JSDF grants are expected to be demand-driven and prepared in a participatory, rather than a top-down, manner. They can be proposed by local governments, NGOs, or civil society groups, but must be prepared and submitted by a Bank staff member.
Do I as a task team leader need to be trust fund accredited to manage a JSDF grant?
Yes. JSDF task team leaders (TTL) must be trust fund accredited. A TTL must be Bank staff (regular or fixed term).
What is the purpose of the JSDF?
The main purpose of the JSDF is to finance activities which:
- respond directly to the needs of the poorest and most vulnerable groups;
- encourage the testing of innovative methods that are new or alternative approaches at the project, country, or regional level, or that facilitate new partnerships or assist new target groups;
- support initiatives that lead to developing sustainable outcomes through the adoption or scaling-up of the pilot project through Bank-financed operations, recipient government activities, or other activities; or
- build ownership, capacity, empowerment and participation of local communities, nongovernmental organizations (NGOs) and other civil society groups to facilitate their involvement in operations financed by the World Bank.
What types of activities are eligible for funding under JSDF?
Two types of grants can be supported under the JSDF:
- "Project Grants" are for activities directly providing relief measures that address demand-driven poverty reduction needs and support innovative approaches; and
- "Capacity Building Grants" are for activities that strengthen service delivery at the grass roots level through learning by doing or expanding the capabilities or coverage of social fund-type institutions. They can also support measures nurturing positive interactions among local government, communities, interest groups, and non-governmental organizations in ways geared to generate substantive incremental benefits.
Both types of grants must complement an on-going or future World Bank financed lending operation. If a JSDF project cannot be linked to a lending project it should be coded as RE, in which case it will have its own PO number. JSDF grants cannot be linked to ESW.
Which countries are eligible for funding under JSDF?
Only low-income and lower middle-income countries (as defined in the most recent World Development Report) are eligible for both project and capacity-building grants.
What would be the average size of a JSDF grant? How should the cost be estimated?
The size of a JSDF grant can range from US$200,000 to US$2 million for the JSDF regular program. In very exceptional cases, grants may go up to US$3 million. In these cases, prior clearance should be sought from the Trust Fund Operations (TFO) Department. International market rates should be used to cost the activities.
What regulates the implementation of JSDF grants?
JSDF grants follow World Bank operational directives, unless otherwise explicitly stated, including World Bank Guidelines for Procurement and Consultants.
Are NGOs eligible to receive funds from the JSDF?
Yes. An NGO may be a direct grant recipient or may act as the implementing agency for another recipient. The NGO’s financial management capacity must meet Bank criteria. A Bank Financial Management Specialist will review NGO credentials and the financial management system established for the grant. As a recipient, the NGO must work with a Bank staff member who will see the proposal through the application process and act as Task Team Leader (TTL) once the grant is approved. The TTL will ensure that the proposed grant activities are in line with the country’s development objectives. Proposals must be submitted by the Bank TTL to TFO through the regional trust fund coordinator after clearance by country and sector management.
Who can propose a JSDF project and submit a JSDF proposal?
JSDF grants are expected to be demand-driven and prepared in a participatory, rather than a top-down, manner. They can be proposed by local governments, NGOs, or civil society groups, but must be prepared and submitted by a Bank staff (see Q7).
How can a proposal be initiated?
A local government, NGO or a civil society group may collaborate with the World Bank task team currently managing an existing and related World Bank Group financed project in conceptualizing and designing the proposed grant, using a Concept Note(CN) format. The CN should ideally be discussed with an appropriate Task Manager in the relevant World Bank office, but if this proves difficult, such a CN can be sent directly to the JSDF Unit. The CN template is available on the JSDF website.
Is funding available to assist in the participatory aspects of project preparation?
Yes. A Seed Fundhas been established to finance grants of up to US$50,000 for the costs of participatory preparation of the grant. The seed fund grant will finance consulting services, including those from community consultation experts, local consultation costs, and incremental Bank staff travel and subsistence. The seed fund grant will not finance Bank salaries. The grant implementation period is a maximum of 12 months from the date of approval by TFO. The output is expected to be a well-developed JSDF Grant. The TTL can apply for a seed fund grant anytime through the Lotus Notes Database.
Are there restrictions as to what the JSDF will finance?
Yes. JSDF will not finance purchase of motor vehicles, land acquisition, academic research, government salaries, foreign training or study tours.
Can a JSDF grant finance regional programs?
While a seed fund request may be submitted for a group of countries or a regional study, a JSDF proposal will have to be submitted for each country. This is because the projects may entail cross-border issues which the donor would prefer not to take into account in assessing the proposals.
Who reviews JSDF grants?
The JSDF grant application must be reviewed by two technical reviewers (TRs), one from the social development perspective and one from the technical/sectoral/country perspective. The TRs will send their comments to TFO. TFO will aggregate the comments and send one set of comments to the Task Team. The application should be cleared by the country lawyer, country finance officer, sector manager, country director and trust fund coordinator. The grant application is submitted to TFO through the regional trust fund coordinator.
