Somalia Recurrent Cost & Reform Financing Project - Phase 2

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The development objective of the Second Phase of the Recurrent Cost and Reform Financing Project for Somalia is to enable the Somali Government to achieve reliable and transparent financing of critical civil service operations to help strengthen the legitimacy of the state. The project comprises of four components. The first component, support to core government functions of ministries, departments, and agencies (MDAs) in Federal Government of Somalia (FGS) will finance: the salaries of eligible non-security sector civil servants in the MDAs; the cost of staff injected under the capacity injection mechanism (CIM); and non-salary operating costs for MDAs. It consists of following three sub-components: (i) financing of eligible civil service salaries in non-security sectors in FGS; (ii) financing of salaries and allowances to government staff and young graduates recruited under the capacity injection mechanism (CIM) in FGS; and (iii) financing of eligible non-salary recurrent costs in MDA in the FGS. The second component is inter-governmental fiscal transfers to core government functions of eligible federal member states, interim, and emerging administrations. It consists of following two sub-components: (i) transfers to interim and emerging states for core government functions; and (ii) inter-governmental fora on transfers and information exchanges. The third component, support of recurrent costs in health and education sectors in FGS and eligible member states, interim, and emerging administrations will support the FGS, Puntland, and interim Jubba administration (IJA) to expand their service delivery systems through improvement of accountability systems and support of recurrent costs in the education and health sectors. The fourth component, project management and coordination will support coordination, administration, communication, management, procurement, monitoring and evaluation (M and E), as well as impact-evaluation, auditing, and dissemination of project activities in FGS, Puntland, and the IJA.