japan policy and human resources development fund japan policy

JAPAN POLICY AND

HUMAN RESOURCES

DEVELOPMENT FUND

JAPAN POLICY AND

HUMAN RESOURCES

DEVELOPMENT FUND

THE WORLD BANKConcessional Finance and GlobalPartnerships Vice Presidency

THE GOVERNMENT OF JAPAN

Annual Report 2006Annual Report 2006

CONCESSIONAL FINANCE AND GLOBAL PARTNERSHIPSTRUST FUND OPERATIONSPHRD PROGRAM

THE WORLD BANK1818 H Street, NW Washington, DC 20433 USA

Email: [email protected]/rmc/phrd/phrd.htm

THE GOVERNMENT OF JAPAN

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THE FACES OF THE PHRDPartners in Development

Signing ceremony for the PHRD Project Preparation grant in Kazakhstan: Syr Darya Delta Control andNorthern Aral Sea Preservation Project—Phase-II. Photo by country team member.

Signing ceremony for the PHRD Project Preparation grant in Kazakhstan: Syr Darya Delta Control andNorthern Aral Sea Preservation Project—Phase-II. Photo by country team member.

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JAPAN POLICY AND

HUMAN RESOURCES

DEVELOPMENT FUNDAnnual Report 2006

THE WORLD BANKConcessional Finance and GlobalPartnerships Vice Presidency THE GOVERNMENT OF JAPAN

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The Policy and Human Resources Development(PHRD) Fund, supported by Japan since 1990,is one of the largest Trust Funds managed by

the World Bank. It is also one of the best known Fundsin the Bank, as its largest component, the PHRD Tech-nical Assistance Program supports the preparation andimplementation of many Bank-financed operations. Inrecent years over a third of all IBRD loans and IDAcredits and grants have received support throughPHRD and as a result the program is enthusiasticallywelcomed by both the Bank’s borrowing member statesand by Bank staff.

In recent years there have been new innovations withinthe PHRD TA program, with the introduction ofspecial grant categories to support Project Implementa-tion, Project Cofinancing and activities related to Cli-mate Change. In FY06 demand for Cofinancing andClimate Change grants substantially exceeded availableresources, confirming that these grant categories wereaddressing areas of high demand for resources.

One of the largest other programs supported throughPHRD is the Joint Japan/World Bank Graduate Schol-arship Program (JJ/WBGSP). This program is on theverge of its twentieth anniversary. JJ/WBGSP is one ofthe world’s largest graduate scholarship programs fornationals of developing countries. It has awarded over3,500 scholarships for post-graduate study, supportedcapacity-building at partner universities, especially inAfrica, and made a major contribution to institutionalstrengthening of developing country governments, whereone finds numerous JJ/WBGSP alumni in top positions.

The importance of the PHRD Fund is frequently evi-dent in its pioneering of innovations in the Bank. With

support from the Government of Japan and the WorldBank President’s Ideas Fund for Simplification, PHRDdeveloped a new simplified approach to the manage-ment of grant agreements with recipient governments.During FY06 this approach was developed and imple-mented Bank-wide for all Trust Funds. Similarly inFY05 the PHRD team carried out a very detailed ad-ministration costs analysis. The methodologies devel-oped for this study were then used for a Bank-widestudy of the costs of managing all Trust Funds. In FY06the Government of Japan was the first donor to providegrant resources through the Bank to support activitiesrelated to Avian and Human Influenza, and the PHRDexperience with these grants helped in developmentof the subsequent Multi-Donor Avian and HumanInfluenza Facility.

This report covers activities under the PHRD programcarried out during FY06. It includes a new section re-porting specifically on conclusions from a review of allPHRD TA grants that completed their activities dur-ing FY06. The last major evaluation of the PHRD pro-gram, taking a longer-term perspective of the program’sachievements, was commissioned over five years ago. Anew independent evaluation of the TA program hasbeen commissioned and will report during FY07. Thefindings from this evaluation may lead to furtherchanges in the PHRD TA program.

The Government of Japan’s support to PHRD is greatlyappreciated. Trust Fund Operations are committed tocontinue to work with the Government of Japan inusing the resources provided effectively, and continuingto use PHRD resources both to complement the Bank’slarger programs and to develop human resources indeveloping countries.

MESSAGE FROM ARIF ZULFIQAR, DIRECTOR,TRUST FUND OPERATIONS

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Message from Arif Zulfiqar, Director, Trust Fund Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iii

CHAPTER 1 Introduction and Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.1 PHRD Origins and Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.2 Program Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.3 FY06 Program Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

CHAPTER 2 PHRD Technical Assistance Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52.1 Program Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52.2 New PHRD Technical Assistance Grants in FY06. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

CHAPTER 3 PHRD Capacity Development and Human Resources Development Program . . . . . . . . . . . 153.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153.2 WBI: Supporting Capacity Development through Knowledge and Innovation . . . . . . . . . . . . . . . . . . . 153.3 The Joint Japan/World Bank Graduate Scholarship Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173.4 Staff and Extended Term Consultant (ETC) Grants Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

CHAPTER 4 PHRD Supported Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214.2 The Japan-World Bank Partnership Grants Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214.3 The Japan Consultant Trust Fund Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234.4 Other Ongoing Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

CHAPTER 5 Monitoring and Evaluation of PHRD TA Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275.1 Monitoring the Progress and Impact of PHRD Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275.2 Review of the Grant Completion Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

CHAPTER 6 Additional Sources of Information on PHRD and Programs Supported by the PHRD Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

6.1 Information on PHRD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 356.2 Programs Supported through PHRD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

ANNEX 1 List of Approved FY06 Technical Assistance Grants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

ANNEX 2 Japan PHRD Technical Assistance Grants Program FY06 Annual Policy Guidelines and Program Allocations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

TABLE OF CONTENTS

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TABLES1 PHRD TA Grants Approved in FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 Avian Flu Cofinancing Grant Approved in FY06. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 WBI Capacity Development Activities Supported by PHRD in FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . 164 Japan CTF Disbursements by Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245 PHRD TA Grants Closed in FY06 by Type and Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286 Sources of Financing of PHRD TA Grant Associated Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

FIGURES1 Annual Contributions to the PHRD Fund, FY00–FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 PHRD Program Disbursements in FY06. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 PHRD TA Contributions, Allocations and Disbursements, FY00–FY06. . . . . . . . . . . . . . . . . . . . . . . . . 54 World Bank Operations Approved and Supported by PHRD TA Grants . . . . . . . . . . . . . . . . . . . . . . . . 65 Number and Value of PHRD TA Grants Approved, FY00–FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Regional Distribution of PHRD TA Grants, FY00–FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Ten Largest Recipients of PHRD TA Grants in FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 PHRD TA Approved Grants by Type FY00–FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 Regional Distribution of PHRD TA Grant Approval for FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

10 Distribution of Total Allocation of PHRD TA Grants by Sector, FY06. . . . . . . . . . . . . . . . . . . . . . . . . 1011 Staff and ETC Grants Approved in FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1812 Staff Employed under PHRD Staff and ETC Program from FY00–FY06 . . . . . . . . . . . . . . . . . . . . . . . 1913 Allocation of Japan CTF Funds by Regions and Networks in FY06. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2314 Total Value of Closed PHRD TA Grants by Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2815 Ten Countries with Highest Approved Amount of PHRD TA Grants . . . . . . . . . . . . . . . . . . . . . . . . . 2916 Status of Approval of PHRD TA Project Preparation Grant Associated Operations. . . . . . . . . . . . . . . . 3017 Disbursement Performance of Closed PHRD TA Grants by Region . . . . . . . . . . . . . . . . . . . . . . . . . . . 3218 Share of IDA Financing in the Total Value of Closed PHRD TA Grant Received by Region . . . . . . . . 32

vi ANNUAL REPORT 2006

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ABCDE Annual Bank Conference on Development Economics

AFR Africa Region

AHIF Avian and Human Influenza Facility

APD Annual Policy Document

CEPF Critical Ecosystem Partnership Fund

CFP Concessional Finance and Global Partnerships

CTF Consultant Trust Fund

EAP East Asia and Pacific Region

ECA Europe and Central Asia Region

ETC Extended Term Consultant

FY Fiscal Year

FASID Foundation for Advancement Studies on International Development

GDLN Global Development Learning Network

GOJ Government of Japan

HIPC Heavily Indebted Poor Countries

IBRD International Bank for Reconstruction and Development

IDA International Development Association

ICT Information and Communications Technologies

JBIC Japan Bank for International Cooperation

JICA Japan International Cooperation Agency

JJ/WBGSP Joint Japan/World Bank Graduate Scholarship Program

LAC Latin America and Caribbean Region

LIC Low-Income Countries

LMC Lower Middle-Income Countries

MDGs Millennium Development Goals

MENA Middle East and North Africa

ACRONYMS AND ABBREVIATIONS

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NGO Non-Governmental Organization

ODA Official Development Assistance

PHRD Japan Policy and Human Resources Development Fund

PIC Public Information Center

PP Project Preparation

PPIAF Public-Private Infrastructure Advisory Facility

RVP Regional Vice-Presidency

SADC South African Development Community

SAR South Asia Region

TA Technical Assistance

TDLC Tokyo Development Learning Center

TF Trust Fund

TFO Trust Fund Operations

TTL Task Team Leader

UMC Upper Middle-Income Countries

UN United Nations

VASS Vietnam Academy of Social Sciences

WBI World Bank Institute

WDR World Development Report

viii ANNUAL REPORT 2006

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CHAPTER 1

1.1 PHRD Origins and Objectives

The Japan Policy and Human Resources Devel-opment (PHRD) Fund was established in 1990as a partnership between the Government of

Japan (GOJ) and the World Bank. Over the past 16 yearsthe Fund has supported a wide range of poverty allevi-ation and capacity building activities.

The scope of the Fund is described in the Arrangementfor the Administration of the Fund (as revised in March1999) as follows:

The Fund may be used for the purposes of financing tech-nical assistance and other grant activities in respect of theformulation and implementation of Bank-supported pro-jects and programs and activities to help develop humanresources in developing member countries of the Bank, toassist developing member countries of the Bank to formu-late and implement development policy and to strengthenthe partnership between Japan and the Bank.

Since fiscal year 2000 (FY00), the Government of Japanhas contributed over US$570 million to the PHRDFund (see Figure 1). It is one of the largest trust fundsmanaged by the World Bank and is recognized asmaking a unique contribution to the Bank’s develop-ment role in many areas, ranging from preparation ofBank-financed operations to the provision of graduatescholarships to citizens of member countries.

1.2 Program Overview

The PHRD Fund supports five main programs:

� The PHRD Technical Assistance (TA) Program isthe largest program, and provides grants primarily toassist the World Bank’s borrowing member countrieswith the preparation and implementation of opera-tions to be financed through International Bankfor Reconstruction and Development (IBRD) loansand International Development Association (IDA)

INTRODUCTION AND OVERVIEW

1

Figure 1 Annual Contributions to the PHRD Fund, FY00–FY06 (millions of US dollars)

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95.0

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credits and grants. In addition, the PHRD TA Pro-gram supports a range of climate change-relatedactivities;

� The Joint Japan/World Bank Graduate Scholar-ship Program (JJ/WBGSP) provides scholarshipsthat support post-graduate training at Masters’degree level for member country nationals. Similarscholarship programs supported by Japan aremanaged by other Multilateral Development Insti-tutions, but the JJ/WBGSP is both the longest-established and by far the largest of these programs;

� The PHRD-World Bank Institute (WBI) Capac-ity Development Grants Program supports WBI’scapacity development activities, with a focus partic-ularly on activities in East, South and Central Asia;

� The Japan Staff and Extended-Term Consultant(ETC) Program supports partial costs of Japanesenationals recruited to work within the World Bank; and

� The Japan-World Bank Partnership Program sup-ports activities that promote partnership betweenJapan and the World Bank.

