteria into different areas of In the small island nation of Tuvalu, a study funded by Community agreements are important “ cash transfers to at-risk households in Mauritania agriculture, mining, infrastructure, and land-use the Quality Infrastructure Investment Partnership planning. Colombia’s forest and carbon monitoring not only for the forest and preventing and Niger. (QIIP) provided technical specifications and systems are also being supported. The Southeast Asia Disaster Risk Insurance engineering solutions to fix the runway at the deforestation, but also for the future Facility (SEADRIF) is a first-of-its-kind facility in Funafuti International Airport, which had failed due The project is also enhancing the capacity of of our children, community, and Asia that leverages financial markets to provide to moisture build-up exacerbated by sea level rise, Indigenous and rural communities to undertake member countries with technical and financial increased rainfall, and larger waves. sustainable landscape management practices. generations to come.” solutions for better protection against disaster Participatory community land-use planning processes have led to increased ecosystem María de los Ángeles Gaitain, member of the Vereda La connectivity and strengthened climate resilience Tortuga community, San José del Guaviare in target areas. To date, rural households have 38 WBG Trust Fund Annual Report 2021 Chapter 3. Building Resilience Now and Into the Future 39 The Umbrella Facility for Gender Equality GENDER (UFGE) is supporting efforts to promote greater financial inclusion. It funded an assessment, Mobile Technologies and Digitized Data to Promote Access to Finance for Women in Agriculture, and follow-on technical assistance to help three digital financial service providers better understand the needs of women farmers and develop more The pandemic has exposed existing social fresh fish exports. The goal is to connect small-scale targeted financial products and marketing. Lessons and economic inequities even more glaringly. fishermen and informal processors and traders learned and recommendations from the three pilot Lockdowns, school closures, and economic (generally women) to the value chain. Both the programs were consolidated and captured in a downturn have disproportionately impacted the government and the private sector are focused on 2021 report, Women in Agriculture: Using Digital education, employment, and domestic lives of building women’s entrepreneurship and other skills Financial Services. women and girls. The World Bank Group recognizes in this artisanal processing sector. that major challenges like pandemics affect people Fenix (now Engie Energy Access), an off-grid solar World Bank Group-implemented funding from the home system provider in Uganda, invested in new differentially, often to the detriment of women and Women Entrepreneurs Finance Initiative (We-Fi) tools to better gather feedback from its women girls due to discriminatory laws and policies, as and the Doing Business Pakistan Project supported clients. It has since adapted the tools for other well as ingrained gender and social norms. It also a partnership between the Government of Pakistan markets and is using them in countries like Benin. recognizes that no country, community, or economy and the World Bank Group’s Women, Business can achieve its potential without the full and equal and the Law Advisory Program that informed an Safaricom’s Digifarm, a digital platform that offers participation of all its people. amendment to Pakistan’s Companies Act. Passed financial and non-financial services to smallholder The World Bank Group is working to narrow gender in 2020, the amendment lifts the requirement for farmers in Kenya, partnered with a commercial gaps and elevate women as agents of economic women entrepreneurs to provide the name of their bank to offer savings products better tailored to the growth, stability, and sustainability. Trust funds are father or husband during the company incorporation financial needs of women involved in agriculture. It helping to accelerate progress on human capital, process. Through the We-Fi program, IFC and the Stephan Gladieu / World Bank also engaged with women’s groups to build trust increase women’s access to good jobs and asset World Bank are also working to catalyze outreach and understanding of financial products. Women ownership, and amplify women’s voice and agency. and investments in early-stage, high-impact now account for 48 percent of clients for multiple technology start-ups led by women in Pakistan. EAST AFRICA: MAKING MOBILE Digifarm products, a 10 to 15 percent increase since For example, the State and Peace Building Fund technical assistance began. (SPF) helped pilot the Integrated Platform for The InfoDev MDTF helped the World Bank and the MONEY MORE ACCESSIBLE TO Gender-based Violence Prevention and Response Kenyan government assess business incubators WOMEN IN AGRICULTURE MyAgro, a social enterprise that offers bundled in four districts of Nepal back in 2016 to raise and accelerators within the country to identify services to farmers in Tanzania, also adopted new Agriculture is the largest source of employment awareness about gender-based violence and ways of better supporting women in technology marketing mechanisms. It engaged influential for women in developing countries, with women improve services for survivors. A 24-hour toll-free and to inform the design of the Kenya Industry and women in leadership to encourage others to enroll representing more than 60 percent of the agricultural helpline was launched to link survivors with shelter, Entrepreneurship Project. Consultations garnered in programs, and created marketing products with labor force in some parts of Asia and Africa. Yet, psychosocial support, legal aid, and child support feedback from potential women beneficiaries, images and terminology familiar to local women women farmers have significantly less access to services provided by CSOs. The National Women including entrepreneurs, students, and small involved in agriculture. MyAgro also made services productive assets, including financial services. Commission has since taken ownership of the business owners. This research continues to more accessible by reducing the minimum package Digital financial services, accessed largely through project and expanded services nationwide, with the contribute to a better understanding of women size and associated prices. mobile devices, have expanded the availability helpline providing nearly 13,500 integrated services in Kenya’s business landscape, and offers a of financial products to smallholder farmers and to over 21,000 clients. foundation for future gender-focused interventions represent a safe and convenient way to save, obtain in the country. loans, and make or receive payments. However, The Competitive Industries and Innovation Program (CIIP) financed studies on building greater in low- and middle-income countries, women are resilience and inclusion in the fisheries sector in 36 percent less likely than men to own mobile Mauritania’s Nouadhibou Free Zone, a major hub for money accounts. 40 WBG Trust Fund Annual Report 2021 Chapter 3. Building Resilience Now and Into the Future 41 ZAMBIA: PUTTING CASH IN Bi-monthly SCT payments are helping families pay SOCIAL PROTECTION & JOBS THE HANDS OF THE POOR for school fees, cover medical and food expenses, and invest in small-scale businesses to boost CHANGES LIVES incomes. To expand the program, the Zambian The objective of the Girls’ Education and Women’s government secured funding from the World Bank Empowerment and Livelihood (GEWEL) MDTF is and other partners through the GEWEL MDTF. to support the Government of Zambia in improving In November 2020, payments began to flow to the effectiveness of its social protection system. Social protection programs are at the heart of The Sudan Transition and Recovery Support over 370,000 beneficiaries in 67 districts across the Working through the GEWEL project, the trust fund boosting human capital for the world’s most (STARS) program, an umbrella coordination platform country prioritized based on poverty rates and size helps increase women’s access to livelihood support vulnerable. Not only can they cushion the impact for World Bank engagement in Sudan, is supporting of SCT caseloads, among other factors. Additional and make secondary education more accessible to of crises like COVID-19, but at any time, they the economic and peacebuilding transition after the World Bank financing will expand coverage to a disadvantaged adolescent girls in extremely poor can empower people to be healthy, pursue their collapse of the former regime in November 2019. total of 750,000 households in 2021 and 994,000 households in selected districts. It also supports education, and seek opportunity to lift themselves As part of a larger sustainable livelihoods project, households by 2022. This support will enable timely cash transfers for poor and vulnerable households and their families out of poverty. Social protection STARS provided technical support and financing to and predictable disbursements of cash transfers through the Social Cash Transfer (SCT) Program. systems that are well-designed and implemented promote youth entrepreneurship. Over 1,000 young to 30 percent of the Zambian population and 50 can enhance human capital and productivity, people, 70 percent of whom were women, received percent of the poor by 2022. reduce inequalities, build resilience, and end inter- technical and vocational skills training, while another generational cycles of poverty. 1,400 women received home cultivation training. The project also established a permanent incubator, My life has improved since I started “ Funding from trust funds is helping the World Bank to the Inventors Development Center, to nurture and expand successful programs, pilot new approaches, train young Sudanese entrepreneurs and creators receiving SCT payments. The money and build the evidence base on what works and what does not in policies and programs for social in areas like medicine, engineering, electronics, and helps me pay for my husband’s medical information technology. safety nets and sustainable social insurance. bills and school fees for the orphaned When the Eurozone crisis struck in late 2019, Greece For example, the Identification for Development lacked a well-targeted welfare system to support children I look after.” Initiative (ID4D) brought together a multi-sectoral the most vulnerable. Through the Europe2020 team from across the World Bank to support the Sylvia Banda, head of household and Programmatic Trust Fund financed by the Government of the Philippines in developing its SCT beneficiary, Zambia European Commission, the World Bank brought new national Philippine Identification System critical global knowledge to the task of implementing (PhilSys). Proof of identity is the key to accessing new social safety net programs and provided social and financial services, and those who lacked A 2019 impact evaluation showed that the SCT hands-on support for a new social solidarity income proper documentation can be locked out. PhilSys program is contributing to increased human program. By June 2019, the program had reached aims to register more than 90 million Filipinos and capital and productivity, both key to enhancing approximately 650,000 people (6.5 percent of the accelerate the country’s transition to an inclusive and greater resilience. Households were found to have population). This work in Greece has led to similar resilient digital economy, society, and government. increased the land they operate by 18 percent, reimbursable advisory services in Italy and has Integrating best practices for inclusion, data privacy, maize production by 8 percent, and livestock by 21 generated approaches applied in Russia, Argentina, and digital security, ID4D also helped adapt the percent. Households also increased their ability to Turkey, and a globally available and applied toolkit registration approach for COVID-19 to prioritize meet the material needs of children (clothes, shoes, for practitioners. Carlyn Hambuba / World Bank low-income households that would benefit most blankets) by 30 percent and increased the number from a digital ID to access social protection and of children attending primary school by 10 percent. financial services. 