1. World Bank Iraq Trust Fund Future Perspectives IRFFI Donor Committee Meeting Baghdad, July 7, 2008

2. Future Strategic Directions The Bank is currently preparing its Third Interim Strategy Note (ISN) for Iraq The ISN will be informed by: A review of the Banks experience in Iraq to date The results of the Multi-Donor Stocktaking Review Ongoing project reviews Consultations with the Government of Iraq and key stakeholders including development partners

3. IRFFI Timeline To ensure timely & complete project implementation the WB ITF recommends: No new deposits be made later than December 31, 2009 No new project approvals later than December 31, 2010 The World Bank proposes that it work with the IRFFI Executive Committee to draft a concept paper outlining a final timeline and mechanism for closing IRFFI The recommendations of this paper would be presented for discussion at the next Donor Committee Meeting

4. Project Implementation Experience shows that WB projects in Iraq typically take about 5 years to implement Procurement under Iraqi-executed projects is advanced with about 80% tendered and more than 60 % committed Disbursement has reached 34% and is showing signs of speeding up The WB will outline new measures to facilitate project implementation in its formulation of a new interim strategy for support to Iraq

5. The Third ISN The ISN will define the Banks framework for engagement with Iraq It is expected that future activities will be more focused and will continue to build the capacity of the Government of Iraq to better utilize its own resources and develop its private sector The ISN will capitalize on the full range of Bank products (IFC, MIGA, IBRD & AAA) to offer Iraq a comprehensive selection of products and services Single purpose trust funds could be envisaged for specific sector interventions