Country selection and resource allocation SECOND INVESTORS GROUP, St Albans, United Kingdom, 17-18 February 2016

Approach to selection of second wave countries (from June 2015 Oversight Group) Background Universe: 75 Countdown to 2015 countries (high-burden), narrowed by Oversight Group to 63 low/lower-middle income countries Four “frontrunners” that participated fully in Business Plan development process: DRC, Ethiopia, Kenya, and Tanzania Multi-step approach for second wave countries: Use of objective measures to identify a “long list” (25-30) of priority countries that have significant opportunities (ability to mobilize domestic resources, use IDA/IBRD for health, and achieve results) Assessment of list against priority countries of key stakeholders/initiatives, and other key considerations (e.g., regional balance, income levels) Consultation to gauge level of interest on the part of countries Discussion on short list (10-15 countries) with wider set of partners Final approval by the financiers of the GFF Trust Fund

GFF Trust Fund resource allocation (from February 2015 Oversight Group) IDA allocation Formula determines country envelope Combination of country performance rating (CPIA and past performance), population, and income Ministry of Finance determines repartition among sectors (in consultation with government ministries and with World Bank Country Director) GFF Trust Fund allocation Starting point is formula modified IDA allocation formula Allocation = Need2 * Population0.5 * Income-0.125 Output is a range for each country (e.g., US$20-40 million) Flexibility and ability to respond to changing external circumstances Incentivize financing from external and domestic resources Final decision by the GFF Trust Fund Committee is made in course of preparing the grant