42 WBG Trust Fund Annual Report 2021 Chapter 3. Building Resilience Now and Into the Future 43 DEBT MANAGEMENT Debt financing is critical for development, but DMF efforts have led to more countries preparing and World Bank unsustainable levels harm growth and the poor. publishing debt management strategies, improving Debt can be a useful tool if it is transparent, well- the quality of government debt records, and better managed, and used in the context of a credible organizing their debt management institutions and GEORGIA: BUILDING A management experts in the Ministry of Finance to growth policy, but this is often not the case. High coordination with fiscal policies through alignment conduct debt sustainability and portfolio analysis public debt can inhibit private investment, increase with medium-term fiscal frameworks. FRAMEWORK FOR GREATER and formulate debt management strategies. fiscal pressure, reduce social spending, and limit FISCAL RESILIENCE The Global Tax Program (GTP) enhances the Since the initial DMF engagement in 2013, Georgia governments’ ability to implement reforms. The COVID-19 pandemic has triggered a steep World Bank’s capacity to support tax reforms, has improved debt management transparency increase in public debt across the world, including The COVID-19 pandemic has exacerbated debt especially at this crucial time. The program provides with the publication of a semi-annual public in Georgia. The government had to borrow stress in many emerging and developing economies, an umbrella framework for tax support and leads an debt statistical bulletin, monthly debt statistics, substantially to finance stringent health measures, with increased spending on health, incomes, and ongoing program of activities at both international and annual debt sustainability analysis. The fiscal stimulus packages, and the deficit due to employment. It has forced some countries to borrow tax and country levels focused on strengthening tax government has also developed and published debt falling tax revenues. Hence, Georgia increased more and compromised others’ ability to repay institutions and mobilizing revenues. management strategies, which provide guidance domestic debt issuance and, with additional support creditors. For a resilient recovery, debt management for borrowing operations and lay out measures for For example, the GTP is funding the Kyrgyz from development partners, the country was able and transparency need to be top priorities, along domestic market development. Cash management Republic Tax Reform Technical Assistance Project, to meet its government’s financing needs at a time with domestic resource mobilization. The World has also improved with the establishment of a cash which is helping the Kyrgyz government to improve when capital markets were in turmoil. Fortunately, Bank is helping countries around the world to management unit in the Ministry of Finance and the administrative effectiveness and reduce the Georgia had already built a framework for greater strengthen their capacity to manage debt and tax introduction of weekly and daily cash flow forecasts compliance burden for taxpayers. Ongoing since resilience, with support from the DMF, prior to revenue generation, with trust funds providing and active investment of surplus cash. 2018, the project has provided advice on designing the pandemic. important resources for technical assistance tax policy and administration, strengthening and guidance. The DMF started providing technical assistance to taxpayer communication and outreach, rebuilding For example, the Debt Management Facility (DMF) business processes, and digitizing the issuance Georgia in 2013 with an initial Debt Management I am using the knowledge and “ Performance Assessment followed by a reform plan helps countries strengthen debt management to of tax certificates. The knowledge generated by and several support missions for domestic debt experience that I gained in the Debt reduce debt-related vulnerabilities and improve debt this technical assistance is informing the Tax transparency. It offers advisory services, training, and Administration and Statistical System Modernization market development. The assessment identified Manager’s Practitioner Program to several areas of weaknesses in government debt peer-to-peer learning to more than 80 developing Project for the Kyrgyz Republic approved by the management processes and procedures, as well as develop the domestic debt market countries around the world to strengthen their debt World Bank in February 2020. in the structure of debt and guarantees management. management capacity, processes, and institutions. in Georgia.” Through the assessment, reform plans, and training Irakli Katcharava, Head of Domestic Public Debt opportunities, the DMF catalyzed significant Instruments’ Development Division of the Ministry of progress in Georgia’s debt management and Finance of Georgia assisted the country in reducing vulnerability to financial shocks. DMF training opportunities also improved the analytical capacity of debt 44 WBG Trust Fund Annual Report 2021 Chapter 3. Building Resilience Now and Into the Future 45 3.2 IFC TRUST FUNDS digital financial services have filled the void, making In 2020, IFC launched the Grow Learn Connect it possible for SMEs to continue to access financial project with support from several trust funds, IFC is also focused on building resilience. The GRID services. Work with municipalities and infrastructure including the MENA MSME 2.0 Trust Fund approach is apparent in its work with the private projects have helped to attract private capital for and the Partnership for Resilient Efficient and sector, whose role in development has never been public projects, freeing up government resources Sustainable SMEs Facility. Recognizing that more important than in the wake of COVID-19. for other needs, while general capacity building financial institutions play an important role in IFC is deploying a comprehensive approach, utilizing for SMEs has enabled them to access increased enabling their MSME clients to mitigate business the Creating Markets Upstream approach, Advisory financing to meet short-term liquidity needs. financial risks and maintain access to finance, the services, and blended finance trust funds, to Grow Learn Connect team developed an interactive In West Africa, the travel and tourism industry lost webinar series for MSMEs, focused on increasing address protracted development challenges around nearly 30 percent of tourism-related jobs in 2020 business resilience and delivered through financial the globe and build a pipeline of investment projects due to the pandemic, which exposed an over- institutions. It covered topics such as how to access that will accelerate recovery after the pandemic. dependence on foreign travelers. IFC had been financing during crises, doing business online, and This constellation of IFC services will help pave the working to strengthen local tourism value chains communicating with stakeholders during crises. In way for private sector investment in everything from through the Invest West Africa Tourism project partnership with seven financial institutions, IFC climate change to digital infrastructure. Together funded by two global funds, IFC Support for G-20 delivered the webinar series to more than 1,100 with the contributions of development partners, Compact with Africa Initiative (ISCA) and the participants in six countries. IFC is de-risking emerging technologies, opening Trust Fund to Facilitate USAID Access to IFC frontier markets, and delivering greater impact on Advisory Service’s Expertise and Services. In IFC will also work directly with financial institutions the ground. light of COVID-19, IFC shifted its focus to supporting to create awareness about the benefits of offering This work is informed by Country Private Sector companies to access additional sources of financing nonfinancial services to MSMEs, such as business Diagnostics many of which are co-funded with and identify domestic markets. IFC provided development services and access to information development partners,7 and driven by IFC Country coaching to 18 supplier companies and worked with and markets, to complement and increase uptake of Strategies. The diagnostics bring together the Côte d’Ivoire’s private-sector support committee their financial services. Although the program was combined expertise of the World Bank and IFC to to develop an online platform that helps affected Arne Hoel / World Bank born out of a need to respond to COVID-19, IFC’s better align country-level engagement in regard companies identify and apply for loans, grants, and work in building skills and knowledge for financial to private sector development, including with other financing support. institutions and MSMEs in MENA will benefit both types of institutions and result in companies development partners. Trust funds are also supporting countries to build MIDDLE EAST AND NORTH that are better equipped to navigate the post- An important component is IFC Advisory services, greener, more resilient energy sectors. IFC has AFRICA: BUILDING THE COVID-19 world. been advising the government of Uzbekistan to which are long-term engagements that build CAPACITY OF SMES capacity and enable markets. As governments transition from natural gas to solar energy through the country’s first competitively tendered PPP, the TO NAVIGATE COVID 19 and companies have had to navigate multiple, Uzbekistan Solar Project. A group of six trust funds8 When IFC conducted its 2018 Advisory Services “Participants benefitted from support compounding shocks during the past year, IFC’s work is helping to build the foundation for is supporting this effort. The success of this tender, Client Survey, clients identified skills training as and advice on how to cope with the greater resilience. which will bring the lowest tariff for solar energy in the most anticipated need for the coming years. Central Asia, has spurred the government to launch COVID-19 only heightened this need. Many pandemic—how to adapt their business Advisory projects on digital financial services, for two additional solar projects expected to add an micro, small, and medium enterprises (MSMEs), plans, to access finance, to do business example, have helped governments revise their additional 900 MW of solar generation capacity in especially those with weak financial and business legislation to enable financial institutions to launch the country. Going forward, this will help boost the management skills, are finding it difficult to navigate and market their goods and services online banking services. As COVID-19 forced the resilience of Uzbekistan’s energy supply through and exit the COVID-19 crisis on a strong footing. closure of many brick-and-mortar bank branches, renewable energy. online, and to communicate with MSMEs in the Middle East and North Africa (MENA) region, in particular, have been slower to stakeholders during crises.” digitize their operations and move to online sales and e-commerce than in other regions. COVID-19 Mehdi Chahed, IFC-certified master trainer and COVID-19 lockdown measures forced many MSMEs to webinar facilitator for MSMEs in Tunisia and Morocco 7 Of $13.3 million invested in this work so far, $1.5 million came from the IFC’s G-20 Compact with Africa Initiative (ISCA) Trust Fund,  suspend activities entirely. supported by Germany, the Netherlands, and Norway. 