BULSHO PROJECT FOR SOMALILAND STRENGTHENING COMMUNITYAND LOCAL INSTITUTIONS FOR SOCIAL COHESION, INCLUSION AND RESILIENCE

Feb 09, 2026

1.1. The rationale for the Bulsho Project for Somaliland?

Somaliland has made notable progress in consolidating peace and advancing democratic local governance. The simultaneous parliamentary and district council elections held in May 2021 reinforced its reputation for political stability and local participation. Across most districts, elected councils now provide citizens with a measure of local representation and accountability, and in stronger municipalities such as Hargeisa and Berbera, visible improvements in infrastructure and service delivery have strengthened public confidence. A vibrant non-state sector—including community entities, civil society, and private providers—has further complemented government efforts to meet community needs.

The Government of Somaliland has established a comprehensive policy and legal framework to guide decentralization and inclusive local governance. The Constitution of Somaliland (2001) mandates the creation of elected district councils, defines regions and districts as administrative units, and authorizes subsequent laws to regulate their powers, revenue, and relations with the central government. Vision 2030 articulates the country’s long-term aspiration for prosperity, good governance, and human development. The National Development Plan III (2023–2027) prioritizes local governance, decentralization, and social protection as key enablers of inclusive growth. The Decentralization Policy (2013–2020) and the revised Local Government Law (No. 23/2019) provide the legal foundation for political, administrative, and fiscal devolution, while the National Planning Policy ensures that district and regional plans are aligned with national priorities. The Social Protection Policy (2022–2030) complements these efforts by promoting coordination across levels of government and strengthening community resilience.

Despite this strong framework and the progress achieved, local governance continues to face significant challenges. Many councils operate with limited administrative capacity, constrained fiscal space, and weak systems for planning, budgeting, and service delivery. Legal provisions for devolution are not fully implemented, resulting in uneven performance across districts. Local revenues remain insufficient to finance basic services, leaving districts heavily reliant on central transfers. Political disputes, weak accountability, and gaps in inclusion—particularly for women, youth, and marginalized groups—risk undermining citizens’ confidence in local government.

The Bulsho Project for Somaliland seeks to address these challenges within the government’s established policy and legal framework. Anchored in the mandate of the Ministry of Local Government and Urban Development (MoLGUD), it provides a structured mechanism for advancing decentralization and inclusive local governance. The project builds on Somaliland’s strong civic traditions and lessons from the Joint Programme on Local Governance (JPLG), extending support to districts and communities not yet covered by that programme. In doing so, Bulsho translates national commitments into tangible improvements in citizen participation, institutional performance, and service delivery at the local level.

 

 

1.2 Bulsho Objective and Theory of Change

Bulsho main objective is to strengthen community and local institutions with the ultimate goal of improving social cohesion, inclusion, and resilience.

The project’s Theory of Change (ToC) is grounded in the understanding that Somaliland’s relative peace and stability stem from a long tradition of locally negotiated governance and reconciliation. Nevertheless, social and economic disparities, limited fiscal resources, and uneven capacities across districts continue to constrain the consolidation of inclusive and accountable local governance. The ToC therefore articulates how strengthening community and local institutions will further enhance social cohesion, inclusion, and resilience across Somaliland’s diverse communities.

The ToC pathway posits that for Somaliland to sustain and deepen its stability and progress toward decentralized and inclusive development, citizens and institutions must: (i) share a collective vision for local development; (ii) cultivate mutual trust between communities and government; and (iii) cooperate effectively in the equitable management of local resources and services.

Shared purpose, trust, and cooperation are strengthened when communities experience the tangible benefits of joint planning, transparent decision-making, and equitable service delivery—where all groups, regardless of social or regional background, see that collective action leads to improved welfare and responsive governance. When resource allocation and district selection processes are perceived as fair, predictable, and based on agreed criteria, confidence in local governance and state institutions is further reinforced.

Such collective action can be achieved when communities and local governments are supported by: (i) transparent and inclusive mechanisms to allocate public resources and program support; (ii) collaborative systems to mobilize and manage local revenues and investments; and (iii) mechanisms for constructive dialogue between citizens and government, enabling consensus on priorities, representation, and resource management at the local level.

The ToC recognizes that Somaliland’s social contract—built over decades of dialogue, customary institutions, and gradual decentralization—requires continuous renewal as governance structures evolve and new development pressures emerge. The Bulsho program will serve as a platform that strengthens the legitimacy and capacity of community and local institutions, ensuring that local development processes remain inclusive, trusted, and aligned with national frameworks and priorities.

The above translates into the following if-then-because logic:

If:

• Somaliland’s communities, local governments, and national institutions apply predictable, transparent, and equitable criteria to allocate public resources and program support—ensuring that all districts and groups can access opportunities based on clear and objective principles.

• They strengthen collaborative systems for local revenue generation and resource mobilization, combining traditional mechanisms of community contribution with formal fiscal systems that reinforce accountability and sustainability.