Figure 2 shows the relative share of each these programs.The PHRD TA program disbursed US$56.9 millionin FY06 which amounts to 72 percent of the totaldisbursement of US$78.9 million from the PHRDFund. The next largest disbursement is the JJ/WBGSPrepresenting 16 percent (US$12.4 million) of totalFY06 disbursements. The Japan-World Bank Partner-ship Program is the third largest, with seven percent ofFY06 disbursements.

In addition to these core programs (discussed further inChapters 2, 3 and 4), the PHRD Fund is also used toprovide support to other activities where the WorldBank plays an important role in the international com-munity. This often involves transferring resources fromthe PHRD Fund to other programs, such as PPIAF,CEPF and Cities Alliance.

1.3 FY06 Program Highlights

� Overall demand for grants under the PHRD TA pro-gram continues to be strong. Demand for ProjectPreparation (PP) grants appeared to have stabilizedat around US$60–65 million annually during theFY02–FY05 period. There was a slight fall in de-mand for PP grants in 2006, possibly due to lack ofunderstanding about the requirement for consulta-tion with Japanese Embassy officials in the country.However, demand has recovered as staff becamemore familiar with the process.

� Within the PHRD TA program, allowance wasmade in FY06 for exceptional submission of propos-als related to Avian Flu for both PP and Cofinancinggrants. A special allocation of US$15 million wasprovided for Cofinancing grants related to Avian Fluoperations. Grants amounting to about 97 percent ofthe allocation have been approved in FY06.

� Demand for Cofinancing and Climate Changegrants increased in FY06, as indicated by requestsfrom the Regions to allow submission of grant pro-posals. In FY06, there was an unmet demand for atleast an additional US$15 million for Cofinancing

2 ANNUAL REPORT 2006

Figure 2 PHRD Program Disbursements in FY06 (millions of US dollars and share of total of US$78.9 million)

Staff ETC Grants$2.1 m (2%)

JJ/WB Scholarship$12.4 m (16%)

WBI Capacity Development$2.2 m (3%)

Partnership Grants$5.3 m (7%)

TA Program$56.9 m (72%)

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and about US$7–8m for Climate Change grants.The “real” demand level may have been still higher,but CFP advised the Regions that there were no re-sources for Cofinancing or Climate Change grants inthe second round, which did not encourage prepara-tion of proposals.

� In contrast, demand for Project Implementationgrants has been low. Since this type of grant was in-troduced in FY02, the value of the proposals sub-mitted has been less than half of the APD allocationsfor Project Implementation grants. A plausible ex-planation for the low demand is that Recipients areless inclined to acknowledge the early signs of imple-mentation capacity issues that would justify a requestfor a Project Implementation grant, and later there isnot enough time to process and use grant resources.

� In FY06, WBI Capacity Development Programs de-livered more than 800 learning activities for clientsreaching 90,000 participants in 116 countries.

� The 2006 Annual Bank Conference on Develop-ment Economics (ABCDE) was supported withfinance from the Japan-World Bank PartnershipGrants Program. The forum was held for the firsttime in East Asia, in Tokyo, and was participatedin by nearly 900 delegates over two days, recordattendance for an ABCDE. The theme of the2006 ABCDE was “Rethinking Infrastructure forDevelopment.”

� The Government of Japan (GoJ) approved a grantrequest for an independent evaluation of the PHRDTA program (FY00–FY06). The evaluation startedin October 2006 and is expected to be completed byApril 2007.

� A review of 117 PHRD TA grants closed in FY06was carried out. The main conclusions are:

a) 77% of the operations associated with the 109closed PP grants have been approved by theWorld Bank’s Board of Executive Directors.Another 16% are expected to be approved inFY07 and later years;

b) The four CCIG grants were used to financeactivities in the agriculture, water and flood con-trol, and energy sectors. One of the indigenousorganizations which participated in the pilotinitiative on the quantification of the carbon fix-ation and storage negotiated a US$20,000 carbonsale contract with an Italian company which cor-responded to about 9 million hectares of naturalregeneration;

c) Consistent with the allocation target of PHRDTA grants, about half of the amount of the closedgrants was utilized to prepare operations for coun-tries eligible to receive financing from IDA;

d) Positive indirect outcomes of the grants included:(i) enhancement of the capacity of the recipi-ent ministries and agencies; (ii) participatoryproject design made possible through increasedparticipation of key stakeholders in the grantfinanced activities; (iii) better understandingof the “soft” development issues such as gender,ethnicity, and vulnerability; (iv) leveraging addi-tional funds from donors and internally from thegovernment.

JAPAN POLICY AND HUMAN RESOURCES DEVELOPMENT FUND 3

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CHAPTER 2

2.1 Program Trends

Figure 3 shows the trends in the PHRD TechnicalAssistance (TA) contributions,1 allocations anddisbursements from 2000–2006. The annual

contribution has declined since FY02 and it hit a low ofUS$2.92 million in FY06. In contrast, TA allocations2

have been at their second highest level since FY00.

Grant disbursements3 in FY06 are comparable to theprevious three fiscal years.

PHRD TA grants are an important source of financingavailable to low-income and lower middle-incomecountries4 for the preparation of IBRD loans andIDA credits and grants for all sectors, and to uppermiddle-income countries for some priority sectors.5

PHRD TECHNICAL ASSISTANCE PROGRAM

5

Figure 3 PHRD TA Contributions, Allocations and Disbursements, FY00–FY06 (millions of US dollars)

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Contributions Allocations Disbursements

1 Contribution � amount received from the Government ofJapan (GoJ).

2 Allocation � grant amount, as approved by GoJ, recorded whenthe specific grant account is established. When grants are approvedlate in the fiscal year (FY), the allocation may not be recorded untilthe following fiscal year. As a result, annual data on “allocations” and“approvals” are not always identical.

3 Disbursements � amount withdrawn from the grant account tofinance expenses incurred by the grant recipients.

4 According to 2005 GNI per capita, countries’ income groups are:low-income (LIC), US$875 or less; lower middle-income (LMC),

US$876–US$3,465; upper middle-income (UMC), US$3,466–US$10,725; and high-income, US$10,726 or more. Source: WorldDevelopment Report (WDR), 2007.

5 Priority sectors include: education, health, nutrition, water sup-ply and sanitation, social protection, social development and envi-ronment, participatory community development activities, and thosethat involve NGOs and civil society, gender, and projects targeted atgroups or areas that are clearly disadvantaged in terms of povertyindicators which are in line with the Millennium Development Goals(MDGs).

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Figure 4 World Bank Operations Approved and Supported by PHRD TA Grants (in numbers and percentage)

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Figure 5 Number and Value of PHRD TA Grants Approved, FY00–FY06

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$114 m

$96 m

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$62 m$66 m

$88 m

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6 Approval refers to the grant proposals endorsed by GoJ.

Figure 5 shows the declining trend in the approval6 ofPHRD TA grants from FY00 to FY02 and then anupward trend from FY03. In the FY01–FY02 period,the guidelines and procedures of the PHRD TA werebeing revised and streamlined, and it is possible thatWorld Bank staff were constrained from applying forgrants during the period of transition. Demand forgrants began to increase and peaked at US$114 million

soon after the streamlined procedures were in place inFY04. While demand declined during the followingtwo years, the value of grants approved remained wellabove the FY00–FY03 period. The slight decline inFY06 may be attributed to the requirement for consul-tation with Japanese Embassy officials prior to the sub-mission of grant proposals for approval. Initially, thisrequirement was not well-understood and many pro-posals were not considered for submission. However, inthe later rounds of submission, demand started to rise

Figure 4 shows that nearly half of the loans and credits approved for World Bank financing duringFY00–FY02 were prepared with the support of PHRD

project preparation grants. This ratio declined inFY03 and FY04, but it increased again in FY05 andFY06.

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region received about 23 percent of the total amount.The other major recipient is Latin America and theCaribbean (13 percent). In FY06, with the exception ofLAC, all regions secured higher values of grants thanin FY05.

PHRD TA grants approved in FY06 were for 151recipient governments. A little above half of the totalapproved amount went to 10 countries as shown inFigure 7 which excludes Cofinancing grants for AvianFlu operations.

7 The PHRD TA guidelines indicate that at least 35 percent ofthe annual grant submissions, by amount, are for IDA and blendcountries, and at least 35 percent for Asia, including East, South andCentral Asia.

8 The FY06 figures do not include Avian Flu Cofinancing grants.

Figure 6 Regional Distribution of PHRD TA Grants, FY00–FY06 (in US$ amount)

AFR

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ECA

LAC

MENASAR

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as World Bank task teams became more familiar withthe process.

The PHRD TA program is committed to supportingpoverty reduction efforts.7 Consistent with this com-mitment, the program continues to focus on the poorestcountries. In FY06, about 53 percent of the total grantssubmitted were for IDA countries. Also in the same year,the value of grant submissions for Asia (including East,South and Central Asia) was 47 percent of the total,which is a ten percentage points increase over FY05.

Three regions received about 72 percent of the PHRDTA grants during FY00–FY06 period (Figure 68).Europe and Central Asia region’s share was 27 percentfollowed by Africa (26 percent). East Asia and the Pacific

Figure 7 Ten Largest Recipients of PHRD TA Grants in FY06

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Nigeria

Kenya

Sene

gal

Albani

a

Phillip

ines

US$

mill

ion

Countries

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In FY06, a new grant type—Aid CoordinationEnhancement—was added to the PHRD TA program.These grants aimed to support lower- and middle-income countries with relatively strong managementcapacity to build capacity in effective management ofaid. However, demand for this type of grant was lim-ited, and it was subsequently withdrawn in FY07.

Also under the PHRD TA program, allowance wasmade for exceptional submission of proposals relatedto Avian Flu for both Project Preparation and Cofi-nancing. A special allocation of US$15 million wasprovided for Cofinancing grants related to Avian Fluoperations.

Figure 8 PHRD TA Approved Grants by Type FY00–FY06 (millions of US dollars)

2.2 New PHRD Technical AssistanceGrants in FY06

In FY06, 97 new TA grants were approved totalingUS$89.69 million.10 These are summarized in Table 1and a detailed list of grants by name, type, countries,regions and amounts is provided in Annex 1. About halfof the approved grant value was for project preparation,compared to three quarters in FY04 and FY05. Thirty-nine percent of the approved amount was for Cofi-nancing grants in FY06, compared to 25 percent inFY05. The share of the Climate Change Initiativesgrants was approximately 6 percent in FY06, compared

Project Preparation

Project Cofinancing

Project Implementation Climate Change

0

5

10

15

20

25

30

35

40

45

50

55

60

65

70

75

80

85

90

2000 2001 2002 2003 2004

US$

mill

ion

2005 2006

10 The figures exclude Cofinancing grants for Avian Flu operations.

As a response to emerging development challenges, thePHRD TA program has supported several innovativeapproaches. The scope of the program was expandedin FY00 to address implementation capacity issuesin ongoing projects (Project Implementation grants),and in new operations (Project Cofinancing grants) inFY04. Demand for Project Cofinancing grants hassince increased. In FY06, Cofinancing grants accountedfor 39 percent9 of the total grant amount approved

(US$90 million) compared to 25 percent in FY05.Project Implementation grants continue to be less in de-mand with only 2 percent of the total amount approvedin FY06. In FY02, another window—Climate ChangeInitiatives—was introduced and the demand for this typeof grant has been increasing. In FY06, the amount ofapproved Climate Change grants was about 6 percent ofthe total grant amount. This figure is lower (8 percent)than FY05 approval for this grant type (see Figure 8).

