Please note that we are no longer accepting applications for the Trust Fund.
For more information, please contact Aliya Husain (email@example.com)
In 2001, a new multi-donor trust fund was set up to support capacity building in low income countries that are undertaking poverty reduction strategies. The fund is intended to strengthen the preparation and implementation of national poverty reduction strategy papers (PRSPs), and in particular to focus on activities that are:
- Critical to the successful development and implementation of the PRSP;
- Build sustainable country capacity;
- And have the support of domestic stakeholders and external partners.
Each Poverty Reduction Strategy Trust Fund (PRSTF) grant is managed in-country by the World Bank, the United Nations, and the contributing donors. The fund is currently supported by a contributions from Japan, the Netherlands and Switzerland which is to be allocated over a four year period (October 2001- December 2005). Additional contributions are anticipated from other donors and the fund is expected to endure beyond this initial four year timeframe.
The PRSTF is available to support activities in all IDA-eligible countries (including blends) which are at some stage of preparing or implementing a PRSP.
All stakeholders involved in the poverty reduction strategy process are entitled to apply to the trust fund. For example, applicants could be:
- Government agencies including local governments;
- Civil society organizations;
- Educational and research institutions;
- Private sector bodies.
The PRSTF will, in principle, support any activity that is a country priority for strengthening the formulation or implementation of poverty reduction strategies. Activities that could be supported include capacity building to:
- Set up or institutionalize the participatory process;
- Improve poverty diagnostics;
- Improve public expenditure management systems;
- Improve the prioritization of public actions;
- Cost policies and programs;
- Undertake Poverty and Social Impact Analysis (PSIA);
- Analyze sources of growth;
- Establish monitoring and evaluation systems for the PRSP;
- Translate and disseminate PRSP documents.
This is not an exhaustive list and countries are encouraged to come forward with other activities that support the formulation or implementation of PRSPs.
Funds from the PRSTF can be used to support the hiring of consultants (both national and international), training of national staff, secondments to institutions with expertise in poverty reduction, and South-to-South missions.
Successful applicants may appoint another agency to carry out the activities for which funding is sought such as an NGO or a specialized institute provided that such agencies follow the Bank’s procurement and financial management policies and procedures in implementing the grant. The World Bank is not be eligible to act as executors of any grant funded under the PRSTF.
For internal control purposes, all implementing agencies must either have prior experience in managing World Bank projects, or will require an assessment of their financial management systems by the World Bank (step 3).
The PRSTF allows for each country to apply for up to US$500,000 over a two year period. Grants of US$500,000 or over will require approval from the contributing donors’ headquarters. This will be solicited by the World Bank at the clearance stage of the application process (step 4).
Timing for Proposals
Applicants may come forward with proposals at a time best suited to their country’s PRS timetable.
The recipients must submit periodic reports to the World Bank Task Manager who maintains oversight of the grant. The Task Manager will then submit an annual report to the contributing donors.
An Advisory Board will meet twice a year to maintain strategic oversight over the PRSTF. It will comprise representatives from the World Bank, IMF, UN Development Group, and the contributing donors to the trust fund. It will review the operation of the fund, and revise procedures as necessary.