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

7

• 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: FIF / Non-FIF Breakdown

8

Trust Fund Overview: Category Breakdown

9

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

TF Disbursements by Region and Sector

10

FY08 TF Disbursement by Sector

Trust Fund Management Framework

11

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

12

Overall direction of the reform:“Mainstreaming Trust Funds into

the Bank’s business”

TFMF Pillar 1:Enhancing Strategic Alignment and Focus

13

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

14

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

15

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

16

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

17

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

18

TF Donor Center

19

• 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

Thank You

20