What is the Bank doing to support peace and recovery in Sudan?
The Bank's priority in Sudan is supporting the 2005 Comprehensive Peace Agreement, which ended 21 years of fighting between the national government in Khartoum and the Sudan People's Liberation Movement. Sudan faces the challenge of accelerating the implementation of CPA provisions, including elections scheduled for April 2010, the demarcation of borders between north and south, and the transparency of oil revenues, together with preparations for a referendum on possible secession by the South due in 2011. Meanwhile, there is a need to build government capacity in South Sudan, and to improve service delivery and livelihoods in marginalized areas. These challenges comes against a backdrop of instability in Darfur, which continues to jeopardize the prospects of lasting peace and stability, although we hope that recent moves to revive peace talks will bear fruit.
What have you done to advance reconstruction in parts of Sudan that are trying to live peaceably?
Prior to the CPA peace deal, the Bank and UN, together with the Government of Sudan and the SPLM, coordinated a Joint Assessment Mission (JAM) which outlined Sudan's needs over a six-year interim period. The final JAM report was presented at a donors' conference in April 2005 in Oslo (Norway). That Conference raised pledges of approximately US$4.5 billion. Of this amount, US$2 billion was dedicated to development programs, including US$508 million for two newly established Multi-Donor Trust Funds which are administered by the Bank—one to support development efforts of the Government of National Unity (GoNU) and one to support those of the Government of Southern Sudan (GoSS). A second pledging meeting was held in Norway in May 2008 where donors pledged an additional US$4.8 billion, of which US$800 million was expected to be channeled through the MDTFs. From the inception of the two Sudan MDTFs, donors have contributed US$785 million including a Bank contribution of US$10 million. Twenty-nine projects are under implementation, financed by US$484 million from the MDTFs and co-financing of US$420 million from GoNU and GoSS.
Southern Sudan is one of the least developed parts of the world. Are there any visible improvements?
Under the MDTF-S, 17 out of 19 GoSS ministry buildings, their National Assembly, the Presidential Cottage and the State Governors’ offices were renovated and supplied with generators, office equipment. and furniture allowing GoSS institutions to run and start providing basic services. Three-hundred-and-sixty-three km of roads have been rehabilitated and 945km maintained to facilitate the transport of goods and the provision of services. Juba Hospital complex was rehabilitated; pharmaceutical supplies were provided to 840 health centers; 1.1 million malaria bed nets were distributed to 600,000 households; 202 boreholes were successfully drilled; and sewer lines, sewerage treatment ponds, and the construction of water treatment plant and elevated water tower have been completed to improve the health and sanitation of residents. Eight Education Centres (CECs), crucial for the training of teachers and other educational trainers for the enhancement of the delivery of education services across Southern Sudan were built across seven states; 850,000 children attending 2,600 schools have received student and teacher kits. To encourage the nascent private sector in the south, loans were provided to microfinance institutions to extend sub-loans to 3,189 entrepreneurs in six states. More than 50 percent of the beneficiaries of the loans have been women. The two MFIs also provide employment to more than 170 Southern Sudanese nationals. All the projects and activities have a capacity-building component.
International Development Association (IDA) lending will be possible only after Sudan settles its arrears. Sudan has arrears of US$550 million to IDA, part of total external debt of US$35 billion. The Multi-Donor Trust Funds are financing development and recovery work. To support capacity building and policy reform, we have provided US$8 million from the low-income countries under Stress (LICUS) trust-fund, and grants totaling US$3 million from the Post Conflict Fund. The Bank has also funded analytical work both as a way to support the Sudanese and to increase our own knowledge base. A CEM is currently being finalized, a PER has been completed, and other sectoral studies are underway or have been completed.
What has your relationship been with Sudan in the past?
In the 1970s and 1980s, we were an active development partner in Sudan. We supported many sectors in Sudan, but placed an emphasis on infrastructure and rural development, including a substantial irrigation program to support cotton and grain production between the Blue and White Nile Rivers.
Following a resumption of civil war, international development assistance plummeted, and donors focused on humanitarian relief. Our loan disbursements to the country ceased in 1993. Sudan has been in non-accrual status since January 1994, which means that to be eligible for new loans, Sudan must clear all payment arrears in full.
