Supporting the Somaliland Special Arrangement (SSA)

MPF Progress Update WB PORTFOLIO OVERVIEW The Somaliland Special Arrangement (SSA) was a PSG 4 Projects US$M Status critical milestone enabling the World Bank to scale up Somali Urban Investment 0.9 Pipeline operations in Somaliland. It was on the basis of the SSA Planning Project (1st phase) and the Somali Compact that the Multi Partner Fund ICT Sector Support 1.1 Pipeline (MPF) was established to focus on delivering support Berbera Port Towage Services* 4.9 Pipeline for core state functions and socio-economic recovery. Somali Core Economic Thematic focus: The MPF pipeline focuses on core Institutions and Opportunities 8.5 Pipeline state functions and socio-economic recovery, in line Program (SCORE) ** with the World Bank Interim Strategy Note. The four Water for Agro-Pastoral key areas of thematic focus include: i) core government Livelihoods Pilot Project* 1 Pipeline functions, ii) infrastructure, iii) productive sectors and (1st phase) iv) natural resource management and resilience. Energy Sector Support 0.6 Active Alignment with SSA Priorities: The initial pipeline of PSG 5 Projects US$M projects has been developed to target specific priorities of the SSA and National Development Plan, Public Financial Management Awaiting passage of (PFM) Reform 4 focusing attention on areas of urgent need where the PFM World Bank has a comparative advantage. The MPF (First allocation of two) legislation focuses on PSG 4: Economic Foundations; PSG 5: Somaliland Civil Service Reform 10 Pipeline Revenue and Services, and the crosscutting priority of Project institutional capacity development. MPF Knowledge Fund TBD Pipeline Government ownership: MPF investment priorities *WB projects delivered outside MPF are identified through a process of ongoing ** SCORE is the successor to investments made through consultation and engagement with government and the Somali Private Sector Development Re-engagement development partners. Individual projects, within Program (SOM-PREP I & II) these thematic focal areas, are developed with N.B. The investment figures for pipeline projects are counterpart ministries to respond to specific subject to appraisal procedures with government and government requests. make change. Some projects are first phases of longer term programs, the budgets for which are not included in Strengthening Somaliland’s systems: One of the New this summary table. Deal principles reflected in the SSA is the commitment to build and use Somaliland’s systems. With a portfolio Contributing Donors (US$ M) focus on “recipient-executed” projects (i.e. projects designed and delivered by Somaliland’s institutions), the MPF is a vehicle for building and using local UK, 11.3 Sweden, 3.9 systems, ensuring ownership and capacity internalization for sustainability. The performance of EU, 4.6 Switzerland, 0.4 government in delivering MPF projects will be monitored closely by the World Bank, as Administrator of the MPF. Norway, 3.5 WB SPF, 1.4 In its first year of operation, the MPF has made strides N.B. Pledge amounts are pro rated estimates based on in developing newly designed projects in line with the the size of existing pipeline of MPF projects and SSA in partnership with government counterparts and components for Somaliland and the relative size of in coordination with key partners, such as the IFC & overall donor commitments based on signed legal MIGA, SDF, and the UN. The passage of key legislation agreements. Conversations regarding potential would accelerate the operationalization of several contributions are ongoing with Denmark, Finland, projects in the pipeline. Germany, and Italy.

Alignment with SSA Priorities Projects & Objectives Government Counterparts PSG 4 - Priority 1 Somali Urban Investment Planning Project Develop and implement an Timeline: 2015-16 (First Phase) Abdurrahman Mahmoud investment strategy for public and i) Provide an assessment of the feasibility of, and Aidiid, Mayor of Hargeisa productive infrastructures, preliminary plans for, selected urban investment and H.E. Saad Ali Shire, MoNPD including roads, water, irrigation, institutional strengthening activities, and ii) Provide Ibrahim Siyad Yonis, markets, ports, and energy enhanced project preparation and implementation Manager of Hargeisa capacity of the municipality of Hargeisa and the Hargeisa Water Agency (HWA) Water Authority Eng. Hassan A. Ahmed, ICT Sector Support Consultant for the Minister Timeline: 2017-18 of Telecommunication and Support the ICT Sector by contributing to establishing an Post enabling environment and by encouraging efficiency and Eng. Yusuf, Chair of the equity in access to connectivity. Somaliland Association of Telecom Operators (SATO) PSG 4, Priority 2 Water for Agro-Pastoral Livelihoods Pilot Project Strengthen investment in Timeline: 2015-17 (1st phase) H.E. Shukri Haji Ismail, productive sectors, particularly Increase government capacity to provide safe water for Minister of Environment & agriculture, livestock, and human consumption, sufficient quantities of water for Rural Development fisheries; create a legal framework livestock consumption and small-scale agriculture in to enable economic growth targeted pastoral communities PSG 4, Priority 3 Berbera Port Towage Services Building efficient credit, Ali Omar Mohamed, Support the development of Berbera Port by improving investment and insurance General Manager, Berbera throughput, towage capacity and reliability of towage institutions that contribute to Port Authority operations economic growth and higher living standards. H.E. Saad Ali Shire, PSG 4, Priority 4 Minister of National Generate employment, including Somali Core Economic Institutions and Planning and Development through the development of Opportunities Program vocational and technical training, Timeline: 2015-2019 H.E. Musa Kasim Omar, and establish a special business (i) Improve the enabling environment for private and Minister of Commerce and fund for young entrepreneurs. financial sector development Investment (ii) Catalyze private investment and job creation. Mr. Abdillahi H. Jama Ali, Central Bank Governor SSA PSG 4, Priority 6 Put in place an affordable energy Energy Sector Support plan and policy that takes Timeline: 2015-16 H.E. Hussein Dualeh, Somaliland from dependence on Contribute towards developing the fundamental building Minister of Energy imported fuel to a greater use of blocks for the establishment of modern energy sector its own abundant natural resources. PSG 5, Priority 1 Establish an appropriate and effective system of PFM based on Public Financial Management Reform Phase II the PFM Road Map that includes Timeline: 2015-17 H.E. Zamzam Abdi Adan, strengthening the budget process, Establish systems for more transparent and accountable Minister of Finance establishing a chart of accounts management of public funds. and enhancing public procurement. PSG 5, Priority 3 Somaliland Civil Service Reform Project Create a merit based and Timeline: 2016-20 Mohamed Mihileh, equitably distributed civil service Strengthen the frameworks and systems for civil service Chairman, Civil Service that delivers high quality basic management and improve the capacity of selected line Commission services and security for all ministries to perform core government functions. Somaliland citizens.