1. THE EAST AFRICA REGIONAL RESOURCE CENTER (EARC) Presentation by Mr Gabriel NEGATU, Regional Director EARC

2. Background The Boards of the Bank Group approved on April 8 th 2011, the Decentralization Roadmap articulated around the following three pillars: 1.Strengthening the existing Field Offices : 1.Strengthening the existing Field Offices : (i) increased staffing and responsibilities for Portfolio Management and Implementation, (ii) expanded role in analytical work 2.Expanding presence in Fragile States : 2.Expanding presence in Fragile States : Opening 4 offices in Togo, Liberia, CAR and Burundi. 3.Consolidating Regional Capacity: 3.Consolidating Regional Capacity: Reorganizing current regional offices and opening of 2 pilot RRCs (Pretoria and Nairobi) each headed by Regional Directors 2

3. RRCs are mandated to ramp up level of services to RMCs under their jurisdiction Improved dialogue and alignment with countries priorities in pipeline building and portfolio management Facilitate dialogue with Regional Economic Communities (RECs) and other regional bodies. Support knowledge generation, analytical work and advisory services among other region-wide needs of RMCs Significantly contribute to a more effective and efficient coverage of the RMCs through increased proximity of technical resources available at the RRC. Oversight of operations of Country Offices and Teams and sector staff deployed to RRCs. 3

4. Differentiated Approach in the Two Pilot RRCs For EARC and SARC, the roles will also vary taking into account the nature of the Banks current and prospective portfolios in the respective regions The EARC will focus mainly on improving the portfolio quality of the ADF countries in the greater East Africa region SARC will focus on private sector development and knowledge management, analytical work and advisory services, while also improving the portfolio. 4

5. Functions of EARC EARC is mandated to bring a significant level of increased services to RMCs under their jurisdiction (TZ, KE, BI, RW, SC and UG). Contribute to project pipeline building while ensuring greater portfolio selectivity and improved inter-sectoral coordination; Assist governments in strengthening country systems to facilitate their use in donor-financed projects; Closely engage with the client to increase quality and speed of procurement and disbursement activities; Provide regional training to client staff on the Banks rules and procedures on procurement and financial management; Enhance Bank outreach and image. 5

6. EARC profile Headed by a Regional Director for high level decision making and improved visibility and profile Revised Delegation of Authority Matrix: Empowering FOs and RRCs for greater responsiveness and effectiveness Larger pool of Technical staff for better synergy and skills mix : Economist (including Lead economist) Sector Specialists (including Lead experts) Procurement and Financial Management Specialists Environmental Safeguards, Legal Experts Corporate Services Experts 6

7. Structure of the EARC- Nairobi OREB (2 PL) Full Reporting Administrative Reporting OSVP 1. OSAN (2 PL, 1 LP) 2. OSHD (2PL, 1LP) 3. OSGE (1PL, 1LP) 4. OFSU (1PL)OSVP 1. OSAN (2 PL, 1 LP) 2. OSHD (2PL, 1LP) 3. OSGE (1PL, 1LP) 4. OFSU (1PL) Notes: 1. KEFO is subsumed in the RRC. Staff previously assigned to KEFO are mapped to RRC. 2. Discussions with FFCO could lead to one disbursement office for both RRCs. 3.LP refers to locally recruited staff. Other Corporate Services 1. SECU-Reg. Sec. (1 PL) 2. ORQR (1PL, 1 LP) 3. ORPF (3 PL, 2LP) 4. Disb. Assist. (1GS) 5. GECL (1 PL) 6. ESTA (1 PL) Other Corporate Services 1. SECU-Reg. Sec. (1 PL) 2. ORQR (1PL, 1 LP) 3. ORPF (3 PL, 2LP) 4. Disb. Assist. (1GS) 5. GECL (1 PL) 6. ESTA (1 PL) CSVP 1. CIMM (1PL) 2. CGSP (1 PL) 3. IT Assistant (1 GS)CSVP 1. CIMM (1PL) 2. CGSP (1 PL) 3. IT Assistant (1 GS)OIVP 1. OITC (1PL, 1LP) 2. ONEC (2PL, 1YP) 3. OWAS (2PL, 1LP) 4. ONRI (2PL) 5. OPSM (1PL, 1PL)OIVP 1. OITC (1PL, 1LP) 2. ONEC (2PL, 1YP) 3. OWAS (2PL, 1LP) 4. ONRI (2PL) 5. OPSM (1PL, 1PL) 7

8. What does this mean to Tanzania? more Visible and Flexible Bank A more Visible and Flexible Bank through greater proximity to clients more Responsive Tanzania Country Office A more Responsive Tanzania Country Office with quick and timely access to a broad range of skills/expertise residing in the RRC Bank highly engaged A Bank highly engaged with Government, Development Partners and other stakeholders on policy matters and sectoral discussions. 8

9. Progress to date has been encouraging Experts already installed have been mobilized on a number of fronts –QaE; fast track effectiveness; increased supervision etc; EARC has ramped up its policy dialogue with RMCs and RECs and also its analytical work program (e. g. Regional consultations on LTS, PSD, Integrated safeguards, etc. ); Ownership of portfolio management is increasing (e.g. quicker resolution of portfolio challenges) but much more needs to be done; EARC has increased communication, outreach as well as donor coordination, and is boosting the Banks visibility and profile in the region. 9

10. Conclusion The Banks decentralization process began in 2000. Field presence was accelerated from 5 to 34 offices in response to greater demand from Shareholders. Management has institutionalized the Decentralization through the creation of the PErmanent COmmittee on Decentralization (PECOD) for oversight purposes. The Bank seeks your guidance/suggestions on how to further improve the decentralized approach. An independent survey will be launched shortly to collect baseline data that will allow an assessment at the end of the pilot phase. 10

11. THANK YOU 11