Enhanced Engagement in Fragile States

The Bank’s enhanced support to fragile states is implemented through the proposed Fragile States Facility (FSF) that incorporates the existing Post-Conflict Country Facility (PCCF).  The amount of resources allocated to the FSF under ADF-11 replenishment is UA 408.4 million, equivalent to 7.5% of total replenishment; the resources are distributed within three pillars:

Pillar I – supplemental financing: About 62 percent of resources allocated to the FSF is set aside to supplement the PBA-determined country allocation to eligible post-crisis/transition countries in ADF-11 period. Countries accessing supplemental allocations will have to meet tight eligibility criteria, a specific allocation and phasing out mechanism, and monitoring, delivery and exit provisions. Consistent with the ADF-11 operational focus, the supplemental resources allocated to eligible countries will support governance and capacity building and the rehabilitation and reconstruction of basic infrastructure;

Pillar II – arrears clearance: 32 percent of FSF envelope is set aside, and combined with the carry-over from the PCCF of UA 102.9 million;  

Pillar III – targeted support:  The remaining 6 percent is set aside to provide supplementary targeted support for capacity building and knowledge management, across the full range of fragile countries.