In fiscal year 2021 The World Bank Group (WBG) disbursed about $3.6 billion dollars of
Trust Fund contributions through development partners, IBRD, IDA and the IFC. Trust fund resources complement World Bank operations, expanding their scope and reach and supporting their quality. They promote increased development effectiveness and enable the World Bank to provide assistance when its ability to lend is limited, including in fragile and emergency situations, and for countries in arrears and to non-member countries. Trust Funds also contribute to the World Bank’s knowledge agenda by financing close to two-thirds of its advisory services and analytics products as well as technical advisory services for clients. Trust Funds attract new sources of finance and promote innovative financial solutions in support of the global public goods agenda, including combating climate change and addressing the challenges of fragility, conflict, violence, forced displacement and pandemics.
To enhance the efficiency, effectiveness and strategic alignment of the Trust Fund portfolio the World Bank Group introduced the Umbrella 2.0 program(s). As described by the World Bank Group “ The central innovation of the current phase of trust fund reform is the introduction of the Umbrella Program as a flexible way to align and manage development resources for results at scale — an approach that will result in fewer, larger more strategically aligned trust fund programs.” The programs provide a single governance structure, a results framework, unified reporting narrative, and a partner brand recognition with the World Bank. The biggest advantage to this setup is that all the resources are pooled in support of a common development outcome which provides flexibility across the Umbrella Program and makes it easier to draw on the full capacity of the World Bank. For more information about Umbrella trust funds specifically GWSP.
In some circumstances the World Bank may still establish a Standalone Trust Funds – a trust fund that is not part of the Umbrella 2.0 Program. A Standalone Trust Fund is considered when activities to be funded are aligned with World Bank development priorities but cannot be accommodated in an existing Global, Regional or Country Umbrella 2.0 Program. This may include activities that do not contribute to a World Bank Business Unit’s highest strategic priorities but are of medium-term interest.
Other Financing Arrangements:
A Financial Intermediary Fund (FIF) are important tools in the development finance toolbox offering customized financing platforms for partnership programs and special financing mechanisms. They can catalyze a variety of public and private resources in support of international initiatives. Example: Global Environment Facility (GEF)
Externally Financed Ouput (EFO’s) is a streamlined instrument for receiving contributions of up to US$2 million to support the World Bank’s own work program over a maximum initial timeframe of 24 months.
Project Co-financing Arrangements, donors provide financing directly to a recipient to finance activities within the scope of an IBRD or IDA project. No Trust Fund arrangement is involved.
The Netherlands is donor to around hundred different Trust Funds and other financial instruments, varying in regional and thematic focus. More information about Trust Funds can be found here.
World Bank Group Trust Funds and other Financial Instruments
In fiscal year 2021 The World Bank Group (WBG) disbursed about $3.6 billion dollars of Trust Fund contributions through development partners, IBRD, IDA and the IFC. Trust fund resources complement World Bank operations, expanding their scope and reach and supporting their quality. They promote increased development effectiveness and enable the World Bank to provide assistance when its ability to lend is limited, including in fragile and emergency situations, and for countries in arrears and to non-member countries. Trust Funds also contribute to the World Bank’s knowledge agenda by financing close to two-thirds of its advisory services and analytics products as well as technical advisory services for clients. Trust Funds attract new sources of finance and promote innovative financial solutions in support of the global public goods agenda, including combating climate change and addressing the challenges of fragility, conflict, violence, forced displacement and pandemics.
To enhance the efficiency, effectiveness and strategic alignment of the Trust Fund portfolio the World Bank Group introduced the Umbrella 2.0 program(s). As described by the World Bank Group “ The central innovation of the current phase of trust fund reform is the introduction of the Umbrella Program as a flexible way to align and manage development resources for results at scale — an approach that will result in fewer, larger more strategically aligned trust fund programs.” The programs provide a single governance structure, a results framework, unified reporting narrative, and a partner brand recognition with the World Bank. The biggest advantage to this setup is that all the resources are pooled in support of a common development outcome which provides flexibility across the Umbrella Program and makes it easier to draw on the full capacity of the World Bank. For more information about Umbrella trust funds specifically GWSP.
In some circumstances the World Bank may still establish a Standalone Trust Funds – a trust fund that is not part of the Umbrella 2.0 Program. A Standalone Trust Fund is considered when activities to be funded are aligned with World Bank development priorities but cannot be accommodated in an existing Global, Regional or Country Umbrella 2.0 Program. This may include activities that do not contribute to a World Bank Business Unit’s highest strategic priorities but are of medium-term interest.
Other Financing Arrangements:
A Financial Intermediary Fund (FIF) are important tools in the development finance toolbox offering customized financing platforms for partnership programs and special financing mechanisms. They can catalyze a variety of public and private resources in support of international initiatives. Example: Global Environment Facility (GEF)
Externally Financed Ouput (EFO’s) is a streamlined instrument for receiving contributions of up to US$2 million to support the World Bank’s own work program over a maximum initial timeframe of 24 months.
Project Co-financing Arrangements, donors provide financing directly to a recipient to finance activities within the scope of an IBRD or IDA project. No Trust Fund arrangement is involved.
The Netherlands is donor to around hundred different Trust Funds and other financial instruments, varying in regional and thematic focus. A full directory of trust funds can be found on the website More information about Trust Funds can be found (DP-Guide install here), while the 2013 Annual Report on Trust Funds is available (NL Annual TF report).
Netherlands for the World Bank 
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