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The Multi-Donor Trust Fund for Countries in Transition (TFT)

Background and Objectives

The TFT has been set up to address the increasingly challenging needs for reform in regional member countries. The Fund is designed to support a multiphased action plan to be implemented over a five year period, with an initial two years phase extended for a further two years phase dedicated exclusively to the North Africa region, with preference given to requests for financing of activities in EgyptLibyaMorocco and Tunisia. The source of funding for the Fund is untied grant resources with initial contributions provided by the UK’s Department of International Development (DFID) and the Government of Denmark. As of December 2013, there were15 approved proposals totalling about EUR 3.67 million for this Fund.

The TFT is a flexible financial instrument designed to enhance the capacity of the Bank Group to respond to the challenges of the transition process and assist countries in the design, implementation and overall consolidation of economic and political reforms.

Areas of Intervention

The Transition Fund will target three major areas of reform, namely, governance, economic reform, and social policies. The resources of the TFT are primarily devoted to the following five areas of intervention:

i) strengthening governance;

ii) fostering economic and social inclusion;

iii) creating jobs;

iv) supporting private sector development and entrepreneurship; and

v) Advancing regional and global integration.

The activities to be funded by the TFT will be aligned with the Bank Group strategy for the targeted country, as expressed in, among other things, Country Strategy Papers and Policy-Based Lending Operations relating to the respective RMC. The TFT will support the following four (4) main types of activities:

  1. Economic and sector work;
  2. Project cycle activities, particularly project preparation and appraisal;
  3. Technical assistance, capacity building, training, and study tours; and
  4. Small grants program for entrepreneurs, specifically under the Souk At-tanmia, a special initiative established by the Bank and 18 other partners on 11 July 2012.

The TFT will be complementary to the MENA Transition Fund established by Deauville Partnership. The Transition Fund is therefore open to activities jointly identified through the Deauville Partnership IFI coordination platform.

Target Beneficiaries

Regional member countries of the Bank, central and local government institutions or agencies thereof, regional agencies or institutions, other organizations, institutions, agencies or other undertakings (whether public or private, including universities and research and training institutions, policy support organizations, non-governmental organizations, community-based organizations, regional, sub-regional and sectoral organizations and private sector entities) in the territory of these countries or undertaking activities in the territory of an RMC shall be eligible to receive financing or other assistance from the resources of the TFT.

Targeted beneficiaries may include, among others:

  • Bank’s Organizational Units (Bank-executed only), including sector departments, regional departments and field offices;
  • Public Institutions and their Collective Representations, including local, provincial, and central government institutions and parliaments; and
  • Civil Society Organizations, including NGOs, business associations and others.

Governance Structure

The governance structure of the Fund consists of: (i) the Oversight Committee, (ii) the Technical Review Committee, (iii) the Bank Group Boards of Directors, and (iv) the TFT Coordination Committee.