KHARTOUM: The World Bank will shortly begin the process of allocating some $2 billion in grants to Sudan, a bank official said, representing the country's return to the international financial system after decades of isolation.

Priority areas for the funds will be defined following meetings early next month, and allocations would take into account a peace deal signed last year, Ousmane Dione, World Bank country director for Sudan, said.

The peace agreement, signed between the transitional government and several of the groups that fought ousted president Omar al-Bashir across the country, entails extensive development spending.

In a statement on Friday, Sudan's cabinet had highlighted agriculture, infrastructure, health, and education as priority areas for investment.

"Making sure that those resources are being spent where they can contribute to reducing the gap between the centre and the periphery is extremely important," Dione told Reuters in an interview on Saturday.

While Sudan's government is expected to "take the driver's seat" for those projects, they could include partnerships with the private sector where advantageous, he added.

The World Bank's International Development Agency (IDA) committed on Friday to providing the $2 billion across the coming two years, purely in the form of grants.