8 Austria-Financial Support of IFC Advisory Services in ECA, Switzerland Financial Support for Advisory Services in ECA, Dutch Climate  Advisory Partnership (CAP), BMZ PPP Advisory Fund for Infrastructure Investment in Developing Countries, SECO-IFC ECA Advisory Services Trust Fund, and Canada-IFC Blended Climate Finance Program 46 WBG Trust Fund Annual Report 2021 Chapter 3. Building Resilience Now and Into the Future 47 3.3 FINANCIAL In April 2020 CIF introduced four new programs The Global Partnership for Education (GPE) Sustainable infrastructure is key to delivering in the areas of renewable energy integration, has implemented one of the largest external aid economic growth, social progress, and climate INTERMEDIARY FUNDS climate-smart urbanization, low-carbon and programs dedicated to education in the global action in line with the SDGs and Paris Agreement FIFs are important financial vehicles that channel climate-resilient industries, and nature, people, and pandemic response. By June 2020, GPE had secured commitments. Created in 2014, the Global large-scale grant and concessional financing for climate investments. In March 2021, it launched $500 million to establish a new accelerated funding Infrastructure Facility (GIF) is tackling head-on critical global issues. Like trust funds, many FIFs the Accelerating Coal Transition (ACT) program, window for COVID-19 response and recovery the dearth of bankable, sustainable infrastructure support activities relate to the GRID approach and which offers a holistic approach to tackling the measures through which grants of $467 million have pipelines in developing countries through the help to scale up collective action in health, climate, governance, people, and infrastructure challenges helped 66 partner countries mitigate the impact of provision of end-to-end transaction advisory gender, jobs, and debt sustainability. related to transitioning away from coal. In June 2021, the pandemic on children’s learning and build more services to national and subnational governments four donors (Canada, Germany, USA, and the United resilient education systems. The World Bank has through ten MDB Technical Partners. More than half (56 percent) of FIF resources were Kingdom) announced new financial commitments been a major implementing entity for these funds transferred to health programs during FY2017–21, The GIF supports developing country governments of up to $2 billion to support ACT and renewable (Section 2.2). and one quarter (25 percent) to environment not only to prioritize, design, and structure energy integration in developing countries. and climate-related programs. This includes five As a result of streamlined application and approval individual low-carbon, climate-smart infrastructure health-related FIFs that support equitable access The Global Environment Facility (GEF) has processes, the accelerated funding window transactions, but also to encourage programmatic to COVID-19 vaccines, pandemic preparedness, implemented a variety of measures to assist has facilitated the swift delivery of support to approaches, including standardization efforts, that and other aspects of the COVID-19 response countries in addressing the evolving challenges countries most in need, with all funds disbursed to can lead to replication and aggregation. The goal (Section 2.1) and 12 FIFs that contribute to a range arising from the pandemic and to support efforts in implementing entities by June 2021. The window is to appeal to institutional capital through better of environmental and climate-related activities. building back better, greener, and more resilient. Its required GPE funds to be based on the recipients’ coordination with governments and development Other FIFs contribute to education, gender equality, work embraces all facets of a healthy environment, own response plan, to be complementary to other finance institutions. The GIF is heavily promoting infrastructure, and debt relief. including climate change, biodiversity loss, sources of COVID-19 support, and to be focused climate mitigation, adaption and resilience: to date, chemical pollution, and pressure on forests, oceans, on reaching vulnerable populations (including 74 percent of its current portfolio and 85 percent of The COVID-19 pandemic has dramatically changed landscapes, and wildlife. girls, children with disabilities, poor, or displaced its pipeline activities are climate-smart. the context in which the work of climate-related FIFs children) who are most susceptible to fall further is taking place. Urgent and sizeable development The GEF has a central role in restoring a better behind during the pandemic. assistance is needed to support governments, balance between people and nature and in businesses, and communities to recover quickly addressing the underlying factors of zoonotic The AgResults Initiative uses Pay-for-Results (PfR) from the economic downturn and rebuild for a diseases, such as the global wildlife trade. GEF’s prize competitions to incentivize the private sector greener, sustainable, and more resilient future. integrated programs—the Good Growth Platform, to develop and deliver productivity-enhancing Pursuing low-emission and climate-resilient growth the Sustainable Cities Impact Program, the Food, technologies to smallholder farmers. Its Challenge is the best way to unlock lasting socio-economic Land Use, and Restoration Impact Program, and the Projects demonstrate how to encourage local and environmental benefits. Coupling large-scale Wildlife Conservation for Development Program— actors to develop linkages along selected value financial investments with technical assistance in the are helping countries to build economies and chains to address formerly missing markets with context of COVID-19 lending is advancing climate- societies that will thrive despite inevitable future contextualized and more resilient solutions. The friendly policy reforms. Investments in clean energy shocks. The proposed GEF-8 strategy for 2022–26 Vietnam GHG Emissions Reduction Challenge are creating millions of jobs, while strengthening key will continue to build on this systemic approach Project (2017–21) incentivized improved rice economic sectors, to bolster COVID-19 recoveries. by applying a Healthy Planet, Healthy People cultivation practices both to increase productivity framework to develop a healthy, productive and and to reduce greenhouse gas emissions. The For example, the Climate Investment Funds (CIF) resilient planet that underpins the well-being of Tanzania Dairy Challenge Project (launched in provide concessional financing for innovation and human societies. November 2019) is incentivizing private sector de-risking alongside multilateral development bank suppliers to deliver productivity-enhancing input (MDB) investments in developing countries. The bundles (parasite control, nutrition, vaccines, World Bank has been CIF’s largest implementing CIF / ESMAP artificial insemination) to both men and women partner, disbursing roughly 50 percent of the funds. smallholder dairy farmers in a socially inclusive way. 48 WBG Trust Fund Annual Report 2021 Chapter 3. Building Resilience Now and Into the Future 49 T he World Bank Group’s trust funds (GCF), the Coalition for Epidemic Preparedness and FIFs are strong proof of what Innovations (CEPI), and the Global Environment Facility (GEF). Almost 80 percent of this increase is can be accomplished when development to CEPI for the COVID-19 response. partners work together to move toward greater resilience. Analysis of key financial Development partners recognize the strategic advantages of entrusting their resources with trends across Bank Group trust funds the World Bank Group. It has the technical and FIFs further underscores the forward expertise, country experience, and supervision and momentum of this shared commitment. reporting capacity to ensure funds are directed to development activities that align with agreed priorities and achieve impact at scale. Efficiency, This chapter provides aggregate financial relevance, global reach, and influential convening information on the activities of trust funds and FIFs power are all reasons why development partners administered individually or jointly by the World choose to contribute to trust funds and FIFs Bank, IFC, MIGA, and ICSID, as well as externally managed by the World Bank Group. financed outputs (EFOs). It looks at five-year trends, from FY2017 to FY2021, on trust fund and FIF OUTFLOWS inflows, outflows, and assets under management— Outflows, or disbursements from World Bank Group all of which demonstrate the World Bank Group’s trust funds and cash transfers from FIFs, have position as the partner of choice to advance increased in the last five years to reach $12.97 billion development agendas in countries, regions, and in FY2021. IBRD/IDA trust fund disbursements around the globe. Box 4.1 defines financial terms and were $3.57 billion in FY2021, an increase of 2 Table 4.1 provides an overview of key financial data. percent ($75 million) from FY2020. RE activities accounted for around 71 percent ($2.55 billion) of INFLOWS total disbursements and BE activities 29 percent Inflows, or contributions to World Bank Group trust ($1.03 billion). The higher disbursements were funds and FIF, have remained strong and have shown driven mainly by STARS, the Global Partnership for an increase over the last five years, reaching $14.31 Education (IBRD as implementing entity), and the billion in FY2021. In particular, cash contributions to Pandemic Emergency Financing Facility (IBRD as IBRD/IDA trust funds rose to $4.08 billion in FY2021, implementing entity). an increase of 11 percent ($414 million) from FY2020 Annual cash transfers from FIFs to implementing primarily driven by cash contributions to the Sudan entities increased from $7.66 billion in FY2020 Transition and Recovery Support Program (STARS), to $10.03 billion in FY2021. The increase in cash the Global Financing Facility (GFF), and the Sint transfers was driven by the International Finance Maarten Recovery and Resilience Program. Facility for Immunisation; the Global Fund to Fight IFC trust fund contributions increased by 18 percent AIDS, Tuberculosis and Malaria (Global Fund); ($48 million) in FY2021 compared to FY2020. Paid-in and the Advanced Market Commitments for contributions (cash and promissory notes receipts) Pneumococcal Vaccines for their support in