9 This figure excludes Cofinancing grants for Avian Flu operations.

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The composition of the regional distribution of allPHRD TA grants in FY06 shows that the Europe andCentral Asia region received the largest share of the totalgrants approved, as it did in FY05. Africa received thenext largest share (26 percent) followed by East Asiaand the Pacific (23 percent). Africa’s share was only 23 percent in FY05. Latin America and Caribbeancountries received the third largest share—ten percent-age points—behind East Asia and the Pacific, whileSouth Asia’s share increased slightly (4 percent) fromFY05 (see Figure 9).

Table 2 Avian Flu Cofinancing Grant Approved in FY06

Country Region Value in US$

Albania ECA 800,000

Armenia ECA 803,900

Cambodia EAP 3,000,000

Georgia ECA 1,400,000

Indonesia EAP 5,000,000

Kyrgyz Republic ECA 1,000,000

Lao PDR EAP 2,000,000

Moldova ECA 500,000

Total 14,503,900

Table 1 PHRD TA Grants Approved in FY06 (in number and US$)

Number ofProgram Grants Amount (US$)

Project Preparation 69 46,829,496

Project Implementation 4 1,550,980

Cofinancing 11 35,108,000

Climate Change 12 5,731,178Initiatives

Aid Coordination 1 471,000

Total 97 89,690,654

Figure 9 Regional Distribution of PHRD TA Grant Approval for FY06(millions of US% and percent of total US$89.69 million)

Africa $23.4 m (26%)

East Asia and the Pacific$20.9 m (23%)

Europe and Central Asia$24.4 m (27%)

Latin America andthe Caribbean$11.2 m (13%)

Middle East and NorthAfrica $4.4 m (5%)

South Asia $5.4 m (6%)

to four and five percent in FY04 and FY05, respectively.The proportion of other types of grants remainedalmost the same compared to FY04.

The special provision for Avian Flu Cofinancing grantsin FY06 assisted PHRD grant recipient countries toaddress the emerging problem before a separate multi-donor initiative Avian and Human Influenza Facility(AHIF) could be established. Eight grants with a totalvalue of US$14.5 million were approved under thisspecial PHRD Cofinancing grant category in FY06,benefiting countries in EAP and ECA regions (seeTable 2).

The allocation of PHRD TA grants by sector in FY06is shown in Figure 10. The Human Development sectorreceived the largest share (27 percent) which is similarto FY05. In FY06 relatively more funds (20 percent)

went to the Agriculture and Rural Development sector,compared to 10 percent in FY05. The Public SectorManagement sector received the next highest share(16 percent), compared to seven percent in FY05.

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(a) Project Preparation Grants

Project Preparation grants aim to strengthen the qual-ity and recipient ownership of operations financedby the World Bank through the provision of fundsdirectly to potential borrowers to obtain technicalexpertise that would assist in preparing Bank loans

and credits. With very few exceptions, all grants areexecuted by the recipient governments. In FY06, theGovernment of Japan approved 69 new grants amount-ing to US$46.83 million.

About 14 percent of the PP grants were approved forpreparing policy-based lending operations. The main

Figure 10 Distribution of Total Allocation of PHRD TA Grants by Sector, FY06(millions of US dollars, share of total of US$89.69 million)

Energy $3 m (3%)

Environment$10 m (11%)

Finance$1 m (1%)

Human Development$24 m (27%)

Infrastructure$10 m (11%)

Industry and Trade$2 m (2%)

Public SectorManagement$14 m (16%)

Multisectoral$7 m (8%)

Agriculture and RuralDevelopment$18 m (20%)

The Solomon Islands Rural Development Project supports activities that provide opportunities to improve the livelihoods ofsmall rural producers, including through increasing the production of traditional and new cash crops and marketing of freshfood for domestic markets. Photo by Thomas Sennett.

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where the shortcomings were not identified duringproject preparation. The grants are available for IDA/IDA-blend and lower middle-income countries tosupport World Bank-financed operations that havebeen under implementation for at least 12 months andare facing capacity constraints. Grant activities includetechnical assistance to build institutional capacity andlocal training.

Four grants totaling US$1.55 million were approved inFY06. These were mainly in the areas of rural infra-structure, banking system modernization, and socialprotection management systems.

(c) Project Cofinancing Grants

This grant category aims to support technical assis-tance that would strengthen institutional capacity foroperations financed by the Bank in IDA/IDA-blendcountries.

About 53 percent of the amount approved for cofi-nancing Bank-financed operations was for the HumanDevelopment sector, which includes education and

objectives of these operations ranged from realigninggrowth, supporting macroeconomic stability andstrengthening fiscal sustainability, improving publicservice delivery, reforms in governance, business envi-ronment and enhancing the implementation of thePoverty Reduction Support Program, to improving theeffectiveness and efficiency of environmental manage-ment. About 16 percent of the PP grants were approvedfor agricultural development. There were a number ofgrants approved to support preparation of community-driven development, social protection and judicialreform operations. Development and management ofwater resources, health and education and urban infra-structure were the other sectors for which PP grants wereapproved. Two grants for Iraq were approved for prepar-ing emergency water supply and sanitation and electric-ity reconstruction operations.

(b) Project Implementation Grants

The purpose of this category of PHRD TA grants is toaddress specific weaknesses in the capacity of imple-menting agencies that have hampered the implementa-tion of World Bank-financed project activities, and

The Syr Darya Delta Control and Northern Aral Sea Preservation Project Phase-II aims to promote overall water use efficiencyin the basin by improving operation and safety of the important water infrastructure and providing protection against floodingparticularly during winter leading to improved agriculture, fish production and population safety. Photo by Arne Hoel.

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About 58 percent of PHRD Cofinancing grants approved in FY06 were for projects supporting activities for humandevelopment and health and nutrition. Photo by Curt Canemark.

The Cofinancing grant for Senegal Quality Education for All Phase II aspires to improve access to universal qualityeducation through quality interventions pilots and support in robust data collection on student achievement. Photo by Eric Miller.

health. The remaining amount was for cofinancingoperations related to Public Sector Management, Agri-culture and Infrastructure development. The recipientregions of the cofinancing grants were Africa, East Asiaand Pacific and Europe and Central Asia.

(d) Climate Change Initiatives

Climate Change grants aim to support the inclusion ofclimate change concerns in the development planningprocess of recipient countries. The grants also support

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the preparation and implementation of World Bank-financed projects that support reduction in emissionsof greenhouse gases and promote energy efficiency oradapting to the adverse impacts of climate change.

In FY06, a record number of grants were approved forclimate change initiatives that benefited all regions ex-cept the Europe and Central Asia and Middle East andNorth Africa regions. The Climate Change grants weremainly for transport and air quality, biomass, capacitybuilding for bio-carbon funds, industrial rehabilitationand Kyoto Mechanisms.

(e) Aid Coordination Enhancement

The purpose of this grant type was to support low- andlower middle-income countries with relatively firmmanagement capacity to build capacity in effective aidmanagement. Only one grant for Strengthening of AidCoordination Capacities in Honduras (US$471,000)was approved in this category.


The Indonesia Bali Biomass Power: Demonstrating Mitigation of Climate Change through Better Waste and Pollution Management aimsto lessen barriers to the development of waste and pollution management initiatives that reduce greenhouse gas emissions and promotesustainable development through safer waste management practices and cleaner industrial production. Photo by Curt Canemark.

The Honduras Adaptation to Climate Change Project aims to reduce thecountry’s vulnerability to floods and landslides derived from the increasedimpacts of hurricane and catastrophic wind and rainfall events generated byclimate changes. Photo by Curt Canemark.

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CHAPTER 3

3.1 Introduction

There were three active components of thePHRD Capacity and Human Resources Devel-opment Program in FY06. These were the:

(a) WBI Capacity Development Program; (b) JointJapan/World Bank Graduate Scholarship Program; and(c) Japan Staff and ETC grants program.

3.2 WBI: Supporting CapacityDevelopment through Knowledge and Innovation

WBI focuses on delivering capacity developmentprograms to assist countries in acquiring, sharing, andapplying global and local knowledge to meet develop-ment challenges. To achieve this, WBI helps clientsdevelop capacity at the individual, organizational, andinstitutional levels through thematic learning events,technical assistance, and economic and sector work.Working in partnership is critical to WBI in deliveringits country-specific, regional, and global programs.Partnering with donors enables WBI to leverage its re-sources and makes its programs more cost-effective bycoordinating activities and harmonizing approaches.Financial support from such “resource partners” helpsWBI extend the reach, deepen the content, or prolongthe engagement of its programs. In fiscal year 2006,WBI delivered more than 800 learning activities forclients reaching 90,000 participants in 116 countries.

The PHRD-WBI Capacity Development GrantsProgram plays an integral role in enabling WBI tocarry out its mission and implement country specific

programs in its focus countries, particularly Asia. Japanhas made substantial financial contributions over manyyears to developing individual skills and enhancing or-ganizational excellence. In FY06, Japan approved a newallocation of US$1.8 million to fund WBI’s country-specific programs in its seven focus countries11 in Asia,which were aligned with country assistance strategies,the recipients’ own poverty reduction strategies, andinternationally agreed development goals. The totalPHRD funds that were available to WBI, includingboth the new allocation and the carry-over funds fromprevious fiscal years, amounted to US$5.68 million.This represented about 21 percent of all donor fundsthat were available for WBI use during FY06. A full listof new WBI activities approved for financing throughthe PHRD-WBI Capacity Development Grants Pro-gram in FY06 can be found in Table 3.

One example of country-specific work supported bya PHRD grant is a capacity enhancement program onImproving Intergovernmental Fiscal Design andLocal Financial Management in Turkey. The grantwas instrumental in enabling Turkey to identify inter-ventions to develop and strengthen local governancecapacity and providing training and capacity buildingservices. As a result of this program, the Governmentof Turkey strengthened its municipal sector by design-ing a new intergovernmental transfer formula, estab-lishing monitoring systems for fiscal performance ofmunicipalities and designing capacity building pro-grams for municipal civil servants. This also resulted in

PHRD CAPACITY DEVELOPMENT AND HUMANRESOURCES DEVELOPMENT PROGRAM

15

11 WBI focus countries which received support from Japan’s FY06allocation: Afghanistan, Bangladesh, India, Indonesia, Pakistan,Philippines, and Vietnam.

