JAPAN POLICY AND HUMAN RESOURCES DEVELOPMENT FUND Annual Report 2006 CONCESSIONAL FINANCE AND GLOBAL PARTNERSHIPS TRUST FUND OPERATIONS PHRD PROGRAM THE WORLD BANK THE GOVERNMENT OF JAPAN 1818 H Street, NW Washington, DC 20433 USA Email: pprogram@worldbank.org www.worldbank.org/rmc/phrd/phrd.htm THE WORLD BANK THE GOVERNMENT OF JAPAN Concessional Finance and Global Partnerships Vice Presidency THE FACES OF THE PHRD Partners in Development Signing ceremony for the PHRD Project Preparation grant in Kazakhstan: Syr Darya Delta Control and Northern Aral Sea Preservation Project—Phase-II. Photo by country team member. Signing ceremony for the PHRD Project Preparation grant in Kazakhstan: Syr Darya Delta Control and Northern Aral Sea Preservation Project—Phase-II. Photo by country team member. JAPAN POLICY AND HUMAN RESOURCES DEVELOPMENT FUND Annual Report 2006 THE WORLD BANK Concessional Finance and Global Partnerships Vice Presidency THE GOVERNMENT OF JAPAN MESSAGE FROM ARIF ZULFIQAR, DIRECTOR, TRUST FUND OPERATIONS T he Policy and Human Resources Development support from the Government of Japan and the World (PHRD) Fund, supported by Japan since 1990, Bank President’s Ideas Fund for Simplification, PHRD is one of the largest Trust Funds managed by developed a new simplified approach to the manage- the World Bank. It is also one of the best known Funds ment of grant agreements with recipient governments. in the Bank, as its largest component, the PHRD Tech- During FY06 this approach was developed and imple- nical Assistance Program supports the preparation and mented Bank-wide for all Trust Funds. Similarly in implementation of many Bank-financed operations. In FY05 the PHRD team carried out a very detailed ad- recent years over a third of all IBRD loans and IDA ministration costs analysis. The methodologies devel- credits and grants have received support through oped for this study were then used for a Bank-wide PHRD and as a result the program is enthusiastically study of the costs of managing all Trust Funds. In FY06 welcomed by both the Bank’s borrowing member states the Government of Japan was the first donor to provide and by Bank staff. grant resources through the Bank to support activities related to Avian and Human Influenza, and the PHRD In recent years there have been new innovations within experience with these grants helped in development the PHRD TA program, with the introduction of of the subsequent Multi-Donor Avian and Human special grant categories to support Project Implementa- Influenza Facility. tion, Project Cofinancing and activities related to Cli- mate Change. In FY06 demand for Cofinancing and This report covers activities under the PHRD program Climate Change grants substantially exceeded available carried out during FY06. It includes a new section re- resources, confirming that these grant categories were porting specifically on conclusions from a review of all addressing areas of high demand for resources. PHRD TA grants that completed their activities dur- ing FY06. The last major evaluation of the PHRD pro- One of the largest other programs supported through gram, taking a longer-term perspective of the program’s PHRD is the Joint Japan/World Bank Graduate Schol- achievements, was commissioned over five years ago. A arship Program (JJ/WBGSP). This program is on the new independent evaluation of the TA program has verge of its twentieth anniversary. JJ/WBGSP is one of been commissioned and will report during FY07. The the world’s largest graduate scholarship programs for findings from this evaluation may lead to further nationals of developing countries. It has awarded over changes in the PHRD TA program. 3,500 scholarships for post-graduate study, supported capacity-building at partner universities, especially in The Government of Japan’s support to PHRD is greatly Africa, and made a major contribution to institutional appreciated. Trust Fund Operations are committed to strengthening of developing country governments, where continue to work with the Government of Japan in one finds numerous JJ/WBGSP alumni in top positions. using the resources provided effectively, and continuing to use PHRD resources both to complement the Bank’s The importance of the PHRD Fund is frequently evi- larger programs and to develop human resources in dent in its pioneering of innovations in the Bank. With developing countries. TABLE OF CONTENTS Message from Arif Zulfiqar, Director, Trust Fund Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iii CHAPTER 1 Introduction and Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.1 PHRD Origins and Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.2 Program Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.3 FY06 Program Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 CHAPTER 2 PHRD Technical Assistance Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2.1 Program Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2.2 New PHRD Technical Assistance Grants in FY06. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 CHAPTER 3 PHRD Capacity Development and Human Resources Development Program . . . . . . . . . . . 15 3.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 3.2 WBI: Supporting Capacity Development through Knowledge and Innovation . . . . . . . . . . . . . . . . . . . 15 3.3 The Joint Japan/World Bank Graduate Scholarship Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 3.4 Staff and Extended Term Consultant (ETC) Grants Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 CHAPTER 4 PHRD Supported Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 4.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 4.2 The Japan-World Bank Partnership Grants Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 4.3 The Japan Consultant Trust Fund Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 4.4 Other Ongoing Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 CHAPTER 5 Monitoring and Evaluation of PHRD TA Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 5.1 Monitoring the Progress and Impact of PHRD Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 5.2 Review of the Grant Completion Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 CHAPTER 6 Additional Sources of Information on PHRD and Programs Supported by the PHRD Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 6.1 Information on PHRD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 6.2 Programs Supported through PHRD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 ANNEX 1 List of Approved FY06 Technical Assistance Grants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 ANNEX 2 Japan PHRD Technical Assistance Grants Program FY06 Annual Policy Guidelines and Program Allocations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 vi ANNUAL REPORT 2006 TABLES 1 PHRD TA Grants Approved in FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 2 Avian Flu Cofinancing Grant Approved in FY06. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 3 WBI Capacity Development Activities Supported by PHRD in FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . 16 4 Japan CTF Disbursements by Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 5 PHRD TA Grants Closed in FY06 by Type and Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 6 Sources of Financing of PHRD TA Grant Associated Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 FIGURES 1 Annual Contributions to the PHRD Fund, FY00–FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 PHRD Program Disbursements in FY06. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 PHRD TA Contributions, Allocations and Disbursements, FY00–FY06. . . . . . . . . . . . . . . . . . . . . . . . . 5 4 World Bank Operations Approved and Supported by PHRD TA Grants . . . . . . . . . . . . . . . . . . . . . . . . 6 5 Number and Value of PHRD TA Grants Approved, FY00–FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 Regional Distribution of PHRD TA Grants, FY00–FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 7 Ten Largest Recipients of PHRD TA Grants in FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8 PHRD TA Approved Grants by Type FY00–FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 9 Regional Distribution of PHRD TA Grant Approval for FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 10 Distribution of Total Allocation of PHRD TA Grants by Sector, FY06. . . . . . . . . . . . . . . . . . . . . . . . . 10 11 Staff and ETC Grants Approved in FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 12 Staff Employed under PHRD Staff and ETC Program from FY00–FY06 . . . . . . . . . . . . . . . . . . . . . . . 19 13 Allocation of Japan CTF Funds by Regions and Networks in FY06. . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 14 Total Value of Closed PHRD TA Grants by Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 15 Ten Countries with Highest Approved Amount of PHRD TA Grants . . . . . . . . . . . . . . . . . . . . . . . . . 29 16 Status of Approval of PHRD TA Project Preparation Grant Associated Operations. . . . . . . . . . . . . . . . 30 17 Disbursement Performance of Closed PHRD TA Grants by Region . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 18 Share of IDA Financing in the Total Value of Closed PHRD TA Grant Received by Region . . . . . . . . 32 ACRONYMS AND ABBREVIATIONS ABCDE Annual Bank Conference on Development Economics AFR Africa Region AHIF Avian and Human Influenza Facility APD Annual Policy Document CEPF Critical Ecosystem Partnership Fund CFP Concessional Finance and Global Partnerships CTF Consultant Trust Fund EAP East Asia and Pacific Region ECA Europe and Central Asia Region ETC Extended Term Consultant FY Fiscal Year FASID Foundation for Advancement Studies on International Development GDLN Global Development Learning Network GOJ Government of Japan HIPC Heavily Indebted Poor Countries IBRD International Bank for Reconstruction and Development IDA International Development Association ICT Information and Communications Technologies JBIC Japan Bank for International Cooperation JICA Japan International Cooperation Agency JJ/WBGSP Joint Japan/World Bank Graduate Scholarship Program LAC Latin America and Caribbean Region LIC Low-Income Countries LMC Lower Middle-Income Countries MDGs Millennium Development Goals MENA Middle East and North Africa viii ANNUAL REPORT 2006 NGO Non-Governmental Organization ODA Official Development Assistance PHRD Japan Policy and Human Resources Development Fund PIC Public Information Center PP Project Preparation PPIAF Public-Private Infrastructure Advisory Facility RVP Regional Vice-Presidency SADC South African Development Community SAR South Asia Region TA Technical Assistance TDLC Tokyo Development Learning Center TF Trust Fund TFO Trust Fund Operations TTL Task Team Leader UMC Upper Middle-Income Countries UN United Nations VASS Vietnam Academy of Social Sciences WBI World Bank Institute WDR World Development Report CHAPTER 1 INTRODUCTION AND OVERVIEW 1.1 PHRD Origins and Objectives Since fiscal year 2000 (FY00), the Government of Japan has contributed over US$570 million to the PHRD Fund (see Figure 1). It is one of the largest trust funds T he Japan Policy and Human Resources Devel- opment (PHRD) Fund was established in 1990 managed by the World Bank and is recognized as as a partnership between the Government of making a unique contribution to the Bank’s develop- Japan (GOJ) and the World Bank. Over the past 16 years ment role in many areas, ranging from preparation of the Fund has supported a wide range of poverty allevi- Bank-financed operations to the provision of graduate ation and capacity building activities. scholarships to citizens of member countries. The scope of the Fund is described in the Arrangement for the Administration of the Fund (as revised in March 1.2 Program Overview 1999) as follows: The PHRD Fund supports five main programs: The Fund may be used for the purposes of financing tech- Ⅲ The PHRD Technical Assistance (TA) Program is nical assistance and other grant activities in respect of the the largest program, and provides grants primarily to formulation and implementation of Bank-supported pro- jects and programs and activities to help develop human assist the World Bank’s borrowing member countries resources in developing member countries of the Bank, to with the preparation and implementation of opera- assist developing member countries of the Bank to formu- tions to be financed through International Bank late and implement development policy and to strengthen for Reconstruction and Development (IBRD) loans the partnership between Japan and the Bank. and International Development Association (IDA) Figure 1 Annual Contributions to the PHRD Fund, FY00–FY06 (millions of US dollars) 160 140 132.3 120 117.6 95.0 US$ million 100 81.0 80 58.3 60 51.8 51.2 40 20 0 2000 2001 2002 2003 2004 2005 2006 1 2 ANNUAL REPORT 2006 credits and grants. In addition, the PHRD TA Pro- In addition to these core programs (discussed further in gram supports a range of climate change-related Chapters 2, 3 and 4), the PHRD Fund is also used to activities; provide support to other activities where the World Bank plays an important role in the international com- Ⅲ The Joint Japan/World Bank Graduate Scholar- munity. This often involves transferring resources from ship Program (JJ/WBGSP) provides scholarships the PHRD Fund to other programs, such as PPIAF, that support post-graduate training at Masters’ CEPF and Cities Alliance. degree level for member country nationals. Similar scholarship programs supported by Japan are managed by other Multilateral Development Insti- tutions, but the JJ/WBGSP is both the longest- 1.3 FY06 Program Highlights established and by far the largest of these programs; Ⅲ Overall demand for grants under the PHRD TA pro- Ⅲ The PHRD-World Bank Institute (WBI) Capac- gram continues to be strong. Demand for Project ity Development Grants Program supports WBI’s Preparation (PP) grants appeared to have stabilized capacity development activities, with a focus partic- at around US$60–65 million annually during the ularly on activities in East, South and Central Asia; FY02–FY05 period. There was a slight fall in de- mand for PP grants in 2006, possibly due to lack of Ⅲ The Japan Staff and Extended-Term Consultant understanding about the requirement for consulta- (ETC) Program supports partial costs of Japanese tion with Japanese Embassy officials in the country. nationals recruited to work within the World However, demand has recovered as staff became Bank; and more familiar with the process. Ⅲ The Japan-World Bank Partnership Program sup- Ⅲ Within the PHRD TA program, allowance was ports activities that promote partnership between made in FY06 for exceptional submission of propos- Japan and the World Bank. als related to Avian Flu for both PP and Cofinancing grants. A special allocation of US$15 million was Figure 2 shows the relative share of each these programs. provided for Cofinancing grants related to Avian Flu The PHRD TA program disbursed US$56.9 million operations. Grants amounting to about 97 percent of in FY06 which amounts to 72 percent of the total the allocation have been approved in FY06. disbursement of US$78.9 million from the PHRD Fund. The next largest disbursement is the JJ/WBGSP Ⅲ Demand for Cofinancing and Climate Change representing 16 percent (US$12.4 million) of total grants increased in FY06, as indicated by requests FY06 disbursements. The Japan-World Bank Partner- from the Regions to allow submission of grant pro- ship Program is the third largest, with seven percent of posals. In FY06, there was an unmet demand for at FY06 disbursements. least an additional US$15 million for Cofinancing Figure 2 PHRD Program Disbursements in FY06 (millions of US dollars and share of total of US$78.9 million) WBI Capacity Development Staff ETC Grants $2.2 m (3%) $2.1 m (2%) Partnership Grants $5.3 m (7%) JJ/WB Scholarship $12.4 m (16%) TA Program $56.9 m (72%) JAPAN POLICY AND HUMAN RESOURCES DEVELOPMENT FUND 3 and about US$7–8m for Climate Change grants. Ⅲ A review of 117 PHRD TA grants closed in FY06 The “real” demand level may have been still higher, was carried out. The main conclusions are: but CFP advised the Regions that there were no re- a) 77% of the operations associated with the 109 sources for Cofinancing or Climate Change grants in closed PP grants have been approved by the the second round, which did not encourage prepara- World Bank’s Board of Executive Directors. tion of proposals. Another 16% are expected to be approved in Ⅲ In contrast, demand for Project Implementation FY07 and later years; grants has been low. Since this type of grant was in- b) The four CCIG grants were used to finance troduced in FY02, the value of the proposals sub- activities in the agriculture, water and flood con- mitted has been less than half of the APD allocations trol, and energy sectors. One of the indigenous for Project Implementation grants. A plausible ex- organizations which participated in the pilot planation for the low demand is that Recipients are initiative on the quantification of the carbon fix- less inclined to acknowledge the early signs of imple- ation and storage negotiated a US$20,000 carbon mentation capacity issues that would justify a request sale contract with an Italian company which cor- for a Project Implementation grant, and later there is responded to about 9 million hectares of natural not enough time to process and use grant resources. regeneration; Ⅲ In FY06, WBI Capacity Development Programs de- c) Consistent with the allocation target of PHRD livered more than 800 learning activities for clients TA grants, about half of the amount of the closed reaching 90,000 participants in 116 countries. grants was utilized to prepare operations for coun- Ⅲ The 2006 Annual Bank Conference on Develop- tries eligible to receive financing from IDA; ment Economics (ABCDE) was supported with d) Positive indirect outcomes of the grants included: finance from the Japan-World Bank Partnership (i) enhancement of the capacity of the recipi- Grants Program. The forum was held for the first ent ministries and agencies; (ii) participatory time in East Asia, in Tokyo, and was participated project design made possible through increased in by nearly 900 delegates over two days, record participation of key stakeholders in the grant attendance for an ABCDE. The theme of the financed activities; (iii) better understanding 2006 ABCDE was “Rethinking Infrastructure for of the “soft” development issues such as gender, Development.” ethnicity, and vulnerability; (iv) leveraging addi- Ⅲ The Government of Japan (GoJ) approved a grant tional funds from donors and internally from the request for an independent evaluation of the PHRD government. TA program (FY00–FY06). The evaluation started in October 2006 and is expected to be completed by April 2007. CHAPTER 2 PHRD TECHNICAL ASSISTANCE PROGRAM 2.1 Program Trends Grant disbursements3 in FY06 are comparable to the previous three fiscal years. F igure 3 shows the trends in the PHRD Technical Assistance (TA) contributions,1 allocations and PHRD TA grants are an important source of financing disbursements from 2000–2006. The annual available to low-income and lower middle-income contribution has declined since FY02 and it hit a low of countries4 for the preparation of IBRD loans and US$2.92 million in FY06. In contrast, TA allocations2 IDA credits and grants for all sectors, and to upper have been at their second highest level since FY00. middle-income countries for some priority sectors.5 Figure 3 PHRD TA Contributions, Allocations and Disbursements, FY00–FY06 (millions of US dollars) 160 140 120 US$ million 100 80 60 40 20 0 2000 2001 2002 2003 2004 2005 2006 Contributions Allocations Disbursements 1 Contribution ϭ amount received from the Government of US$876–US$3,465; upper middle-income (UMC), US$3,466– Japan (GoJ). US$10,725; and high-income, US$10,726 or more. Source: World 2 Allocation ϭ grant amount, as approved by GoJ, recorded when Development Report (WDR), 2007. 5 the specific grant account is established. When grants are approved Priority sectors include: education, health, nutrition, water sup- late in the fiscal year (FY), the allocation may not be recorded until ply and sanitation, social protection, social development and envi- the following fiscal year. As a result, annual data on “allocations” and ronment, participatory community development activities, and those “approvals” are not always identical. that involve NGOs and civil society, gender, and projects targeted at 3 Disbursements ϭ amount withdrawn from the grant account to groups or areas that are clearly disadvantaged in terms of poverty finance expenses incurred by the grant recipients. indicators which are in line with the Millennium Development Goals 4 According to 2005 GNI per capita, countries’ income groups are: (MDGs). low-income (LIC), US$875 or less; lower middle-income (LMC), 5 6 ANNUAL REPORT 2006 Figure 4 World Bank Operations Approved and Supported by PHRD TA Grants (in numbers and percentage) 300 60 250 48 50 44 44 Number of Operations 200 40 Percentage 223 220 200 210 219 254 253 150 27 30 24 105 21 99 100 87 20 12 69 50 54 50 10 27 0 0 2000 2001 2002 2003 2004 2005 2006 Approved operations Operations prepared with PHRD TA grants Percent of approved operations supported by PHRD grants Figure 4 shows that nearly half of the loans and project preparation grants. This ratio declined in credits approved for World Bank financing during FY03 and FY04, but it increased again in FY05 and FY00–FY02 were prepared with the support of PHRD FY06. Figure 5 Number and Value of PHRD TA Grants Approved, FY00–FY06 200 120 185 $114 m 180 $96 m 100 160 140 $88 m $90 m Value in US$ million 127 129 80 Number of Grants $72 m 124 120 $66 m $62 m 116 100 97 60 97 80 40 60 40 20 20 0 0 FY00 FY01 FY02 FY03 FY04 FY05 FY06 Figure 5 shows the declining trend in the approval6 of soon after the streamlined procedures were in place in PHRD TA grants from FY00 to FY02 and then an FY04. While demand declined during the following upward trend from FY03. In the FY01–FY02 period, two years, the value of grants approved remained well the guidelines and procedures of the PHRD TA were above the FY00–FY03 period. The slight decline in being revised and streamlined, and it is possible that FY06 may be attributed to the requirement for consul- World Bank staff were constrained from applying for tation with Japanese Embassy officials prior to the sub- grants during the period of transition. Demand for mission of grant proposals for approval. Initially, this grants began to increase and peaked at US$114 million requirement was not well-understood and many pro- posals were not considered for submission. However, in 6 Approval refers to the grant proposals endorsed by GoJ. the later rounds of submission, demand started to rise JAPAN POLICY AND HUMAN RESOURCES DEVELOPMENT FUND 7 Figure 6 Regional Distribution of PHRD TA Grants, FY00–FY06 (in US$ amount) 40 AFR 35 EAP 30 25 ECA Percentage 20 15 LAC 10 MENA 5 SAR 0 2000 2001 2002 2003 2004 2005 2006 as World Bank task teams became more familiar with region received about 23 percent of the total amount. the process. The other major recipient is Latin America and the Caribbean (13 percent). In FY06, with the exception of The PHRD TA program is committed to supporting LAC, all regions secured higher values of grants than poverty reduction efforts.7 Consistent with this com- in FY05. mitment, the program continues to focus on the poorest countries. In FY06, about 53 percent of the total grants PHRD TA grants approved in FY06 were for 151 submitted were for IDA countries. Also in the same year, recipient governments. A little above half of the total the value of grant submissions for Asia (including East, approved amount went to 10 countries as shown in South and Central Asia) was 47 percent of the total, Figure 7 which excludes Cofinancing grants for Avian which is a ten percentage points increase over FY05. Flu operations. Three regions received about 72 percent of the PHRD 7 The PHRD TA guidelines indicate that at least 35 percent of TA grants during FY00–FY06 period (Figure 68). the annual grant submissions, by amount, are for IDA and blend countries, and at least 35 percent for Asia, including East, South and Europe and Central Asia region’s share was 27 percent Central Asia. followed by Africa (26 percent). East Asia and the Pacific 8 The FY06 figures do not include Avian Flu Cofinancing grants. Figure 7 Ten Largest Recipients of PHRD TA Grants in FY06 12 10.8 10 8 7.5 US$ million 6 4.7 4.2 4.0 4.0 4 3.2 3.0 3.0 2.9 2 0 m n a a ia a sia es ic l ni ny bi ija ga er bl in na ne am ba Ke ig ba ne pu ip et do Al N ill er Se eG Vi Re In Az Ph Th yz rg Ky Countries 8 ANNUAL REPORT 2006 As a response to emerging development challenges, the (US$90 million) compared to 25 percent in FY05. PHRD TA program has supported several innovative Project Implementation grants continue to be less in de- approaches. The scope of the program was expanded mand with only 2 percent of the total amount approved in FY00 to address implementation capacity issues in FY06. In FY02, another window—Climate Change in ongoing projects (Project Implementation grants), Initiatives—was introduced and the demand for this type and in new operations (Project Cofinancing grants) in of grant has been increasing. In FY06, the amount of FY04. Demand for Project Cofinancing grants has approved Climate Change grants was about 6 percent of since increased. In FY06, Cofinancing grants accounted the total grant amount. This figure is lower (8 percent) for 39 percent9 of the total grant amount approved than FY05 approval for this grant type (see Figure 8). Figure 8 PHRD TA Approved Grants by Type FY00–FY06 (millions of US dollars) 90 85 80 Project Preparation 75 70 65 60 55 US$ million 50 45 40 35 30 Project Cofinancing 25 20 15 10 Climate Change Project Implementation 5 0 2000 2001 2002 2003 2004 2005 2006 In FY06, a new grant type—Aid Coordination 2.2 New PHRD Technical Assistance Enhancement—was added to the PHRD TA program. Grants in FY06 These grants aimed to support lower- and middle- income countries with relatively strong management In FY06, 97 new TA grants were approved totaling capacity to build capacity in effective management of US$89.69 million.10 These are summarized in Table 1 aid. However, demand for this type of grant was lim- and a detailed list of grants by name, type, countries, ited, and it was subsequently withdrawn in FY07. regions and amounts is provided in Annex 1. About half of the approved grant value was for project preparation, Also under the PHRD TA program, allowance was compared to three quarters in FY04 and FY05. Thirty- made for exceptional submission of proposals related nine percent of the approved amount was for Cofi- to Avian Flu for both Project Preparation and Cofi- nancing grants in FY06, compared to 25 percent in nancing. A special allocation of US$15 million was FY05. The share of the Climate Change Initiatives provided for Cofinancing grants related to Avian Flu grants was approximately 6 percent in FY06, compared operations. 