helping FINANCIAL ANALYTICS OF WORLD to FIFs increased from $8.94 billion in FY2020 to $9.91 countries strengthen health systems and mitigate 4 billion in FY2021. This increase was primarily due to the impact of COVID-19. Cash transfers from FIFs include transfers for all purposes, including BANK GROUP TRUST FUNDS AND FIFS increased contributions to the Green Climate Fund secretariat costs and administrative expenses. PHOTO CREDIT: Chris Morgan / World Bank Chapter 4. Financial Analytics of World Bank Group Trust Funds and FIFs 51 The World Bank Group is strategic in deploying are disbursed to final recipients for development trust fund and FIF resources to complement its own objectives. In FY2017–21, investment income earned BOX 4.1 Definitions of Key Financial Terms funding and deepen support for specific objectives on trust fund and FIF funds held in trust (FHIT) shared by clients and donors, as well as to deliver totaled $2.66 billion. timely financial responses to emergencies like the Inflows: Cash contributions to trust funds include encashment of promissory notes and cash receipts The trust fund and FIF portfolios have grown from donors. For FIFs, paid-in contributions include receipts in the form of cash or promissory notes, COVID-19 crisis. The share of FIF resources that over the years due to an increase in development and other sources of funds, such as Certified Emissions Reductions (CERs) and bond issuances, but the World Bank implements reflect this strategic partners’ contributions for multi-year projects, an not including investment income. alignment. Nearly one-third (28 percent) of trust fund increase in the number of trust funds managed by disbursements for RE activities during the last five the World Bank Group, and investment returns. As All contributions paid-in (cash and promissory notes, net of certain discounts) are reported using the years have come from FIF resources implemented of June 30, 2021, the amount of funds held by the date of receipt. It may also include contribution transfers from other trust funds. Amounts to donor by the World Bank. World Bank Group trust funds and FIFs reached balance and holding accounts have been excluded. From FY2017, most contributors to the Global Fund Trust fund support for advisory services that the $40.24 billion. The top three IBRD/IDA programs provided contributions directly to its secretariat, and the trustee receives these funds as contributions Bank Group provides to public and private sector with large amounts of FHIT (cash and investments) from the Global Fund Secretariat as a contributor. clients is also significant. Nearly all of IFC’s Advisory were the Afghanistan Reconstruction Trust Fund, Outflows: Disbursements from trust funds and cash transfers from FIFs to implementing entities for services and two-thirds of the World Bank’s ASA the Carbon Finance Fund, and the GFF, and the development activities. For accounting purposes, FIF transfers to the World Bank as an implementing are funded by trust funds, allowing the Bank Group top three FIFs were the GCF, GEF, and the Climate entity are not included in FIF disbursements but transferred and later recorded as IBRD/IDA trust fund to build knowledge, inform policy dialogue, and Investment Funds. disbursements. enhance enabling environments. Trust-funded The World Bank’s investment management services activities also bring World Bank Group support Assets: Funds held in trust (FHIT) are comprised of cash, investments, and promissory notes aim to preserve donor funds and enhance their to locations outside the immediate reach of its receivable at the end of the fiscal year. “Other” FHIT includes amounts held in escrow on behalf of value while accommodating the varying liquidity financing instruments. the International Centre for Settlement of Investment Dispute (ICSID), donor balance accounts (DBA), needs and risk preferences of different trust funds balances on administration accounts, and unapplied receipts. The total amount of DBA balances held and FIFs. Participating funds benefit from access ASSET MANAGEMENT was $394 million at the end of FY2021. to a wide variety of investment products and longer Asset management is another important way in terms of maturity to enhance investment returns Externally financed outputs (EFO): Funding instrument used for activities (often research work) that which the World Bank Group brings value to trust over time. Environmental, social, and governance do not exceed a 36-month timeframe and $2 million contribution limit. fund and FIF partnerships. As trustee, the World (ESG) investment solutions and product offerings Bank receives and invests development partner also cater to the sustainable responsible investing Due to rounding, disbursements below $50 million are displayed as $0.00 million and other figures contributions to trust funds and FIFs until funds aspirations of participating funds. presented in this chapter may not add up to totals. Dominic Chavez / World Bank 52 WBG Trust Fund Annual Report 2021 Chapter 4. Financial Analytics of World Bank Group Trust Funds and FIFs 53 4.1 INFLOWS in FY2021, an increase of $17 million from FY2020, TABLE 4.1 Key Statistics on World Bank Group Trust Funds and FIFs, FY2017–21 primarily due to contributions from the Bill and CONTRIBUTIONS BY DEVELOPMENT Melinda Gates Foundation. Cash Contributions ($ billion) FY17 FY18 FY19 FY20 FY21 PARTNER TYPE For IFC trust funds, the share of cash contributions IBRD/IDA Trust Funds (TFs) 2.74 2.79 3.85 3.67 4.08 For IBRD/IDA trust funds,9 sovereign governments by sovereign governments decreased from 90 IFC TFs 0.27 0.33 0.45 0.27 0.32 remain the largest contributors, accounting for 77 percent in FY2020 to 71 percent in FY2021. IFC MIGA TFs 0.01 0.00 0.00 0.00 0.00 percent ($3.13 billion) of total cash contributions Advisory trust funds received cash contributions FIFs 7.10 7.70 6.99 8.94 9.91 received in FY2021 and 78 percent during the predominantly from the United Kingdom, Total 10.13 10.82 11.29 12.88 14.31 last five years (FY2017–21). The increase in cash Switzerland, the Netherlands, and Germany. contributions ($151 million) in FY2021 compared to Disbursements and Transfers ($ billion) FY17 FY18 FY19 FY20 FY21 For FIFs, sovereign governments provided 62 FY2020 was primarily due to larger contributions IBRD/IDA Trust Funds (TFs) 3.86 3.86 3.67 3.50 3.57 by Norway, the Netherlands, and Germany. percent ($6.19 billion) of paid-in contributions in Bank-executed (BE) activites 0.99 1.06 1.08 1.07 1.03 Intergovernmental institutions contributed 16 FY2021, followed by private nonprofit entities with percent ($663 million) of total cash contributions 32 percent ($3.19 billion). The increase in paid-in Recipient-executed (RE) activities 2.92 2.80 2.59 2.43 2.55 in FY2021, an increase of $265 million from contributions ($970 million) in FY2021 compared IFC TFs 0.30 0.31 0.30 0.27 0.25 to FY2020 was primarily due to incremental FY2020, mainly due to the European Commission’s MIGA TFs 0.00 0.00 0.00 0.00 0.00 contributions by Germany, the United Kingdom, contribution. Private nonprofit entities contributed FIFs 5.33 5.63 4.87 6.75 9.15 4 percent ($159 million) of total cash contributions and Japan. Total 9.49 9.80 8.84 10.52 12.97 FIF transfers to WBG TFsa 0.91 1.43 1.00 0.92 0.88 Contributions by Development Partner Type: IBRD/IDA and IFC Trust Funds FIGURE 4.1 (Cash Contributions)10 and FIFs (Contributions Paid-in), FY2017–21 Funds Held in Trust ($ billion) FY17 FY18 FY19 FY20 FY21 IBRD/IDA Trust Funds (TFs) 8.84 9.09 10.35 11.22 12.35 IFC TFs 0.60 0.64 0.80 0.83 0.91 MIGA TFs 0.11 0.11 0.11 0.09 0.09 FIFs 21.10 21.65 23.13 24.39 25.96 Others 0.98 0.77 0.88 0.89 0.94 Total 31.63 32.27 35.26 37.42 40.24 Contribution Receivable ($ billion) FY17 FY18 FY19 FY20 FY21 IBRD/IDA Trust Funds (TFs) 3.66 4.37 3.77 3.57 3.86 IFC TFs 0.35 0.42 0.45 0.51 0.38 MIGA TFs 0.01 0.01 0.01 0.01 0.01 FIFs 7.75 5.54 6.42 7.01 9.72 Total 11.77 10.34 10.65 11.09 13.97 Investment Income ($ billion) FY17 FY18 FY19 FY20 FY21 IBRD/IDA Trust Funds (TFs)b 0.10 0.14 0.28 0.23 0.04 IFC TFs 0.01 0.01 0.02 0.02 0.00 FIFs 0.24 0.32 0.58 0.51 0.16 Total 0.35 0.47 0.88 0.76 0.20 a FIF transfers to World Bank Group trust funds are excluded from the total to avoid double counting of disbursements. FIF transfers to the World Bank Group as implementing entity, trustee, and secretariat are excluded from the transfers. b Includes MIGA trust funds 9 I ncludes MIGA trust funds, whose cash contributions ($0.01B) were all received from sovereign governments. 10 IFC trust funds include Advisory trust funds but not blended finance trust funds.  54 WBG Trust Fund Annual Report 2021 Chapter 4. Financial Analytics of World Bank Group Trust Funds and FIFs 55 CUMULATIVE CONTRIBUTIONS BY For FIFs, the top ten development partners Cash Contributions to IBRD/IDA and IFC Trust Funds by Top Ten Donors, FIGURE 4.2 TOP TEN DEVELOPMENT PARTNERS contributed $22 billion during FY2017–21, which FY2017–21 ($ billions) accounted for 54 percent of cumulative paid- For IBRD/IDA trust funds, during the last five in contributions ($40.65 billion). The United years (FY2017–21), the United Kingdom was the Kingdom was the largest development partner largest development partner with cumulative with contributions of $4.32 billion, followed by cash contributions of $2.53 billion, followed by the Germany ($3.72 billion), and the United States European Commission at $2.19 billion, and Germany ($3.29 billion). The United Kingdom provided at $1.75 billion.11 In FY2021, the European Commission substantial contributions to the Green Climate Fund made the highest total cash contributions of $609 ($1.35 billion) and the International Finance Facility million to IBRD/IDA trust funds, followed by the for Immunisation ($0.75 billion). Germany made United Kingdom at $607 million, and Germany at significant contributions to the Green Climate Fund $488 million. ($1.29 billion) and the Global Environment Facility For IFC Advisory trust funds, the United Kingdom (GEF) ($0.56 billion). The United States made large was the largest sovereign contributor during contributions to the Global Fund to Fight AIDS, FY2017–21, accounting for 13 percent of cumulative Tuberculosis and Malaria ($0.99 billion) and the GEF cash contributions ($220 million), followed by ($0.70 billion). Switzerland with 10 percent ($168 million), and the European Commission with 10 percent ($162 million).12 In FY2021, the United Kingdom was the largest contributor to IFC trust funds with 15 percent ($48 million) of cash contributions. Paid-in Contributions to FIFs (including Global Fund) by Top Ten Donors, FIGURE 4.3 FY2017–21 ($ billions) 11 T  ransfers from FIFs to IBRD/IDA trust funds as implementing entity during FY2017–21 amounted to $5.1 billion. These transfers, when aggregated, accounted for the highest inflows to IBRD/IDA trust funds when compared with direct contributions made by any single sovereign donor to trust funds over the five-year period. 12 This does not include blended finance trust funds that support IFC’s investment program.  