MENA Transition Fund
What is the
MENA Transition Fund?
The Deauville Partnership with Arab
Countries in Transition requested the World Bank to establish the MENA
Transition Fund. This special fund was approved September 25, 2012, by The World
Bank’s Board of Executive Directors. The objective of the fund is to support the
transformation currently underway in several countries in the region by
providing funds for technical cooperation to strengthen governance and public
institutions, and foster sustainable and inclusive economic growth by advancing
country-led reforms with the ultimate goal of improving the lives of citizens in
Why is a new fund being
At its May 2011 summit, the G8 launched the Deauville
Partnership with Arab Countries in Transition as a "long-term, global
partnership to respond to the historic changes in some of the countries in the
On April 20, 2012, Finance Ministers of the Deauville
Partnership endorsed the creation of a new Transition Fund that would complement
other multilateral and bilateral initiatives. The new fund would provide
additional financing to help countries scale up transformational and
cross-cutting proposals across a broad range of inter-related thematic areas,
which are in full alignment with the pillars of the Bank’s
MENA strategy and with the Deauville Partnership (finance, trade and
eligible to participate in the Transition Fund?
eligible to receive financing would initially include Egypt, Jordan, Libya,
Morocco and Tunisia; other countries in the region may be added later, as
determined by the Deauville Partnership and approved by the fund Steering
International Financial Institutions (IFIs) eligible to become
Implementation Support Agencies (ISAs) to provide implementation support to
transition country proposals are: the African Development Bank, Arab Fund for
Economic and Social Development, Arab Monetary Fund, European Bank for
Reconstruction and Development, European Investment Bank, International Finance
Corporation, International Monetary Fund, Islamic Development Bank, OPEC Fund
for International Development, and The World Bank.
What is the Bank’s role in the
As a key development partner supporting the MENA transition
countries, the Bank has been asked by its Deauville partners to support the
Transition Fund in several capacities. During the initial phase, the Bank will
contribute to the fund’s design and set-up. Once the fund is established, the
roles envisaged for the Bank include serving as Trustee, setting up and managing
the fund’s Coordination Unit, providing implementation support, and
participating as an observer in the fund’s Steering Committee.
Trustee. The MENA Transition Fund will be established as a Financial
Intermediary Fund (FIF). FIFs are multilateral financial mechanisms that support
global development initiatives for which the World Bank acts as financial
trustee and provides an agreed set of financial intermediary services, which
include, but are not limited to, receiving, holding and transferring funds to
Implementation Support Agencies. In its Trustee role, the Bank is not
responsible for or accountable to donors or FIF governing bodies for the use of
funds after transfer.
Coordination Unit. The Bank’s MENA region will manage the fund’s
Coordination Unit, whose function is to facilitate the work of the Steering
Committee by serving as a liaison between Steering Committee, the Trustee, the
Roster of Experts, and the ISAs.
Implementation Support Agency. As an ISA along with other IFIs, the
Bank would help prepare/appraise, monitor, and report on projects proposed by
Transition Countries to be funded by grants from the Transition Fund, in
accordance with its own policies and procedures, working with transition
- Observer to Steering Committee. A Steering Committee will be
established to oversee the operations of the Transition Fund, as well as its
funding decisions. The Bank will participate in the committee as an observer.
How will the
World Bank’s performance on the fund be monitored?
To help with
the continuous monitoring of the Bank’s a performance, a scorecard, with
indicators relevant to each of the Bank’s roles, will be developed, in
consultation with the Steering Committee. About three years after the
establishment of the Transition Fund, the Bank will commission an assessment of
its performance in each role, on the basis of these indicators.September 25, 2012Contacts:Dale Lautenbach, email@example.com, 202.473.3405.
Angie Gentile, firstname.lastname@example.org, 202.473.3509