PROJECT INFORMATION DOCUMENT (PID) IDENTIFICATION/CONCEPT STAGE Report No.: PIDC52499 Public Disclosure Copy Project Name MEFMI Grant Agreement (II) - DMF II Region OTHER Country World Sector(s) Public administration- Financial Sector (100%) Theme(s) Debt management and fiscal sustainability (100%) Lending Instrument Lending Instrument Project ID P158441 Borrower Name Macroeconomic and Financial Management Institute for Eastern and Southern Africa Implementing Agency Macroeconomic and Financial Management Institute for Eastern and Southern Africa Environment Category C - Not Required Date PID Prepared 14-Jan-2016 Estimated Date of Approval 29-Apr-2016 Initiation Note Review The review did authorize the preparation to continue Decision I. Introduction and Context Country Context Public Disclosure Copy This project will benefit, through the implementing partners, all IDA-eligible countries and low income countries (LICs) , including those that graduate from being IDA-eligible but were part of the initial program (Debt Management Facility 1, November 2008 to June 2014). Sectoral and Institutional Context It links with the World Bank’s work program to provide capacity building to support growth and poverty reduction in eligible developing countries by strengthening their capacity to manage debt effectively. Relationship to CAS/CPS/CPF This program is linked with the World Bank’s global initiative on supporting clients in strengthening capacity in debt management. II. Project Development Objective(s) Proposed Development Objective(s) To strengthen capacity of DMF-eligible countries to manage debts effectively, so as to enable governments to finance their operations prudently with appropriate cost-risk mix to contribute to macro-economic stability and ensure sustainable debt levels over the long term. Page 1 of 4 Key Results Client countries demonstrate improved debt management capacities and institutions as evaluated Public Disclosure Copy through the DeMPAs; Quality of government debt management is improved through a regular development of Debt Management strategies (DMS); Client countries continuously monitor government debt sustainability; Client countries, based on pre-conditions and prevailing market infrastructure, take steps towards further developing domestic debt market, if it part of debt management objectives. III. Preliminary Description Concept Description The program builds on the activities and guiding principles DMF Program. This project envisages provision of grants to the MEFMI (Debt Management Programme) to work on the following activities jointly with World Bank teams: a) Application of the Debt Management Performance Assessment (DeMPA) tool at the national and subnational levels. This benchmarks country debt management performance using the Bank’s DeMPA tool. b) Design of Debt Management Reform Plans. This provides detailed and sequenced country- owned capacity building project plans that aim to alleviate the weaknesses identified and analyzed by the DeMPA or through other assessments. These plans detail expected outputs and outcomes, actions, sequencing and milestones and provide an estimate of budget and resources required to implement the respective plans. c) Assistance in developing Medium-Term Debt Management Strategy (MTDS) development. This provides technical assistance (TA) on the joint Bank-IMF MTDS framework for formulating and implementing a debt management strategy for the medium term. Public Disclosure Copy d) Assistance in domestic debt market development. e) Organization of regional training events While carrying out these activities, the recipient may be asked to carry out the following tasks as determined within the scope of the specific mission or trainining program. (a) providing country background information on the debt management situation in Eligible Member Countries before specific missions, including information on fiscal policy, monetary policy and legal framework related to debt management, as well as related technical assistance programs if available; (b) drafting summaries of country strengths and weaknesses with respect to debt management, based on the above-identified background information before particular missions; (c) participating in pre-mission activities, which will entail data aggregation, teaching useful functions and decrying the cost-risk of the existing debt portfolio for MTDS missions and trainings; (d) preparing sections of the write-up of the report during specific missions; (e) providing inputs on appropriate sections for wrap-up presentations during specific missions; (f) incorporating peer review comments in the report and providing additional information after missions; and Page 2 of 4 (g) participating in training events related to the DMF’s work program. Public Disclosure Copy IV. Safeguard Policies that Might Apply Safeguard Policies Triggered by the Project Yes No TBD Environmental Assessment OP/BP 4.01 ✖ Natural Habitats OP/BP 4.04 ✖ Forests OP/BP 4.36 ✖ Pest Management OP 4.09 ✖ Physical Cultural Resources OP/BP 4.11 ✖ Indigenous Peoples OP/BP 4.10 ✖ Involuntary Resettlement OP/BP 4.12 ✖ Safety of Dams OP/BP 4.37 ✖ Projects on International Waterways OP/BP 7.50 ✖ Projects in Disputed Areas OP/BP 7.60 ✖ V. Financing (in USD Million) Total Project Cost: 0.854706 Total Bank Financing: 0 Financing Gap: 0 Financing Source Amount Debt Management Facility for LICs 0.854706 VI. Contact point World Bank Contact: Emre Balibek Title: Senior Debt Specialist Public Disclosure Copy Tel: 473-3401 Email: ebalibek@worldbank.org Borrower/Client/Recipient Name: Macroeconomic and Financial Management Institute for Eastern and Southern Africa Contact: Raphael Otieno Title: Director Debt Management Programme Tel: 26347459888991-4 Email: Raphael.Otieno@mefmi.org Implementing Agencies Name: Macroeconomic and Financial Management Institute for Eastern and Southern Africa Contact: Raphael Otieno Title: Director Debt Management Programme Tel: 26347459888991-4 Email: Raphael.Otieno@mefmi.org Page 3 of 4 VII. For more information contact: The InfoShop The World Bank Public Disclosure Copy 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 458-4500 Fax: (202) 522-1500 Web: http://www.worldbank.org/infoshop Public Disclosure Copy Page 4 of 4