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Table 3 WBI Capacity Development Activities Supported by PHRD in FY06

PHRD Funding WBI Program Title Amount

East Asia and the Pacific

Indonesia Country Program $600,000

Strengthening Urban Management and Service Delivery for the Poor

Monitoring and Evaluation of Local Government Capacity

Capacity Strengthening of Parliament

Public Information Capacity in Local Governments

Knowledge Sharing and Consensus Building Workshops on Investment Climate

Capacity Building for Indonesia’s Ministry of Trade

Vietnam Country Program $300,000

Parliamentary Oversight

Ho Chi Minh National Political Academy (HNPA): Short term courses on topics critical to Vietnam’s reform program and Training of Trainers

Sustainable Urban Development and Management Training Program for Vietnam

Philippines Country Program $300,000

Strengthening of LGUs in the delivery of basic services

Health Sector Flagship Program

Increase social inclusion, particularly at the local government unit (LGU) level

South Asia

Afghanistan Country Program $50,000

Improving Livelihoods

Bangladesh Country Program $40,000

Course on Debt Management and Fiscal/Public Economics

India Country Program $310,000

Public Sector Management and Governance

Capacity Development for Local Government

HIV/AIDS control focusing on fostering a committed leadership and increased awareness in fighting the epidemic

Capacity Building for Improving the Investment Climate in India

Pakistan Country Program $200,000

Millennium Development Goals (MDGs) Monitoring Capacity Development – Advanced Impact Evaluation Course

Public-Private Partnerships for Better Health Outcomes in Pakistan

Fiscal Decentralization and Intergovernmental Fiscal Relations

Strengthening the Parliamentary Public Account Committees (PACs): Course for PAC Leadership

Total PHRD Funding in support of new WBI activities approved in FY06 $1,800,000

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a report on local government reform strategy beingpublished by the Prime Minister’s Office and draftlegislation for local government system being submittedto Parliament.

Another example is WBI’s Trade Program, which,jointly with researchers from the Vietnamese Academyof Social Sciences (VASS), completed 15 analytical pa-pers to assess the impact of Vietnam’s WTO accessionon the macro economy and various sectors. Throughthis program, both research and training capacities havebeen improved at VASS and the papers provided thebasis for decision making, and served as teaching mate-rials for the workshops for the National Assembly,trainers, and provincial officials. These workshopsresulted in raising awareness and building consensusamong members of the National Assembly, and amongprovincial officials.

PHRD grants also facilitate collaboration between WBIand Japan. Technical and intellectual resources fromJapanese experts and institutions including the JapanInternational Cooperation Agency (JICA), the Ministryof Environment, the private sector, and universitieshelped WBI to scale up its activities. As a result of these

partnerships, WBI was able to reach more participantsby connecting to partner’s own distance learning sys-tems (e.g. JICA-Net) and enrich its content throughjoint content development.

3.3 The Joint Japan/World BankGraduate Scholarship Program

The Joint Japan/World Bank Graduate ScholarshipProgram (JJ/WBGSP) provides opportunities for mid-career professionals from World Bank member coun-tries to pursue graduate studies in development-relatedfields. The program has two schemes leading to aMasters degree—the Regular Program and PartnershipPrograms. Since its establishment in 1987, the JJ/WBGSP has awarded 3,582 scholarships from a poolof 53,000 applicants for studies at universities in mem-ber countries. Among them, 905 scholarships wereawarded for studies at the various partnership programpartner institutions. With an almost 83 percent rateof return to their home countries (78 percent) or toanother developing country (5 percent), JJ/WBGSPscholars are utilizing the knowledge and skills receivedduring their programs to contribute to development


Photo by country team member.

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Figure 11 Staff and ETC Grants Approved in FY06

ETC 59% Term 28%

Open-ended 13%

in their respective regions and countries. Most gradu-ates now occupy high ranked positions in their respec-tive countries. Many occupy decision-making as well aspublic policy positions including ministerial portfolios.

The JJ/WBGSP supports 11 Partnership Programs inuniversities around the world. These programs enablescholars to receive specialized training in key areas of de-velopment, such as economic policy management andinfrastructure management. Through its partnershipscheme, the JJ/WBGSP contributes to build the insti-tutional capacity of four African universities by sup-porting Master’s degree programs in Economic PolicyManagement.

In FY06, the GoJ contributed almost US$13 millionto the JJ/WBGSP which has allowed the program tosponsor a total of 331 scholars. In FY06, the Programawarded 98 new scholarships under the Regular Programto scholars from 80 different countries and 113 scholar-ships to new Partnership Program Scholars. For the Reg-ular Program, the larger part of awardees (45.5 percent)comes from Africa which also provides two thirds ofthe applicants. It is followed by East Asia and LatinAmerica and the Caribbean (14.3 percent for eachregion). 84.4 percent of awardees serve in the publicsector in their countries, 7.8 percent work for NGOsand 7.8 percent work for regional or internationalorganizations.

The JJ/WBGSP launched the Scaling-Up Program inFY06. The objective of the program is to disseminateand apply the research carried out by JJ/WBGSP schol-ars and to facilitate lifelong knowledge exchange anddialogue among development practitioners and schol-ars. The program held two regional conferences in

Nairobi and in Hanoi in May 2006, where the alumniwere brought together to discuss development issues,including presentations by scholars. These conferencesestablished a solid framework for the graduated schol-ars to share knowledge and establish links with devel-opment practitioners including the Bank’s countryoffices and Japanese Embassies.

3.4 Staff and Extended TermConsultant (ETC) Grants Program

The objective of the PHRD Staff Grants program is tofacilitate the appointment of Japanese nationals as staffmembers of the World Bank, at mid-level. There arethree categories of appointment under this program: (i) Extended-Term Consultants (ETC) who can behired for up to two years; (ii) Term appointments thatcan be hired for a maximum of four years; and (iii) open-ended appointments. ETCs can be financedunder the Japan PHRD Staff Grant program for a max-imum of two years, but can then subsequently be hiredas term or open-ended staff.

In FY06, the GoJ contributed US$2.2 million to theStaff and ETC Grants Program. There were 25 ap-pointments under the program in FY06 for a totalamount of US$2.6 million. Of these, 19 were ETC,five-term, and one open-ended (Figure 11).

Between FY00 and FY06, there were 86 appoint-ments under the Program, of which 49% were forterm appointments, followed by ETC appointments(38 percent) and open-ended appointments (13 per-cent). Soon after the introduction of ETC appoint-ments under the program in FY05, they became very

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The program in its current form is expected to continuefor at least another year. The World Bank is currentlyreviewing its policy on staff appointments under trustfunds and is designing a program which will be stan-dardized for all donor funded staff and consultants.


Figure 12 Staff Employed under PHRD Staff and ETC Program from FY00–FY06

0

5

10

15

20

25

30

FY00 FY02FY01 FY03 FY04 FY05 FY06

Open-ended Term ETC

popular. In two years, the ETC program has accountedfor more than two-fifths of the total appointments(see Figure 12). One of the main reasons is that theprogram finances the full cost of salary and benefits forthe consultants.

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CHAPTER 4

4.1 Introduction

In addition to the Technical Assistance and Capac-ity Building programs, PHRD supports a numberof other World Bank programs. These include the

Japan-World Bank Partnership Program, the JapanConsultant Trust Fund and other Trust Funds whichreceive contributions from the PHRD Fund.

4.2 The Japan-World Bank PartnershipGrants Program

Four new grants were approved under the PartnershipProgram in FY06. Two of these were to support majorevents in the Asia Region. One of these supportedpreparations for the World Bank annual meetingsscheduled for September 2006 in Singapore. The ob-jective was to promote collaborative research amongmajor Asian think-tanks and academics on regional andfinancial issues. This was intended to help strengtheninstitutional capacities and promote more sustainableand longer-term processes for collaboration. The grantwas also intended to support a program of research andconferences that would be relevant to Annual Meetingsthemes and thus help enhance quality and broadenrepresentation. It was expected that this would encour-age Asian policy makers and researchers to play a moreactive role in identifying themes and to participate inthe 2006 Annual Meetings Program of Seminars inSingapore. In the process, it was expected that this grantwould support the Bank’s objective of integrating moredirectly its knowledge sharing role with other opera-tional objectives.

The second of these grants supported the organiza-tion of the Annual Bank Conference on Development

Economics (ABCDE), a forum for discussion on keydevelopment issues between the World Bank, the Asianand worldwide research communities and practitionersand policy makers. The ABCDE 2006, held in Tokyoon May 29–30, 2006 for the first time in East Asia, at-tracted nearly 900 people over two days, making anattendance record for the history of ABCDE. The over-all theme of ABCDE 2006 was “Rethinking Infrastruc-ture for Development” and addressed several majorrelated topics.

Two other grants under the program were to supportthe planned PHRD Evaluation (see Chapter 5) and toprovide continued support to the Tokyo DevelopmentLearning Center.

In its second year, the Tokyo Development LearningCenter (TDLC) cemented its reputation as an indis-pensable partner in enhancing the impact of develop-ment projects. With over 42 partner institutions, theTDLC’s utilization rate exceeded 70%, peaking at145% in December 2005. This has allowed the TDLCto help make expertise within Japan more accessible todeveloping countries. Within the region, the TDLC hasbeen instrumental in strengthening and expanding thecapacity of the Global Development Learning Net-work, while encouraging cross-regional knowledgetransfer between Asia and Africa.

Inaugurated on June 1, 2004, the TDLC has a mandateto become a hub for knowledge exchange, transcendingdistances, serving international and regional organiza-tions, governments, development agencies, universitiesand training institutions as well as NGOs and civilsociety. It assists with their operational needs, coordi-nates training programs or communication events,and fosters communities of practice through the use

PHRD SUPPORTED PROGRAMS

21

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of ICT tools such as videoconferencing. The TDLCrepresents the largest single PHRD partnership programgrant with an indicative allocation of US$25 millionover 5 years.

FY06 saw advances in numerous areas at the TDLC.Its technical capability was well demonstrated at theAnnual Bank Conference on Development Economics(ABCDE) held in Tokyo in May 2006. The TDLC setup a complete broadcasting studio at the venue, en-abling 9 sites to join a local audience of over 900 toenrich discussions on this year’s theme, “RethinkingInfrastructure.”

Development agencies have entrusted the TDLC withtheir programs. For example FASID, the Foundationfor Advanced Studies on International Development, isin its second year conducting seminars via the TDLCfor Japan’s ODA task force, established by the Ministryof Foreign Affairs and comprised of local Embassy,JICA and JBIC staff members.

Programs initiated in the first year have matured, withvisible results in capacity building. A good example isthe Microfinance Training of Trainers Course, first or-ganized in February 2005 with the Asian Development

Bank Institute and the United Nations Capital Devel-opment Fund. Through its unique blended learningapproach combining CD-ROMs, web-based discussionand videoconferencing, this popular course has success-fully accredited 46 microfinance trainers to date, fromAfghanistan to Vietnam.

The Asian Productivity Organization, a partner fromthe TDLC’s earliest days, has now integrated GDLNservices into their training programs, enabling it to ad-minister courses to more member countries in a costeffective manner. Japanese experts on topics such as theToyota Production System have been able to expandtheir reach by conducting lectures for these programsout of the TDLC studio.

With Africa gaining greater prominence on the devel-opment agenda, the TDLC is doing its part, collabo-rating with JICA-Net to facilitate knowledge sharingactivities for the region drawing on Asia’s developmentexperience. The TDLC facilitated the delivery of JICA’sseminars to GDLN centers in Tanzania, Ethiopia,Ghana, Uganda and Mauritania.