Who approves the JSDF grants?
Once a proposal is submitted to TFO, it is reviewed by the JSDF Secretariat that sends comments to the task team. Proposals are subsequently reviewed by a Steering Committee that may clear them for submission to the donor for approval, with or without minor revisions to be done by task team. The donor ultimately approves or rejects grant funding requests.
When and how can one apply for a JSDF grant?
Invitations to submit JSDF grant proposals are usually issued three times a year. TFO sends out the invitation for submission of proposals which includes the guidelines for preparation of proposals, the list of eligible countries, guidelines for technical review and other useful information. JSDF applications are submitted through the Lotus Notes database.
Can agencies other than the central Government be recipient of the grant funds?
Yes. The grant recipient can be a central or local government entity, an NGO or a civil society organization.
Can UN Agencies or other multilateral agencies be recipients of a JSDF grant?
No. However, UN Agencies can be hired, in accordance with World Bank procurement guidelines to carry out grant activities.
Can JSDF grants fund Bank work?
Under exceptional circumstances, a grant application may include a request to finance Bank incremental costs of up to 5 percent of the grant amount. This would be justified if the grant is unusually complex and would result in the need for additional Bank staff resources beyond those provided by the regular administration budget, including the JSDF administration fee. In addition, incremental Bank costs may be requested in instances where the beneficiaries are physically dispersed, or living in post-conflict or post-disaster areas and are hard to reach. The additional resources are not intended for routine Bank supervision and fiduciary responsibilities, but may be used to facilitate community participation or NGO collaboration.
Are there any activities that are not eligible for funding under JSDF grants?
The JSDF will not finance activities which could be funded under Bank Group loans/credits or from other sources, such as research, desk audits, diagnostics, surveys, economic and sector work, etc.
What is the allowable overhead/administration cost for a JSDF grant?
While the GoJ has not set a limit, the SC has established that it should be no more than 10 percent of the grant. In cases where projects are complex the SC can approve a figure in the order of 15 percent.
What procurement procedures should be followed?
Since JSDF grants are recipient-executed, the “Guidelines: Selection and Employment of Consultants by World Bank Borrowersâ€, dated May 2004 (the Consultant Guidelines), and the “Guidelines: Procurement under IBRD Loans and IDA Credits†dated May 2004 (the Procurement Guidelines) apply. For Seed Fund grants and the Bank-executed portion of JSDF grants, please refer to AMS 15.00 as well as to the Consultant and Procurement Guidelines.
Is retroactive financing allowed under JSDF?
Yes. However, the amount and the reasons for which retroactive financing is being requested have to be indicated in the proposal. The automatically generated grant agreement will specify the grant approval date as default retroactive financing date. This date can be manually set in the grant agreement to a later date but not earlier, if desired. The guidelines in OP/BP 6.00 and 12.10 apply.
What is the procedure to extend the closing date?
The grant closing date cannot exceed four years from the date of counter-signature of the grant agreement, unless under exception in which case TFO clearance is required. For extension of the closing date up to four years from the counter-signing of the grant agreement TFO clearance is not required unless there is a change in scope (see also the reallocation issue below). All extension requests should be cleared by Legal and Loan Departments. The number and duration of extensions follows Bank operational guidelines.
What is the procedure to reallocate grant funds?
If a reallocation involves a change in the Grant Development Objectives, and/or an increase in the administration/overhead costs of the grant beyond 10 percent of the grant amount, a request must be sent to TFO which will determine if approval by the Government of Japan is required. The grant amendment letter is cleared with the Legal Department in accordance with Bank procedures. If there is no change in the Grant Development Objectives, reallocation among expenditure categories or grant activities, including dropping or adding new eligible categories or grant activities, may be cleared by the Sector Manager/Director, in consultation with the Legal Department who will inform the TTL if an amendment to the grant agreement is required. In this case, the reallocation should be approved by the Country Director.
Is there a grace period after the grant closing date to process the payments?
There is a four-month grace period after the closing date to process all payments for work completed before the closing date.
What are the reporting requirements for JSDF?
Annual status reports are required for all approved grants. The reports are submitted through the Grant Reporting and Monitoring (GRM) system and should provide details on the progress and results of grant-funded activities during the reporting period, July 1 – June 30. The task team leader (TTL) will receive an email reminder when the report is due.
Is an Implementation Completion Memorandum (ICM) required for JSDF grants?
Yes. The task team leader must prepare an ICM within two months of the end of the fiscal year in which the grant closed. . For grants under US$1 million, the final GRM report will include additional information regarding grant activity outcomes. The ICM should describe the outcome of the grant, based on the objectives and expected outcomes indicated in the original request and highlight lessons learned. The template for the ICM can be found in the GRM system.
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