The World Bank said on Saturday it was "not satisfied" with its own management of a key fund to rebuild the war-shattered region of south Sudan, where less than half the money granted has been spent five years after the conflict ended. The World Bank-administered Multi-Donor Trust Fund (MDTF) has been heavily criticised by donors, with a lack of spending restricting the main route to funnel cash to support the south as it rebuilds from a 1983-2005 civil war.
Five years after a peace deal was signed, just 217 million dollars (159 million euros) of the 526 million dollar (387 million euro) fund have yet been spent, bank officials said. "The World Bank has not been satisfied with the performance of this trust fund, which in some respects has not met standards achieved by other trust funds we administer elsewhere," said senior bank official Joseph Saba, in a statement read to reporters.
This was due "in large part" to "severe capacity constraints" said Saba, co-head of a team sent from the bank's Washington headquarters to assess progress in south Sudan. Donors have criticised what they say is the bank's unduly bureaucratic process, holding up disbursement of the funds.
The mainly Christian or animist south was left in ruins by the civil war with the Muslim-dominated north which killed some two million people and saw some four million flee their homes. A peace agreement was signed in 2005, but many are furious that redevelopment has appeared slow, with even the most basic services lacking in many areas. The autonomous regional government for the south set up by the peace accord has contributed to the reconstruction fund. But the bank said it had to ensure the money was not lost through corruption or mismanagement. "We want to move faster, while still ensuring proper use of funds," Saba added.
By July, the bank expects that more than half of the 526 million dollars (387 million euros) will have been disbursed, the statement added. A total of 109 million dollars (80 million euros) has been allocated to projects under implementation, with a further 163 million dollars (120 million euros) committed for projects still waiting for grant agreements to be completed, the bank added. The bank blamed the "hugely challenging environment" as a key factor behind the lack of progress.
"Southern Sudan is amongst the poorest, least developed regions of the world," Saba said. "It has been blighted by decades of conflict, lacks basic infrastructure and urgently needs to develop an administrative capacity for government while the necessary skills and experience are in extremely short supply." Sudan is gearing up for nation-wide elections in April. However, many in the south appear more focused on an independence referendum promised for January 2011.
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