In accordance with global trends, disaster risk manage-ment has increasingly become the focus of TDLC

Photo by country team member.

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activities based on achievements in the first year. Pro-gram partners now include: Kyoto University, theInternational Recovery Platform, the Asian DisasterReduction Center and JICA.

Knowledge networks are expanding with the TDLC.Blessed with a growing number of partners experiment-ing with innovative ways to make the GDLN work forthem, the stage is set for the TDLC to begin producinga new set of knowledge-based programs and to continueimproving the quality of its knowledge sharing activities.

Other ongoing Programs continued to make a usefulcontribution to strengthening Japan-World Bank rela-tions. The Policy Dialogue Enhancement SupportFund has continued to support further enhancementof policy level interactions between the World Bankand Japanese stakeholders and organizations, includingmedia, academics, youth, private sector, parliamentari-ans, NGOs and other major constituencies through awide range of outreach activities such as organizing sem-inars, lectures, videoconferences, etc. Dissemination ofthe World Bank’s key messages to the Japanese publicand key constituencies and organizations has also bene-fited by producing dissemination materials and outreachactivities through the Public Information Center inTokyo (PIC Tokyo).

The Public Outreach Support Fund has supportedthe promotion of interactions and partnerships on de-velopment issues between the World Bank and Japanby translation and production of World Bank’s majorpublications including the World Bank Annual Reportand other documents into Japanese. These productshave helped increasing awareness of development issuesamongst key stakeholders in Japan, and as a result,

promotion of knowledge and information sharing be-tween Japan and the World Bank has been enhanced.

Strengthening of the Partnership between the WorldBank and the Japanese Private Sector has supportedenhancing the dialogue with the Japanese businesscommunity and disseminating information regardingthe Bank related to business opportunities. A BusinessInformation Advisor has contributed to increasedawareness among Japanese business consultants aboutthe Bank’s operational business by holding businessseminars and consultations.

4.3 The Japan Consultant Trust FundProgram

In FY06, the Consultant Trust Fund (CTF) Programwas funded by tied grants from 22 participating govern-ments. The CTF is being phased out, and activities areexpected to cease by the end of FY07. As FY05 was thelast year for donors to contribute into the CTF, no newcontribution was made to the CTF program in FY06.

Figure 13 shows the breakdown of Japan CTF distribu-tion of funds by region and network in FY06. Half ofJapan’s allocation went to East Asia and Pacific Regionand to the infrastructure network. This reflects the prox-imity of Japan and ease of travel to the Asian markets andalso the strength of the consulting industry in the energyand mining, transportation and water and sanitation sec-tors. Other networks like Human Development, PrivateSector Development, Poverty Reduction, EconomicManagement and Environmentally and Socially Sus-tainable Development and other smaller vice presiden-tial units received together 15% of the total allocation.


Figure 13 Allocation of Japan CTF Funds by Regions and Networks in FY06

EAP 25%

Global 40%

SAR 10%

MNA 6%

ECA 7%

AFR 6%

LAC 6%

PHRD06_21-26.qxd 5/1/07 1:43 PM Page 23

Disbursements amounted to $6.9 million in FY06,somewhat lower than in FY05, largely because largecontracts were awarded in FY06 through a competitiveprocess (see Table 4). However, these should result inlarger disbursement in FY07.

As part of the Bank’s ongoing Trust Fund Reform, inJuly 2004 the Board of Executive Directors adopted apolicy change under which the Bank no longer acceptstrust funds that impose nationality restrictions on


procurement. It was agreed with the Board that for anyCTF with a remaining balance larger than $1 millionon June 30, 2007, the donor would be invited to reviewwith Management how to use the uncommitted bal-ance. The donor could either reclaim or re-deploy thebalance, or ask the Bank to continue to use its CTFresources for agreed purposes until such time as the re-maining undisbursed amount falls below $1 million (atwhich point the uncommitted remainder would be re-turned to the donor or transferred to other untied trust

Table 4 Japan CTF Disbursements by Region (US$000)

Africa 2,295.18 832.69 524.85 918.24 19.40

East Asia and Pacific 6,757.03 2,201.40 2,518.72 1,624.90 412.01

Europe and Central Asia 861.96 175.11 387.36 262.95 36.54

Latin America and Caribbean 1,711.68 562.02 542.65 470.51 136.51

Middle East and North Africa 1,324.00 392.20 482.87 361.41 87.52

South Asia 336.28 123.68 110.06 102.55 0.00

Global 8,605.05 2,588.80 3,176.12 2,164.33 675.80

Total 21,891.19 6,875.91 7,742.62 5,904.89 1,367.77

Region Cumulative FY06 FY05 FY04 FY03

Grants in support of Slum upgrading are under taken under the Cities Alliance Program. Photo by Francis Dobbs.

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funds, as agreed). As it is expected that Japan will havea remaining balance of more than $1 million at the endof June 2007, the Bank intends to initiate discussionswith Japan on the use of the uncommitted balance.

4.4 Other Ongoing Programs

During FY06 transfers were made from the PHRDFund to three other programs managed by the WorldBank. The largest contribution was of over $39 million,to the Heavily Indebted Poor Countries (HIPC) initia-tive. HIPC provides a comprehensive approach toreducing the debt of the world’s poorest and mostseverely indebted countries.

Other important contributions were made to the CitiesAlliance and the Public-Private Infrastructure AdvisoryFacility (PPIAF).

The Cities Alliance is a global coalition of cities and theirdevelopment partners (including the Government ofJapan) who are committed to scaling up successful

approaches to urban poverty reduction. The Allianceprovides matching grants in support of city develop-ment strategies, citywide and nationwide slum upgrad-ing programs and sustainable financing strategies forcities to attract the long term capital investments neededfor infrastructure development. In FY06 the PHRDFund contributed $1 million to the Cities Alliance.

PPIAF is a multi-donor technical assistance facility thataims at assisting developing countries to improve thequality of their infrastructure through private sectorinvolvement. PPIAF was developed at the joint initia-tive of the Japanese and UK governments, working withthe World Bank. It now has more than a dozen donorpartners. PPIAF assistance can facilitate private sectorinvolvement in the financing, ownership, operation,rehabilitation, maintenance or management of ser-vices including electricity and gas transmission anddistribution, water and sewerage, solid waste, telecom-munications, railways, ports, airports and roads. Japancontributed $2 million to PPIAF in FY06, continuingthe support it has provided consistently to the programsince 1999.

Improving quality of infrastructure is undertaken through technical assistance grants of the PPIAF. Photo by Thomas Sennett.

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CHAPTER 5

5.1 Monitoring the Progress andImpact of PHRD Activities

CFP VP emphasizes results-focused reporting on trust fund activities. Reporting on PHRDgrants covers financial aspects, implementation

status, and completion. The impact of the PHRD Pro-gram is assessed through overall program evaluations.Impact not only takes time to measure but can alsopotentially raise methodological issues in attributingchanges to specific earlier activities.

The annual reports of the overall PHRD Program and the JJ/WBGSP cover both financial aspects andprogress in carrying out grant activities and achievingobjectives. The annual reports are public documents.The PHRD Annual Report is available in both Englishand Japanese.

Audited financial statements (produced six monthsafter the end of the FY) are prepared by external audi-tors and shared with the Government of Japan. TheTrust Fund Accounting Department prepares a detailedquarterly financial report for the PHRD program whichcovers unaudited statements of the current year andcumulative transactions under all main PHRD fundcategories. These quarterly reports are also shared withthe Government of Japan.

In addition to the JJ/WBGSP Annual Report, WBIcarries out tracer studies every two years to analyze theimpact of the program on alumni who completed stud-ies five to six years before. These reports are public doc-uments. The last tracer study was done in FY05 and thenext one is scheduled for FY07.

Occasional reports on both financial and physical aspectsof the PHRD Staff and ETC grants program are pre-pared by Trust Fund Operations (TFO) and provided tothe Government of Japan. A number of financial andphysical progress reports are produced for the Japan CTFprogram, including Donor-Specific reports, which areproduced semi-annually. All these reports are available tothe Government of Japan through the Donor Portal, anon-line reporting system which gives all donors access totheir Trust Fund (TF) related information.

The main instrument for periodic internal reportingon PHRD TA grants is the Grant Report Monitoring(GRM) system. A comprehensive report is prepared inthe GRM system after completion of grant implementa-tion. For grants exceeding US$1 million ImplementationCompletion Memorandum (ICM) reports are prepared.GRM and ICM reports are internal to the World Bank,but are used as a basis for reporting to donors.

The design of the GRM system, introduced in January2005, is closely aligned with the Implementation StatusReport (ISR) which is the monitoring tool for all cur-rent loans and credits financed by the Bank, and withthe Implementation Completion Report (ICR) forreporting on Bank-financed operations which haveclosed. The GRM allows reporting on both qualitativeand quantitative aspects of grant implementation.

Reporting on PHRD grant implementation in theGRM has improved significantly in FY06 with nearly100% reporting compared to around 60% in FY05.

Evaluation of the overall PHRD Program is carried outperiodically. The last report was produced in 2001 andis a public document. Another independent evaluation

MONITORING AND EVALUATION OF PHRD TA ACTIVITIES

27

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study has been commissioned in October 2006 to re-view the impact of the PHRD TA programs from FY00to FY06. The evaluation study will focus on the follow-ing areas: (a) effectiveness and results; (b) relevance;(c) program management; and (d) recommendationsfor further improvement. The methodology of this eval-uation includes desk reviews of key documents, inter-views with a broad range of stakeholders (task teams,staff associated with the management of the program,Sector Managers and Country Directors of the WorldBank, officials in the grant recipient countries, officialsof the Japan Executive Director’s office in Washington,Ministries of Finance and Foreign Affairs of theGovernment of Japan, Japanese Embassy officials), fieldvisits to six countries representing the six regions, and

quantitative analysis. The evaluation study is expectedto be completed in June 2007.

5.2 Review of the Grant CompletionReports

A detailed review of the completion reports of 117grants which closed during FY06 has been carried out.12

These grants included Project Preparation, Project Im-plementation, and Climate Change grants (Table 5).


12 Closed PHRD TA grants include those with closing datesbetween July 01, 2005 and June 30, 2006.

Table 5 PHRD TA Grants Closed in FY06 by Type and Region (in Number and Value in US$)

AFR 17 10.89 1 0.66 — — 18 11.54

EAP 18 11.63 1 0.56 1 0.27 20 12.46

ECA 30 17.37 1 0.21 1 0.89 32 18.47

LCR 32 19.26 1 0.26 2 1.5 35 21.02

MNA 7 2.88 — — — — 7 2.88

SAR 5 3.59 — — — — 5 3.59

Bank-wide 109 65.62 4 1.69 4 2.66 117 69.97 Total

Project Preparation Project Implementation Climate Change TOTAL

Value in Value in Value in Value in Region Number US$ million Number US$ million Number US$ million Number US$ million

Latin America and Caribbean region had the largestshare (US$21 million) of the total amount of PHRDTA grants which closed in FY06, followed by the

Europe and Central Asia region. The Africa and EastAsia and Pacific regions had similar shares of aroundUS$12 million each (see Figure 14).

