Ministry of Finance and National Economy
Multi Donor Trust Fund- World Bank
Community Development Fund Project – Phase I-Slice 1
Jan- August 2006
August 23, 2006
Project Cost:
MDTF Financing:
US$ 50 million
US$ 30 million in two slices, US$ 15 million each
GOS:
US$ 20 million
Project Description:
The project supports community-led development in Northern Sudan through partnerships among
local stakeholder, including local communities, NGOs and community-based organizations, on
the basis of sub-projects submitted by local communities and developed through a consultative,
participatory planning process. The project’s objective is to meet urgent community-driven
recovery and development needs in the war-affected and underdeveloped areas of Northern Sudan
including the Three Areas by providing social and economic services and infrastructure.
Project Components:

Community Development Sub-projects: This component would serve to address pro-poor
community development priorities as laid out in the peace protocols, with particular
emphasis on access and quality of basic education, health and water services

Capacity Building, Monitoring and Evaluation, and Project Management: Training,
technical assistance and capacity building would be provided to localities, NGOs and
local Community-Based Organizations (CBOs), to improve their technical skills in the
identification, planning, programming, management and delivery of sub-projects
Project Cost:
Table 1: Project Costs by Component
Component
Indicativ
e
Cost
(US$M)
% of
Total
Cost
Financing
(US$M)
GOS
Financin
g
(US$M)
MDTF
Component 1: Community Development Subprojects
42.00
84
25.00
17.00
Component 2: Capacity Building, Monitoring and
Evaluation, and Project Management
Total Project Costs
Total Financing Required
8.00
16
5.00
3.00
50.00
50.00**
100
100
30.00
30.00
20.00
20.00
*Custom and VAT finance 100% by GOS.
*Supporting staff salaries and allowances finance 100% by GOS.
Table 2: Phase 1-Slice 1 Costs by Component
Component
Cost
(US$M)
% of
Total
Cost
MDTF
Financin
g
(US$M)
12.5
GOS
Financi
ng
(US$M)
Category 1: Community Development Subprojects
20.83
87.45
Component 2: Capacity Building, Monitoring and
Evaluation, and Project Management
Category 2: Vehicles and Equipment
2.99
12.55
2.5
0.49
1.25
5.25
1.0
0.25
Category 3: Consultants, Capacity Building and Training
1.11
4.66
1.0
0.11
Category 4: Operation Cost
0.63
23.82
2.64
100
0.5
15.00
0.13
8.82
23.82**
100
15.00
8.82
Total Slice 1Costs
Total Financing Required
8.33
** Custom and VAT finance 100% by GOS.
** Supporting staff salaries and allowances finance 100% by GOS.
** LIU offices and rest houses allocated by localities.
** PSC and LIUs and committees allowances finance 100% by GOS.
*** The actual MDTF and GOS shares will be monitored through out mplementation
(18 months)
Summary of Project Implementation Status:
To be read with reference to CDF Action Plan status as at August 23, 2006 ( attached)
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Operations Manual (OM) prepared by Government of Sudan, reviewed by World Bank
consultant and approved by IDA
GOS established Project Implementation Unit (PIU) and 10 Locality Implementation
Units (LIUs)
Financial Agreements for fund flow completed
Ministry of Finance and National Economy deposited SDD 232.2 Million (Equivalent to
US$1 Million) in the Project Account.
Accounting Manual document and books prepared by PIU and reviewed by the
Monitoring Agent (MA). The MA comments incorporated in the document. By July 13,
2006 the CDF Accounting Manual endorsed by the MA and approved by IDA.
Disbursement condition for category 1 fulfilled.
First Withdrawal Application of $ 1.5 million in equivalent Euro processed by IDA and
the fund deposited in the CDF Special Account by July 26, 2006.
Computerize Financial Management System developed by PIU and installed. The system
under testing.
MDTF
Share %
60%
100% for
imported
& 80% for
local
100%
internatio
nal &
90% local
80%
63%***

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Social and Conflict Analysis in the 10 selected localities completed (LICUS Activity).
Social guidelines added as an annex of the Operations Manual.
PIU prepared the procurement lists for logistical support to the 10 Localities and PIU.
Numbers and cost estimates have been reviewed and endorsed by IDA.
The World Bank completed an ICB process to recruit a consultant to conduct Local
Government Assessment study covering 20 Localities In in South Kordofan (12),
North Kordofan (3), Bliue Nile (3) and Kassala state (2). { LICUS Activity}. The
PIU facilitate arrangements for field work and the study field work will start on
September 2 and completed by September 20,2006.

