88540 Multi-Donor Trust Fund to Support Statistical Capacity Building in Eastern Europe and CIS Countries ECASTAT Work Plan 2014 For approval by the Steering Committee on a non-objection basis ECASTAT Project Team May 2014 DRAFT 1 Objectives and background The overall objectives of the ECASTAT trust fund are to address the capacity and financial constraints of the statistical systems of countries in Eastern Europe and the Commonwealth of Independent States (CIS) region, and, thereby support their development outcomes by strengthening the production of reliable and relevant data on a timely basis for evidence-based decision making at all levels of their governments. To achieve its objectives, the ECASTAT trust fund supports both regional and country specific projects and is organized as a two-window programmatic trust fund. Window 1 comprises regional projects and focuses on the development of materials in the Russian language on methodologies, and technical assistance and training in specific thematic areas. Window 2 comprises country specific projects aiming at implementing National Strategies for the Development of Statistics (NSDSs). Activities taking place under the two windows aim to be complimentary, while care is taken to harmonize support with other donors and organizations. Although ECASTAT is established as a multi-donor trust fund, to date only the Russian Federation has pledged funding in an amount of USD 15 million. Total contributions as of May 2014 amount to USD 10.5 million, with another USD 2.5 million expected by the end June 2014. In 2013, the Steering Committee approved window 1, regional specific grants of up to USD 2.4 million and window 2, country specific grants in the amount of USD 5 million. In addition, funds have been allotted for ECASTAT administration, project preparation and supervision, leaving ECASTAT with just under USD 4.9 million for allocation during the current work plan period, 2014. Financial status as of May 2014 Contributions received by end calendar year 2013 (CY13) were USD 10.5 million while allocations and commitments made in CY13 total USD 8.2 million. A balance of approximately USD 2.4 million was carried forward to CY14. Available resources for the 2014 work plan period totals just under USD 4.9 million when combining the donor contribution due on June 30, 2014 (USD 2.5 million) and the current fund balance (USD 2.4 million). ECASTAT’s financials for the CY14 work plan is somewhat lower than last year’s allocation, which included funds for project preparation and supervision, and amounted to USD 7.7 million. More details on the ECASTAT’s current financial situation can be found in table 1. 2 Table 1: Financial status as of May 12, 2014 (USD) Donor contributions including investment income 10,544,065 Donor contributions 10,500,000 Investment income 44,065 Total allocations/commitments 8,150,000 Projects 7,380,000 Preparation and supervision 360,000 ECASTAT management 200,000 Fee 210,000 Balance (to be carried forward) 2,394,065 Forthcoming donor contributions 4,500,000 June 30, 2014 2,500,000 June 30, 2015 2,000,000 Suggested work program activities The work program has been developed with the aim of utilizing funds as they are made available/transferred to the World Bank. With just under USD 4.9 million available, the Project Team will invite proposals for both regional and country specific activities. The proposed allocations are listed below. Window 1, Regional specific activities It is proposed that approximately USD 1 million be allocated for regional activities. The stream of work suggested under this window is linked to economic statistics with a focus on national accounts and prices. The UNECE has expressed interest in executing this work. Window 2, Country specific activities The Project Team proposes allocating the balance (USD 3.9 million) for window 2 activities supporting implementing elements of country NSDSs. A call for proposals will be issued in early summer 2014. The available resources should be sufficient to grant funding for two country specific projects. Countries’ needs are likely to exceed available resources. However, taking into account that ECASTAT grants may have a catalytic effect, working with other development partners, and because country specific projects will benefit from activities taking place under window 1, the 3 total effect of receiving an ECASTAT grant is expected to be substantial and exceed the development objectives of each country specific project. Suggested budget allocations The suggested work program allocates up to USD 1.0 million towards regional activities and USD 3.9 million for country specific projects, including costs related to project preparation and supervision (Bank staff time and travel). A small amount has also been allocated to ECASTAT management. A more detailed budget breakdown is presented in table 2. Table 2: Suggested budget allocations CY14 (USD) Budget available as of July 1, 2014 (expected) 4,894,065 Funds available as of May 12, 2014 2,394,065 Expected donor contribution by June 30, 2014 2,500,000 Suggested allocations 4,894,065 Window 1, Regional activities 1,000,000 - Project grant(s) 900,000 - Project preparation and supervision grant(s) 100,000 Window 2, Country-specific activities 3,860,000 - Project grants 3,500,000 - Project preparation and supervision grants 360,000 ECASTAT management 34,065 Country specific activities/NSDS implementation (window 2 activities) require on average six to twelve months for project preparation and four years for implementation. December 31, 2018 is the closing date of the ECASTAT, thus it follows that implementation of such projects should be completed by then. Bearing this in mind, the possibility of advancing the last donor contribution (currently set for June 30, 2015) is worth considering. Advancing the last contribution would allow for granting higher amounts (average grant size up from USD 1.75 to USD 2.75) or extending a grant to one additional country. 4