Figure 14 Total Value of Closed PHRD TA Grants by Region(in US$ million and % share of total US$70.0 million)

LCR $21.3 m(30%)

ECA $18.5 m(26%)

EAP $12.2 m(17%)

AFR $11.5 m(16%)

SAR $3.6 m (5%) MNA $2.9 m (4%)

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The ten countries which received the highest amount ofthe closed grants are shown in Figure 15. Of these coun-tries, three are from Asia, and four from LCR. Brazil

topped the list of the ten countries followed by twocountries in East Asia and Pacific Region (EAP).


Figure 15 Ten Countries with Highest Approved Amount of PHRD TA Grants(in million US$)

0 1 432

Moldova

Turkey

Ukraine

Paraguay

Mexico

Indonesia

Colombia

Vietnam

Philippines

Brazil

US$ million

1.84

1.96

2.07

2.20

2.59

2.61

2.77

3.23

3.31

3.57

About a quarter of the closed grants were for the Healthand other Social Services sector followed by the PublicAdministration and Law sector. The latter sector in-cludes activities focused on central government admin-istration, sub-national government administration,general public administration, and law and justice. Ofthe US$15.0 million closed grants for the Public Ad-ministration and Law sector, about US$ 6.72 millionwas approved to assist with the preparation of 11 oper-ations to provide budget support.

Over 90% of the grants were for Project Preparation(PP). These grants have been used to prepare operationsfor all sectors. Grant Recipients have used technicalassistance for the following: (a) carry out preparatorystudies (e.g. social and environmental assessments);(b) prepare procurement plans, resettlement actionplans, tribal or ethnic development plans to complywith the World Bank’s requirements on procurement,financial management, safeguard and social aspects tobe eligible for loans and credits; (c) carry out stake-holder consultations and information dissemination;(d) commission detailed engineering feasibility studies;(e) carry out economic and financial analysis; (f ) devel-opment monitoring indicators and establish Monitor-ing and Evaluation (M&E) systems; (g) develop legaland regulatory frameworks; and (h) suggest improve-ments in public policies.

About 90% of the PP grants reported satisfactory im-plementation and achieved the stated developmentobjectives. There were six grants which were reportedto have exceptional outcomes with regard to assistingRecipients in integrating social and environmentalissues in technical aspects of project design, adaptinginternational best practices to country contexts, andbuilding ownership of the design and approach of theassociated operation.

Of the 109 closed PP grants, 77% of the associatedoperations had been approved by the World Bank’sBoard of Executive Directors by end FY06. Another16% is expected to be approved in FY07 and lateryears. Only 7% (8) of the associated operations weredropped from the lending program. Several reasonsare given for dropping projects from the lendingprogram:

� Change in government policy;

� Change in Bank’s policy for lending in a particularsector;

� Changes in the lending instrument (e.g. from a sec-tor adjustment operation to an sector investment)

� Grant Recipient unwilling to continue with reformprogram.

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Figure 16 shows that in all regions except MNA andSAR over 70% of all PP grants were associated with pro-jects that had been approved by the Board by end FY06.The sample sizes in MNA and SAR were small and maynot be meaningful.

The four CCIG grants were used to finance activities inthe agriculture, water and flood control, and energysectors. These grants focused on developing a betterunderstanding of carbon fixation and storage in differ-ent land use systems in indigenous territories; strength-ening organizations including municipalities; andpiloting initiatives to define the costs and benefits ofswitching from fossil fuels to wood; harvesting naturalgas (which otherwise escapes to the atmosphere) to se-cure carbon credits and to the extent feasible, utilizingthe gas for power generation to benefit local communi-ties; and reducing vulnerability to climate change, cli-mate variability, and sea-level rise. All the grants wereimplemented satisfactorily and achieved the stated de-velopment objectives. Two of the grants are reported tohave had excellent outcomes. The results of the pilot onthe switching fuels business model generated consider-able interest among the private sector to scale-up andalso enhanced the capacity for management of forest re-sources. One of the indigenous organizations whichparticipated in the pilot initiative on the quantification

of carbon fixation and storage negotiated a US$20,000carbon sale contract with an Italian company whichcorresponded to about 9 million hectares of naturalregeneration.

The PI grants were used to support implementa-tion of projects in the agriculture, health, public ad-ministration and transportation sectors. The grantsfocused on building capacity of the project implemen-tation ministries to improve public transport services;develop databases, improve information flow anddissemination, develop participatory evaluation guide-lines, train community members, support municipali-ties to provide cost-effective and relevant services tothe community, and help develop a better understand-ing of the health sector financing mechanisms andstatus of the health infrastructure. The grant imple-mentation performance overall was satisfactory and thestated development objectives were achieved. As a re-sult of the grant supported activities, one recipientMinistry is now able to prepare its own national ac-counts, a sector wide plan to harmonize financingby the donors and the government and a rational in-vestment budget. Another grant helped the recipiententity to redefine its roles, reduce staff costs, andstreamline its activities in response to fiscal and politi-cal constraints.


Figure 16 Status of Approval of PHRD TA Project Preparation Grant AssociatedOperations (in number and % of region)

Number approved % Approved

76

90

81

13 13 27 25

3 30

5

10

15

20

25

30

AFR EAP ECA LCR MNA SAR

Num

ber

0

50

40

30

20

10

60

70

80

90

100

% o

f R

egio

n

Regions

74

43

60

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CCIG grant helped to generate interest in management of forest resources. Photo by Curt Canemark.

While each of the three types of grants has a statedobjective, the review noted several common positiveindirect outcomes. These are:

� Capacity building: This happened in three ways:(a) knowledge transfer from consultants who havebeen able to bring the best practices from around theworld and effectively worked with the counterpartteam to adapt to the country situation; (b) in caseswhere the technical assistance team worked with amulti-sector team, inter-ministerial coordination im-proved and understanding of the sector issues in-creased; (c) grant implementation helped the staff ofthe government agencies to understand the procure-ment and financial management procedures whichlater helped to speed up implementation of the asso-ciated operation;

� Increased Participation: Grant funds helped to orga-nize extensive consultation with key stakeholdersresulting in better project design;

� Better understanding and appreciation of “soft” develop-ment issues: It has been reported that grant supportedtechnical assistance helped staff of the technical min-istries to appreciate issues of gender, social inclusion,

ethnicity, and vulnerability. This understandingdeveloped through interaction with the team on theanalytical studies, training and information dissemi-nation in the stakeholder workshops;

� Leveraging funds: In many cases, the quality improve-ment in the project design as a result of good analyt-ical work, helped to mobilize other donor funds aswell as increased government contribution to the sec-tor budget. The findings and conclusions of many ofthe analyses supported by the PHRD grants helpedthe Recipient government and also the donors to un-derstand the financial needs of the sector. In severalcases, private sector participation is reported to haveincreased.

Disbursement from the approved grant amount ofUS$70 million averaged 70 percent Bank-wide (see Fig-ure 17). The Latin America and Caribbean, and Europeand Central Asia regions disbursed about 80 percent ofthe total amount of the FY06 closed grants. This ismainly because of satisfactory grant implementationperformance. About one third of the closed grants inEast Asia and Pacific region disbursed 100 percent ofthe total value of the grants (20), while Latin America

PHRD06_27-34.qxd 5/1/07 1:45 PM Page 31


and Caribbean region fully disbursed about one-fifth oftheir total (30). Of the 117 closed grants, Bank-wide,15 percent of the grants disbursed fully.

At least 35% of annual submissions of PHRD TAgrants are intended to be for countries in East, Southand Central Asia.13 This proportion has always beenexceeded in the breakdown of submitted and approvedgrants. About 28% of the closed grants in FY06 werereceived by Asian countries. About two-thirds of thegrant amount for Asian countries were received bycountries in the EAP region.

At least 35% of annual PHRD grant submissions are in-tended to be for IDA14 countries. Over half of the FY06

closed grants were for IDA countries (see Figure 18).The number of grant associated operations using IDAfunds is the smallest in LCR and MNA. In EAP, one ofthe focus regions for PHRD TA grants, several coun-tries do not or are not eligible for IDA funds.

Figure 17 Disbursement Performance of Closed PHRD TA Grants by Region (% of Region’s total approved amount)

$7.0 m (61%)

Per

cent

age

$9.6 m (79%) $15.0 m (81%)$16.5 m (78%)

$1.9 m (68%)

$0.7 m (21%)

0

20

10

30

40

50

60

70

80

90


Regions

13 There is no legal definition of Asian countries. The PHRD TAguidelines refer to all countries in the East Asia and Pacific region,South Asia region and central Asian countries in the ECA region asAsian countries. Central Asian countries included in this review in-clude: Armenia, Azerbaijan, Kazakhstan, Kyrgyz Republic, Tajikistan,Turkmenistan and Uzbekistan.

14 IDA is the window for soft lending by World Bank.

Figure 18 Share of IDA Financing in the Total Value of Closed PHRD TA Grant Received by Region

100

Per

cent

age

49 48

22

0

83

0

20

40

60

100

80

120


Regions

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The share of closed PHRD TA grants received by IDAcountries Bank-wide was about half of the total amountof the grants (see Table 6). Since Africa region only hasIDA borrowers among eligible countries, 100 percentof the grants were for operations related to lending from

IDA. South Asia received the next highest share (83%).Only 22 percent of the approved grants were for IDAcountries in Latin America and Caribbean region.Neither of the two IDA countries in MNA receivedany grants.


Table 6 Sources of Financing of PHRD TA Grant Associated Operations

AFR 18 11.5 0 0 — — — —

EAP 11 60.6 16 5.27 2 0.92 — —

ECA 16 8.8 21 8.78 1 0.89 — —

LCR 9 4.7 25 15.03 2 1.51 1 0.27

MNA 0 0 6 2.61 — — — —

SAR 4 3 1 0.6 — — — —

Total 58 34.13 53 32.29 5 3.32 1 0.27

as % of — 48.8% — 46.1% — 4.7% — 0.4%total grant amount

IDA IBRD GEF SPF

Number Amount in Number Amount in Number Amount in Number Amount in Region of Grants US$ million of Grants US$ million of Grants US$ million of Grants US$ million

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CHAPTER 6

6.1 Information on PHRD

The major reference sources for more informa-tion on PHRD and the programs it supports arewebsites publicly available in English, and often

also in Japanese and other languages.

The main PHRD website is www.worldbank.org/rmc/phrd/phrd.htm

This website includes details of the PHRD TechnicalAssistance program, the Japan: World Bank PartnershipProgram and the Japan Staff and ETC Grants Program.The website also provides access to PHRD AnnualReports in both English and Japanese.

The website of the Tokyo office of the World Bank also includes information on PHRD, in English at:www.worldbank.org/japan/about and in Japanese at:www.worldbank.org/japan/about-j

The World Bank Institute website is www.worldbank.org/wbi. The Joint Japan/World Bank Scholarship (JJ/WBGSP) program website is at www.worldbank.org/wbi/scholarships. This website also provides access to

the JJ/WBGSP Annual Reports and to their TracerStudies.

The Tokyo Development Learning Center, supportedby the PHRD Partnership Program has its own website:www.jointokyo.org. This website is maintained in bothJapanese and English languages.

