trust fund portfolio update & progress on implementation of new management framework junhui wu...
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Trust Fund Portfolio Update&
Progress on Implementation of New Management Framework
Junhui Wu Director Global Partnership and Trust Fund Operations
Department (CFPTO)Christian Rey
Manager Global Partnership and Trust Fund Policies (CFPTP)
Donor Forum Paris, May 25th, 2009
Agenda
• CFP Organizational Change• Partnerships and Development Grant Facility • Update on Trust Fund Portfolio• Implementation of Trust Fund Management
Framework• Results Agenda• Donors Focal Points
2
Global Partnerships and Trust Funds in
the Bank’s Strategic Context
6 Strategic Themes
MDGs
IBR
D
Part
ners
hip
s &
TFs
IDA
• Trust Funds became major source of financing in addition to IBRD and IDA
• Working in partnerships is essential to meet development challenges
• Trust Fund Management Framework was approved by the Board in October 2007 Bank
Organizational Structure
4
Philippe Le Houérou Vice-President
Philippe Le Houérou Vice-President
Susan McAdams Director
Multilateral Trusteeship & Innovative Financing
Department(CFPMI)
Susan McAdams Director
Multilateral Trusteeship & Innovative Financing
Department(CFPMI)
Priya BasuManager(CFPMI)
Gaiv TataActing DirectorIDA Resource
Mobilization Department (CFPIR)
Gaiv TataActing DirectorIDA Resource
Mobilization Department (CFPIR)
Gaiv Tata Manager
Operations(CFPIR)
Michael KochActing
ManagerFinance (CFPIR)
Rocio CastroNavin Girishankar
Traci PhillipsAdvisers(CFPVP)
Rocio CastroNavin Girishankar
Traci PhillipsAdvisers(CFPVP)
Khang LuuChief Administrative Officer
(CFPVP)
Khang LuuChief Administrative Officer
(CFPVP)
Junhui WuDirector
Global Partnership & Trust Fund Operations Department
(CFPTO)
Junhui WuDirector
Global Partnership & Trust Fund Operations Department
(CFPTO)
David PottenActing
ManagerProgram
Management &
Administration (CFPPM)
Christian Rey
ManagerGlobal
Partnership & Trust Fund
Policy (CFPTP)
Michael Koch(Director)
Financial Management Department (CFPFM)
Angela FurtadoSr.
Communications Officer
(CFPVP)
Angela FurtadoSr.
Communications Officer
(CFPVP)
CFPTO Mandate
• Lead the development and oversight of Bank policies and procedures on Global Partnerships (GP) and Trust Funds (TF);
• Advise Senior Management, the Board, and donors on all aspects of the GP and TF business;
• Analyze GP and TF portfolios to identify good practice, capture results, and monitor aid architecture trends;
• Manage global cross-sectoral programmatic TFs and the Development Grant Facility (DGF).
5
Partnership Portfolio:Development by Fiscal Year
& Breakdown by Sector Board
6
2004 2005 2006 2007 2008 20090
50
100
150
200
250
6078 86 100 110 120
67
7477
7883
94
Stock of Global and Regional Partnership Programs by Fiscal Year
Non-DGF DGF
Fiscal Year
Nu
mb
er
of
Pa
rtn
ers
hip
Pro
gra
ms
Global IT
Energy and Mining
Poverty Reduction
Urban Development
Water
Social Protection
Public Sector Governance
Social Development
Fin. and Prvt. Sect. Dev.
Economic Policy
Agr. and Rural Dev.
Education
Health, Nutr. and Pop.
Environment
0 5 10 15 20 25 30 35
Breakdown of Global and Regional Partnership Programs by Sec-tor Board
Number of Partnerships
Se
cto
r B
oa
rd
Development Grant Facility (DGF): Bank’s mechanism to provide grant support
for global and regional partnerships
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• Established in FY98
• Three principal objectives:- Catalyzing partnerships - Encouraging innovation- Developing networks
• Wide range of grant recipients:
- including research institutions (CGIAR), UN agency secretariats, international NGOs and others.
