RECURRENT COST & REFORM FINANCING (RCRF) PROGRAM – Phase I

Sector Context: This project is the first in series of projects designed to support an operational payroll and payment system for the non-security sector in Somalia. Phase I of the program is an emergency operation prepared in response to an urgent request from government for the six-month period from July 1 to December 31, 2014. With the end of the Norwegian-funded Special Financing Facility (SFF) in 2014, the project filled the gap in funding salaries and other recurrent costs that would have been created, especially in the light of poor domestic revenue performance. The SFF, focused on recurrent and capital expenditure, was envisioned as a temporary bridging mechanism, and has helped to jump-start the PFM reform process. The Federal Government of Somalia (FGS), World Bank, Government of Norway, and Donors agreed that the World Bank-administered MPF would take over the financing of recurrent costs from the SFF, in line with the comparative advantages of the Bank’s fiduciary and macro-policy frameworks and dialogue with the government.

Timeframe 2014-15

Financials Appraised Value / Grant Agreement: US$ 16 m  

Components This project comprised of three components: (i) Emergency Support to core Government Functions in Ministries, Department and Agencies (MDAs). To finance salaries of non-security sector civil servants in the MDAs; and the cost of subject matter experts. (ii) Strengthening Systems for Expanded Operations and Service Delivery. To finance technical assistance to support the FGS efforts to expand its reform agenda in PFM including its salary payments and procurement systems, and the expansion of its service delivery within FGS and to other regions of the country.  (iii)Program Management and Coordination. To support the External Affairs Fiduciary Section (EAFS) for the coordination, administration, communication, management, procurement, monitoring and evaluation, audit and dissemination of project activities. 

Beneficiaries Primary beneficiaries include the government, civil servants and employees of the implementing MDAs in the FGS and development partners who use the RCRF as a convening platform to provide technical advice and financial assistance. 

Government Counterparts Ministry of Finance, Office of the Accountant General

Implementation Arrangements Recipient Executed (RE)

Geographic Coverage Phase I focused support at the level of the FGS in Mogadishu.