6.2 Programs Supported through PHRD

The largest program supported through the PHRDFund is the Heavily Indebted Poor Countries (HIPC)initiative. Much more information on this will be foundat the following site:

http://www.worldbank.org/hipc/about/hipcbr/hipcbr.htm

Other key programs supported through the PHRDFund include in FY06:

The Consultants Trust Fund: http://wbln0023/rmc/rmc.nsf/DOCs/CTF+Home?OpenDocument

CEPF: www.cepf.netPPIAF: www.ppiaf.org/

ADDITIONAL SOURCES OF INFORMATIONON PHRD AND PROGRAMS SUPPORTEDBY THE PHRD FUND

35

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ANNEX 1

LIST OF APPROVED FY06 TECHNICAL ASSISTANCE GRANTS

AFRICA REGION

AmountCountry Grant Name (US$) Grant Type

West Africa West Africa Agricultural Productivity Program 750,000 Project Preparation

Burundi Community Support for Social Recovery Project 265,000 Project Preparation

Congo Agriculture and Rural Roads Rehabilitation Project 500,000 Project Preparation

Democratic Urban Water Supply 990,000 Project PreparationRepublic of Congo

Ethiopia Humbo and Soddo Community-Managed Natural 189,850 Climate ChangeRegeneration Project

Ethiopia Tana-Beles Water Resources Development Project 1,000,000 Project Preparation

Kenya Capacity Building and BioCarbon Fund Pilot Implementation 462,250 Climate Change

Kenya Institutional Reform and Capacity Building Project 3,150,000 Cofinancing

Madagascar Poverty Reduction Support Credit 4 830,000 Project Preparation

Malawi National Water Development Program II 1,000,000 Project Preparation

Mozambique Capacity Building to Support the Development of 494,150 Climate ChangeCarbon Finance Transactions

Niger Niger Acacia Senegal Plantation Initiative (NASPI) 696,600 Climate Change

Nigeria Fadama III 828,000 Project Preparation

Nigeria Federal Roads Development Project 3,000,000 Cofinancing

Senegal Quality Education for All, Phase 2 4,000,000 Cofinancing

Sierra Leone Rural and Private Sector Development 270,000 Project Preparation

Southern Africa Southern Africa Development Community Capacity Building 975,000 Project PreparationDevelopment and Institutional DevelopmentCommunity

Southern Africa Southern Africa Multi-country Agricultural Productivity 1,000,000 Project PreparationDevelopment Program (SADC-MAPP)Community (SADC)

The Gambia Third Education, Phase 2 3,000,000 Cofinancing

Africa Region total 23,400,850

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EAST ASIA AND PACIFIC REGION


Cambodia Provincial and Rural Infrastructure Project 450,300 Project Implementation

Indonesia Marginal Fishing Communities Development Project 702,000 Project Preparation

Indonesia Urban Sector Development Reform Project (USDRP)-2 1,000,000 Project Preparation

Indonesia Bali Biomass Power: Demonstrating Mitigation 645,828 Climate Changeof Climate Change

Lao People’s Poverty Reduction Support Operation 3 600,000 Project PreparationDemocratic Republic

Mongolia Sustainable Livelihoods Project II (SLPII) 750,306 Project Preparation

Mongolia Infrastructure Services Delivery Project 406,000 Project Preparation

Philippines Private Sector Development Support for Rural Finance 530,000 Project Preparation

Philippines Private Sector Development Support/Guarantee 1,000,000 Project Preparationfor Power Reform

Philippines Environment and Natural Resources Management 265,000 Project PreparationProgram (ENRMP)

Philippines National Sector Support for Social Welfare and 500,000 Project PreparationDevelopment Reform

Philippines Public-Private Participation in Transport Infrastructure 1,000,000 Project Preparation

Philippines National Roads Improvement and Management 677,000 Project PreparationProgram—Phase 2

Philippines KALAHI—Comprehensive and Integrated Delivery 199,180 Project Implementationof Social Services (CIDSS) Project

Solomon Islands Rural Development Project 405,000 Project Preparation

Vietnam Urban Water Supply Development II 1,000,000 Project Preparation

Vietnam Second Higher Education (HEP-2) 4,800,000 Cofinancing

Vietnam Mekong Health Support Project 5,000,000 Cofinancing

Vietnam Tax Administration Modernization Project (TAMP) 999,000 Project Preparation

East Asia and Pacific Region total 20,929,614

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ANNEX 1 39

EUROPE AND CENTRAL ASIA REGION


Albania Health Sector Modernization Project 1,610,000 Cofinancing

Albania Land Management and Urban Development Project 1,537,000 Cofinancing

Albania DPL II 895,000 Project Preparation

Azerbaijan Agricultural Development and Credit Project-II 1,611,000 Cofinancing

Azerbaijan AGRICULTURAL DEVELOPMENT & 400,000 Project PreparationCREDIT PROJECT 2ND PHASE—ADCP 2 (APL 2)

Azerbaijan Health Sector Reform Project 580,000 Project Preparation

Azerbaijan Second Poverty Reduction Support Credit (PRSC2) 984,500 Project Preparation

Azerbaijan Judicial Modernization Project 3,000,000 Cofinancing

Azerbaijan Corporate and Public Sector Accountability Project 895,000 Project Preparation

Bulgaria Municipal Infrastructure Development Project 500,000 Project Preparation

Croatia Croatia Inland Waters Project 500,000 Project Preparation

Georgia East-West Highway Improvement Project—Phase 2 440,000 Project Preparation

Kazakhstan Syr Darya Delta Control and Northern Aral Sea 800,000 Project PreparationPreservation Project—Phase-II

Kyrgyz Republic Water Management Improvement Project 4,400,000 Cofinancing

Kyrgyz Republic Payments and Banking System Modernization 330,000 Project ImplementationProject (PBSM P074881—KG3871)

Moldova Social Protection Management Project 571,500 Project Implementation

Serbia and Montenegro Second Programmatic Private and Financial 800,000 Project PreparationDevelopment Policy Loan

Serbia and Montenegro Bor Regional Development Project 875,000 Project Preparation

Turkey Second Programmatic Public Sector Development 900,000 Project PreparationPolicy Loan (PPDPL2)

Ukraine Industrial Rehabilitation and Kyoto Mechanisms 889,900 Climate Change

Ukraine Roads and Safety Improvement Project 700,000 Project Preparation

Ukraine Second Development Policy Loan 700,000 Project Preparation

Ukraine Judicial Reform Support Project 500,000 Project Preparation

Europe and Central Asia Region Total 24,418,900

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LATIN AMERICA AND THE CARIBBEAN REGION


Brazil Bahia Integrated Water Resource Management 978,000 Project PreparationProject (PGRH II)

Brazil Sustainable Transport and Climate Change for Brazil 225,600 Climate Change

Chile Chile—Transport and Air Quality for Santiago 270,000 Climate Change

Colombia San Nicolas Carbon Sink Project 498,000 Climate Change

Colombia Second Programmatic Development Policy Loan for 558,000 Project PreparationSustainable Development

Colombia Monitoring and Evaluation Project 600,000 Project Preparation

Dominican Republic Rural Community Development 500,000 Project Preparation

Ecuador Second Poverty Reduction and Local Rural 480,000 Project PreparationDevelopment Project (PROLOCAL II)

Ecuador Natural Resources Management of Galapagos and 820,000 Project Preparationthe Ecuadorian Coast

El Salvador El Salvador—Development Policy Loan III 910,000 Project Preparation

El Salvador Second Public Sector Modernization Project 835,000 Project Preparation

Honduras Adaptation to Climate Change (ACC) 300,000 Climate Change

Honduras Strengthening of Aid Coordination Capacities 471,000 Aid Coordination

Jamaica Jamaica Early Childhood Development 559,000 Project Preparation

Nicaragua III Phase of the Health Services Extension and 827,600 Project PreparationModernization Program

Panama Water Supply and Sanitation for Low-Income 500,000 Project PreparationCommunities

Panama Social Protection 644,600 Project Preparation

Paraguay Land Access and Administration for Rural 425,000 Project PreparationPoverty Reduction

Peru Peru Decentralized Rural Infrastructure 760,000 Project Preparation

Latin America and the Caribbean Region Total 11,161,800

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ANNEX 1 41


Egypt, Arab Republic of Upper Egypt Integrated Governorates Development Project 730,000 Project Preparation

Egypt, Arab Republic of Gas Infrastructure Project 500,000 Project Preparation

Iraq Second Emergency Water Supply and Sanitation Project 800,000 Project Preparation

Iraq Emergency Electricity Reconstruction Project 495,000 Project Preparation

Jordan Social Protection Enhancement Project 495,000 Project Preparation

Jordan Employer-Driven Skills Development 350,000 Project Preparation

Jordan Cultural Heritage, Tourism, and Urban 700,000 Project PreparationDevelopment (CHTUD)

West Bank and Gaza Palestinian NGO III 345,000 Project Preparation

Middle East and North Africa Region Total 4,415,000

MIDDLE EAST AND NORTH AFRICA REGION

SOUTH ASIA REGION


Bangladesh Social Investment Program II (Rural Livelihoods) 405,000 Project Preparation

India Bihar Rural Livelihood Development Project 535,000 Project Preparation

India Gas Recovery and Reuse from Closure of Three Delhi 489,000 Climate ChangeLandfills (Carbon Finance)

India Technical Assistance for Public Private 930,490 Project PreparationPartnerships (PPP) in Infrastructure.

Pakistan Pakistan: Sustainable Management of Mineral Resources 750,000 Project Preparation

Pakistan Pakistan: Punjab Large Cities DPL 750,000 Project Preparation

Pakistan Capacity Building for Development and Implementation 570,000 Climate Changeof Carbon Finance Projects

Sri Lanka Gemi Diriya II (Estates) 385,000 Project Preparation

Sri Lanka National Water Management Improvement Project (NAWAM) 550,000 Project Preparation

South Asia Total 5,364,490

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AVIAN FLU COFINANCING GRANTS


Cambodia Avian and Human Influenza Control and Preparedness Emergency Project 3,000,000 Cofinancing

Indonesia Avian and Human Influenza Control and Preparedness Project 5,000,000 Cofinancing

Lao PDR Avian and Human Influenza Control and Preparedness Project 2,000,000 Cofinancing

Albania Avian Influenza Control and Human Pandemic Preparedness 800,000 Cofinancingand Response Project

Armenia Avian Influenza Preparedness Project (AIP) 803,900 Cofinancing

Georgia Avian Influenza Control and Human Pandemic 1,400,000 Cofinancing

Kyrgyz Republic Avian Influenza Control and Human Pandemic Preparedness 1,000,000 Cofinancingand Response (AIPP)

Moldova Avian Influenza Control & Human Pandemic Preparedness 500,000 Cofinancing& Response Project

Total of Avian Flu 14,503,900

WORLD


World 06 Singapore Annual Meetings Program of 990,000 Special ProgramsSeminars—Collaborative Research/Outreach

World Global Development Awards and Medals 300,000 Special Programs

World ABCDE 2006 791,618 Special Programs

World Japan-WB Policy Dialogue Enhancement Support Fund—Phase III 280,373 Special Programs

World Japan-WB Public Outreach Support Fund—Phase II 573,000 Special Programs

World Evaluation of PHRD Technical Assistance program 650,000 Special Programs

World JSDF Evaluation 497,750 Special Programs

World total 4,082,741

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ANNEX 2

1. Objective. To provide technical assistancegrants to recipient countries, or their agencies,to help prepare or implement Bank-financedoperations.15 Grants approved under the pro-gram are subject to the criteria set forth in theseGuidelines.