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
CDF Phase I will be implemented in the four selected states. CDF slice 1 covers 10
selected Localities and slice 2 is proposed to cover new localities in addition to
consolidation in the first 10 Localities. The PSC committee decided to select the new
Localities from South Kordofan and Blue Nile States. The added 10 Localities originates
from 7 localities as follows:
Blue Nile state: Baw
South Kordofan State: Ed-leng, Kadugli, Al Salam, Lagawa, Talodi, Apyei.
To overcome the issue raised by South Kordofan and Blue Nile states on the CDF
coverage; the Project Steering Committee decided to add two localities. One from Blue
Nile state (Baw) and the other from South Kordofan State. Locality from south Kordofan
will be named after finalizing the EU Project coverage. On August 19, the CDF
Executive Manager discuss this issue in Kadogli with Yagoub Elfeil Minister of
Economic and Investment. CDF waiting for reply from South Kordofan state.
To facilitate CDF implementation each locality allocated or rent one vehicle to
LIU office (10 vehicles) till vehicles procurement process completed.
 Each locality allocates or rented office premises to LIU in addition to rest houses
for staff.
 From 1-4 July PIU organized orientation and training workshop and attended by:
(i) Secretary of South Kordofan Government; (ii) Localities Executive Officers
(10); (iii) LIU Managers (10); (iv) LIU Accountants (10); (v) LIU Engineers (10);
(vi) LIU Procurement Officers (10); (vii) representatives from MFNE (3International Cooperation, Procurement Administration and States Development
Administration) and (viii) one representative of Ministry of Local Government.
 PIU Procurement Officer and Engineer Officer attended Procurement training
workshop organize by the Technical Assistance Facility Project (TAF-MDTF-N)
and conducted by World Bank Procurement Specialist.
 PIU arrange and agreed with TAF Project Manager to train LIU Procurement
officers (10). The procurement training workshop will be in Arabic and conducted
by the Bank specialists.
 10 current bank accounts opened with Agricultural Bank of Sudan: Kassala 2
accounts, ED’damazeen 2 accounts, and ELObied 3 accounts, Abugebieha 2
accounts for Rashad and Abu Gebeiha LIUs, and Kadogli one account for Kailak
LIU.
 PIU transferred SD 4.2 million to each LIU as an advance Payment for office
furniture, stationery and operation costs.
 PIU completed the procurement process for (Ref. CDF Action Plan attached):
(i) Vehicles: IDA approved the Evaluation report. A negotiation starts with the
selected company;
(ii) IT and Audio visual equipments evaluation report submitted to IDA for
approval;
(iii) Generator sets submitted to IDA for approval;
(iv) 2 Consultancy services; one for training and the other for facilitation and
mediation completed up to short listing of six firms. By September 2,2006 the
interested firms will submit their technical and financial proposals.
Project cycle:
Selection of Participating Communities:

The 10 LIUs started step 1 of Subproject cycle which compose of data
collection, ranking, approval by Locality Steering Committee (LSC),
endorsement by State Coordination Committee (SCC). Non availability and
quality of social services have been taken as indicators to measure the
community's services status, by listing out these indicators and giving a
weight for each one, the level and adequacy of the social services exist inside
each community is known. Scores given to the social services measurement
ranged between 4-0 points, the lower the score the poorer the services, the
education, health and water services; each contains sub- indicators. 20
communities will be selected from each Locality.

By August 20, the status is as follow:
(i) Kassal State:Kassala and Hamashkoreib Localities completed
the selection process and 40 communities were selected to
participate in the CDF.
(ii) Blue Nile State:Roseries and ED’Damazein localities
complete the targeting process and 40 communities approved by
LSCs and submitted to State Technical Committee for
endorsement.
(iii) South Kordofan State: Kailak LSC approved selection of 20
villages, while AL Rashad and Abu Gebiha LIUs completed the
selection report and submit it LSCs.
(iv) North Kordofan State: Sodari LSC approved selection of 20
villages,while Jabrat EL Sheik and Wad Banda LIUs completed
the selection report and submit it to LSCs.
(v) Conclusion: By August 31, 2006 the selection of the CDF 200
participating communities will be completed.
Fast track complementary subprojects:
These subprojects are Community Driven Development initiatives that address vital
necessary needs with a limited budget and scope and could be implemented over a period of
time that does not exceed 6 months with no environmental implications.
The objectives of these projects are clear, measurable and are coherent with the general
objectives of the CDF. The main objectives of the (FTS) are the following:
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To establish credibility in the project as a way to realize pro-poor demand-driven
development benefits to local level within a reasonable time frame;
To create a demonstration effect;
To facilitate the preparation of social assessments in the poverty clusters; and
To speed up the CDF implementation process.
FTS Implementation:
 Kassala and Hamashkorieb LIUs stated promotion and selection of eligible
subprojects.
 Other LIUs (8) selected the eligible communities.
 By September 15 the implementation of FTS will start in Kassala state and
By September 21, in the other eight localities.
Lessons Learned:


Monitoring Agent (MA): Overseeing, guidance, reviewing and checking
provided by MA staff stationed in the WB Khartoum office proved it positive
effects on facilitating and accelerating the implementation of financial and
procurements issues. Also MO staff provided on Job training to PIU and LIUs
staff.
IDA Regulations and Guidelines: The MDTF, WB and GoS agreed to adopt
WB and IDA regulations and guidelines for procurement. The CDF practical
experience to date shows that an 18 month post conflict project compared with
normal development project will be under stress to achieve the required
activities to fulfill the disbursement eligible conditions. This issue needs to be
studied and make use of study results in MDTF post conflict projects.
Project Financing as at August 23, 2006
Fund Flow:
MDTF: $ 1.5 Million
MFNE: SDD 225 Million
SDD 7.2 Million
Expenditure:
MDTF: SDD 17.6 M
MFNE: SDD 21.0 M
Expected Expenditure During September- October 2006:
MDTF: $ 1.0 M for Category: Subprojects
$ 1.0 M for Category 2: Vehicles and equipments.
$ 0.5 M for Category 3: Training and consultancies.
$ 0.1 M for Category 4: Operation cost.
Total: $ 2.6 M
MFNE:
$ 0.4 M for Category: Subproject
Category 2: Customs and VAT exemptions for vehicles and equipments
(estimated $ 0.5M).
$ 0.06 M for Category 3: Training and consultancies.
$ 0.05 M for Category 4: Operation cost.
Total: $ 1M.