9 10 The figures exclude Cofinancing grants for Avian Flu operations. This figure excludes Cofinancing grants for Avian Flu operations. JAPAN POLICY AND HUMAN RESOURCES DEVELOPMENT FUND 9 Table 1 PHRD TA Grants Approved in FY06 Table 2 Avian Flu Cofinancing Grant Approved in FY06 (in number and US$) Country Region Value in US$ Number of Program Grants Amount (US$) Albania ECA 800,000 Armenia ECA 803,900 Project Preparation 69 46,829,496 Cambodia EAP 3,000,000 Project Implementation 4 1,550,980 Georgia ECA 1,400,000 Cofinancing 11 35,108,000 Indonesia EAP 5,000,000 Climate Change 12 5,731,178 Initiatives Kyrgyz Republic ECA 1,000,000 Aid Coordination 1 471,000 Lao PDR EAP 2,000,000 Total 97 89,690,654 Moldova ECA 500,000 Total 14,503,900 to four and five percent in FY04 and FY05, respectively. The proportion of other types of grants remained almost the same compared to FY04. The composition of the regional distribution of all PHRD TA grants in FY06 shows that the Europe and The special provision for Avian Flu Cofinancing grants Central Asia region received the largest share of the total in FY06 assisted PHRD grant recipient countries to grants approved, as it did in FY05. Africa received the address the emerging problem before a separate multi- next largest share (26 percent) followed by East Asia donor initiative Avian and Human Influenza Facility and the Pacific (23 percent). Africa’s share was only (AHIF) could be established. Eight grants with a total 23 percent in FY05. Latin America and Caribbean value of US$14.5 million were approved under this countries received the third largest share—ten percent- special PHRD Cofinancing grant category in FY06, age points—behind East Asia and the Pacific, while benefiting countries in EAP and ECA regions (see South Asia’s share increased slightly (4 percent) from Table 2). FY05 (see Figure 9). Figure 9 Regional Distribution of PHRD TA Grant Approval for FY06 (millions of US% and percent of total US$89.69 million) Middle East and North South Asia $5.4 m (6%) Africa $4.4 m (5%) Africa $23.4 m (26%) Latin America and the Caribbean $11.2 m (13%) Europe and Central Asia East Asia and the Pacific $24.4 m (27%) $20.9 m (23%) The allocation of PHRD TA grants by sector in FY06 went to the Agriculture and Rural Development sector, is shown in Figure 10. The Human Development sector compared to 10 percent in FY05. The Public Sector received the largest share (27 percent) which is similar Management sector received the next highest share to FY05. In FY06 relatively more funds (20 percent) (16 percent), compared to seven percent in FY05. 10 ANNUAL REPORT 2006 Figure 10 Distribution of Total Allocation of PHRD TA Grants by Sector, FY06 (millions of US dollars, share of total of US$89.69 million) Public Sector Agriculture and Rural Management Development $14 m (16%) $18 m (20%) Multisectoral $7 m (8%) Energy $3 m (3%) Infrastructure Environment $10 m (11%) $10 m (11%) Industry and Trade $2 m (2%) Human Development Finance $24 m (27%) $1 m (1%) The Solomon Islands Rural Development Project supports activities that provide opportunities to improve the livelihoods of small rural producers, including through increasing the production of traditional and new cash crops and marketing of fresh food for domestic markets. Photo by Thomas Sennett. (a) Project Preparation Grants and credits. With very few exceptions, all grants are executed by the recipient governments. In FY06, the Project Preparation grants aim to strengthen the qual- Government of Japan approved 69 new grants amount- ity and recipient ownership of operations financed ing to US$46.83 million. by the World Bank through the provision of funds directly to potential borrowers to obtain technical About 14 percent of the PP grants were approved for expertise that would assist in preparing Bank loans preparing policy-based lending operations. The main JAPAN POLICY AND HUMAN RESOURCES DEVELOPMENT FUND 11 The Syr Darya Delta Control and Northern Aral Sea Preservation Project Phase-II aims to promote overall water use efficiency in the basin by improving operation and safety of the important water infrastructure and providing protection against flooding particularly during winter leading to improved agriculture, fish production and population safety. Photo by Arne Hoel. objectives of these operations ranged from realigning where the shortcomings were not identified during growth, supporting macroeconomic stability and project preparation. The grants are available for IDA/ strengthening fiscal sustainability, improving public IDA-blend and lower middle-income countries to service delivery, reforms in governance, business envi- support World Bank-financed operations that have ronment and enhancing the implementation of the been under implementation for at least 12 months and Poverty Reduction Support Program, to improving the are facing capacity constraints. Grant activities include effectiveness and efficiency of environmental manage- technical assistance to build institutional capacity and ment. About 16 percent of the PP grants were approved local training. for agricultural development. There were a number of grants approved to support preparation of community- Four grants totaling US$1.55 million were approved in driven development, social protection and judicial FY06. These were mainly in the areas of rural infra- reform operations. Development and management of structure, banking system modernization, and social water resources, health and education and urban infra- protection management systems. structure were the other sectors for which PP grants were approved. Two grants for Iraq were approved for prepar- (c) Project Cofinancing Grants ing emergency water supply and sanitation and electric- ity reconstruction operations. This grant category aims to support technical assis- tance that would strengthen institutional capacity for (b) Project Implementation Grants operations financed by the Bank in IDA/IDA-blend countries. The purpose of this category of PHRD TA grants is to address specific weaknesses in the capacity of imple- About 53 percent of the amount approved for cofi- menting agencies that have hampered the implementa- nancing Bank-financed operations was for the Human tion of World Bank-financed project activities, and Development sector, which includes education and 12 ANNUAL REPORT 2006 About 58 percent of PHRD Cofinancing grants approved in FY06 were for projects supporting activities for human development and health and nutrition. Photo by Curt Canemark. The Cofinancing grant for Senegal Quality Education for All Phase II aspires to improve access to universal quality education through quality interventions pilots and support in robust data collection on student achievement. Photo by Eric Miller. health. The remaining amount was for cofinancing (d) Climate Change Initiatives operations related to Public Sector Management, Agri- culture and Infrastructure development. The recipient Climate Change grants aim to support the inclusion of regions of the cofinancing grants were Africa, East Asia climate change concerns in the development planning and Pacific and Europe and Central Asia. process of recipient countries. The grants also support JAPAN POLICY AND HUMAN RESOURCES DEVELOPMENT FUND 13 the preparation and implementation of World Bank- financed projects that support reduction in emissions of greenhouse gases and promote energy efficiency or adapting to the adverse impacts of climate change. In FY06, a record number of grants were approved for climate change initiatives that benefited all regions ex- cept the Europe and Central Asia and Middle East and North Africa regions. The Climate Change grants were mainly for transport and air quality, biomass, capacity building for bio-carbon funds, industrial rehabilitation and Kyoto Mechanisms. (e) Aid Coordination Enhancement The purpose of this grant type was to support low- and lower middle-income countries with relatively firm management capacity to build capacity in effective aid management. Only one grant for Strengthening of Aid Coordination Capacities in Honduras (US$471,000) was approved in this category. The Honduras Adaptation to Climate Change Project aims to reduce the country’s vulnerability to floods and landslides derived from the increased impacts of hurricane and catastrophic wind and rainfall events generated by climate changes. Photo by Curt Canemark. The Indonesia Bali Biomass Power: Demonstrating Mitigation of Climate Change through Better Waste and Pollution Management aims to lessen barriers to the development of waste and pollution management initiatives that reduce greenhouse gas emissions and promote sustainable development through safer waste management practices and cleaner industrial production. Photo by Curt Canemark. CHAPTER 3 PHRD CAPACITY DEVELOPMENT AND HUMAN RESOURCES DEVELOPMENT PROGRAM 3.1 Introduction programs in its focus countries, particularly Asia. Japan has made substantial financial contributions over many T here were three active components of the years to developing individual skills and enhancing or- PHRD Capacity and Human Resources Devel- ganizational excellence. In FY06, Japan approved a new opment Program in FY06. These were the: allocation of US$1.8 million to fund WBI’s country- (a) WBI Capacity Development Program; (b) Joint specific programs in its seven focus countries11 in Asia, Japan/World Bank Graduate Scholarship Program; and which were aligned with country assistance strategies, (c) Japan Staff and ETC grants program. the recipients’ own poverty reduction strategies, and internationally agreed development goals. The total PHRD funds that were available to WBI, including 3.2 WBI: Supporting Capacity both the new allocation and the carry-over funds from Development through Knowledge previous fiscal years, amounted to US$5.68 million. and Innovation This represented about 21 percent of all donor funds that were available for WBI use during FY06. A full list WBI focuses on delivering capacity development of new WBI activities approved for financing through programs to assist countries in acquiring, sharing, and the PHRD-WBI Capacity Development Grants Pro- applying global and local knowledge to meet develop- gram in FY06 can be found in Table 3. ment challenges. To achieve this, WBI helps clients develop capacity at the individual, organizational, and One example of country-specific work supported by institutional levels through thematic learning events, a PHRD grant is a capacity enhancement program on technical assistance, and economic and sector work. Improving Intergovernmental Fiscal Design and Working in partnership is critical to WBI in delivering Local Financial Management in Turkey. The grant its country-specific, regional, and global programs. was instrumental in enabling Turkey to identify inter- Partnering with donors enables WBI to leverage its re- ventions to develop and strengthen local governance sources and makes its programs more cost-effective by capacity and providing training and capacity building coordinating activities and harmonizing approaches. services. As a result of this program, the Government Financial support from such “resource partners” helps of Turkey strengthened its municipal sector by design- WBI extend the reach, deepen the content, or prolong ing a new intergovernmental transfer formula, estab- the engagement of its programs. In fiscal year 2006, lishing monitoring systems for fiscal performance of WBI delivered more than 800 learning activities for municipalities and designing capacity building pro- clients reaching 90,000 participants in 116 countries. grams for municipal civil servants. This also resulted in The PHRD-WBI Capacity Development Grants 11 WBI focus countries which received support from Japan’s FY06 Program plays an integral role in enabling WBI to allocation: Afghanistan, Bangladesh, India, Indonesia, Pakistan, carry out its mission and implement country specific Philippines, and Vietnam. 