56 WBG Trust Fund Annual Report 2021 Chapter 4. Financial Analytics of World Bank Group Trust Funds and FIFs 57 SIGNED CONTRIBUTIONS TO IFC BLENDED FINANCE TRUST FUNDS (FY2017–21)13 Donors to IFC Blended Finance Trust Funds by Signed Contributions, FIGURE 4.5 Since FY2017, blended finance signed contributions had averaged $137 million a year. Canada has been the FY2017–21 ($ millions) largest sovereign donor to IFC blended finance trust funds during FY2017–2021, accounting for 44 percent of total cumulative signed contributions ($311 million), followed by the United Kingdom with 26 percent ($181 million) and Finland with 19 percent ($134 million). In FY2021, the United Kingdom was the largest donor to IFC blended finance trust funds with $53.7 million in signed contribution, followed by Netherlands with $17.5 million. Signed Contributions to IFC Blended Finance Trust Funds, FIGURE 4.4 FY2017–21 ($ millions) 13 IFC blended finance trust funds are managed separately and therefore not included in the financial summaries in Chapters 1 and 4.  58 WBG Trust Fund Annual Report 2021 Chapter 4. Financial Analytics of World Bank Group Trust Funds and FIFs 59 ANNUAL TRANSFERS FROM FIFS TO THE WORLD BANK GROUP AS IMPLEMENTING ENTITY14,15 Transfers from FIFs to projects implemented by the World Bank Group decreased from 11 percent of the total transfers from FIFs to all implementing entities in FY2020 ($0.8 billion) to 8 percent in FY2021 ($0.7 billion). The largest transfer amounts in FY2021 were from the Global Partnership for Education (GPE) at $215 million, followed by the Global Environment Facility (GEF) at $154 million and the Climate Investment Funds (CIF) at $96 million. On a cumulative basis spanning FY2017–21, the World Bank Group as an implementing entity received the largest amount of transfers from the GPE ($1.3 billion), followed by CIF ($1.1 billion) and the Global Concessional Financing Facility (GCFF) ($0.6 billion). Annual Transfers to World Bank Group as an Implementing Entity by FIFs, FIGURE 4.6 FY2017–21 ($ millions) Orlando Barría / World Bank 4.2 OUTFLOWS to an increase of $2.93 billion in transfers from the International Finance Facility for Immunisation; DISBURSEMENTS AND CASH the Global Fund to Fight AIDS, Tuberculosis and TRANSFERS Malaria; and the Advanced Market Commitments for Pneumococcal Vaccines in response to COVID-19. Total World Bank Group trust fund disbursements This was offset by a decrease in transfers from the were $3.82 billion in FY2021. The marginal increase Climate Investment Funds, the Global Environment in disbursements and cash transfers from IBRD/IDA Facility, the Coalition for Epidemic Preparedness trust funds in FY2021 were mainly from the Sudan Innovations, and the Global Agriculture and Food Transition and Recovery Support Program (up by Security Program. $95 million) and IBRD as an implementing entity of the Global Partnership for Education (up by $67 million) and the Pandemic Emergency Financing IBRD/IDA TRUST FUND Facility (up by $63 million). IBRD/IDA trust funds DISBURSEMENTS FROM TOP 20 accounted for 94 percent of World Bank Group TRUST FUND PROGRAMS disbursements and cash transfers from trust funds In FY2017–21, the top 20 trust fund programs in FY2021, and IFC trust funds accounted for the accounted for 63 percent of the total IBRD/IDA trust remaining 6 percent. fund disbursements ($18.46 billion). The highest disbursements were made from the Afghanistan FIFs continue to play a significant role in the 14 A  n implementing entity is any agency that receives funds from a FIF and is responsible for managing those funds for activities as Reconstruction Trust Fund ($3.90 billion), followed international aid architecture. The average amount approved by the governing body. by other large disbursements made by the World 15 Transfers to implementing entities include transfers for project preparation, supervision fees, project implementation, and special  of annual transfers from FIFs during FY2017–21 agreement transfers for HIPC and AMC. However, in the case of the Global Fund, there is a lump sum transfer to the secretariat, and Bank in its role as implementing entity for FIFs like was $7.37 billion. The annual transfer from FIFs to the use of the transferred funds is determined by the Global Fund. The GEF Secretariat acts as an implementing entity for a limited the Global Partnership for Education ($1.49 billion), number of projects, i.e. the National Portfolio Formulation Exercises. Transfers to implementing entities exclude a one-time transfer implementing entities increased from $7.66 billion of $383 million from the GEF to IBRD to cover reevaluation of grants denominated in Special Drawing Rights (from 2004). Non-USD the Climate Investment Funds ($1.08 billion) and the in FY2020 to $10.03 billion in FY2021, primarily due transfers are valued as of June 30, 2021. Global Environment Facility ($0.91 billion). 60 WBG Trust Fund Annual Report 2021 Chapter 4. Financial Analytics of World Bank Group Trust Funds and FIFs 61 IBRD/IDA TRUST FUND DISBURSEMENTS BY COUNTRY ELIGIBILITY IBRD/IDA Trust Fund Disbursements from Top 20 Trust Fund Programs, FIGURE 4.7 FY2017–21 ($ billions) Cumulative IBRD/IDA trust fund disbursements for RE activities during FY2017–21 were $13.29 billion. The highest annual level of $2.92 billion in FY2017 decreased to $2.55 billion in FY2021. IDA countries continue to receive the largest share of disbursements for RE activities year after year, with 66 percent of total RE disbursements in FY2021. Over the past five years, approximately $1 out of every $9 disbursed to IDA and IDA- IBRD blend countries16 was from trust-funded RE activities. Approximately 19 percent of the total trust fund disbursements for RE activities were to IBRD countries. Out of $5.2 billion in cumulative trust fund disbursements for BE activities during the last five years, about $1 billion were for activities that support IDA countries. Compared to FY2017, trust fund disbursements for BE activities to support IDA countries declined by 6 percent to $191 million in FY2021, trust fund disbursements for BE activities to support IBRD-IDA blend countries dropped by 25 percent to $50 million in FY2021, and trust fund disbursements for BE activities to support IBRD countries grew by 29 percent to $196 million in FY2021. IBRD/IDA Trust Fund Disbursements by Country Eligibility, FIGURE 4.8 FY2017–21 ($ billions)17 16  lend countries refer to those that are IDA-eligible based on per capita income levels and are also creditworthy for some IBRD B borrowing, such as Nigeria and Pakistan. 17  “Other” represent global and/or regional activities. 62 WBG Trust Fund Annual Report 2021 Chapter 4. Financial Analytics of World Bank Group Trust Funds and FIFs 63 DISBURSEMENTS FROM IBRD, IDA, AND TRUST FUNDS FOR RE ACTIVITIES TRUST FUND DISBURSEMENTS FOR RE ACTIVITIES IN STATES AFFECTED BY Trust funds regularly co-finance IBRD and IDA projects, increasing scale and reach and filling knowledge FRAGILITY, CONFLICT AND VIOLENCE and financing gaps. They provide grant financing where client countries are reluctant to borrow, reducing RE grants are important financing instruments to respond to the needs of states affected by FCV. While trust transactions costs and allowing development partners to build on World Bank Group technical and operational fund disbursements for RE activities in these countries decreased in absolute amounts from $1.36 billion in capacity to maximize impact. During the past five years, trust fund disbursements for RE activities in client FY2017 to $1.27 billion in FY2021, their share increased from 46 percent in FY2017 to 50 percent in FY2021. countries have averaged 7 percent of total World Bank RE disbursements—a share that peaked at 9 percent in In FY2021, Afghanistan accounted for a significant portion (51 percent, $0.65 billion) of total trust fund FY2017 and fell to 5 percent in FY2021. disbursements for RE activities in states affected by FCV followed by Sudan ($119 million), the West Bank and Total trust fund disbursements from RE activities (including stand-alone trust funds, co-financing trust funds, Gaza ($100 million), Mozambique ($79 million), Democratic Republic of Congo ($60 million), and Somalia ($39 and other trust funds)18 declined by 13 percent from $2.92 billion in FY2017 to $2.55 billion in FY2021. This decline million). RE disbursements to countries affected by FCV (excluding Afghanistan) averaged around $0.5 billion was primarily due to lower disbursements from the following trust fund programs: Afghanistan Reconstruction in FY2017–21. Trust Fund, IBRD as an implementing entity for FIFs (i.e., Global Partnership for Education, Climate Investment Funds, and Global Environment Facility), and the Carbon Finance Fund. IBRD and IDA disbursements also Trust Fund Disbursements for RE Activities in Countries Affected by FCV, varied during FY2017–21, with increased disbursements in FY2021 compared to FY2020 to combat the impact FIGURE 4.10 FY2017–21 ($ billions) of the COVID-19 pandemic. Stand-alone trust fund disbursements for RE activities decreased from $1.48 billion in FY2017 to $0.68 billion in FY2021, or 27 percent of total FY2021 trust fund disbursements for RE activities ($2.55 billion). Meanwhile, disbursements from co-financing trust funds continued an upward trajectory, from 36 percent ($1.04 billion) of total trust fund disbursements for RE activities in FY2017 to 62 percent ($1.58 billion) in FY2021. Rounding out FY2021 disbursements were grants that financed other lending projects ($0.26 billion). Disbursements from IBRD, IDA, and Trust Funds for RE Activities, FIGURE 4.9 FY2017–21 ($ billions) 18 Other trust funds for RE activities include transfers-outs, GEF, and the Montreal Protocol trust fund, among others.  64 WBG Trust Fund Annual Report 2021 Chapter 4. Financial Analytics of World Bank Group Trust Funds and FIFs 65 REGIONAL SHARES OF TRUST FUND DISBURSEMENTS FOR RE ACTIVITIES WORLD BANK RECIPIENT-EXECUTED DISBURSEMENTS FUNDED FROM FIFS Among the World Bank’s Regional Units, the South Asia Region (SAR) was the largest beneficiary of trust fund In FY2021, FIFs financed a significant proportion (25 percent) of total trust fund disbursements to RE activities disbursements for RE activities, with $840 million in FY2021. The Eastern and Southern Africa Region (AFE) supervised by the World Bank. The share for the last five years is at 28 percent. The volume and share of the was the second largest beneficiary at $694 million, followed by the Western and Central Africa (AFW) at $225 FIF funding have declined during the last five years from $861 million (29 percent) in FY2017 to $631 million million, Latin America and Caribbean (LCR) at $221 million, East Asia and the Pacific (EAP) at $196 million, and (25 percent) in FY2021. Almost one-third of the funding during FY2017–2021 was from the Global Partnership Europe and Central Asia (ECA) at $152 million. for Education. Compared with FY2020, trust fund disbursements for RE activities in AFE increased by 21 percent in FY2021, primarily due to an increase in disbursement from the Sudan Transition and Recovery Support Program ($95 World Bank Recipient-executed Disbursements Funded from FIFs, TABLE 4.2 million), IBRD as implementing entity for the Global Partnership for Education (GPE) ($42 million), and the FY2017–21 ($ millions) Somalia Multi Partner Fund ($19 million). Trust fund disbursements for RE activities in SAR increased by 6 Program Grand percent mainly driven by an increase in disbursements from the Community and Capacity Development FY17 FY18 FY19 FY20 FY21 Group Total Support Program ($14 million), IBRD as implementing entity for the Global Environment Facility ($9 million), Global Partnership for and the IBRD as implementing entity for GPE ($8 million). 