EU,World Bank sign MOU for provision of contingency funds
Written by Administrator
The European Union, through the DMI, shall grant 8.5 million euros to the existing Drought Contingency Fund (DCF) and the World Bank Group (International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA)) shall manage the grant through a specific agreement signed with the EU.
The implementation of the DCF will follow the mechanisms set up by the World Bank/Arid Lands Resource Management Project, which is currently operational in 28 districts in the country.
The aim of the DCF is to support risk prevention and livelihood improvement, and is released on a contingency basis at critical points in the drought cycle.
This intervention will ensure strengthening of the existing CDF and institutionalisation of a National Drought Contingency Fund (NDCF). The NDCF will be established as a multi-donor basket fund and will eventually replace the DCF (which only allows for World Bank Funding).
An administrative agreement between the EC and WB was signed in September 2007, and disbursement of the first tranche of 4.25 million euros finalised in December of the same year. This activity is directly managed by the EU Delegation in Nairobi.