15 16 ANNUAL REPORT 2006 Table 3 WBI Capacity Development Activities Supported by PHRD in FY06 PHRD Funding WBI Program Title Amount East Asia and the Pacific Indonesia Country Program $600,000 Strengthening Urban Management and Service Delivery for the Poor Monitoring and Evaluation of Local Government Capacity Capacity Strengthening of Parliament Public Information Capacity in Local Governments Knowledge Sharing and Consensus Building Workshops on Investment Climate Capacity Building for Indonesia’s Ministry of Trade Vietnam Country Program $300,000 Parliamentary Oversight Ho Chi Minh National Political Academy (HNPA): Short term courses on topics critical to Vietnam’s reform program and Training of Trainers Sustainable Urban Development and Management Training Program for Vietnam Philippines Country Program $300,000 Strengthening of LGUs in the delivery of basic services Health Sector Flagship Program Increase social inclusion, particularly at the local government unit (LGU) level South Asia Afghanistan Country Program $50,000 Improving Livelihoods Bangladesh Country Program $40,000 Course on Debt Management and Fiscal/Public Economics India Country Program $310,000 Public Sector Management and Governance Capacity Development for Local Government HIV/AIDS control focusing on fostering a committed leadership and increased awareness in fighting the epidemic Capacity Building for Improving the Investment Climate in India Pakistan Country Program $200,000 Millennium Development Goals (MDGs) Monitoring Capacity Development – Advanced Impact Evaluation Course Public-Private Partnerships for Better Health Outcomes in Pakistan Fiscal Decentralization and Intergovernmental Fiscal Relations Strengthening the Parliamentary Public Account Committees (PACs): Course for PAC Leadership Total PHRD Funding in support of new WBI activities approved in FY06 $1,800,000 JAPAN POLICY AND HUMAN RESOURCES DEVELOPMENT FUND 17 a report on local government reform strategy being partnerships, WBI was able to reach more participants published by the Prime Minister’s Office and draft by connecting to partner’s own distance learning sys- legislation for local government system being submitted tems (e.g. JICA-Net) and enrich its content through to Parliament. joint content development. Another example is WBI’s Trade Program, which, jointly with researchers from the Vietnamese Academy 3.3 The Joint Japan/World Bank of Social Sciences (VASS), completed 15 analytical pa- Graduate Scholarship Program pers to assess the impact of Vietnam’s WTO accession on the macro economy and various sectors. Through The Joint Japan/World Bank Graduate Scholarship this program, both research and training capacities have Program (JJ/WBGSP) provides opportunities for mid- been improved at VASS and the papers provided the career professionals from World Bank member coun- basis for decision making, and served as teaching mate- tries to pursue graduate studies in development-related rials for the workshops for the National Assembly, fields. The program has two schemes leading to a trainers, and provincial officials. These workshops Masters degree—the Regular Program and Partnership resulted in raising awareness and building consensus Programs. Since its establishment in 1987, the JJ/ among members of the National Assembly, and among WBGSP has awarded 3,582 scholarships from a pool provincial officials. of 53,000 applicants for studies at universities in mem- ber countries. Among them, 905 scholarships were PHRD grants also facilitate collaboration between WBI awarded for studies at the various partnership program and Japan. Technical and intellectual resources from partner institutions. With an almost 83 percent rate Japanese experts and institutions including the Japan of return to their home countries (78 percent) or to International Cooperation Agency (JICA), the Ministry another developing country (5 percent), JJ/WBGSP of Environment, the private sector, and universities scholars are utilizing the knowledge and skills received helped WBI to scale up its activities. As a result of these during their programs to contribute to development Photo by country team member. 18 ANNUAL REPORT 2006 in their respective regions and countries. Most gradu- Nairobi and in Hanoi in May 2006, where the alumni ates now occupy high ranked positions in their respec- were brought together to discuss development issues, tive countries. Many occupy decision-making as well as including presentations by scholars. These conferences public policy positions including ministerial portfolios. established a solid framework for the graduated schol- ars to share knowledge and establish links with devel- The JJ/WBGSP supports 11 Partnership Programs in opment practitioners including the Bank’s country universities around the world. These programs enable offices and Japanese Embassies. scholars to receive specialized training in key areas of de- velopment, such as economic policy management and infrastructure management. Through its partnership 3.4 Staff and Extended Term scheme, the JJ/WBGSP contributes to build the insti- Consultant (ETC) Grants Program tutional capacity of four African universities by sup- porting Master’s degree programs in Economic Policy The objective of the PHRD Staff Grants program is to Management. facilitate the appointment of Japanese nationals as staff members of the World Bank, at mid-level. There are In FY06, the GoJ contributed almost US$13 million three categories of appointment under this program: to the JJ/WBGSP which has allowed the program to (i) Extended-Term Consultants (ETC) who can be sponsor a total of 331 scholars. In FY06, the Program hired for up to two years; (ii) Term appointments that awarded 98 new scholarships under the Regular Program can be hired for a maximum of four years; and to scholars from 80 different countries and 113 scholar- (iii) open-ended appointments. ETCs can be financed ships to new Partnership Program Scholars. For the Reg- under the Japan PHRD Staff Grant program for a max- ular Program, the larger part of awardees (45.5 percent) imum of two years, but can then subsequently be hired comes from Africa which also provides two thirds of as term or open-ended staff. the applicants. It is followed by East Asia and Latin America and the Caribbean (14.3 percent for each In FY06, the GoJ contributed US$2.2 million to the region). 84.4 percent of awardees serve in the public Staff and ETC Grants Program. There were 25 ap- sector in their countries, 7.8 percent work for NGOs pointments under the program in FY06 for a total and 7.8 percent work for regional or international amount of US$2.6 million. Of these, 19 were ETC, organizations. five-term, and one open-ended (Figure 11). The JJ/WBGSP launched the Scaling-Up Program in Between FY00 and FY06, there were 86 appoint- FY06. The objective of the program is to disseminate ments under the Program, of which 49% were for and apply the research carried out by JJ/WBGSP schol- term appointments, followed by ETC appointments ars and to facilitate lifelong knowledge exchange and (38 percent) and open-ended appointments (13 per- dialogue among development practitioners and schol- cent). Soon after the introduction of ETC appoint- ars. The program held two regional conferences in ments under the program in FY05, they became very Figure 11 Staff and ETC Grants Approved in FY06 Open-ended 13% ETC 59% Term 28% JAPAN POLICY AND HUMAN RESOURCES DEVELOPMENT FUND 19 Figure 12 Staff Employed under PHRD Staff and ETC Program from FY00–FY06 30 25 20 15 10 5 0 FY00 FY01 FY02 FY03 FY04 FY05 FY06 Open-ended Term ETC popular. In two years, the ETC program has accounted The program in its current form is expected to continue for more than two-fifths of the total appointments for at least another year. The World Bank is currently (see Figure 12). One of the main reasons is that the reviewing its policy on staff appointments under trust program finances the full cost of salary and benefits for funds and is designing a program which will be stan- the consultants. dardized for all donor funded staff and consultants. CHAPTER 4 PHRD SUPPORTED PROGRAMS 4.1 Introduction Economics (ABCDE), a forum for discussion on key development issues between the World Bank, the Asian and worldwide research communities and practitioners I n addition to the Technical Assistance and Capac- ity Building programs, PHRD supports a number and policy makers. The ABCDE 2006, held in Tokyo of other World Bank programs. These include the on May 29–30, 2006 for the first time in East Asia, at- Japan-World Bank Partnership Program, the Japan tracted nearly 900 people over two days, making an Consultant Trust Fund and other Trust Funds which attendance record for the history of ABCDE. The over- receive contributions from the PHRD Fund. all theme of ABCDE 2006 was “Rethinking Infrastruc- ture for Development” and addressed several major related topics. 4.2 The Japan-World Bank Partnership Grants Program Two other grants under the program were to support the planned PHRD Evaluation (see Chapter 5) and to Four new grants were approved under the Partnership provide continued support to the Tokyo Development Program in FY06. Two of these were to support major Learning Center. events in the Asia Region. One of these supported preparations for the World Bank annual meetings In its second year, the Tokyo Development Learning scheduled for September 2006 in Singapore. The ob- Center (TDLC) cemented its reputation as an indis- jective was to promote collaborative research among pensable partner in enhancing the impact of develop- major Asian think-tanks and academics on regional and ment projects. With over 42 partner institutions, the financial issues. This was intended to help strengthen TDLC’s utilization rate exceeded 70%, peaking at institutional capacities and promote more sustainable 145% in December 2005. This has allowed the TDLC and longer-term processes for collaboration. The grant to help make expertise within Japan more accessible to was also intended to support a program of research and developing countries. Within the region, the TDLC has conferences that would be relevant to Annual Meetings been instrumental in strengthening and expanding the themes and thus help enhance quality and broaden capacity of the Global Development Learning Net- representation. It was expected that this would encour- work, while encouraging cross-regional knowledge age Asian policy makers and researchers to play a more transfer between Asia and Africa. active role in identifying themes and to participate in the 2006 Annual Meetings Program of Seminars in Inaugurated on June 1, 2004, the TDLC has a mandate Singapore. In the process, it was expected that this grant to become a hub for knowledge exchange, transcending would support the Bank’s objective of integrating more distances, serving international and regional organiza- directly its knowledge sharing role with other opera- tions, governments, development agencies, universities tional objectives. and training institutions as well as NGOs and civil society. It assists with their operational needs, coordi- The second of these grants supported the organiza- nates training programs or communication events, tion of the Annual Bank Conference on Development and fosters communities of practice through the use 21 22 ANNUAL REPORT 2006 Photo by country team member. of ICT tools such as videoconferencing. The TDLC Bank Institute and the United Nations Capital Devel- represents the largest single PHRD partnership program opment Fund. Through its unique blended learning grant with an indicative allocation of US$25 million approach combining CD-ROMs, web-based discussion over 5 years. and videoconferencing, this popular course