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Recurrent Cost Window

The ARTF Recurrent Cost Window (RCW) was established in 2002 to provide predictable and transparent operating budget support for the government’s non-security related costs. The RCW supports wages and Operations & Maintenance. The RCW:

  • Supports on average 18-20 % of the non-security operating budget;
  • Disburses on average $240-300 million a year;
  • Is budgeted as discretionary development spending.

The RCW consists of three modalities:

3 modalities:

1. Baseline recurrent cost financing: Funds under the baseline are not conditionalized. Baseline financing is usually transferred to Government in quarterly trances;

2. Incentive Program: Incentive-oriented program that supports the improvement of fiscal sustainability by increasing domestic revenue mobilization, strengthening expenditure management and efficiency. It does so through a Revenue Matching Grant, a Structural Reform Scheme and the Operations & Maintenance (O&M) Facility. Please find more information on the IP here;

3. AHP: "Ad Hoc Payments": The AHP allows for ad hoc contributions to be channeled through the ARTF. These contributions arise from agreements betweeen bilateral donors and Ministry of Finance, to which the Administrator is not privy. AHP contributions are subject to the same fiduciary controls and monitoring arrangements as the ARTF Recurrent Cost Window.Expenses claimed by government under the RCW must meet a set of eligibility criteria, established by the World Bank, and be verified by an independent, international, third-party monitoring agent. The Monitoring Agent (MA), an accounting firm, is contracted by the World Bank and has been in place since 2002 to monitor the entire civilian operating budget. The purpose of the MA is to ensure all expenditures financed from the RCW are eligible – and to deduct ineligible expenditures.

Expenses claimed by government under the RCW must meet a set of eligibility criteria, established by the World Bank, and be verified by an independent, international, third-party monitoring agent. The Monitoring Agent (MA), an accounting firm, is contracted by the World Bank and has been in place since 2002 to monitor the entire civilian operating budget. The purpose of the MA is to ensure all expenditures financed from the RCW are eligible – and to deduct ineligible expenditures.