WB Multi-Partner Fund Somalia 2018-2021

This Country Partnership Framework (CPF) is currently funded by 10 donors through the the Multi-Partner Fund modality for delivery. Sweden is the fourth biggest contributor to the fund. The MPF modality is per definition a pooled fund mechanism with is the preferred mechanism of financing in conflict and post-conflict contexts. The MPF is one of three pooled funding mechanisms in Somalia established as part of the Somalia Development and Reconstruction Facility. The MPF is administered by the World Bank and operates in close cooperation with the federal government of Somalia and the contributing donors. WB-MPF are well aligned with government priorities, as articulated in the National Development Plan (2017-2019) and together cover all eight pillars of the NDP. Hence, national ownership and alignment to principles of development effectiveness is adhered to. As Administrator of the Trust Fund, the World Bank is responsible for ensuring that the MPF and its funds are used in accordance with the administrative agreements and that recipients use MPF funds in accordance with the grant agreements.The MPF has a specific focus support to core state functions, socioeconomic recovery and sustainable development compared with the UN Fund being more broad in scope and the AfDB focusing on rehabilitation and development of infrastructure. The overall aim of the CPF 2019-2022 is to lay foundations for the longer-term poverty reduction and inclusive growth by focusing on priority areas and constraints creating the current Somalia "dual development trap" created by low level of trusts and exacerbated by widespread vulnerability of repeated shocks. The strategy has two focus areas (1) Strengthening Institutions to Deliver Services and (2) Restoring Economic Resilience and Opportunities. The first focus area will strengthen ongoing governance programs with a new focus on fiscal space and improving access to - and quality of - key social services and resilience. Programs will specifically target public finance management reforms, domestic revenue mobilization and resource sharing, basic delivery systems for social services; and urban resilience. The second focus area aims to increase economic resilience as a basis for long-run poverty reduction and inclusive growth by improving business environment and lowering barriers to market entry, increasing access to finance for inclusion and digital development; and improved access to water and renewable energy. The World Bank will be overall responsible for implementation but the delivery model implies that 80-85% of MPF projects are recipient executed. This means that large shares of the funding to MPF will be channeled through the Federal Government of Somalia and Federal member states. The risk of using country systems in Somalia is considered high. However, the use of country systems maximizes the effectiveness of aid and can help government legitimacy and public support, strengthening the accountability between the State and its citizens. The World Bank does not have an office in Mogadishu yet, but are gradually increasing their presence in Somalia albeit the World Bank´s presence on the ground is limited, but the World Bank works closely with the Somali authorities, both at national and sub-national level. The World Bank deploys a third-Party Monitoring Agent to support the monitoring of the World Bank´s projects as well as supporting the Bank teams in understanding the risks and manage the risks. The third-party monitoring agent also provides targeted support to the government in rebuilding and strengthening their Public Financial Management systems.