has success- fully accredited 46 microfinance trainers to date, from FY06 saw advances in numerous areas at the TDLC. Afghanistan to Vietnam. Its technical capability was well demonstrated at the Annual Bank Conference on Development Economics The Asian Productivity Organization, a partner from (ABCDE) held in Tokyo in May 2006. The TDLC set the TDLC’s earliest days, has now integrated GDLN up a complete broadcasting studio at the venue, en- services into their training programs, enabling it to ad- abling 9 sites to join a local audience of over 900 to minister courses to more member countries in a cost enrich discussions on this year’s theme, “Rethinking effective manner. Japanese experts on topics such as the Infrastructure.” Toyota Production System have been able to expand their reach by conducting lectures for these programs Development agencies have entrusted the TDLC with out of the TDLC studio. their programs. For example FASID, the Foundation for Advanced Studies on International Development, is With Africa gaining greater prominence on the devel- in its second year conducting seminars via the TDLC opment agenda, the TDLC is doing its part, collabo- for Japan’s ODA task force, established by the Ministry rating with JICA-Net to facilitate knowledge sharing of Foreign Affairs and comprised of local Embassy, activities for the region drawing on Asia’s development JICA and JBIC staff members. experience. The TDLC facilitated the delivery of JICA’s seminars to GDLN centers in Tanzania, Ethiopia, Programs initiated in the first year have matured, with Ghana, Uganda and Mauritania. visible results in capacity building. A good example is the Microfinance Training of Trainers Course, first or- In accordance with global trends, disaster risk manage- ganized in February 2005 with the Asian Development ment has increasingly become the focus of TDLC JAPAN POLICY AND HUMAN RESOURCES DEVELOPMENT FUND 23 activities based on achievements in the first year. Pro- promotion of knowledge and information sharing be- gram partners now include: Kyoto University, the tween Japan and the World Bank has been enhanced. International Recovery Platform, the Asian Disaster Reduction Center and JICA. Strengthening of the Partnership between the World Bank and the Japanese Private Sector has supported Knowledge networks are expanding with the TDLC. enhancing the dialogue with the Japanese business Blessed with a growing number of partners experiment- community and disseminating information regarding ing with innovative ways to make the GDLN work for the Bank related to business opportunities. A Business them, the stage is set for the TDLC to begin producing Information Advisor has contributed to increased a new set of knowledge-based programs and to continue awareness among Japanese business consultants about improving the quality of its knowledge sharing activities. the Bank’s operational business by holding business seminars and consultations. Other ongoing Programs continued to make a useful contribution to strengthening Japan-World Bank rela- tions. The Policy Dialogue Enhancement Support 4.3 The Japan Consultant Trust Fund Fund has continued to support further enhancement Program of policy level interactions between the World Bank and Japanese stakeholders and organizations, including In FY06, the Consultant Trust Fund (CTF) Program media, academics, youth, private sector, parliamentari- was funded by tied grants from 22 participating govern- ans, NGOs and other major constituencies through a ments. The CTF is being phased out, and activities are wide range of outreach activities such as organizing sem- expected to cease by the end of FY07. As FY05 was the inars, lectures, videoconferences, etc. Dissemination of last year for donors to contribute into the CTF, no new the World Bank’s key messages to the Japanese public contribution was made to the CTF program in FY06. and key constituencies and organizations has also bene- fited by producing dissemination materials and outreach Figure 13 shows the breakdown of Japan CTF distribu- activities through the Public Information Center in tion of funds by region and network in FY06. Half of Tokyo (PIC Tokyo). Japan’s allocation went to East Asia and Pacific Region and to the infrastructure network. This reflects the prox- The Public Outreach Support Fund has supported imity of Japan and ease of travel to the Asian markets and the promotion of interactions and partnerships on de- also the strength of the consulting industry in the energy velopment issues between the World Bank and Japan and mining, transportation and water and sanitation sec- by translation and production of World Bank’s major tors. Other networks like Human Development, Private publications including the World Bank Annual Report Sector Development, Poverty Reduction, Economic and other documents into Japanese. These products Management and Environmentally and Socially Sus- have helped increasing awareness of development issues tainable Development and other smaller vice presiden- amongst key stakeholders in Japan, and as a result, tial units received together 15% of the total allocation. Figure 13 Allocation of Japan CTF Funds by Regions and Networks in FY06 MNA 6% AFR 6% LAC 6% ECA 7% EAP 25% SAR 10% Global 40% 24 ANNUAL REPORT 2006 Table 4 Japan CTF Disbursements by Region (US$000) Region Cumulative FY06 FY05 FY04 FY03 Africa 2,295.18 832.69 524.85 918.24 19.40 East Asia and Pacific 6,757.03 2,201.40 2,518.72 1,624.90 412.01 Europe and Central Asia 861.96 175.11 387.36 262.95 36.54 Latin America and Caribbean 1,711.68 562.02 542.65 470.51 136.51 Middle East and North Africa 1,324.00 392.20 482.87 361.41 87.52 South Asia 336.28 123.68 110.06 102.55 0.00 Global 8,605.05 2,588.80 3,176.12 2,164.33 675.80 Total 21,891.19 6,875.91 7,742.62 5,904.89 1,367.77 Disbursements amounted to $6.9 million in FY06, procurement. It was agreed with the Board that for any somewhat lower than in FY05, largely because large CTF with a remaining balance larger than $1 million contracts were awarded in FY06 through a competitive on June 30, 2007, the donor would be invited to review process (see Table 4). However, these should result in with Management how to use the uncommitted bal- larger disbursement in FY07. ance. The donor could either reclaim or re-deploy the balance, or ask the Bank to continue to use its CTF As part of the Bank’s ongoing Trust Fund Reform, in resources for agreed purposes until such time as the re- July 2004 the Board of Executive Directors adopted a maining undisbursed amount falls below $1 million (at policy change under which the Bank no longer accepts which point the uncommitted remainder would be re- trust funds that impose nationality restrictions on turned to the donor or transferred to other untied trust Grants in support of Slum upgrading are under taken under the Cities Alliance Program. Photo by Francis Dobbs. JAPAN POLICY AND HUMAN RESOURCES DEVELOPMENT FUND 25 funds, as agreed). As it is expected that Japan will have approaches to urban poverty reduction. The Alliance a remaining balance of more than $1 million at the end provides matching grants in support of city develop- of June 2007, the Bank intends to initiate discussions ment strategies, citywide and nationwide slum upgrad- with Japan on the use of the uncommitted balance. ing programs and sustainable financing strategies for cities to attract the long term capital investments needed for infrastructure development. In FY06 the PHRD 4.4 Other Ongoing Programs Fund contributed $1 million to the Cities Alliance. During FY06 transfers were made from the PHRD PPIAF is a multi-donor technical assistance facility that Fund to three other programs managed by the World aims at assisting developing countries to improve the Bank. The largest contribution was of over $39 million, quality of their infrastructure through private sector to the Heavily Indebted Poor Countries (HIPC) initia- involvement. PPIAF was developed at the joint initia- tive. HIPC provides a comprehensive approach to tive of the Japanese and UK governments, working with reducing the debt of the world’s poorest and most the World Bank. It now has more than a dozen donor severely indebted countries. partners. PPIAF assistance can facilitate private sector involvement in the financing, ownership, operation, Other important contributions were made to the Cities rehabilitation, maintenance or management of ser- Alliance and the Public-Private Infrastructure Advisory vices including electricity and gas transmission and Facility (PPIAF). distribution, water and sewerage, solid waste, telecom- munications, railways, ports, airports and roads. Japan The Cities Alliance is a global coalition of cities and their contributed $2 million to PPIAF in FY06, continuing development partners (including the Government of the support it has provided consistently to the program Japan) who are committed to scaling up successful since 1999. Improving quality of infrastructure is undertaken through technical assistance grants of the PPIAF. Photo by Thomas Sennett. CHAPTER 5 MONITORING AND EVALUATION OF PHRD TA ACTIVITIES 5.1 Monitoring the Progress and Occasional reports on both financial and physical aspects of the PHRD Staff and ETC grants program are pre- Impact of PHRD Activities pared by Trust Fund Operations (TFO) and provided to the Government of Japan. A number of financial and C FP VP emphasizes results-focused reporting physical progress reports are produced for the Japan CTF on trust fund activities. Reporting on PHRD program, including Donor-Specific reports, which are grants covers financial aspects, implementation produced semi-annually. All these reports are available to status, and completion. The impact of the PHRD Pro- the Government of Japan through the Donor Portal, an gram is assessed through overall program evaluations. on-line reporting system which gives all donors access to Impact not only takes time to measure but can also their Trust Fund (TF) related information. potentially raise methodological issues in attributing changes to specific earlier activities. The main instrument for periodic internal reporting on PHRD TA grants is the Grant Report Monitoring The annual reports of the overall PHRD Program (GRM) system. A comprehensive report is prepared in and the JJ/WBGSP cover both financial aspects and the GRM system after completion of grant implementa- progress in carrying out grant activities and achieving tion. For grants exceeding US$1 million Implementation objectives. The annual reports are public documents. Completion Memorandum (ICM) reports are prepared. The PHRD Annual Report is available in both English GRM and ICM reports are internal to the World Bank, and Japanese. but are used as a basis for reporting to donors. Audited financial statements (produced six months The design of the GRM system, introduced in January after the end of the FY) are prepared by external audi- 2005, is closely aligned with the Implementation Status tors and shared with the Government of Japan. The Report (ISR) which is the monitoring tool for all cur- Trust Fund Accounting Department prepares a detailed rent loans and credits financed by the Bank, and with quarterly financial report for the PHRD program which the Implementation Completion Report (ICR) for covers unaudited statements of the current year and reporting on Bank-financed operations which have cumulative transactions under all main PHRD fund closed. The GRM allows reporting on both qualitative categories. These quarterly reports are also shared with and quantitative aspects of grant implementation. the Government of Japan. Reporting on PHRD grant implementation in the In addition to the JJ/WBGSP Annual Report, WBI GRM has improved significantly in FY06 with nearly carries out tracer studies every two years to analyze the 100% reporting compared to around 60% in FY05. impact of the program on alumni who completed stud- ies five to six years before. These reports are public doc- Evaluation of the overall PHRD Program is carried out uments. The last tracer study was done in FY05 and the periodically. The last report was produced in 2001 and next one is scheduled for FY07. is a public document. Another independent evaluation 27 28 ANNUAL REPORT 2006 study has been commissioned in October 2006 to re- quantitative analysis. The evaluation study is expected view the impact of the PHRD TA programs from FY00 to be completed in June 2007. to FY06. The evaluation study will focus on the follow- ing areas: (a) effectiveness and results; (b) relevance; (c) program management; and (d) recommendations 5.2 Review of the Grant Completion for further improvement. The methodology of this eval- Reports uation includes desk