2. Priority Areas and Activities. Technical Assis-tance grants would maintain a poverty focus.The following should be aimed at: at least 35%of the annual submissions, by amount, are forIDA and blend countries and at least 35% arefor Asia, including East, South and CentralAsia. Grant funding proposals should be sub-mitted under the following programs:

(i) Project Preparation: For lower and lower-middle income countries16 all sectors areeligible. For upper-middle income countries,proposals would be eligible only to support oneor more of the following priority areas: (a) Bankoperations in the following sectors: education,health, nutrition, water supply and sanitation,social protection, social development and envi-ronment; (b) participatory community devel-opment activities, and those that involve NGOsand civil society; (c) gender; and (d) projectstargeted at groups or areas that are clearlydisadvantaged in terms of poverty indicatorswhich are in line with the MDGs.

In the case of all project preparation proposals,the follow-on Project must be listed in theIBRD/IDA Lending Program Summary in theCAS, or the CAS Update, or equivalent docu-ment, such as the Transitional Support Strat-egy in the case of post-conflict countries,which is endorsed by the Bank’s Board ofDirectors.17

(ii) Project Implementation: For IDA/IDA-blend and lower-middle income countries,Implementation proposals in support of ongoingBank-funded projects, approximately one yearunder implementation, to address weaknesses inthe capacity of implementing agencies. Proposalsmust clearly identify the implementationcapacity problems that will be rectified by thetechnical assistance grant.

(iii) Climate Change Initiatives: To: (a) sup-port the inclusion of climate-change concerns inthe country’s development planning processand the acquisition of knowledge in the assess-ment of the impact of local greenhouse gases(GHG) emissions in the recipient country;

JAPAN PHRD TECHNICAL ASSISTANCE GRANTSPROGRAM FY06 ANNUAL POLICY GUIDELINESAND PROGRAM ALLOCATIONS

15 Bank financed operations are those funded by IBRD loans, IDAcredits, and IDA grants.

16 As defined in the World Development Report 2005.

17 Conditional approval may be granted if the following require-ments are satisfied: (i) the follow-on project, which will be preparedwith the PHRD Project Preparation Grant, will be listed in the nextCAS or CAS update (or equivalent document); and (ii) the next CASor CAS update (or equivalent document) discussion date at the Boardcan be found in the Board meeting schedule available with the WorldBank Executive Directors. Final approval will be granted by CFP atthe time the CAS or CAS update (or equivalent document), in whichthe said project is listed, is discussed by the Board of Directors of theWorld Bank.

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and (b) support initiatives—including pilotactivities—for the reduction of GHG emissionsas developing countries increase energy produc-tion to improve standards of living and promoteindustrial growth as they move towards eradica-tion of poverty. Proposals must be linked toBank-financed operations or activities sup-ported by the Prototype Carbon Fund, the Bio-Carbon Fund, and the Global EnvironmentFacility, or other environmental funds managedby the World Bank. (Separate operating guide-lines have been agreed for this program).

(iv) Project Cofinancing: To co-finance insti-tutional capacity building components of oper-ations supported by IDA credits and grants.The technical assistance should strengtheninstitutional capacity to facilitate the imple-mentation of the project’s key policy reformsand good governance initiatives. The grantswould meet the funding needs of IDA andblend countries where borrowing for suchassistance may be unaffordable given budgetaryand borrowing limitations. (Separate operatingguidelines have been agreed for this program.)

(v) Enhancing Aid Coordination: To supportthe lower and lower-middle income countries,which have relatively firm management capac-ity, but need help in enhancing aid coordina-tion capacity for effective and efficient use ofdonor funds. The capacity enhancement strat-egy must be agreed between the country and thedonors, including the Bank and the Govern-ment of Japan (GoJ). This grant is expected tobe provided selectively for a few countries in ayear, of which the majority will be to countriesin East, and South Asia.

3. Funding Proposal and Amount. Grants areapproved by GoJ on the basis of a one-pageFunding Proposal. The Proposal will includethe Project Development Objectives, the GrantObjectives, and Expenditure Categories. CFPwill invite proposals from the Bank’s RegionalVice Presidential Units informing them of thetotal amount available and the notional alloca-tions for each Region. Project Preparation,Project Implementation and Climate ChangeProposals may normally not exceed US$ 1 mil-lion. The maximum amount for a ProjectCofinancing Proposal would be limited to

$5 million. Only a single grant per operationmay be requested. Enhancing Aid CoordinationProposals may normally not exceed US$ 2 mil-lion. Supplemental requests are not eligibleunder PHRD.

4. Supplementary Information. In addition tothe one-page Funding Proposal, supplementaryinformation (Background Information) is alsorequired. Up to 10 percent of the grant amountmay be included for studies to be determined,provided the funds are used for meeting theobjectives of the grant during implementation.

5. Eligible Expenditures. In the case of projectpreparation, implementation and EnhancedAid Coordination proposals, eligible expendi-tures include: (i) consultant services and;(ii) non-consultant costs, up to 10% of the totalgrant amount, for local training, and minimalequipment and operating costs essential to carryout the technical assistance. Workshops, localconsultations, and training may be includedif the requests clearly demonstrate these activi-ties will enhance the quality of the technicalassistance. Civil works are not eligible. All ex-penditures would be eligible for 100% financ-ing under PHRD. For Project Cofinancingand Climate Change Initiatives, see separateoperating guidelines.

6. Ineligible Expenditures. Expenditures on thefollowing activities are ineligible: study tours,foreign training, implementation of pilot pro-grams,18 purchase of vehicles, salaries for civilservants in recipient countries, Extended TermConsultants, and Bank staff (open-ended, term,and seconded staff) salaries or travel expenses.

7. Schedule. PHRD grant proposals would besubmitted to GoJ up to three times in a year.GoJ would confirm its decisions on proposalswithin four weeks from submission where GoJis satisfied with the contents of the application.In case GoJ seeks clarifications, the final deci-sion on the funding proposal may take longer.

8. Grant Execution Arrangements. Project Im-plementation, Climate Change Initiatives, andCofinancing grants must be recipient-executed.Project Preparation Grants would normally be


18 Pilots may be funded under Climate Change Initiatives Grants.

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executed by the recipient’s project implement-ing agency. However, the Bank may considerwaiving the requirement for recipient executionin accordance with Bank policy (see OP 14.40)in the following cases: emergency operations,HIV/AIDS projects in LICUS countries, andpost conflict countries. Grant closing date forproject preparation grants would be the same asthe expected effectiveness date of the ensuingBank Loan or IDA Credit, or six months fromthe Board Approval Date, whichever comesfirst. In any case, the total term of the grantshould not exceed four years after signature of thegrant agreement. Any exceptions would need tobe fully justified and would require CFP’s clear-ance. The Bank, through the designated TaskTeam Leader of the project, would carry out itsfiduciary responsibilities for grant supervision,with due attention to economy and efficiency,and generally in accordance with the standardsapplicable to Bank Loans or IDA Credits.

9. Progress Reporting. For the purposes of moni-toring the development outcomes, the grantagreement—based on the one-page FundingProposal—will be the binding document. TheTask Team Leader will be responsible forpreparing annual Grant Status Reports, ratingthe status of grant implementation, and docu-menting deliverables and outputs. For grantsover US$1 million, an Implementation Com-pletion Memorandum (ICM) will be preparedat completion documenting actual cumulativeinputs, outputs and outcomes through thegrant implementation period, and the resultswill be shared with the donor. For grants underUS$1 million, the final Grant Status Reportwill include additional information regardinggrant activity outcomes.

10. Reallocations of Funds and Changes in Scope.Reallocations of grant expenditure categoriesand activities, including dropping or adding neweligible categories or activities (see paragraphs 5and 6 above), may be approved by the Sector orCountry Director, as appropriate. Advice maybe sought from Legal and CFP. For ProjectPreparation and Implementation grants, underno circumstances will the total amount for non-consultant expenditure categories exceed10 percent of the grant amount. Legal Depart-ment should be consulted if any amendments to

the Grant Agreement are required. All amend-ments to the Grant Agreement must be signedby the Country Director. For changes in theDevelopment Objectives of the Bank-fundedProject, a request must be submitted to CFPwhich will determine if approval is requiredfrom GoJ. If the request is submitted to GoJ, itwould provide its decision within four weeksfrom the receipt of the request from CFP.

11. Grant Cancellation Policy. The balance ofgrants are subject to cancellation under thefollowing circumstances: (i) the Project hasbeen dropped (signed contracts may be paidwith CFP’s approval); (ii) the Project is pre-sented to the Board or Approved; (iii) the grantagreement has not been signed 6 months afterapproval of the grant; (iv) no implementationprogress including zero disbursements for sixmonths after signature of the grant agreement,or (v) there is lack of progress as determined byCFP. CFP may clear exceptions on the basis ofa satisfactory explanation.

12. Japanese Visibility and Engagement of LocalJapan Officials. It is highly recommended thatthe task team inform the Japanese embassy ac-credited to the recipient country about a PHRDapplication under preparation. Prior informa-tion sharing by task teams will help expedite thedecision making process. Staff in operationalunits should also encourage grant signingceremonies in the field, with the inclusion ofJapanese embassy officials, inviting local andinternational press to these ceremonies. Taskteams should aim to inform the Japanese em-bassy as well as CFP—which will alert theJapanese authorities in Tokyo—at least 10 daysin advance of the signing ceremony. Decisionson any future PHRD grant proposals for acountry would take into consideration theBank and recipient’s efforts to comply with theabove. In addition, CFP may promote visibilityof PHRD by: (i) informing Country Directorsof the importance of signing ceremonies toJapanese officials and the public to ensurerecognition and support for PHRD funding;and (ii) continuing widespread distribution ofthe PHRD Annual Report, inclusion of PHRDinformation in relevant Bank documents, andoccasional information sessions for Japaneseorganizations.

ANNEX 2 45

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13. Maintenance of Documentation. Operationaldepartments will keep copies of key documen-tation related to PHRD grants, includingTerms of Reference and contracts for consul-tants subject to the Bank’s prior review, reports

and other outputs prepared by consultants,in accordance with the Bank’s documentretention policy. Task teams should alsosend the original grant agreement to the Legaldepartment.


Table 1

Date of SubmissionRound Announcement: to Japan:

December 2005 February 2006

February 2006 April 2006

Table 2 TENTATIVE SCHEDULE FOR FY06 PHRDTECHNICAL ASSISTANCE AND COFINANCINGPROGRAM

FY06 PHRD TECHNICAL ASSISTANCE AND COFINANCING GRANT PROGRAM ALLOCATION

The FY06 allocation, to be approved through three rounds during the fiscal year, is as follows:

AmountAllocations by Area (US $ million)

Project Preparation 50

Project Implementation 5

Climate Change Initiatives 5

Cofinancing 35

Enhancing Aid Coordination 5

Total Amount 100

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THE FACES OF THE PHRDPartners in Development

Signing ceremony for the PHRD AHIF Avian Flu Project. Photo by country team member.

Signing ceremony for the PHRD AHIF Avian Flu Project. Photo by country team member.

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japan policy and human resources development fund japan policy

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