World Bank pledges to speed funding of South Sudan projects

February 19, 2010 (WASHINGTON) — The World Bank pledged to speed up funding of southern Sudan reconstruction projects following criticism by donor countries for the Bank’s stringent rules on distribution of funds.

Donors said the World Bank has just spent a third of its money dedicated to southern Sudan development since 2005. Following the signing of the CPA, donors agreed to contribute to the rehabilitation and reconstruction of the region through the Multi-Donor Trust Funds (MDTF) managed by the Washington based international institution.

“We need to move much faster, while still ensuring the proper use of funds, and we continue to look for ways to speed up the program’s effectiveness, including channeling money through faster mechanisms,” said Obiageli Ezekwesili, vice-president for the World Bank’s Africa Department.

“It is important to remember that this is donor money that has been entrusted to the World Bank, and we are expected to ensure the highest fiduciary standards to see that resources go to the poor and not the powerful,” she added in an interview conducted by Reuters.

Since 2006 the World Bank highlights that GoSS’s inexperience in internationally accepted principles of good financial management and procurement has slowed things down. The projects funded by the MDTF are proposed by southern authorities and endorsed by a joint assessment mission. After their approval by the JAM, southern Sudan government implements the project after receiving the needed funds from the World Bank.

During first years, fearing corruption and lack of transparency in the management of projects, the WB focused its activities in the education and formation of GOSS staff on good governance rules.

The Bank had nearly doubled the number of staff on the ground over the past two years, with many living in tents, and assigned two international procurement specialists to its team and added experts in the finance ministry to handle funds.

By the end of 2009, only $181 million of the $524 million donors had committed to the Multi-Donor Trust Fund had been spent. The fund had been destined to be disbursed during the six years of interim period.

The WB official however pointed out that despite the criticism, many projects have been implemented in the semi-autonomous region including the rehabilitation of the main hospital in the southern capital Juba and half of the city’s water supply.

She also added that Financing has also providing basic materials for health care and education, and supported agricultural projects and ensured government ministries are set up with offices.

Ezekwesili stressed that the effective and efficient use of limited resources requires complying with the possible minimum of transparency and rules of good governance.

(ST)