reviews of key documents, inter- views with a broad range of stakeholders (task teams, A detailed review of the completion reports of 117 staff associated with the management of the program, grants which closed during FY06 has been carried out.12 Sector Managers and Country Directors of the World These grants included Project Preparation, Project Im- Bank, officials in the grant recipient countries, officials plementation, and Climate Change grants (Table 5). of the Japan Executive Director’s office in Washington, Ministries of Finance and Foreign Affairs of the Government of Japan, Japanese Embassy officials), field 12 Closed PHRD TA grants include those with closing dates visits to six countries representing the six regions, and between July 01, 2005 and June 30, 2006. Table 5 PHRD TA Grants Closed in FY06 by Type and Region (in Number and Value in US$) Project Preparation Project Implementation Climate Change TOTAL Value in Value in Value in Value in Region Number US$ million Number US$ million Number US$ million Number US$ million AFR 17 10.89 1 0.66 — — 18 11.54 EAP 18 11.63 1 0.56 1 0.27 20 12.46 ECA 30 17.37 1 0.21 1 0.89 32 18.47 LCR 32 19.26 1 0.26 2 1.5 35 21.02 MNA 7 2.88 — — — — 7 2.88 SAR 5 3.59 — — — — 5 3.59 Bank-wide 109 65.62 4 1.69 4 2.66 117 69.97 Total Latin America and Caribbean region had the largest Europe and Central Asia region. The Africa and East share (US$21 million) of the total amount of PHRD Asia and Pacific regions had similar shares of around TA grants which closed in FY06, followed by the US$12 million each (see Figure 14). Figure 14 Total Value of Closed PHRD TA Grants by Region (in US$ million and % share of total US$70.0 million) SAR $3.6 m (5%) MNA $2.9 m (4%) LCR $21.3 m (30%) AFR $11.5 m (16%) EAP $12.2 m ECA $18.5 m (17%) (26%) JAPAN POLICY AND HUMAN RESOURCES DEVELOPMENT FUND 29 The ten countries which received the highest amount of topped the list of the ten countries followed by two the closed grants are shown in Figure 15. Of these coun- countries in East Asia and Pacific Region (EAP). tries, three are from Asia, and four from LCR. Brazil Figure 15 Ten Countries with Highest Approved Amount of PHRD TA Grants (in million US$) Moldova 1.84 Turkey 1.96 Paraguay 2.07 Ukraine 2.20 Mexico 2.59 Indonesia 2.61 Colombia 2.77 Vietnam 3.23 Philippines 3.31 Brazil 3.57 0 1 2 3 4 US$ million About a quarter of the closed grants were for the Health About 90% of the PP grants reported satisfactory im- and other Social Services sector followed by the Public plementation and achieved the stated development Administration and Law sector. The latter sector in- objectives. There were six grants which were reported cludes activities focused on central government admin- to have exceptional outcomes with regard to assisting istration, sub-national government administration, Recipients in integrating social and environmental general public administration, and law and justice. Of issues in technical aspects of project design, adapting the US$15.0 million closed grants for the Public Ad- international best practices to country contexts, and ministration and Law sector, about US$ 6.72 million building ownership of the design and approach of the was approved to assist with the preparation of 11 oper- associated operation. ations to provide budget support. Of the 109 closed PP grants, 77% of the associated Over 90% of the grants were for Project Preparation operations had been approved by the World Bank’s (PP). These grants have been used to prepare operations Board of Executive Directors by end FY06. Another for all sectors. Grant Recipients have used technical 16% is expected to be approved in FY07 and later assistance for the following: (a) carry out preparatory years. Only 7% (8) of the associated operations were studies (e.g. social and environmental assessments); dropped from the lending program. Several reasons (b) prepare procurement plans, resettlement action are given for dropping projects from the lending plans, tribal or ethnic development plans to comply program: with the World Bank’s requirements on procurement, financial management, safeguard and social aspects to Ⅲ Change in government policy; be eligible for loans and credits; (c) carry out stake- holder consultations and information dissemination; Ⅲ Change in Bank’s policy for lending in a particular (d) commission detailed engineering feasibility studies; sector; (e) carry out economic and financial analysis; (f ) devel- Ⅲ Changes in the lending instrument (e.g. from a sec- opment monitoring indicators and establish Monitor- tor adjustment operation to an sector investment) ing and Evaluation (M&E) systems; (g) develop legal and regulatory frameworks; and (h) suggest improve- Ⅲ Grant Recipient unwilling to continue with reform ments in public policies. program. 30 ANNUAL REPORT 2006 Figure 16 Status of Approval of PHRD TA Project Preparation Grant Associated Operations (in number and % of region) 30 100 90 90 81 25 76 74 80 70 20 60 60 % of Region Number 15 50 43 40 10 13 13 27 25 30 20 5 10 3 3 0 0 AFR EAP ECA LCR MNA SAR Regions Number approved % Approved Figure 16 shows that in all regions except MNA and of carbon fixation and storage negotiated a US$20,000 SAR over 70% of all PP grants were associated with pro- carbon sale contract with an Italian company which jects that had been approved by the Board by end FY06. corresponded to about 9 million hectares of natural The sample sizes in MNA and SAR were small and may regeneration. not be meaningful. The PI grants were used to support implementa- The four CCIG grants were used to finance activities in tion of projects in the agriculture, health, public ad- the agriculture, water and flood control, and energy ministration and transportation sectors. The grants sectors. These grants focused on developing a better focused on building capacity of the project implemen- understanding of carbon fixation and storage in differ- tation ministries to improve public transport services; ent land use systems in indigenous territories; strength- develop databases, improve information flow and ening organizations including municipalities; and dissemination, develop participatory evaluation guide- piloting initiatives to define the costs and benefits of lines, train community members, support municipali- switching from fossil fuels to wood; harvesting natural ties to provide cost-effective and relevant services to gas (which otherwise escapes to the atmosphere) to se- the community, and help develop a better understand- cure carbon credits and to the extent feasible, utilizing ing of the health sector financing mechanisms and the gas for power generation to benefit local communi- status of the health infrastructure. The grant imple- ties; and reducing vulnerability to climate change, cli- mentation performance overall was satisfactory and the mate variability, and sea-level rise. All the grants were stated development objectives were achieved. As a re- implemented satisfactorily and achieved the stated de- sult of the grant supported activities, one recipient velopment objectives. Two of the grants are reported to Ministry is now able to prepare its own national ac- have had excellent outcomes. The results of the pilot on counts, a sector wide plan to harmonize financing the switching fuels business model generated consider- by the donors and the government and a rational in- able interest among the private sector to scale-up and vestment budget. Another grant helped the recipient also enhanced the capacity for management of forest re- entity to redefine its roles, reduce staff costs, and sources. One of the indigenous organizations which streamline its activities in response to fiscal and politi- participated in the pilot initiative on the quantification cal constraints. JAPAN POLICY AND HUMAN RESOURCES DEVELOPMENT FUND 31 CCIG grant helped to generate interest in management of forest resources. Photo by Curt Canemark. While each of the three types of grants has a stated ethnicity, and vulnerability. This understanding objective, the review noted several common positive developed through interaction with the team on the indirect outcomes. These are: analytical studies, training and information dissemi- nation in the stakeholder workshops; Ⅲ Capacity building: This happened in three ways: (a) knowledge transfer from consultants who have Ⅲ Leveraging funds: In many cases, the quality improve- been able to bring the best practices from around the ment in the project design as a result of good analyt- world and effectively worked with the counterpart ical work, helped to mobilize other donor funds as team to adapt to the country situation; (b) in cases well as increased government contribution to the sec- where the technical assistance team worked with a tor budget. The findings and conclusions of many of multi-sector team, inter-ministerial coordination im- the analyses supported by the PHRD grants helped proved and understanding of the sector issues in- the Recipient government and also the donors to un- creased; (c) grant implementation helped the staff of derstand the financial needs of the sector. In several the government agencies to understand the procure- cases, private sector participation is reported to have ment and financial management procedures which increased. later helped to speed up implementation of the asso- ciated operation; Disbursement from the approved grant amount of US$70 million averaged 70 percent Bank-wide (see Fig- Ⅲ Increased Participation: Grant funds helped to orga- ure 17). The Latin America and Caribbean, and Europe nize extensive consultation with key stakeholders and Central Asia regions disbursed about 80 percent of resulting in better project design; the total amount of the FY06 closed grants. This is Ⅲ Better understanding and appreciation of “soft” develop- mainly because of satisfactory grant implementation ment issues: It has been reported that grant supported performance. About one third of the closed grants in technical assistance helped staff of the technical min- East Asia and Pacific region disbursed 100 percent of istries to appreciate issues of gender, social inclusion, the total value of the grants (20), while Latin America 32 ANNUAL REPORT 2006 Figure 17 Disbursement Performance of Closed PHRD TA Grants by Region (% of Region’s total approved amount) 90 $9.6 m (79%) $15.0 m (81%) $16.5 m (78%) 80 70 $1.9 m (68%) $7.0 m (61%) 60 Percentage 50 40 30 $0.7 m (21%) 20 10 0 AFR EAP ECA LCR MNA SAR Regions and Caribbean region fully disbursed about one-fifth of closed grants were for IDA countries (see Figure 18). their total (30). Of the 117 closed grants, Bank-wide, The number of grant associated operations using IDA 15 percent of the grants disbursed fully. funds is the smallest in LCR and MNA. In EAP, one of the focus regions for PHRD TA grants, several coun- At least 35% of annual submissions of PHRD TA tries do not or are not eligible for IDA funds. grants are intended to be for countries in East, South and Central Asia.13 This proportion has always been exceeded in the breakdown of submitted and approved grants. About 28% of the closed grants in FY06 were received by Asian countries. About two-thirds of the 13 There is no legal definition of Asian countries. The PHRD TA grant amount for Asian countries were received by guidelines refer to all countries in the East Asia and Pacific region, countries in the EAP region. South Asia region and central Asian countries in the ECA region as Asian countries. Central Asian countries included in this review in- clude: Armenia, Azerbaijan, Kazakhstan, Kyrgyz Republic, Tajikistan, At least 35% of annual PHRD grant submissions are in- Turkmenistan and Uzbekistan. tended to be for IDA14 countries. Over half of the FY06 14 IDA is the window for soft lending by World Bank. Figure 18 Share of IDA Financing in the Total Value of Closed PHRD TA Grant Received by Region 120 100 100 83 80 Percentage 60 49 48 40 22 20 0 0 AFR EAP ECA LCR MNA SAR Regions JAPAN POLICY AND HUMAN RESOURCES DEVELOPMENT FUND 33 Table 6 Sources of Financing of PHRD TA Grant Associated Operations IDA IBRD GEF SPF Number Amount in Number Amount in Number Amount in Number Amount in Region of Grants US$ million of Grants US$ million of Grants US$ million of Grants US$ million AFR 18 11.5 0 0 — — — — EAP 11 60.6 16 5.27 2 0.92 — — ECA 16 8.8 21 8.78 1 0.89 — — LCR 9 4.7 25 15.03 2 1.51 1 0.27 MNA 0 0 6 2.61 — — — — SAR 4 3 1 0.6 — — — — Total 58 34.13 53 32.29 5 3.32 1 0.27 as % of — 48.8% — 46.1% — 4.7% — 0.4% total grant amount The share of closed PHRD TA grants received by IDA IDA. South Asia received the next highest share (83%). countries Bank-wide was about half of the total amount Only 22 percent of the