286.7 387.1 224.5 127.5 190.2 1,216.0 Education Trust Fund Climate Investment Funds 263.6 201.2 205.0 155.2 153.6 978.6 FIGURE 4.11 Trust Fund Disbursements for RE Activities by Region, FY2017–21 ($ billions) 19 Global Environment Facility 189.4 154.2 159.7 115.0 134.5 752.7 Global Concessional 49.7 30.0 137.1 90.7 57.3 364.8 Financing Facility Global Agriculture and 53.4 60.4 73.5 81.2 24.7 293.3 Food Security Program Pandemic Emergency 1.9 64.8 66.7 Financing Facility Midlle East and North Africa 10.9 13.5 10.1 5.9 2.7 43.0 Transition Fund Adaptation Fund 1.5 2.3 2.3 1.3 0.2 7.6 Haiti Reconstruction Fund 5.2 5.2 Guyana REDD-Plus 0.4 1.4 0.6 2.4 Investment Fund Green Climate Fund – IBRD and 0.0 1.9 1.9 IDA as Accredited Entity Global Infra Facilty (GIF) 0.0 0.1 0.7 0.8 Total for FIF Funded Programs 860.8 850.0 812.9 578.9 630.5 3,733.1 Other Non-FIF funded Programs 2,058.7 1,953.2 1,777.4 1,853.7 1,915.8 9,558.8 Grand Total 2,919.5 2,803.2 2,590.3 2,432.6 2,546.3 13,291.9 19 ncludes disbursements for regional/global activities, such as the Debt Management Facility II Trust Fund and the Stolen Asset I Recovery Initiative MDTF 66 WBG Trust Fund Annual Report 2021 Chapter 4. Financial Analytics of World Bank Group Trust Funds and FIFs 67 DISTRIBUTION OF FUNDING SOURCES FOR ADVISORY SERVICES AND ANALYTICS 4.3 ASSETS Trust fund financing for BE activities represents a significant share of the World Bank’s expenditures on ASA Trust fund assets consist of funds held in trust (FHIT)—cash, investments, promissory notes and contribution at 63 percent in FY2021. This large share of externally financed ASA provides opportunities to work with receivables. These assets are managed and reported separately for IBRD/IDA trust funds, IFC trust funds, and development partners on the knowledge agenda, while also introducing challenges to the Bank’s ability to plan FIFs following established reporting protocols. and align its work to its strategic priorities. These challenges are being addressed as a part of the ongoing trust fund reforms. INVESTMENT MANAGEMENT The World Bank manages the liquid assets of trust funds and FIFs in a single, commingled investment pool that FIGURE 4.12 Distribution of ASA Funding, FY2017–21 ($ millions) provides the following benefits to its participants: A selection of sub-portfolios or model portfolios to accommodate varying liquidity needs and risk • preferences of different funds, managed within a comprehensive risk management framework Access to a wide variety of investment products and longer terms of maturity to enhance investment • returns over time Regular review of liquidity needs across funds to optimize investments over the longer term • Standardized and customized ESG investment solutions and product offerings to cater to various • sustainable responsible investing (SRI) aspirations of individual funds These investments earn income based on the trust fund’s share of interest income, realized gains or losses from the sale of securities, and unrealized gains or losses resulting from changes in the asset value held by the pool at fair value. During FY2017–21, investment income on trust fund and FIF assets totaled $2.66 billion, with a peak in FY2019 at $882 million and a decline in FY2021 to $201 million. FIGURE 4.13 Investment Income by Trust Fund Classification,20 FY2017–21 ($ millions) Source: WB statistics based on Analytics for Office data platform as of July 2021. Note: Illustration reflects ASA spend using product lines. 20 IBRD/IDA trust funds includes investment income for MIGA trust funds ($0.008 B) for FY2017–21.  68 WBG Trust Fund Annual Report 2021 Chapter 4. Financial Analytics of World Bank Group Trust Funds and FIFs 69 ASSET MIX OF TRUST FUNDS INVESTMENT PORTFOLIO ENVIRONMENTAL, SOCIAL, AND The World Bank continues to explore additional SRI Upon receipt of development partner contributions to a trust fund, the World Bank invests these resources in GOVERNANCE CONSIDERATIONS strategies in line with the current market practices to meet the evolving SRI aspirations and development the international capital markets until they are disbursed to final recipients. Trust fund assets are managed with There has been a major shift in the global asset objectives of the development partners. In FY2021, the primary investment objective of capital preservation and liquidity on demand. management industry toward sustainable and the World Bank implemented its Sustainable Bond responsible investing (SRI), with rapidly growing The provisions of the World Bank’s General Investment Authorizations for IBRD and IDA also apply to the Strategy, which seeks to invest in high-grade awareness of global environmental, social, and investment of trust fund assets. Accordingly, these assets are managed within conservative overall risk tolerance bond and cash instruments that generate positive governance (ESG) issues. The World Bank Group is parameters and invested in high quality securities, which include securities issued by sovereign governments, sustainable development impacts while retaining committed to a more ambitious development agenda government agencies, and multilateral and other official institutions, asset-backed and agency-guaranteed the overarching investment objectives of the trust focusing on the SDGs and helping client countries mortgage-backed securities, as well as swaps and a range of derivatives in support of securities investments. funds and FIFs. The strategy is formulated based on to achieve their climate action targets. The Bank Subject to the primary investment objective, the asset mix among the investment products authorized by three core commitments: Group takes pride in incorporating sustainability- the General Investment Authorizations is based on market opportunities available within the applicable risk A focus on high-grade fixed-income investments • related themes in all operational activities, including limits. As part of monitoring and financial and risk management oversight, a regular rebalancing of assets is aiming to generate positive impact outcomes the investment management function entrusted to it performed to ensure that enough liquidity is available to meet disbursements needs. by its clients. Fundamental fixed-income risk disciplines with • The portfolio asset allocation as of FY2021 reflects this conservative investment approach and defensive no compromise on returns Since July 2019, the World Bank Treasury has positioning to maintain the portfolio within the policy risk tolerance. The portfolio includes a large allocation applied ESG Integration as the default SRI of 40 percent invested in sovereign government bonds, followed by 19 percent in cash and money market Transparent and reliable impact reporting • approach for all portfolios managed by the instruments, 13 percent in corporate-covered bonds, and 12 percent in agencies. The rest of the portfolio is World Bank. ESG Integration explicitly considers The strategy is implemented following a gradual invested in sovereign government bonds, asset-backed securities, and a small allocation to equities. material ESG factors in the investment process and phased approach, alongside the development The Investment Management of World Bank Group Trust Fund offers more details about how the World Bank and is intended to help fulfil the existing of the sustainable bond market. Initially, it will focus manages and invests development partner financial resources. investment objectives without changes to the on sovereign bonds, governmental agency bonds, current investment objectives or risk limits of the and supra-national bonds through a process of portfolios for which it is used. Endorsed by World positive identification, wherein rigorous analytical FIGURE 4.14 Asset Mix of the World Bank Group Trust Funds Investment Portfolio, FY2017–21 Bank Management, ESG Integration is the most assessments are performed to identify bonds appropriate SRI approach within the purview of from the investable universe that have verifiable the IBRD/IDA General Investment Authorizations sustainability impact. In time, the strategy could and clients’ investment guidelines as stipulated in adopt the same sustainability methodology the Investment Management Agreements. of positive selection to a wider investment universe, encompassing, for example, high-grade corporate bonds. 70 WBG Trust Fund Annual Report 2021 Chapter 4. Financial Analytics of World Bank Group Trust Funds and FIFs 71 FUNDS HELD IN TRUST DISTRIBUTION OF FUNDS HELD IN TRUST Funds held in trust (FHIT) are comprised of cash, investments, and promissory notes, or similar obligations, As of the end of FY2021, FHIT for IBRD/IDA trust funds was $12.44 billion (including $0.09 billion of MIGA trust received but not encashed at the end of the fiscal year. It reflects, at a point in time, contributions paid-in from funds), an increase of 10 percent ($1.13 billion) compared to the end of FY2020. The increase was primarily due contributors and investment income earned less cash transfers from FIFs to IBRD/IDA trust funds when the to larger FHIT for the Sudan Transition and Recovery Support Program ($339 million), the Global Financing Bank acts as implementing entity for FIFs. The top decile of the IBRD/IDA trust funds (measured by FHIT) held Facility ($294 million), IBRD as an implementing entity for the Green Climate Fund ($155 million), and the 77 percent of total FHIT as of June 30, 2021. Canada Climate Innovation Financing Facility ($138 million). The FHIT for FIFs increased by $1.8 billion (7 percent) from $24.15 billion to $25.96 billion during FY2021. The increase was primarily due to larger FHIT for These trust funds broadly demonstrate a link to high priority areas, such as states affected by FCV (Afghanistan, the Green Climate Fund ($1.69 billion), the Coalition for Epidemic Preparedness Innovations ($863 million), West Bank and Gaza), themes (climate change), and support to the SDGs (health, nutrition, and population). the Global Environment Facility ($244 million), and the Global Agriculture and Food Security Program The bottom eight deciles held 12 percent of total FHIT. While the long tail of smaller funds can provide important ($166 million). funding for innovation and knowledge, fragmentation poses challenges to linking with strategic priorities and achieving greater development outcomes. Small, customized trust funds may also increase transactions costs associated with fundraising, establishment, heterogeneous governance, results frameworks, and FIGURE 4.16 Distribution of Funds Held in Trust, FY2017–21 ($ billions) reporting requirements. FIGURE 4.15 IBRD/IDA Trust Funds FHIT, June 30, 2021 72 WBG Trust Fund Annual Report 2021 Chapter 4. Financial Analytics of World Bank Group Trust Funds and FIFs 73 DISTRIBUTION OF ASSETS 4.4 EXTERNALLY FINANCED OUTPUTS The amount of assets—comprising cash and investments, promissory notes receivable, and contributions Externally financed outputs (EFOs) are funding instruments used for activities that have a finite time frame (36 receivable—for World Bank Group trust funds and FIFs amounted to $54.21 billion at the end of FY2021. The months) and an upper limit of $2 million for receiving contributions. Activities that exceed these parameters do share of cash and investments amounted to 62 percent of total assets, and the share of contributions receivable not qualify for EFOs and