Definition of CTF Program
The Consultant Trust Fund (CTF) program is funded by tied grants (see below) from some 24 participating donor countries. It provides resources that complement the Bank's own budget, financing consultants (individuals or firms) who are hired to carry out operational work on behalf of the Bank. This work can be directly in support of Bank activities in client countries or indirectly on Bank products of clear benefit to client countries. CTF-financed consultants cannot undertake activities in support of the Bank's internal administrative and fiduciary processes or client overseen activities that are part of project preparation or implementation. As with other Bank work, CTF-financed consultants should be used in a way that will not put the consultant or the Bank in a position of conflict of interest.
Disbursements under the CTF program increased by 40 percent to USD 35 million in fiscal year (FY) 2004, up from USD 25 million in the previous year. Funds committed but not yet disbursed grew to USD 25 million, from USD 8 million at the end of FY03. Disbursements in the first quarter of FY05 amounted to USD 6 million, compared to USD 3 million for the same period in FY04. Most of the disbursements relate to countries in East Asia and Africa.
Available CTF resources are allocated to individual vice-presidential units (VPUs) in parallel with the Bank's regular operational planning and budgeting process (see CTF FY06 Allocations by VPU). For a list of commonly used abbreviations and acronyms, click here.
Procurement of CTF-Financed Consultants
Procurement of CTF-Financed consultants (for individuals or firms) is subject to the policies and procedures defined in the Administrative Manual, Statement Adm 15.00 (AMS15.00). These policies and procedures apply to the selection and use of consultants by the World Bank for operational work financed under Bank-executed trust funds or funded by the Bank's own resources.
What Can CTF Finance?
CTF-resources are subject to specific restrictions. Most importantly:
- Only consultant fees, travel and other reimbursable costs are eligible types of expenses;
- Donors can limit the use of the CTF to a particular VPU, country, region, sector, theme (or a combination of VPU or region and sector or theme); and,
- CTF-resources are tied, i.e., they can only be used to finance consultants who are nationals of the donor country (with the exception of separate contributions from Denmark, Ireland, the Netherlands and Norway that can be used to finance consultants from any IDA eligible country).
The following excerpts from the standard CTF Agreement relate to consultant eligibility and nationality:
- If the consultant engaged by the Bank is an individual, the consultant shall be a citizen of the Donor country. If the consultant engaged by the Bank is not an individual, the firm or other entity engaged shall either (i) be incorporated or registered in [the Donor country] or (ii) have its principal office in [the Donor country].
- If the consultant engaged by the Bank is not an individual, the firm or entity engaged may subcontract an aggregate amount up to 25 percent of the amount of the contract with the Bank to subcontractors who are not citizens of [the Donor country] (in the case of individual subcontractors) and either are not incorporated or registered in or do not have their principal office in [the Donor country] (in the case of subcontractors that are firms or other entities).
- The Donor agrees that there shall be no limitations on the nationality of the employees of firms or entities engaged by the Bank or on subcontracting by such firms or entities to individuals that are citizens of [the Donor country] or to firms or entities that are incorporated or registered in or have their principal office in [the Donor country].
Phasing Out the CTF Program
The World Bank Board of Executive Directors agreed on July 27, 2004 that the World Bank's policy be no longer to accept trust funds that impose nationality restrictions on procurement. For further details, see Reform of World Bank-Administered Trust Funds: The Way Forward.
The CTF program, which is based on tied funds, will be phased out. Donor contributions can be made until June 30, 2005. CTF balances held as of July 1, 2005 can be committed and disbursed until June 30, 2007.
CTF Program Administration
The CTF program is administered by the Trust Fund Operations Department (TFO) in the Concessional Finance & Global Partnerships vice presidency. Overall allocation of CTF-resources is done by the Strategy, Finance & Risk Management (SFR) vice presidency, in consultation with operational VPUs, TFO and the Trust Fund Strategy & Donor Relations Unit (TFS). Accounting and fund management is handled by the Trust Funds Division of the Accounting Department (ACTTF). The Trust Fund Quality Assurance and Compliance Unit (TQC) is responsible for monitoring the Bank's compliance with trust fund agreements. The responsibility for detailed planning and allocation of CTF-resources rests with the individual operational VPUs (assignments with a value of USD 100,000 or more are subject to specific donor approval).