approved grants were for IDA of the grants (see Table 6). Since Africa region only has countries in Latin America and Caribbean region. IDA borrowers among eligible countries, 100 percent Neither of the two IDA countries in MNA received of the grants were for operations related to lending from any grants. CHAPTER 6 ADDITIONAL SOURCES OF INFORMATION ON PHRD AND PROGRAMS SUPPORTED BY THE PHRD FUND 6.1 Information on PHRD the JJ/WBGSP Annual Reports and to their Tracer Studies. T he major reference sources for more informa- tion on PHRD and the programs it supports are The Tokyo Development Learning Center, supported websites publicly available in English, and often by the PHRD Partnership Program has its own website: also in Japanese and other languages. www.jointokyo.org. This website is maintained in both Japanese and English languages. The main PHRD website is www.worldbank.org/ rmc/phrd/phrd.htm 6.2 Programs Supported This website includes details of the PHRD Technical through PHRD Assistance program, the Japan: World Bank Partnership Program and the Japan Staff and ETC Grants Program. The largest program supported through the PHRD The website also provides access to PHRD Annual Fund is the Heavily Indebted Poor Countries (HIPC) Reports in both English and Japanese. initiative. Much more information on this will be found at the following site: The website of the Tokyo office of the World Bank http://www.worldbank.org/hipc/about/hipcbr/ also includes information on PHRD, in English at: hipcbr.htm www.worldbank.org/japan/about and in Japanese at: www.worldbank.org/japan/about-j Other key programs supported through the PHRD Fund include in FY06: The World Bank Institute website is www.worldbank. The Consultants Trust Fund: http://wbln0023/ org/wbi. The Joint Japan/World Bank Scholarship (JJ/ rmc/rmc.nsf/DOCs/CTF+Home?OpenDocument WBGSP) program website is at www.worldbank.org/ CEPF: www.cepf.net wbi/scholarships. This website also provides access to PPIAF: www.ppiaf.org/ 35 ANNEX 1 LIST OF APPROVED FY06 TECHNICAL ASSISTANCE GRANTS AFRICA REGION Amount Country Grant Name (US$) Grant Type West Africa West Africa Agricultural Productivity Program 750,000 Project Preparation Burundi Community Support for Social Recovery Project 265,000 Project Preparation Congo Agriculture and Rural Roads Rehabilitation Project 500,000 Project Preparation Democratic Urban Water Supply 990,000 Project Preparation Republic of Congo Ethiopia Humbo and Soddo Community-Managed Natural 189,850 Climate Change Regeneration Project Ethiopia Tana-Beles Water Resources Development Project 1,000,000 Project Preparation Kenya Capacity Building and BioCarbon Fund Pilot Implementation 462,250 Climate Change Kenya Institutional Reform and Capacity Building Project 3,150,000 Cofinancing Madagascar Poverty Reduction Support Credit 4 830,000 Project Preparation Malawi National Water Development Program II 1,000,000 Project Preparation Mozambique Capacity Building to Support the Development of 494,150 Climate Change Carbon Finance Transactions Niger Niger Acacia Senegal Plantation Initiative (NASPI) 696,600 Climate Change Nigeria Fadama III 828,000 Project Preparation Nigeria Federal Roads Development Project 3,000,000 Cofinancing Senegal Quality Education for All, Phase 2 4,000,000 Cofinancing Sierra Leone Rural and Private Sector Development 270,000 Project Preparation Southern Africa Southern Africa Development Community Capacity Building 975,000 Project Preparation Development and Institutional Development Community Southern Africa Southern Africa Multi-country Agricultural Productivity 1,000,000 Project Preparation Development Program (SADC-MAPP) Community (SADC) The Gambia Third Education, Phase 2 3,000,000 Cofinancing Africa Region total 23,400,850 38 ANNUAL REPORT 2006 EAST ASIA AND PACIFIC REGION Amount Country Grant Name (US$) Grant Type Cambodia Provincial and Rural Infrastructure Project 450,300 Project Implementation Indonesia Marginal Fishing Communities Development Project 702,000 Project Preparation Indonesia Urban Sector Development Reform Project (USDRP)-2 1,000,000 Project Preparation Indonesia Bali Biomass Power: Demonstrating Mitigation 645,828 Climate Change of Climate Change Lao People’s Poverty Reduction Support Operation 3 600,000 Project Preparation Democratic Republic Mongolia Sustainable Livelihoods Project II (SLPII) 750,306 Project Preparation Mongolia Infrastructure Services Delivery Project 406,000 Project Preparation Philippines Private Sector Development Support for Rural Finance 530,000 Project Preparation Philippines Private Sector Development Support/Guarantee 1,000,000 Project Preparation for Power Reform Philippines Environment and Natural Resources Management 265,000 Project Preparation Program (ENRMP) Philippines National Sector Support for Social Welfare and 500,000 Project Preparation Development Reform Philippines Public-Private Participation in Transport Infrastructure 1,000,000 Project Preparation Philippines National Roads Improvement and Management 677,000 Project Preparation Program—Phase 2 Philippines KALAHI—Comprehensive and Integrated Delivery 199,180 Project Implementation of Social Services (CIDSS) Project Solomon Islands Rural Development Project 405,000 Project Preparation Vietnam Urban Water Supply Development II 1,000,000 Project Preparation Vietnam Second Higher Education (HEP-2) 4,800,000 Cofinancing Vietnam Mekong Health Support Project 5,000,000 Cofinancing Vietnam Tax Administration Modernization Project (TAMP) 999,000 Project Preparation East Asia and Pacific Region total 20,929,614 ANNEX 1 39 EUROPE AND CENTRAL ASIA REGION Amount Country Grant Name (US$) Grant Type Albania Health Sector Modernization Project 1,610,000 Cofinancing Albania Land Management and Urban Development Project 1,537,000 Cofinancing Albania DPL II 895,000 Project Preparation Azerbaijan Agricultural Development and Credit Project-II 1,611,000 Cofinancing Azerbaijan AGRICULTURAL DEVELOPMENT & 400,000 Project Preparation CREDIT PROJECT 2ND PHASE—ADCP 2 (APL 2) Azerbaijan Health Sector Reform Project 580,000 Project Preparation Azerbaijan Second Poverty Reduction Support Credit (PRSC2) 984,500 Project Preparation Azerbaijan Judicial Modernization Project 3,000,000 Cofinancing Azerbaijan Corporate and Public Sector Accountability Project 895,000 Project Preparation Bulgaria Municipal Infrastructure Development Project 500,000 Project Preparation Croatia Croatia Inland Waters Project 500,000 Project Preparation Georgia East-West Highway Improvement Project—Phase 2 440,000 Project Preparation Kazakhstan Syr Darya Delta Control and Northern Aral Sea 800,000 Project Preparation Preservation Project—Phase-II Kyrgyz Republic Water Management Improvement Project 4,400,000 Cofinancing Kyrgyz Republic Payments and Banking System Modernization 330,000 Project Implementation Project (PBSM P074881—KG3871) Moldova Social Protection Management Project 571,500 Project Implementation Serbia and Montenegro Second Programmatic Private and Financial 800,000 Project Preparation Development Policy Loan Serbia and Montenegro Bor Regional Development Project 875,000 Project Preparation Turkey Second Programmatic Public Sector Development 900,000 Project Preparation Policy Loan (PPDPL2) Ukraine Industrial Rehabilitation and Kyoto Mechanisms 889,900 Climate Change Ukraine Roads and Safety Improvement Project 700,000 Project Preparation Ukraine Second Development Policy Loan 700,000 Project Preparation Ukraine Judicial Reform Support Project 500,000 Project Preparation Europe and Central Asia Region Total 24,418,900 40 ANNUAL REPORT 2006 LATIN AMERICA AND THE CARIBBEAN REGION Amount Country Grant Name (US$) Grant Type Brazil Bahia Integrated Water Resource Management 978,000 Project Preparation Project (PGRH II) Brazil Sustainable Transport and Climate Change for Brazil 225,600 Climate Change Chile Chile—Transport and Air Quality for Santiago 270,000 Climate Change Colombia San Nicolas Carbon Sink Project 498,000 Climate Change Colombia Second Programmatic Development Policy Loan for 558,000 Project Preparation Sustainable Development Colombia Monitoring and Evaluation Project 600,000 Project Preparation Dominican Republic Rural Community Development 500,000 Project Preparation Ecuador Second Poverty Reduction and Local Rural 480,000 Project Preparation Development Project (PROLOCAL II) Ecuador Natural Resources Management of Galapagos and 820,000 Project Preparation the Ecuadorian Coast El Salvador El Salvador—Development Policy Loan III 910,000 Project Preparation El Salvador Second Public Sector Modernization Project 835,000 Project Preparation Honduras Adaptation to Climate Change (ACC) 300,000 Climate Change Honduras Strengthening of Aid Coordination Capacities 471,000 Aid Coordination Jamaica Jamaica Early Childhood Development 559,000 Project Preparation Nicaragua III Phase of the Health Services Extension and 827,600 Project Preparation Modernization Program Panama Water Supply and Sanitation for Low-Income 500,000 Project Preparation Communities Panama Social Protection 644,600 Project Preparation Paraguay Land Access and Administration for Rural 425,000 Project Preparation Poverty Reduction Peru Peru Decentralized Rural Infrastructure 760,000 Project Preparation Latin America and the Caribbean Region Total 11,161,800 ANNEX 1 41 MIDDLE EAST AND NORTH AFRICA REGION Amount Country Grant Name (US$) Grant Type Egypt, Arab Republic of Upper Egypt Integrated Governorates Development Project 730,000 Project Preparation Egypt, Arab Republic of Gas Infrastructure Project 500,000 Project Preparation Iraq Second Emergency Water Supply and Sanitation Project 800,000 Project Preparation Iraq Emergency Electricity Reconstruction Project 495,000 Project Preparation Jordan Social Protection Enhancement Project 495,000 Project Preparation Jordan Employer-Driven Skills Development 350,000 Project Preparation Jordan Cultural Heritage, Tourism, and Urban 700,000 Project Preparation Development (CHTUD) West Bank and Gaza Palestinian NGO III 345,000 Project Preparation Middle East and North Africa Region Total 4,415,000 SOUTH ASIA REGION Amount Country Grant Name (US$) Grant Type Bangladesh Social Investment Program II (Rural Livelihoods) 405,000 Project Preparation India Bihar Rural Livelihood Development Project 535,000 Project Preparation India Gas Recovery and Reuse from Closure of Three Delhi 489,000 Climate Change Landfills (Carbon Finance) India Technical Assistance for Public Private 930,490 Project Preparation Partnerships (PPP) in Infrastructure. Pakistan Pakistan: Sustainable Management of Mineral Resources 750,000 Project Preparation Pakistan Pakistan: Punjab Large Cities DPL 750,000 Project Preparation Pakistan Capacity Building for Development and Implementation 570,000 Climate Change of Carbon Finance Projects Sri Lanka Gemi Diriya II (Estates) 385,000 Project Preparation Sri Lanka National Water Management Improvement Project (NAWAM) 550,000 Project Preparation South Asia Total 5,364,490 42 ANNUAL REPORT 2006 WORLD Amount Country Grant Name (US$) Grant Type World 06 Singapore Annual Meetings Program of 990,000 Special Programs Seminars—Collaborative Research/Outreach World Global Development Awards and Medals 300,000 Special Programs World ABCDE 2006 791,618 Special Programs World Japan-WB Policy Dialogue Enhancement Support Fund—Phase III 280,373 Special Programs World Japan-WB Public Outreach Support Fund—Phase II 573,000 Special Programs World Evaluation of PHRD Technical Assistance program 650,000 Special Programs World JSDF Evaluation 497,750 Special Programs World total 4,082,741 AVIAN FLU COFINANCING GRANTS Amount Country Grant Name (US$) Grant Type Cambodia Avian and Human Influenza Control and Preparedness Emergency Project 3,000,000 Cofinancing Indonesia Avian and Human Influenza Control and Preparedness Project 5,000,000 Cofinancing Lao PDR Avian and Human Influenza Control and Preparedness Project 2,000,000 Cofinancing Albania Avian Influenza Control and Human Pandemic Preparedness 800,000 Cofinancing and Response Project Armenia Avian Influenza Preparedness Project (AIP) 803,900 Cofinancing Georgia Avian Influenza Control and Human Pandemic 1,400,000 Cofinancing Kyrgyz Republic Avian Influenza Control and Human Pandemic Preparedness 1,000,000 Cofinancing and Response (AIPP) Moldova Avian Influenza Control & Human Pandemic Preparedness 500,000 Cofinancing & Response Project Total of Avian Flu 14,503,900 ANNEX 2 JAPAN PHRD TECHNICAL ASSISTANCE GRANTS PROGRAM FY06 ANNUAL POLICY GUIDELINES AND PROGRAM ALLOCATIONS 1. Objective. To provide technical assistance In the case of all project preparation proposals, grants to recipient countries, or their agencies, the follow-on Project must be listed in the to