trust funds then become the preferred instrument. EFOs can be used to support single and promissory notes receivable was 26 percent and 12 percent, respectively.21,22 FIFs held $35.68 billion (66 or multiple bank activities or outputs that are managed by the same Vice-Presidential Unit, are part of the same percent) at the end of FY2021, IBRD/IDA trust funds held $16.28 billion (30 percent), IFC trust funds $1.29 billion project, and are consistent with the Bank’s work program. (2 percent), and other trust funds $0.94 billion (2 percent). EFO CONTRIBUTIONS PAID-IN Distribution of Assets: Cash and Investments, Promissory Notes Receivable, FIGURE 4.17 Total EFO contributions paid-in during FY2017–21 totaled $234 million, with the annual average contribution and Contributions Receivable, FY2021 ($ billions) paid-in at $47 million. The FY2021 contributions paid-in decreased by 39 percent (down by $22 million) compared to FY2020. Among World Bank Regions, the Eastern and Southern Africa Region (AFE) received the highest contributions paid-in at 15 percent ($36 million) during FY2017–21, excluding global EFOs (38 percent). Recipient countries such as Ethiopia, Malawi, Somalia, and Sudan received higher contributions that led to a spike in FY2019 contributions. AFE received an annual average of $7 million and the Middle East and North Africa Region (MENA) received an annual average of $5 million during the five-year period. FIGURE 4.18 EFO Contributions Paid-in by Region, FY2017–21 21 C  ontributions receivable refers to any portion of a contribution that is not a qualified contribution, to be received in the form of cash or a promissory note. 22 Promissory notes receivable refers to the balance of promissory notes not yet received in cash. 74 WBG Trust Fund Annual Report 2021 Chapter 4. Financial Analytics of World Bank Group Trust Funds and FIFs 75 ANNEX A. ABBREVIATIONS AND ACRONYMS AFE Eastern and Southern Africa Region AFW Western and Central Africa Region ASA Advisory services and analytics COP Conference of the Parties CSO Civil society organization DFi Development Finance Vice-Presidency EAP East Asia and Pacific Region ECA Europe and Central Asia Region EFO Externally financed output ESG Environmental, social, and governance FCV Fragility, conflict, and violence FY Fiscal year FHIT Funds held in trust FIF Financial intermediary fund GDP Gross domestic product GRID Green, resilient and inclusive development IBRD International Bank for Reconstruction and Development ICSID International Center for Settlement of Investment Disputes IDA International Development Association IE Implementing entity IEG Independent Evaluation Group IFC International Finance Corporation IMF International Monetary Fund LCR Latin America and Caribbean Region MDB Multilateral development bank MDTF Multi-donor trust fund MENA Middle East and North Africa Region MIGA Multilateral Investment Guarantee Agency NGO Non-governmental organization PPP Public-private partnership SAR South Asia Region SDG Sustainable Development Goal SME Small and medium enterprise SRI Sustainable and responsible investing UN United Nations USAID United States Agency for International Development ANNEXES WBG World Bank Group The World Bank Group’s fiscal year runs from July 1 to June 30. Unless otherwise specified, “$” represents United States dollars throughout the report. PHOTO CREDIT: World Bank Annexes 77 ANNEX B. LIST OF BOXES, FIGURES, AND TABLES BOXES Figure 4.9. Disbursements from IBRD, IDA, and Trust Funds for RE Activities, FY2017–21 ($ billions) 64 Box 1.1. Bank-executed activities are part of the World Bank’s work program 3 Figure 4.10. Trust Fund Disbursements for RE Activities in Countries Affected by FCV, FY2017–21 ($ billions) 65 Box 1.2. Umbrella 2.0 Principles 11 Figure 4.11. Trust Fund Disbursements for RE Activities by Region, FY2017–21 ($ billions) 66 Box 1.3. Why development partners choose to partner with the World Bank Group through trust funds 18 Figure 4.12. Distribution of ASA Funding, FY2017–21 ($ millions) 68 Box 2.1. Pillars of the World Bank Group Response to the COVID-19 Crisis 23 Figure 4.13. Investment Income by Trust Fund Classification, FY2017–21 ($ millions) 69 Box 4.1. Definitions of Key Financial Terms 53 Figure 4.14. Asset Mix of the World Bank Group Trust Funds Investment Portfolio, FY2017–21 70 Figure 4.15. IBRD/IDA Trust Funds FHIT, June 30, 2021 72 FIGURES Figure 4.16. Distribution of Funds Held in Trust, FY2017–21 ($ billions) 73 Figure 0.1 World Bank Group Crisis Response Commitments (April 1, 2020–June 30, 2021) iv Figure 4.17. Distribution of Assets: Cash and Investments, Promissory Notes Receivable, Figure 1.1. Umbrella 2.0 programs provide scale and efficiency while working with and Contributions Receivable, FY2021 ($ billions) 74 development partners’ requirements 13 Figure 4.18. EFO Contributions Paid-in by Region, FY2017–21 75 Figure 2.1. Number of IBRD/IDA Trust Fund Grant Activities Supporting Different Types of COVID-19 World Bank Operations 24 TABLES Figure 2.2. Number of COVID-19-related Trust Fund Activities by Time Periods 25 Table 1.1. World Bank Group’s Roles and Services in FIFs during FY2021 6 Figure 2.3. Approved COVID-19-related Grant Amounts by Time Periods 25 Table 1.2. Major Replenishments in FIFs (in chronological order of previous or Figure 2.4. COVID-19-related Trust-Funded Activities: Seven Largest Programs by upcoming replenishments) 7 Approved Grant Amounts 26 Table 1.3. Implementing Umbrella 2.0 Principles, Nine Featured Programs 16 Figure 2.5. COVID-19-related Trust-Funded Activities: Top Five Commitments by World Bank Global Practice 27 Table 3.1. Trust Fund and FIF Support to the Five Thematic Areas, FY2017–21 ($ millions) 35 Figure 4.1. Contributions by Development Partner Type: IBRD/IDA and IFC Table 4.1. Key Statistics on World Bank Group Trust Funds and FIFs, FY2017–21 54 Trust Funds (Cash Contributions) and FIFs (Contributions Paid-in), FY2017–21 55 Table 4.2. World Bank Recipient-Executed Disbursements Funded from FIFs, FY2017–21 ($ millions) 67 Figure 4.2. Cash Contributions to IBRD/IDA and IFC Trust Funds by Top Ten Donors, FY2017–21 ($ billions) 57 Figure 4.3. Paid-in Contributions to FIFs (including Global Fund) by Top Ten Donors, FY2017–21 ($ billions) 57 Figure 4.4. Signed Contributions to IFC Blended Finance Trust Funds, FY2017–21 ($ millions) 58 Figure 4.5. Donors to IFC Blended Finance Trust Funds by Signed Contributions, FY2017–21 ($ millions) 59 Figure 4.6. Annual Transfers to World Bank Group as an Implementing Entity by FIFs, FY2017–21 ($ millions) 60 Figure 4.7. IBRD/IDA Trust Fund Disbursements from Top 20 Trust Fund Programs, FY2017–21 ($ billions) 62 Figure 4.8. IBRD/IDA Trust Fund Disbursements by Country Eligibility, FY2017–21 ($ billions) 63 78 WBG Trust Fund Annual Report 2021 Annexes 79 ANNEX C. LIST OF UMBRELLA 2.0 PROGRAMS AS OF JUNE 30, 2021 Practice Group/ Practice Group/ No. Umbrella 2.0 Program* No. Umbrella 2.0 Program* Business units Business units Equitable Growth, 1 Competitiveness for Jobs and Economic Transformation (C-JET) Sustainable 34 FoodSystems2030 Finance and 2 Consultative Group to Assist the Poor (CGAP) Development 35 Global Facility for Disaster Reduction and Recovery (GFDRR) Institutions 3 Debt Management Facility (DMF) Practice Group 36 Global Partnership on Results-Based Approaches (GPRBA) Practice Group 4 Finance for Development 37 Global Program on Sustainability (GPS) 5 Financial management and Accountability (FM&A) 38 Global Water Security and Sanitation Program (GWSP) 6 Financial Sector Reform and Strengthening Initiative (FIRST 2.0) 39 Human Rights, Inclusion and Empowerment (HRIE) 7 Fiscal Policy and Sustainable Growth 40 Land 2030 Global Partnership 8 Global Tax Program (GTP) 41 Partnership for Market Implementation Facility (PMIF) 9 Governance and Institutions (G&I) 42 PROBLUE 10 Procurement for Development (P4D) 43 PROCLEAN 11 Risk Finance 44 PROGREEN 12 Umbrella Facility for Poverty and Equity (UFPE) 45 Social Sustainability Initiative for All (SSI4ALL) 13 Umbrella Facility for Trade (UFT) 46 Sustainable Urban and Regional Development (SURGE) 14 Foundational Learning Compact (FLC) Development 47 Global Data Facility Human Development Practice Group Global Financing Facility for Women, Children and Economics (DEC) 48 Impact Evaluation to Development Impact (i2i) 15 Adolescents (GFF) 49 Knowledge for Change Program (KCP) 16 Health Emergency Preparedness and Response Fund (HEPR) Fragility, Conflict 17 Healthy Lives, Nutrition and Population (HLNP) 50 State and Peacebuilding Fund 2.0 (SFP 2.0) and Violence 18 Human Capital Umbrella Eastern and Southern 51 Horn of Africa Umbrella 19 JOBS Umbrella Partnership Africa Region (AFE) 52 Somalia Country Engagement 20 KNOMAD – Migration Umbrella 53 Sudan Transition and Recovery Support (STARS) Rapid Social Response–Adaptive and Dynamic Social Protection 21 54 Zimbabwe Socio-Economic Transformation (RSR-ADSP) 22 Tertiary Education and Skills Training (TEST) Umbrella Western and Central 55 AFW Regional Umbrella 23 Umbrella Facility for Gender Equality (UFGE) Africa Region (AFW) 56 Liberia Reconstruction 24 Digital Development Partnership (DDP) 57 Nigeria Country Engagement Umbrella 25 Enabling Environment and Pipeline Development East Asia and the 58 Indonesia Strategic Partnership (ISP) Infrastructure Practice Group 26 Energy Sector Management Assistance Program (ESMAP) Pacific Region 59 Myanmar Strategic Partnership (MSP) 27 Extractives Global Programmatic Support 2 (EGPS-2) Papua New Guinea and the Pacific Islands Umbrella 60 Facility (PPIUF) 28 Global Facility to Decarbonize Transport Philippines Peacebuilding and Development Initiatives in Mindanao 29 Identification for Development (ID4D) 61 (PPDI) 30 Project Preparation, Structuring and Implementation 62 Timor-Leste Strategic Partnership (TLSP) 31 Sustainable Infrastructure Europe and Central 32 Climate Emissions Reduction Facility (CERF) 63 Strategic European Partnerships Umbrella Program (STEP UP) Asia Region 33 Climate Support Facility 80 WBG Trust Fund Annual Report 2021 Annexes 81 ANNEX D. LIST OF TRUST FUNDS AND FIFS REFERENCED IN THIS REPORT Practice Group/ IBRD/IDA Trust Funds No. Umbrella 2.0 Program* Business units Program Name Weblink Middle East and 64 Lebanon Financing Facility ARTF Afghanistan Reconstruction Trust Fund http://www.artf.af/ North Africa 65 MENA Regional Umbrella 2.0 CFF Carbon Finance Fund 66 Palestinian Umbrella for Resilience Support to the Economy https://www.worldbank.org/en/topic/ 67 Tunisia Economic Resilience and Inclusion (TERI) CSF Climate Support Facility climatechange/brief/the-climate- 68 Yemen Resilience, Recovery and Reconstruction Umbrella Program support-facility 69 Afghanistan Reconstruction Trust Fund (ARTF) Community and Capacity Development South Asia Support Program 70 India Country Umbrella Competitive Industries and 71 Pakistan@100 Trust fund CIIP https://www.theciip.org/ Innovation Program 72 South Asia Regional Integration and Cooperation Umbrella (SARRE) CGAP Consultative Group to Assist the Poor https://www.cgap.org/ Check mark indicates that the program has been formally established. DMF Debt Management Facility https://www.dmfacility.org/ *Any changes to proposed Umbrella 2.0 Programs made after June 30, 2021 are not reflected in this table. EC-ECA World Bank Partnership Program Energy Sector Management ESMAP https://www.esmap.org/ Assistance Program