Note to Correspondents: UN Peacebuilding Fund Finances Somalia Infrastructure Projects through Central Bank Funding

In a first for the United Nations, the UN Peacebuilding Fund started sending money to the National Window of the UN Multi-Partner Trust Fund for Somalia, from which the funds will flow to the Central Bank of Somalia to finance infrastructure projects in an effort to strengthen the country systems, the Peacebuilding Fund (PBF) announced Friday. “This marks a milestone in our efforts to strengthen national systems and provide the Federal Government of Somalia with the means to bolster its legitimacy with its citizens,” said Peter de Clercq, UN Resident Coordinator for Somalia, whose office serves as the Secretariat for the UN Multi-Partner Trust Fund. The pilot project amounts to $2 million for three infrastructure projects in Lower Jubba, Benadir and one other region still to be chosen. The Resident Coordinator and the PBF worked with the World Bank to set up the National Window, including its risk management.  It is part of the commitment between the federal government and donors under the so-called New Deal partnership that calls for using and strengthening the country system. “The use of the PBF to start channelling funds for peacebuilding in Somalia through the National System is a first and a major breakthrough for the New Deal arrangement,” said Oscar Fernandez-Taranco, Assistant Secretary-General for the Peacebuilding Support Office, which manages the PBF. “We hope PBF’s modest contribution will lead others to follow with more substantial support.” “Funds from the UN Peacebuilding Fund are being channelled into Somalia’s Central Bank via the UN Multi-Partner Trust Fund’s National Window and will be reported on in the federal government’s budget,” said de Clercq. “The entry into operation of the National Window is a clear application of our commitment to use and strengthen national systems, which fulfils a key principle of the Somali New Deal Compact.”