help prepare or implement Bank-financed IBRD/IDA Lending Program Summary in the operations.15 Grants approved under the pro- CAS, or the CAS Update, or equivalent docu- gram are subject to the criteria set forth in these ment, such as the Transitional Support Strat- Guidelines. egy in the case of post-conflict countries, which is endorsed by the Bank’s Board of 2. Priority Areas and Activities. Technical Assis- Directors.17 tance grants would maintain a poverty focus. The following should be aimed at: at least 35% (ii) Project Implementation: For IDA/IDA- of the annual submissions, by amount, are for blend and lower-middle income countries, IDA and blend countries and at least 35% are Implementation proposals in support of ongoing for Asia, including East, South and Central Bank-funded projects, approximately one year Asia. Grant funding proposals should be sub- under implementation, to address weaknesses in mitted under the following programs: the capacity of implementing agencies. Proposals must clearly identify the implementation (i) Project Preparation: For lower and lower- capacity problems that will be rectified by the middle income countries16 all sectors are technical assistance grant. eligible. For upper-middle income countries, proposals would be eligible only to support one (iii) Climate Change Initiatives: To: (a) sup- or more of the following priority areas: (a) Bank port the inclusion of climate-change concerns in operations in the following sectors: education, the country’s development planning process health, nutrition, water supply and sanitation, and the acquisition of knowledge in the assess- social protection, social development and envi- ment of the impact of local greenhouse gases ronment; (b) participatory community devel- (GHG) emissions in the recipient country; opment activities, and those that involve NGOs and civil society; (c) gender; and (d) projects targeted at groups or areas that are clearly 17 Conditional approval may be granted if the following require- disadvantaged in terms of poverty indicators ments are satisfied: (i) the follow-on project, which will be prepared which are in line with the MDGs. with the PHRD Project Preparation Grant, will be listed in the next CAS or CAS update (or equivalent document); and (ii) the next CAS or CAS update (or equivalent document) discussion date at the Board can be found in the Board meeting schedule available with the World Bank Executive Directors. Final approval will be granted by CFP at 15 Bank financed operations are those funded by IBRD loans, IDA the time the CAS or CAS update (or equivalent document), in which credits, and IDA grants. the said project is listed, is discussed by the Board of Directors of the 16 As defined in the World Development Report 2005. World Bank. 44 ANNUAL REPORT 2006 and (b) support initiatives—including pilot $5 million. Only a single grant per operation activities—for the reduction of GHG emissions may be requested. Enhancing Aid Coordination as developing countries increase energy produc- Proposals may normally not exceed US$ 2 mil- tion to improve standards of living and promote lion. Supplemental requests are not eligible industrial growth as they move towards eradica- under PHRD. tion of poverty. Proposals must be linked to 4. Supplementary Information. In addition to Bank-financed operations or activities sup- the one-page Funding Proposal, supplementary ported by the Prototype Carbon Fund, the Bio- information (Background Information) is also Carbon Fund, and the Global Environment required. Up to 10 percent of the grant amount Facility, or other environmental funds managed may be included for studies to be determined, by the World Bank. (Separate operating guide- provided the funds are used for meeting the lines have been agreed for this program). objectives of the grant during implementation. (iv) Project Cofinancing: To co-finance insti- 5. Eligible Expenditures. In the case of project tutional capacity building components of oper- preparation, implementation and Enhanced ations supported by IDA credits and grants. Aid Coordination proposals, eligible expendi- The technical assistance should strengthen tures include: (i) consultant services and; institutional capacity to facilitate the imple- (ii) non-consultant costs, up to 10% of the total mentation of the project’s key policy reforms grant amount, for local training, and minimal and good governance initiatives. The grants equipment and operating costs essential to carry would meet the funding needs of IDA and out the technical assistance. Workshops, local blend countries where borrowing for such consultations, and training may be included assistance may be unaffordable given budgetary if the requests clearly demonstrate these activi- and borrowing limitations. (Separate operating ties will enhance the quality of the technical guidelines have been agreed for this program.) assistance. Civil works are not eligible. All ex- penditures would be eligible for 100% financ- (v) Enhancing Aid Coordination: To support ing under PHRD. For Project Cofinancing the lower and lower-middle income countries, and Climate Change Initiatives, see separate which have relatively firm management capac- operating guidelines. ity, but need help in enhancing aid coordina- tion capacity for effective and efficient use of 6. Ineligible Expenditures. Expenditures on the donor funds. The capacity enhancement strat- following activities are ineligible: study tours, egy must be agreed between the country and the foreign training, implementation of pilot pro- donors, including the Bank and the Govern- grams,18 purchase of vehicles, salaries for civil ment of Japan (GoJ). This grant is expected to servants in recipient countries, Extended Term be provided selectively for a few countries in a Consultants, and Bank staff (open-ended, term, year, of which the majority will be to countries and seconded staff) salaries or travel expenses. in East, and South Asia. 7. Schedule. PHRD grant proposals would be 3. Funding Proposal and Amount. Grants are submitted to GoJ up to three times in a year. approved by GoJ on the basis of a one-page GoJ would confirm its decisions on proposals Funding Proposal. The Proposal will include within four weeks from submission where GoJ the Project Development Objectives, the Grant is satisfied with the contents of the application. Objectives, and Expenditure Categories. CFP In case GoJ seeks clarifications, the final deci- will invite proposals from the Bank’s Regional sion on the funding proposal may take longer. Vice Presidential Units informing them of the total amount available and the notional alloca- 8. Grant Execution Arrangements. Project Im- tions for each Region. Project Preparation, plementation, Climate Change Initiatives, and Project Implementation and Climate Change Cofinancing grants must be recipient-executed. Proposals may normally not exceed US$ 1 mil- Project Preparation Grants would normally be lion. The maximum amount for a Project Cofinancing Proposal would be limited to 18 Pilots may be funded under Climate Change Initiatives Grants. ANNEX 2 45 executed by the recipient’s project implement- the Grant Agreement are required. All amend- ing agency. However, the Bank may consider ments to the Grant Agreement must be signed waiving the requirement for recipient execution by the Country Director. For changes in the in accordance with Bank policy (see OP 14.40) Development Objectives of the Bank-funded in the following cases: emergency operations, Project, a request must be submitted to CFP HIV/AIDS projects in LICUS countries, and which will determine if approval is required post conflict countries. Grant closing date for from GoJ. If the request is submitted to GoJ, it project preparation grants would be the same as would provide its decision within four weeks the expected effectiveness date of the ensuing from the receipt of the request from CFP. Bank Loan or IDA Credit, or six months from the Board Approval Date, whichever comes 11. Grant Cancellation Policy. The balance of first. In any case, the total term of the grant grants are subject to cancellation under the should not exceed four years after signature of the following circumstances: (i) the Project has grant agreement. Any exceptions would need to been dropped (signed contracts may be paid be fully justified and would require CFP’s clear- with CFP’s approval); (ii) the Project is pre- ance. The Bank, through the designated Task sented to the Board or Approved; (iii) the grant Team Leader of the project, would carry out its agreement has not been signed 6 months after fiduciary responsibilities for grant supervision, approval of the grant; (iv) no implementation with due attention to economy and efficiency, progress including zero disbursements for six and generally in accordance with the standards months after signature of the grant agreement, applicable to Bank Loans or IDA Credits. or (v) there is lack of progress as determined by CFP. CFP may clear exceptions on the basis of 9. Progress Reporting. For the purposes of moni- a satisfactory explanation. toring the development outcomes, the grant agreement—based on the one-page Funding 12. Japanese Visibility and Engagement of Local Proposal—will be the binding document. The Japan Officials. It is highly recommended that Task Team Leader will be responsible for the task team inform the Japanese embassy ac- preparing annual Grant Status Reports, rating credited to the recipient country about a PHRD the status of grant implementation, and docu- application under preparation. Prior informa- menting deliverables and outputs. For grants tion sharing by task teams will help expedite the over US$1 million, an Implementation Com- decision making process. Staff in operational pletion Memorandum (ICM) will be prepared units should also encourage grant signing at completion documenting actual cumulative ceremonies in the field, with the inclusion of inputs, outputs and outcomes through the Japanese embassy officials, inviting local and grant implementation period, and the results international press to these ceremonies. Task will be shared with the donor. For grants under teams should aim to inform the Japanese em- US$1 million, the final Grant Status Report bassy as well as CFP—which will alert the will include additional information regarding Japanese authorities in Tokyo—at least 10 days grant activity outcomes. in advance of the signing ceremony. Decisions on any future PHRD grant proposals for a 10. Reallocations of Funds and Changes in Scope. country would take into consideration the Reallocations of grant expenditure categories Bank and recipient’s efforts to comply with the and activities, including dropping or adding new above. In addition, CFP may promote visibility eligible categories or activities (see paragraphs 5 of PHRD by: (i) informing Country Directors and 6 above), may be approved by the Sector or of the importance of signing ceremonies to Country Director, as appropriate. Advice may Japanese officials and the public to ensure be sought from Legal and CFP. For Project recognition and support for PHRD funding; Preparation and Implementation grants, under and (ii) continuing widespread distribution of no circumstances will the total amount for the PHRD Annual Report, inclusion of PHRD non-consultant expenditure categories exceed information in relevant Bank documents, and 10 percent of the grant amount. Legal Depart- occasional information sessions for Japanese ment should be consulted if any amendments to organizations. 46 ANNUAL REPORT 2006 13. Maintenance of Documentation. Operational and other outputs prepared by consultants, departments will keep copies of key documen- in accordance with the Bank’s document tation related to PHRD grants, including retention policy. Task teams should also Terms of Reference and contracts for consul- send the original grant agreement to the Legal tants subject to the Bank’s prior review, reports department. FY06 PHRD TECHNICAL ASSISTANCE AND COFINANCING GRANT PROGRAM ALLOCATION The FY06 allocation, to be approved through three rounds during the fiscal year, is as follows: Table 1 Table 2 TENTATIVE SCHEDULE FOR FY06 PHRD TECHNICAL ASSISTANCE AND COFINANCING Amount PROGRAM Allocations by Area (US $ million) Date of Submission Project Preparation 50 Round Announcement: to Japan: Project Implementation 5 December 2005 February 2006 Climate Change Initiatives 5 February 2006 April 2006 Cofinancing 35 Enhancing Aid Coordination 5 Total Amount 100 THE FACES OF THE PHRD Partners in Development Signing ceremony for the PHRD AHIF Avian Flu Project. Photo by country team member. Signing ceremony for the PHRD AHIF Avian Flu Project. Photo by country team member.