Regional Partnership Framework for the Nine Pacific Island Countries (FY2026–FY2031) - Annex 1: Financing and Implementation Arrangements

Jul 19, 2026

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Regional Partnership Framework for the nine Pacific island countries (FY2026–FY2031) sets out how the World Bank Group coordinates financing and knowledge support across the Republic of Kiribati, Marshall Islands, FSM, Nauru, Palau, Samoa, Tonga, Tuvalu, and Vanuatu. Annex 1 details the financing envelope and implementation arrangements, describing WBG collaboration across the World Bank, IFC, and MIGA, support for policy dialogue via DPOs, use of guarantees and risk-sharing instruments, and guidance on eligibility across IDA and IBRD cycles.

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Annex 1: Financing and Implementation Arrangements

Financial Envelope and Knowledge

Public Disclosure Authorized Pub lic Disc losure Authorized WORLD BANK GROUP Regional Partnership Framework for the Nine Pacific Island Countries (FY2026–FY2031) THE REPUBLIC OF KIRIBATI, THE REPUBLIC OF THE MARSHALL ISLANDS, THE FEDERATED STATES OF MICRONESIA, THE REPUBLIC OF NAURU, THE REPUBLIC OF PALAU, THE INDEPENDENT STATE OF SAMOA, THE KINGDOM OF TONGA, TUVALU, AND THE REPUBLIC OF VANUATU Table of Contents Annex 1: Financing and Implementation Arrangements ........................................................................... 1 Annex 2: Results Framework: Intervention Logic and Short-Term Business Planning ................................ 6 Annex 3: Summary of PIC9 Regional Gender Action Plan..................................................................... 16 Annex 4: Streamlined Country Diagnostic ............................................................................................ 19 Annex 5: Selected Country-Level Economic Indicators.......................................................................... 29 Annex 6: WBG Portfolio Snapshot....................................................................................................... 38 Annex 1: Financing and Implementation Arrangements Financial Envelope and Knowledge The World Bank, IFC, and MIGA will continue to draw on the WBG’s comprehensive financing network and strong collaboration during the previous RPF period. The World Bank and IFC will continue to consult closely to deepen understanding of the context and identify potential private sector reform areas to bring into policy dialogue with clients through development policy operations (DPOs). Where feasible and fully respecting demand from the client, the World Bank, IFC, and MIGA will facilitate dialogue from early stages and work jointly to integrate financing and nonfinancing solutions that will maximize the impact of public resources. Where markets already exist, reinforcement will be supported using commercial finance and private sector solutions where it can be done cost-effectively. In cases where markets are not conducive to private investment, or where the enabling environment needs tobe strengthened, the WBG will focus on reforms—including leveraging DPOs—that address these market failures and constraints. Where risks remain high, the priority will be to apply guarantees and risk-sharing instruments through the unified Guarantee Platform housed at MIGAto bring alarger share of the investment program into the commercial space. To date, MIGA has engaged in discussions to support renewable energy projects in Samoa and Tonga. This RPF spans the two IDA financing cycles (IDA21/FY26–28 and IDA22/FY29–31). Combined indicative national allocations for IDA-eligible countries in the PIC9 are estimated at SDR 352.6 million in IDA21. These countries may also be eligible for additional resources from other IDA windows, such as the IDA Global and Regional Opportunities Window, the Crisis Response Window, the Scaleup Window (FSM and Samoa), and the Private Sector Window (PSW), in addition to trust funds that can be leveraged or mobilized with key development partners. Nauru and Palau remain eligible for IBRD financing only. Eligibility for financing from IFC and MIGA differ across the PIC9 as well—Nauru is not a member of IFC, and Kiribati, RMI, Nauru, Tonga, and Tuvalu are not members of MIGA. Following the IDA21 replenishment, IFC will continue to leverage the PSW where possible, and further catalyze private investments in these challenging markets; the PSW helps mitigate risk and fill financing gapsin the market such as providing first-loss guarantees on credit and market risk, facilitating longer tenor loans, and providing local currency in markets where | Table A1.1: Access to IBRD and IDA | | | | --- | --- | --- | | Country | IBRD | IDA | | Kiribati | No | 100% grant | | RMI | No | 100% grant | | FSM | No | 50% grant/50% credit | | Nauru | * | None

FAQs

What is the purpose of Annex 1 in the Regional Partnership Framework?

Annex 1 explains the financing envelope and implementation arrangements, describing how the World Bank Group will coordinate financing and knowledge support across the Pacific island countries.

How do the World Bank, IFC, and MIGA collaborate under the framework?

They continue consultation and joint facilitation of policy dialogue and integrated financing and nonfinancing solutions, using commercial finance where feasible and guarantees and risk-sharing instruments when risks remain high.

How does the framework address differences in eligibility for financing across the PIC9?

It notes that IDA eligibility spans two IDA cycles, while Nauru and Palau have different access to IBRD; eligibility for IFC and MIGA also varies by country, including non-membership constraints.

Jul 19, 2026

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