Recurrent Cost & Reform Financing Project - Additional Financing (WB-P167224)

  • Somalia
Where the impacts of the investment may be experienced.
Financial Institutions
  • World Bank (WB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Bank Risk Rating
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Sep 25, 2018
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Government of Somalia
The holder of the loan, grant, or other investment.
  • Law and Government
  • Technical Cooperation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 60.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 62.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ WB website

Updated in EWS Feb 14, 2019

Disclosed by Bank Aug 2, 2018

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Project Description

The objective of the projhect is to support the Government of Somalia to provide credible and sustainable payroll, and to establish the foundation for efficient budget execution and payment systems for the non-security sectors in the Federal Government and eligible federal member states and interim and emerging administrations. The Additional Financing will also scale-up support to education and health service delivery systems building.

  1. Recurrent cost finance to reform resource management systems. This component will provide up to US$51 million in financing of the civil service wage bill over the addition financing period, of which US$20.0 million is input-based or “baseline” financing, and US$30.0 million is DLI-based. It will provide a decreasing ‘baseline’ level of input-based financing of the FGS civil service wage bill in support of the timely payment of civil service salaries over the three-year period (US$20 million in total) through the advancereplenishment model of payroll financing already successfully established under RCRF.
  2. Strengthen inter-governmental fiscal relations. This component will finance the running costs of the Intergovernmental Forums and additional support will be provided to establish a dedicated Secretariat, to be comprised of dedicated civil servants staffed by civil servants either seconded from FGS and FMS on a fulltime basis or newly recruited.
  3. Transfers for core government functions and foundational education and health service delivery mechanisms in FMS.
  4. Project management and coordination in FGS and the FMS. The additional financing proposes to expand the original Component 4 and augment its financing to extend project management and coordination support for FMS, in accordance with the new activities and extended timeline. This component would support the coordination, administration, communication, management, procurement, monitoring and evaluation (M&E), audit and dissemination of Project activities in FGS, and FMS. It will finance dedicated staff to cover project coordination and management, administration, M&E, financial management, procurement, safeguards and communications.
Investment Description
  • World Bank (WB)
Contact Information

World Bank:
Geoff Handley
Senior Public Sector Specialist

John Randa
Senior Economist

Ministry of Finance, Federal Government of Somalia
Contact: H.E. Abdirahman Duale Beileh
Minister of Finance


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