Operationalizing Partnership Commitments

OVERVIEW<br>

Focus today – on IBRD and IDA 5 International Bank for Reconstruction and Development (IBRD)

International Finance Corporation (IFC)

International Development Association (IDA)

International Centre for the Settlement of Investment Disputes (ICSID)

Multilateral Investment Guarantee Agency (MIGA) Member Organizations<br>

World Bank Group Basics 6 Products and Services<br>

IMPORTANT PARTNER 7 Long history or partnership (1947 UN-IBRD Agreement)

Same family (WB – a specialized UN agency)

Overlapping agendas (global issues, MDGs/SDGs/ 2030 agenda, humanitarian development and crises response)<br>

2014 Reorganization 8 In 2014 the WBG launched a comprehensive reform process to become more effective, and more strategically focused.

Through the reform the WBG aimed to:
Focus on results, science of delivery, transformational engagements, and taking informed risks
Improve information-sharing and learning by reorganizing into 14 global practices with 5 cross-cutting solutions
Overhaul WBG procurement policies to encourage high-value high-risk projects, innovation, and the use of client procurement systems
Reduce overall budget by USD 400 million over the period 2014-2017.<br>

New Structure - Sectors 9<br>

Operationalized Engagements Technical and Sector Lead Lead SDGs
Agenda Partnership Commitments/Global Priorities Engagement Modalities President Global Practices / Cross-Cutting Solution Areas Regions
Task Teams OPCS SVPMM WB Key Units for UN<br>

Global Support Team (GST) Coordination on UN Agencies GST
Secretariat
in OPCS Sr. Vice President for the SDGs, UN Relations and Partnerships UN Agencies New York Geneva Fragility, Conflict and Violence- CCSA World Bank Task Teams Information sharing Coordination Reporting 20<br>

Engagement Options<br>

Engagement Modalities The WB and borrowing government jointly identify priority sectors and specific projects Programming Cycle The borrowing government implements The borrowing government
is responsible for the
project preparation (WB
shadows) The WB appraises and approves. 10<br>

Engagement Modalities Previously known as Country Assistance Strategy (CAS), World Bank has launched a new programming framework as of 2014 known as Country Partnership Framework (CPF), which generally covers a 4-6 year programming cycle

The CPF is preceded by the Systematic Country Diagnostic (SCD), which informs the strategy and identifies the most important challenges and opportunities

In most fragile states cases CPF is usually replaced by an Interim Strategy Note (ISN) The following framework has been developed to enhance the Bank’s efforts to reduce extreme poverty and boost shared prosperity in developing countries. Country Partnership Framework/
Systematic Country Diagnostic 11<br>

Financing Options<br>

FINANCING OF THE UN 16 FY06-FY16<br>

MAIN FINANCING OPTIONS 17<br>

DIRECT FINANCING 18 $ legal agreement<br>

Engagement of UN Agencies Under WB Financing Grants: WB → UN implements all or part of an activity funded by WB RETF (R = UN) FMFA Requirements
Any operation
Single country or regional project
UN Agency is FMFA signatory UN Agency implements operation for Gov’t UN’s FM procedures apply
WB Procurement policy apply UN’s FM & Procurement procedures apply BB/BETF (B=WB) UN Agency carries out activity for WB (e.g. Haiti, study on damage assessment) WB Corporate Procurement contracts UN Agency UN‘s FM and Procurement procedures apply within contract Grant Terms Grants Terms FMFA FPA FPA Requirements
Emergency operation
MDTF set up for this operation
All donors agreed to FPA application
UN Agency is FPA signatory UN Agency implements operation for Gov’t Terms FIF Grants Donors WB as Trustee Without Fiduciary Oversight of IE UN Agency (IE) Donor-agreed procedures apply Terms Transfer
$ Transfer $ WB Legal (LEGIA)
coordinates UN Agency organized events (conferences, workshops) UN own procedures/policies Ancillary Agreement Vendor Contract Terms Governing Body UN Agency (IE) See RETF Terms Terms Grants $ (RETF) WB (IE) Reporting on Use of Funds<br>

FMFA and FPA UN Agencies – New working Arrangements 20 Institutional level agreements

Designed for grants only, but

Agreed fm, procurement, fraud and corruption provisions are used in other tools<br>

INDIRECT FINANCING 21 Bank Financing Agreement Agreement Borrower $ UN Agency<br>

Indirect Engagements via Bank Borrowers 22 Due to limited availability of Bank grants, this indirect method of engagement is likely to continue as the major source of Bank funding for UN Agencies (the UN Agencies cannot themselves borrow and repay IBRD loans or IDA credits).<br>

RAS Single TA Stream Non-Lending: Gov’t → WB → UN Gov’t Gov’t WB RAS Team WB RAS Team UN 1. RAS $ 3. TA 3. TA 1. RAS $ 3. TA UN Agency 2. Subcontracting RAS Combined TA RETF/IDA/IBRD credit/grant/loan (R = Gov’t) Lending: WB → Government → UN Gov’t WB Standard Template for UN Agency (SA/TA/Output) UN’s FM & Procurement procedures apply within contract 2. Contract 1. Legal Agreement Terms UN’s FM procedures apply
WB Procurement procedures apply Standard Template (PA/IE/CW) Terms 2. Contract OR Engagement of UN Agencies Under WB Financing 2. MOU OR Gov’t WB UN Agency Implements on Behalf of Gov’t UN’s FM & Procurement procedures apply within contract 3. Vendor Contract 1. Legal Agreement 2. Emergency Request to Contract UN Directly Terms OR<br>

How to find Projects Country Intelligence All programming documents are published in the WB projects website as part of the WB transparency policy

The information includes for both ongoing projects and projects in the pipeline.

Further information can be found via World Bank’s Project Website which can further filtered – active, closed, pipeline projects 13<br>

Project Information Project Document, Financing Agreement: Identify project components and specific entry points

Procurement plan: Identify specific activities foreseen where UN Agency can provide support

Implementation status reports: Identify project implementation issues (risk, delivery, etc.) 14<br>

STANDARD AGREEMENTS<br>

STANDARD AGREEMENTS UN Agencies – New working Arrangements 27 Used by Borrowers under indirect financing option

Main engagement option (90% overall financing to UN)

Mix: contractual relationship and recognition of partnership<br>

28 Technical Assistance

Output-based TWO TYPES FOR FAO<br>

Same structure across templates:
Form of Agreement
General Conditions
Annexes

General Conditions are broadly harmonized across UN agencies
Framework type STRUCTURE<br>

OUTPUT AGREEMENT Outputs I. Agreement (Gov <-> UN) II. Project (Gov <-> WB) Project Outcomes<br>

Focus on deliverables
Payments and Reporting are linked to deliverables
No limits on any type of inputs
Own rules/procedures
Infrastructure Aspects Covered under agreement IMPORTANT FEATURES – OUTPUTS<br>

Future Strategy UN Agencies – New working Arrangements 32 Current strategy is to develop standard templates for top 10 UN agencies, while continuing to use FPA/FMFA grants where appropriate.
Longer term strategy may envisage developing a new institutional-level fiduciary agreement with the UN to apply to any both direct and indirect financing options

Objective is to:
further simplify engagement modalities
provide enhanced fiduciary assurance over all of the funds spent through UN Agencies<br>

GLOBAL SUPPORT TEAM for UN Agencies Engagement under WB-financed Operations (unagencies@worldbank.org)<br>