The Recurrent Cost and Reform Finance (RCRF) Project phase 1 became effective in 2014 and closed after a year. A second phase of RCRF became effective in July 2015 and is currently expected to close in June 2022. The third phase became effective in December 2020 and is expected to close in December 2023, was under the World Bank’s new Environmental and social framework. An additional financing has been requested to extend the project by two years to December 2025. The Project Development Objective (PDO) of the RCRF is to support the Federal Government of Somalia and Eligible Federal Member States to strengthen resource management systems, the inter-governmental fiscal framework, and service delivery systems in health and education. The initial RCRF project focused on Benadir, and Puntland States. RCRF 2 has already expanded to Galmudug, Jubbaland, Hirshabelle and Southwest states and RCRF 3 has continued expanding to regions and districts of Somalia. In addition to system strengthening and capacity building the focus has been on bringing the existing cadre of health and education workers onto the government payroll, initially in high density urban areas. For RCRF 3 AF, 3, further expansion of staffing, will include need and equity considerations.