Somalia Recurrent Cost & Reform Financing Project - Phase 3

The objective of the Third Phase of Recurrent Cost and Reform Financing Project for Somalia is to support the Federal Government of Somalia and Eligible Federal Member States to strengthen resource management systems, the inter-governmental fiscal framework, and service delivery systems in health and education. The project has five components. 1. Recurrent cost finance to reform resource management systems component has two subcomponents. 1.1. Financing eligible civil service salaries in Federal Government of Somalia (FGS): baseline subcomponent will continue to provide a decreasing ‘baseline’ level of input-based financing of the FGS civil service wage bill. 1.2. Financing eligible civil service salaries in FGS: reform benchmarks subcomponent will enable the FGS to access financial support through reimbursement against eligible expenditures over the project period. 2. Strengthen inter-governmental fiscal relations component has the following subcomponents: 2.1. Supporting inter-governmental Fiscal Forums and Secretariat subcomponent will build on the successful establishment of the Inter-governmental Fiscal Forum (IGFF), and dedicated Secretariat, which needs to be institutionalized to sustain the gains. 2.2. Reform benchmarks for improved governance and service delivery at Federal Member States (FMS) level subcomponent will ensure that on-budget fiscal transfers for education and health service delivery flow beyond FMS administrative capitals to frontline service delivery units, such as schools and health centers. 2.3. Strengthening resource management systems subcomponent will support a common approach to implementation of World Bank operations at FMS-level. 3. Transfers for core government functions and foundational education and health service delivery mechanisms in eligible FMS component has the following subcomponents: 3.1. Financing core government functions subcomponent will continue the financing of FMS recurrent costs. 3.2. Financing education service...