• They maintain open and constructive dialogue between citizens and government, agreeing on priorities, representation, and the management of local revenues and investments.

Then:

• Communities and local authorities will be more willing to jointly plan and invest in social and economic infrastructure that benefits all residents, beyond clan or regional affiliations.

• They will engage in collective action that enhances trust and partnership between citizens and government institutions.

• They will be able to deliver services and manage resources more efficiently, transparently, and equitably.

• They will strengthen mutual trust and reinforce a shared vision for local development and stability.

Because:

• Citizens and local institutions will see that public resources are allocated fairly and predictably, and that their contributions are matched by transparent and accountable governance.

• They will experience tangible improvements in local welfare as a result of inclusive planning and equitable service delivery.

• They will perceive cooperation with government and across communities as beneficial, sustainable, and consistent with Somaliland’s long-standing traditions of dialogue and consensus-building.

As a result:

Strengthened shared purpose, trust, and cooperation will reinforce Somaliland’s social cohesion, inclusion, and resilience, enabling citizens and institutions to jointly address development challenges, manage resources equitably, and sustain peace and stability across all regions.

1.2 Bulsho Approach and Principles Guiding the Implementation

Bulsho places citizens and communities at the center of the government’s local governance agenda. The project’s objective will be pursued through:

  • A Local Social Contract Platform that starts with citizens’ objectives, needs, and priorities, consolidates participatory local planning and budgeting processes, where empowered citizens and local authorities jointly identify priorities, and promotes joint oversight mechanisms, namely Citizens’ Charters with local social contracts based on transparency, inclusion, and accountability.
  • Matching Grants as incentives for communities and district authorities, and the central government to mobilize resources and collaborate in delivering sustainable solutions.

The Local Social Contract Platform and the Matching Grants are meant to strengthen collective action and the capacity of communities to resolve local development challenges and respond to shocks

Ultimately, Bulsho contributes to building trust between citizens and the state, empowering women, youth, and marginalized groups, and reinforcing a shared sense of purpose across districts and communities.

These principles will guide the implementation of Bulsho in Somaliland:

  • Government-led, not a development partner project.
  • Implemented all Somaliland with a focus on extending government and services to hard-to-reach and rural areas.
  • Multi-sectoral and programmatic but focus as much on process as on delivery.
  • Framework for development partners and World Bank sector operations operations to ensure that local governance interventions reinforce one another.
  • A community-centered “bottom-up” approach to decentralization – complementing “top-down” institutional strengthening efforts – that leverages society to address Somaliland’s core development and service delivery challenges.

1.3 Bulsho Project Components

The World Bank (WB) is providing funding to the government of Somaliland to implement the Bulsho project from June 2025 to 30th June 2029.

The Bulsho project targets an initial four districts across Somaliland, with the aim of reaching up to 10 districts by 2028. It is expected that other funding will be made available following the successful completion of the first operation.

The Bulsho project is implemented through four interrelated components, namely:

  • Component 1: Community and District Social and Institutional Strengthening

This component delivers capacity building for districts and communities, with the aim to: Enhance community and district capacity to diagnose, plan, budget, execute, and oversee basic service delivery in a participatory and inclusive way. In order to create the conditions for capacity building, this component also supports districts and communities to manage their conflicts and reconcile.

  • Component 2: Local Social Contract Platform

This component supports districts and communities to establish participatory bottom-up forums, carry out inclusive planning processes, and set up commitments (Citizens’ Charters) with the aim to:  Empower citizens to participate in consolidated service delivery planning, monitoring, and oversight.

  • Component 3: Matching Grants for Social Cohesion, Inclusion and Resilience

This component provides matching grants and allowances for collective action with the aim to: Enable communities and districts to collaborate across political and clan affiliations and contribute their own resources to address local priorities.

  • Component 4: Capacity Building for Coordination, Delivery, Innovation and Learning

This component finances the operational costs that are incurred by government ministries and agencies, namely the MoLGUD and their contractors, as well as participating district governments, to execute the Bulsho project.

Component 1 of the Bulsho project contributes to Pillars 1 and 2 of the government Bulsho program; Component 2 contributes to Pillar 3; Component 3 contributes to Pillar 4, and Component 4 contributes to Pillars 5 and 6.[1]

Bulsho Components 1, 2, and 3 entail a set of activities that are grouped into three separate packages tailored to the local context. The packages are as follows:

  • Support Package A – These activities are aimed at creating an enabling environment for districts that have recently established a council, or have interim administrations following the dissolution of the council, but possess limited capacity for community engagement, planning and service delivery.
  • Support Package B – These activities are aimed at building on foundations for stable districts with a functioning council, and are able to provide some services with support from international partners.
  • Support Package C – These activities are aimed at enhancing capabilities for districts with functioning district councils and are capable of varying degrees of resource mobilization, coordination, and service delivery. 
 

[1] Bulsho project contribution to Pillar 1of the government program is by setting commonly agreed procedures that Somaliland and Somaliland can then embed in legislations and policies.