Europe2020 Programmatic Trust Fund Extractives Global Programmatic https://www.worldbank.org/en/ EGPS Support programs/egps Financial Sector Reform and FIRST 2.0 https://www.firstinitiative.org/ Strengthening https://www.worldbank.org/en/topic/ FoodSystems2030 agriculture/brief/food-systems-2030 Foundational Learning Compact FLC Umbrella Program Girls' Education and Women's GEWEL Empowerment and Livelihood MDTF Global Facility for Disaster Reduction GFDRR https://www.gfdrr.org/en and Recovery Global Financing Facility for Women, GFF https://www.globalfinancingfacility.org/ Children, and Adolescents GPP Global Procurement Partnership https://www.worldbank.org/en/programs/ GTP Global Tax Program the-global-tax-program Global Water Security and Sanitation https://www.worldbank.org/en/programs/ GWSP Program global-water-security-sanitation-partnership https://www.worldbank.org/en/ GovTech GovTech Global Partnership programs/govtech https://www.worldbank.org/en/topic/health/ Health Emergency Preparedness and HEPR brief/health-emergency-preparedness-and- Response Fund response-hepr-umbrella-program 82 WBG Trust Fund Annual Report 2021 Annexes 83 Program Name Weblink IFC Trust Funds Health Equity and Quality Program Name Weblink H-EQIP Improvement Program Austria-Financial Support of IFC Human Rights, Inclusion and https://www.worldbank.org/en/programs/ TF071494 Advisory Services in Europe and HRIE Empowerment human-rights-and-development-trust-fund Central Asia ID4D Identification for Development https://id4d.worldbank.org/ https://www.ifc.org/wps/wcm/connect/ Canada-IFC Blended Climate Finance InfoDev Information for Development Program https://www.infodev.org/ TFC-22-A topics-ext-content/ifc-external-corporate- Program site/bf/focus-areas/bf-climate/bcfp Jordan Inclusive Growth and Economic Opportunities Department of Foreign Affairs and TF071889 / Trade (DFAT) - IFC Global Advisory https://www.youtube.com/watch?v= Korea Green Growth Trust Fund http://www.kgreengrowthpartnership.org/ TF083599 Services Trust Fund/ Women in MlMDI-fX4mw https://www.worldbank.org/en/programs/ Work Sri Lanka PROBLUE PROBLUE problue FIAS FY17-21 Investment Climate TF072769 https://www.thefias.info/ PROCLEAN PROCLEAN Cooperation Program https://www.worldbank.org/en/ Financial Inclusion and Jobs for Middle PROGREEN PROGREEN programs/progreen East and North Africa (MENA) Micro TF073397 https://youtu.be/Tu8I8FVXJNQ Public-Private Infrastructure Small and Medium Enterprises (MSME) PPIAF https://ppiaf.org/ 2 Multi Donor Trust Fund Advisory Facility Quality Infrastructure Investment https://www.worldbank.org/en/programs/ Financial Support for Advisory Services QIIP TF071446 Partnership quality-infrastructure-investment-partnership in Europe and Central Asia Rapid Social Response–Adaptive and https://www.worldbank.org/en/programs/ IFC Support for G-20 Compact with https://www.compactwithafrica.org/content/ RSR-ADSP TF072979 Dynamic Social Protection Program rapidsocialresponseprogram Africa Initiative (ISCA) compactwithafrica/home.html https://www.worldbank.org/en/programs/ https://pressroom.ifc.org/all/pages/ Sahel Adaptive Social Protection TF073041 Korea-IFC Partnership Program SASSP sahel-adaptive-social-protection-program- PressDetail.aspx?ID=16770 Program trust-fund Middle East and North Africa (MENA) Somalia Country Engagement TF073374 Micro, Small and Medium Enterprises https://youtu.be/Tu8I8FVXJNQ (MSME) 2.0 - Algeria Trust Fund Southeast Asia Disaster Risk SEADRIF https://seadrif.org/ Middle East and North Africa (MENA) Insurance Facility TF073373 Micro, Small and Medium Enterprises https://youtu.be/Tu8I8FVXJNQ https://www.worldbank.org/en/programs/ (MSME) 2.0 - Morocco Trust Fund SFP State and Peacebuilding Fund state-and-peace-building-fund Partnership for Resilient Efficient and Strategic European Partnerships TF073272 https://www.growlearnconnect.org/ STEP-UP Sustainable SMEs (PRESS) Facility Umbrella Program Private Sector Development in Somalia https://pressroom.ifc.org/all/pages/ Sudan Transition and Recovery TF073284 STARS Program Trust Fund PressDetail.aspx?ID=26072 Support Program Project Development Facility to Sustainable Urban and Regional https://pressroom.ifc.org/all/pages/ SURGE TF072339 Support Infrastructure to Build Development PressDetail.aspx?ID=17950 Resilience Tunisia Economic Resilience and Public Private Partnership Advisory https://www.ifc.org/wps/wcm/connect/ TERI Inclusion TF073142 Fund for Infrastructure Investment in Industry-EXT-Content/IFC-External- https://www.worldbank.org/en/programs/ Developing Countries Corporate-Site/PPP UFGE Umbrella Facility for Gender Equality umbrellafacilityforgenderequality Somalia Private Sector Development https://pressroom.ifc.org/all/pages/ TF072812 Umbrella Facility for Poverty Trust Fund PressDetail.aspx?ID=26072 UFPE and Equity Trust Fund to Facilitate USAID Access https://www.worldbank.org/en/topic/ TF072383 https://www.worldbank.org/en/programs/ to IFC Advisory Service's Expertise competitiveness/brief/invest-west-africa West Bank and Gaza MDTF palestinian-partnership-for-infrastructure- trust-fund 84 WBG Trust Fund Annual Report 2021 Annexes 85 Financial Intermediary Funds FIF Name Weblink FIF Name Weblink HRF Haiti Reconstruction Fund https://www.haitireconstructionfund.org/ AF Adaptation Fund https://www.adaptation-fund.org/ Middle East and North Africa MENATF https://www.menatransitionfund.org/ Transition Fund AGR AgResults https://agresults.org/ https://www.worldbank.org/en/topic/ Coalition for Epidemic Preparedness Pandemic Emergency CEPI https://cepi.net/ PEF pandemics/brief/pandemic-emergency- Innovations Financing Facility financing-facility Formerly the Consultative Group on CGIAR https://www.cgiar.org/ Pilot Auction Facility for Methane and International Agriculture Research PAF https://www.pilotauctionfacility.org/ Climate Mitigation CIF a Climate Investment Funds https://www.climateinvestmentfunds.org/ Women Entrepreneurs https://www.climateinvestmentfunds.org/ We-Fi https://we-fi.org/ CTF Clean Technology Fund Finance Initiative topics/clean-technologies a CTF and the SCF are two separate FIFs that support the Climate Investment Funds. https://www.climateinvestmentfunds.org/ Although Gavi is not a FIF, both AMC and IFFIm are FIFs that provide financial resources for Gavi. SCF Strategic Climate Fund b content/strategic-climate-fund-structure c CBIT, LDCF, NPIF, and SCCF are four separate FIFs that are managed under the GEF governance framework in addition to the main  GEF Fund. Climate Risk and Early Warning CREWS https://www.crews-initiative.org/en Systems Initiative DRTF Debt Relief Trust Fund Gavi, the Vaccine Alliance (formerly Gavib the Global Alliance for Vaccines and https://www.gavi.org/ Immunization) Advanced Market Commitment for https://www.gavi.org/investing-gavi/ AMC Pneumococcal Vaccines innovative-financing/pneumococcal-amc International Finance Facility for IFFIm https://iffim.org/ Immunization GCFF Global Concessional Financing Facility https://globalcff.org/ GEF c Global Environment Facility https://www.thegef.org/ Capacity Building Initiative for https://www.thegef.org/topics/capacity- CBIT Transparency building-initiative-transparency-cbit Least Developed Countries Fund https://www.thegef.org/topics/least- LDCF for Climate Change developed-countries-fund-ldcf https://www.thegef.org/documents/ NPIF Nagoya Protocol Implementation Fund brochure-nagoya-protocol- implementation-fund https://www.thegef.org/topics/special- SCCF Special Climate Change Fund climate-change-fund-sccf Global Agriculture and Food GAFSP https://www.gafspfund.org/ Security Program Global Fund to Fight AIDS, Global Fund https://www.theglobalfund.org/en/ Tuberculosis and Malaria GIF Global Infrastructure Facility https://www.globalinfrafacility.org/ GPE Global Partnership for Education https://www.globalpartnership.org/ GCF Green Climate Fund https://www.greenclimate.fund/ GRIF Guyana REDD-Plus Investment Fund http://www.guyanareddfund.org/ 86 WBG Trust Fund Annual Report 2021 Annexes 87 ACKNOWLEDGMENTS The 2021 Trust Fund Annual Report was produced by the Trust Fund and Partner Relations department in the Development Finance Vice Presidency of the World Bank (DFTPR). It represents a collective effort that spans the World Bank Group. Akihiko Nishio provided the overall vision of the report. Dirk Reinermann and Mei Leng Chang provided strategic advice and direction. Praveen P. Desabatla led the core team that produced the report, which included Satish Korankandath, Hayat Taleb Al-Harazi, Christopher D. Gerrard, and Leslie Ashby. Valuable contributions were provided by Brice Quesnel, Lydia Kruse Tietz, Traci Phillips, Larissa Vovk, Irina Gabrial, Sridharan Srinivasavaradhan, Pratish Krishnan, Ganesh Chandrasekar, Vijay Chandra Shekar, Chandrasekhar Sirigiri, Biju Papachan Lukose, Julius Gwyer, Michelle Yan Li, Rahul Gupta, Sabina Djutovic- Alivodic, Paul Antony Barbour, Salome Awour Aganda, Krishna Thapa, Kjell M. Nordlander, Buenaflor P. Cabanela, Ivan Garcia, Hania Dawood, Damla Er, Ivar J. Andersen, Otilia Iulia Ciotau, FIF trustee teams, FIF secretariats, and DFTPR staff. IFC contributions were provided by Ian Crosby, Can Kevenk, Trevor Kincaid, Julia Lessina, Tatiana Nikolskaya, Motria Onyschuk-Morozov, and Teresa Wai Yee Ha under the guidance of Anastasia Gekis. External communication support was provided by Patricia da Camara, Ntambuzeni Zeria Banda, Noreyana Fernando, Jacqueline Purtell Kistler, and Suresh Ramalingam. Results stories were contributed by David Allen, Charlotte Ampaire, Kristina Aquino, Sevara Atamuratova, Khaleda Atta, Garo Batmanian, Natasha Beschorner, Lucie Blyth, Christian Bodewig, Lucia Burneo, Sudharshan Canagarajah, Valery Ciancio, Nansia Constantinou, Kelly Davies, Vyjayanti Desai, Faher Fawaz Faleh Elfayez, Jessica Gesund Ferrero, Ana Cebreiro Gomez, Léa Hakim, Iva I. Hamel, Reinhard Haslinger, Emma Wadie Hobson, Ziauddin Hyder, Laura Ivers, Laurence Jacquart, Jane Jamieson, Chrissie Kamwendo, Zouhour Karray, Banu Turhan Kayaalp, Eva Kloeve, Mattias Lundberg, Fareeba Mahmood, Brenda Manuel, Uma Mathur, Cristina Navarrete Moreno, Keiko Nagai, James P. Newman, Augustina Nikolova, Ceren Ozer, Boban Varghese Paul, Rachel Bernice Perks, Cara Santos Pianesi, Carlos Pinerua, Pablo Cesar Benitez Ponce, Flore de Preneuf, Marelize Prestidge, Sven Ulrich Renner, Alberto Rodriguez, Lara Saade, Matthijs Christiaan Schuring, Geeta Sethi, Sarah Simons, Sandor Sipos, Aarthi Sivaraman, Nana Soetantri, Jahda Swanborough, Jemima Sy, Bermet Sydygalieva, Sandra Valdivia Teixeira, Horacio Terraza, Luis Tineo, Rodica Tomescu-Olariu, Igor Tutnjevic, Kimie Velhagen, Ana Maria Gonzalez Velosa, Monique Vledder, Thu Hang Vu, Jason Allen Weaver, and Pauline Zwaans. Design and production were provided by Gimga Group. World Bank Group 1818 H Street NW, Washington, D.C. 20433 202.473.1000 www.worldbank.org Some rights reserved This work is a product of the staff of the World Bank Group. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the World Bank Group concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Nothing herein shall constitute or be considered to be a limitation upon or waiver of the privileges and immunities of the World Bank Group, all of which are specifically reserved. All queries on this publication should be addressed to portfolioanalytics@worldbank.org 88 WBG Trust Fund Annual Report 2021 WBG Trust Fund Annual Report 2021