Iraq

1
Iraq

• Interim Program of the
• World Bank Group

2
History of the Bank in Iraq

• Iraq was a founding member of the IBRD
• Received 6 IBRD loans between 1950-1973
• Last loan closed in 1979
• Non-accrual status since 1990

3
Reengagement with Iraq

• Watching Briefs launched in early 2003
• June 2003 intl community asks UN and World Bank
  to assess needs and prepare multi-donor trust
  fund
• August 2003 Needs Assessment teams evacuated
• October 2003 Needs Assessment and trust fund
  concept endorsed in Madrid

4
An Interim Strategy for Iraq

• Aim to support Iraqs reconstruction to the
  extent possible during the interim period
• Strategy focuses on
• Capacity building
• Prepare and start implementing emergency
  operations
• Generate employment / Restore infrastructure and
  services
• Lay the foundation for a medium-term program
• Draws on Banks post-conflict experience and
  experience with countries in transition
• Relies on Iraq Trust Fund for financing

5
Iraq Trust Fund

• UN and World Bank designed International
  Reconstruction Fund Facility for Iraq
• Consists of 2 trust funds, with common governance
  structure
• Donor Committee endorses overall priorities and
  provides strategic guidance
• UN/WB Facility Coordination Committee handles
  day-to-day management and coordination
• Joint Secretariat plays informational and
  administrative role

6
Trust Fund Contributions

• 19 donors have committed about 1 billion to the
  Facility
• 300 million in signed commitments to the World
  Bank Iraq Trust Fund
• 400 million expected in the World Bank Iraq
  Trust Fund by the end of June 2004

7
Interim Work Program Status

• Capacity building program is underway
• Emergency Textbook Provision Project (40
  million) to be signed on May 15
• Emergency School Rehabilitation (60 million) to
  start in June
• Emergency Rural Community Infrastructure (20
  million first phase) to start in June/July
• Emergency Urban Infrastructure (100-150 million)
  to start in July/August

8
Future Bank Lending

• Could lend 3-5 billion over five years, if
  threshold issues are met
• Dealing with a de facto government
• Clearance of arrears
• Security
• Will prepare a Transitional Support Strategy once
  a government that meets lending criteria is in
  place

9
Principles for the Banks Program

• Reconstruction needs to be country-driven
• Focus on Banks comparative advantage
  implementation through Iraqi institutions