Zimbabwe Multi-Donor Trust Fund
Introduction
In 2010, a group of donors in a bid to support priority recovery activities of the Government of Zimbabwe decided to create the Zimbabwe Multi-Donor Trust Fund (the Zim-Fund), as a successor to the Zimbabwe Programmatic Multi-Donor Trust Fund (Zim-MDTF). The African Development Bank was designated to manage the Zim-Fund with the endorsement of the Government, the Donor Community, and the United Nations at their meetings in Harare and Washington in 2010.
Establishment
The Zim-Fund was established on 31st May 2010, following approval by the Boards of Directors of the African Development Bank Group (the Bank) of the recommendations contained in a document entitled “Establishment of a Multi-Donor Trust Fund for Zimbabwe”. Negotiations between the Bank and Donors on the modalities to establish the Fund were concluded in July 2010.
Purpose of the Zim-Fund
The purpose of the Zim-Fund is to contribute to early recovery and development efforts in Zimbabwe by mobilizing donor resources and promoting donor coordination in Zimbabwe, so as to channel financial assistance to such efforts. The thematic scope of the Zim-Fund initially focuses on infrastructure investments in water & sanitation, and energy.
Size of the Zim-Fund
The size of the Zim-Fund is determined by development partners’ willingness to contribute to it over time. Donors’ commitments to the Zim-Fund to date, in various currencies, currently add up to an equivalent of USD80.5 million**, out of which an actual amount of USD57.7 has been released to the Zim-Fund account as of end August 2011. The Zim-Fund was declared effective after the threshold of USD40 million was reached on 19 October 2010. Table below shows donors’ commitments as of end August 2011.
Contributing Donors | Total Pledged In currency of Pledge |
|---|---|
Australia | A$ 10,000,000 |
Denmark | DKK 30,000,000 |
Denmark | USD 2,400,000 |
Norway | NOK 41,000,000 |
Sweden | SEK 40,000,000 |
Switzerland | CHF 4,900,000 |
United Kingdom | GBP 10,000,000 |
Germany | EUR 20,000,000 |
Total (in million US$ equivalent)** | USD 80,715,350 |
** Using applicable Exchange Rates as end 30 August 2011
Governance Structure
The governance structure for the Zim-Fund is a one-tier: a Program Oversight Committee (POC) supported by a MDTF Management Unit (MMU). Membership includes representative from government and contributing development partners (on a rotational basis). It is co-chaired by a government representative and a donor representative.
The POC provides overall strategic direction to the Fund and oversees the implementation of the Zim-Fund as a whole. The POC meets on a quarterly basis or as often as required, and receive reports on resource mobilization and activities supported by the Zim-Fund from the MMU. All Zim-Fund supported activities are or should be consistent with the government’s recovery and development programs, and also have a pro-poor focus.
Portfolio of Projects Financed Under the Zim-Fund (as at end June 2011)
Two projects have been approved for financing from the Zim-Fund during the first half of 2011.
- Urgent Water Supply and Sanitation Rehabilitation Project: MDTF is providing a grant in the amount of USD29.65 million to support urgent rehabilitation works - restoration and stabilization of water supply and sanitation services in the Municipalities of Harare, Chitungwiza, Mutare, Chegutu, Masvingo and Kwekwe. Targeting a total population of approximately 4.15 million people, the envisaged outcomes include: increased reliability, quality and availability of water supply in the project areas; restored wastewater treatment capacity; and reduced incidence of cholera and other water related diseases.
- Emergency Power Infrastructure Rehabilitation Project: The Zim-Fund is providing a grant in the amount of USD35.00 million to support improvement of the reliability of power supply in an environmentally sound manner through the rehabilitation of the Ash Plant at Hwange Power Station (HPS) and the sub-transmission and distribution facilities in the country. The project beneficiaries include the entire electricity consuming public in Zimbabwe.
- Future projects are envisaged depending on successful completion of the approved priority projects, and donors' willingness to continue to support the Fund.
For more information please contact
Multi-Donor Trust Fund (Zim-Fund)
African Development Bank
15th Floor African Capacity Building Foundation
Cnr. Jason Moyo Avenue/Sam Nujoma Street
Harare, Zimbabwe
Tel: (+263 4) 700208/10/14
Email
