1. STRATEGY FOR MDTFs Phase II (2008-11) Building on Achievements

2. Learning from Phase I Experience  In a fluid and complex context, MDTFs need to be adaptive and strategic.  Dynamic learning loops are critical.  MDTFs need to support articulation of broader and coherent development strategy.  MDTFs bring more values than money.  Donor harmonization.  Capacity building.  Knowledge development and transfers.

3. An Approach to MDTF-N Phase II  Sharpen ‘sector’ selectivity based on the receptivity to knowledge exploration (e.g., decentralization, sustainable livelihoods).  Focus geographically on war-affected and least-developed areas (e.g., The Three Areas and the East).  Adhere to Sudanese-led and owned program implementation.

4. An Approach to MDTF-S Phase II  Continue to support a broad range of GoSS priorities, to assist in capacity building.  Expand attention to State governments and below.  Engage in broader dialogue on development strategy and policy framework.

5. MDTF Financing Needs for Phase II  GoSS projects a financing gap of $2 billion.  Of this, GoSS requests donor funding of $751 million through MDTF ($391 million in Phase I).  GoNU projects a financing gap of $3.1 billion, but no specific request for MDTF.  Given the GoSS request, parity would suggest doubling of MDTF-N from $234 million to about $450 million.

6. Unique Roles of MDTFs Beyond the obvious benefits,  MDTF-N has created a joint space where GoNU and donors could agree on development programs and work in partnership.  MDTF-S is the only large-scale instrument that works through GoSS institutions, thereby internalizing delivery of capacity building.