Trust Fund Overview: Category Breakdown
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Trust Fund Category Funds held in trust Disbursements
US$m % US$m %
IBRD/IDA-Administered TFs 23,477 90% 3,908 97%
Bank Executed 1,058 4% 187 6%
Recipient Executed 4,320 16% 1,578 38%
Financial Intermediary 18,099 71% 2,143 52%
Other Bank Group-Administered TFs 822 2% 132 4%
Others 1,871 7% 0%
TOTAL 26,170 100% 4,040 100%
as of December 31, 2008
Trust Fund Management Framework
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Enhanced Strategic Focus
and Selectivity
Strengthened Risk and Results
Management
Enhanced Operational Efficiency
and Sustainability
Extensive consultations with donors during and after May 2007 Donor Forum Extensive consultations with management and staff Presentations to Audit Committee (July 2007) and Budget Committee (September 2007) Approval by Executive Directors (October 2007)
Plus Policy Principles for accepting and managing TFs at the Bank
Three Pillars
Trust Fund Management Framework
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Overall direction of the reform:“Mainstreaming Trust Funds into
the Bank’s business”
TFMF Pillar 1:Enhancing Strategic Alignment and Focus
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1. Country level: Integration of TFs in CAS documents.
CFP review of CASs documents
2. Region/Sector level: Strategic discussions at VPU level through Trust Fund Management Plans.
TFMPs submitted by 17 VPUs managing TFs – Dec 2008 .
3. Corporate level: Institutional review of strategic issues and risks (e.g. creation of a Senior Management
Review (SMR) of complex TF and partnership proposals and financial engineering initiatives)
Increased transparency (e.g. Inclusion of BETFs in Bank budget documents )
Improved External Relations (e.g. One-stop-shop for Donors and related website)
TFMF Pillar 2: Strengthening Risk & Results Management
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1. Strengthening Standard Controls New TF typology – BETF, RETF, FIF
Improved tools: TFast project and web-based processing tools; new TFs data reporting
OP/BP 14.40, TF Handbook, and TF Financial Compendium issued
TTL accreditation program update
2. Tailoring Specialized Controls to Type-specific Risks: Integrating BETFs into FY09-11 planning/budget exercise
Aligning RETFs with IBRD/IDA lending processes/systems: risk-based fiduciary framework applied to enhance compliance; e.g. RE projects over $5million follow IDA/IBRD processes
3. Strengthening M&E and Sharpened Results Focus IEG country/sector evaluations to include TFs; QAG to report on TFs in ARPP
Independent evaluation of large programmatic TFs and TF-financed Global and Regional Partnership Programs required
TFMF Pillar 3:Enhancing Operational
Efficiency & Sustainability
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1. Revised threshold and TF fee structure effective January 1, 2008
2. Externally-Financed Output (EFO) created. Specified output/activity and timeframe in support of Bank work program; no minimum or
maximum size, no fees; reporting focused on outputs
120 EFOs Bank wide with over 30 contributors processed to date;
3. Streamlining Reviewing internal processes to rationalize roles, enhance efficiency New Global Partnership and Trust Fund Policy Department (CFPTO)
Decentralization of TFP Clearance—being piloted in EAP
4. Simplification of procedures for Small TF Grants (less than US$5 million)
5. Other Enhancements: e.g. Improved customized cost recovery guidance
TFMF: Looking Forward
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Streamlining
ROLES & RESPONSBILITIES
TRUST FUND MANAGEMENT FRAMEWORK
2nd WAVE OF TF MANAGEMENT REFORMS
Deepening
MAINSTREAMING OF PROCESSES
Monitoring
COST RECOVERY
Strengthening the Results Focus
Study on-going: Assessment of the landscape, sampling of selected global and country specific programs
Goal: To develop a framework for TF results based on IDA’s Results Measurement System which also takes into account the specific characteristics of TFs:
- innovation- pilots- global and regional vs. country focus
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Trust Fund Results: An example
Gender Action Plan• US$30 million over 4 years, 149 WB projects + analytical work in
73 countries• 6 Results-Based Initiatives (Liberia, Egypt, Kenya, Cambodia, Lao
PDR, Peru) as pilots to support women’s economic empowerment in key economic sectors such as infrastructure, energy, water and sanitation, agriculture, and finance
• “Power to the Poor” - Rural Electrification Project in Laos in 20 pilot villages (2008): credit scheme to finance grid access
- Increase in connection rates from 78% to 95%- For female headed households from 63% to 90%- Extension to three other provinces, potential to reach 50,000
beneficiaries by end 2010
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TF Donor Center
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• World Bank offers online access to project and TF information through Client Connection
• Donors can access their TF portfolios through “TF Donor Center”
• Donor Focal Points• re-established