To support the implementation of the Bank's strategy, the MENA Finance, Private Sector Development and Infrastructure Group makes full use of the range of instruments available from the World Bank Group. For countries still eligible for borrowing, these include technical assistance and investment loans. In addition, the sector uses Partial Risk and Credit Guarantees, assistance through the Global Environmental Facility (GEF) and the Prototype Carbon Fund (PCF) as well as a number of Bank-managed Trust Funds, when there is a fit.  Partial Risk Guarantees (PRGs) can be provided in countries eligible for loans from the International Bank for Reconstruction and Development (IBRD) as well as those eligible for concessional lending from the International Development Association (IDA). PRGs cover private lenders against the risk of a government-owned entity failing to perform its obligations with respect to a private project.  Partial Credit Guarantees (PCGs) cover private lenders against all risks during a specific period of the financing term of debt for a public investment. The main objective of these guarantees is to lengthen the maturity of the private debt financing beyond that available in private markets by covering a part of the scheduled repayments of private loans or bonds against all risks. PCGs are generally provided for privately funded public projects. The longer maturity and lower borrowing costs substantially improve the financially viability of projects and, in those providing services such as power or water, usually lead to lower tariffs for consumers.  The Global Environment Facility (GEF) has four main categories of grant co-financing available through the World Bank Group: (i) full-sized project funding (GEF grants over US$1 million); (ii) medium-sized project funding (GEF grants up to US$1 million); (iii) expedited enabling activity grants; and (iv) project Preparation Grants (PDF). The full-sized GEF co-financed projects generally follow the Bank's project cycle and standard project procedures. Medium-sized projects (MSPs) and Enabling Activity grants up to US$450,000 for Biodiversity and Climate Change focal areas, and up to US$500,000 for Persistent Organic Pollutants (POPs), follow expedited procedures. GEF Project Preparation Grant procedures have been established for developing projects. There are three categories of project preparation grants: PDF Block A (up to US$25,000); PDF Block B (up to US$350,000); and Block C (up to US$1 million).  The Prototype Carbon Fund (PCF) funds projects that produce high quality greenhouse gas emission reductions that could be registered with the United Nations Framework Convention on Climate Change (UNFCCC) for the purposes of the Kyoto Protocol. To increase the likelihood that the reductions will be recognized by the Parties to the UNFCCC, independent experts provide baseline validation and verification/certification procedures for emissions reductions that respond to UNFCCC rules as they develop. |
RSS