SPECIAL FINANCING FACILITY FOR LOCAL DEVELOPMENT (SFF-LD) PROGRAM

Sector Context: Since early 2014, the FGS Ministry of Interior and Federalism established a “Stabilization Strategy for Newly Accessible Areas” in an attempt to better coordinate donor efforts in the recovery effort. The SFF projects component was originally established as a project financed by the Government of Norway as an important signal that the FGS has an ability to design, procure and implement small ‘investment’ projects of value to local communities. To this end, Norway allocated in late 2012 some US$10 million for small projects to be implemented through the TIU under the Ministry of Finance, in part due to the focus on procurement and inter-governmental fiscal relations, and in part because the SFF originally also included a recurrent costs window, which has also subsequently come under the financing envelope the MPF.  The MPF will similarly takeover the financing of the SFF Projects Window to further the stabilization and development objectives of the original project.

Timeframe: 2016-18

Financials: Appraised Value: US$ 6 million (TBC)

Components: The project will likely comprise three components: (i) approximately US$4-4.2 million to be allocated between equivalent envelopes for each region to be supported under this phase of the Project, following similar allocation procedures as under the current SFF will support small-scale infrastructure sub-projects; and (ii) some US$1.2 million for program management component (at full staffing about US$450,000 per year) and will include capacity building to work with the emerging federal states.  The Project will be developed in phases adding beneficiary regions over time, and adjusting implementation arrangements as conditions warrant. The first (pilot) phase will be financed with a $5.0 – 6.0 million grant from the MPF.

Coordination and alignment of activities will be pursued throughout implementation of the SFF pilot phase with the development partners of similar programs.

Beneficiaries: (a) communities served by local administrations in the target areas.; (b) the government, civil servants and employees of the implementing Ministries, Departments and Agencies in emerging states

Government Counterparts: Ministry of Finance

Implementation Arrangements: These activities are Government-executed through a center and regional partnership

Geographic coverage: The geographic coverage will include all of Somalia and focus in the first phase on a selected number of regions as identified by the Mof/TIU.