Trust Fund design and management

Trust funds are a widely utilised part of the global aid architecture. They are used significantly by the World Bank and the UN – leveraging off the infrastructure of these institutions – to fill perceived funding, systems and capacity gaps. Trust funds currently account for 11% of ODA and have proved increasingly popular as public constituencies seek increased financial accountability, and improved aid coordination. They range from huge global initiatives to more localised development programs and projects and technical assistance.

Transtec specialises in the design, set-up, management and transfer of donor support through securely managed trust fund systems in fragile and conflict-affected countries. Transtec embeds due diligence within an overall results oriented approach  - ensuring that due diligence is fit for purpose. We are experienced in:

  • setting up a pro-tem funding mechanism along the lines of an Afghanistan Reconstruction Trust Fund (ARTF) or the West Bank and Gaza MDTF
  • understanding how to design simple but robust low-cost transaction systems that support governments to manage funds available efficiently and effectively
  • incorporating both results frameworks as well as fiduciary systems in pro-term funding mechanisms and emerging PFM systems
  • taking capacity building seriously, taking into account the different culture and values in the countries in which we operate
  • prioritizing the thorough and effective transfer of responsibilities at the end
  • understanding that communication is a critical element to both the donors and local stakeholders.

A selection of our relevant references can be found here.

Transtec has initiated a specific Brussels-based unit to support the establishment of trust funds. It offers bespoke services in researching, planning, facilitating, implementing and monitoring trust funds for different clients.

A recent scoping paper prepared by Dr Marc Stephens (OpenCities), on behalf of Transtec, as a reflection on the potential development of trust funds at EU level can be found here:  Transtec Evaluation references PDF