World Bank-financed projects are identified, implemented and evaluated during specific phases in a well-documented project cycle.

Documents produced by the bank during the project cycle - particularly during the identification and implementation stages - can be valuable sources of information for businesses that seek to bid on bank-financed projects or plan to become involved in developing countries' projects. This section explains how to navigate the eight major stages of the project cycle. It identifies the documents produced as part of the process, and highlights the information that is available online. It also contains some useful tips for companies that want to do business with the World Bank and the bank's borrowers.

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THE PRE-PROJECT IDENTIFICATION PHASES

The World Bank begins its operations in a member country by working with the country's government and other stakeholders to identify how the bank's assistance can be designed to have the largest impact. The bank and borrower strategies and priorities for reducing poverty and improving living standards are produced by this analysis.

Key Documents and Resources:

• Poverty Reduction Strategy Paper (PRSP)- lays out a country's own priorities, which are determined through the process the government uses to develop a poverty reduction strategy. It also produces targets for reducing poverty in the country over a three to five year period. The PRSP describes the country's macroeconomic, structural and social policies and the programs that it plans to use to promote growth and reduce poverty. It also identifies the associated external financing needs that the bank and other partners might provide.
• Country Assistance Strategy (CAS)- the World Bank's own three-year plan for program assistance and resource allocations for individual countries, spells out in detail a selective program of bank support that is linked to the country's own needs, priorities and vision for poverty reduction and development. The CAS is a comprehensive diagnosis of the development challenges facing the country, including the incidence, trends and causes of poverty. It draws on analytic work already carried out by the bank, the government, and/or other partners. It also identifies key areas where the bank's assistance can have the biggest impact on poverty reduction. In its diagnosis, the CAS takes into account the performance of the bank's portfolio in the country; the country's creditworthiness, state of institutional development, implementation capacity and governance; and other sector and cross-cutting issues. This assessment determines the level and composition of the bank's financial, advisory and technical support to the country.
  
  

Tips for Companies:

The Country Assistance Strategy gives a good indication of the priorities that will be pursued by the country and the bank and whether this planned development will take place in sectors that are relevant to a company's expertise and interests.

As part of the process for gathering background information, a search of the Projects Database will provide access to details about contracts that have been previously awarded, as well as details about contracts currently available. The database allows searches by region, country/area, theme and sector.

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THE PROJECT IDENTIFICATION PHASE

Key Documents and Resources:

Ideas for potential projects are proposed once the bank and the borrower country have identified and agreed upon development priorities. An initial environmental screening determines whether a proposal requires an environmental assessment.

• Project Information Document (PID)- describes the project, sector, borrower, implementing agencies, objectives, cost, financing, implementation, and benefits. Every project in the pipeline has a PID, which is usually three to five pages long and includes the name of the World Bank Task Manager or Team Lead who is supervising the project, a key bank contact for bidders. The PID is an essential resource for tailoring bidding documents to the project under consideration.
• Integrated Safeguards Data Sheet (ISDS)- identifies key issues under the World Bank's safeguard policies for environmental and social issues and provides information concerning their management in the proposed operation. These policies address issues such as natural habitats, pest management, cultural property, involuntary resettlement, indigenous people, dam safety, projects on international waterways, and projects in disputed areas.
• Environmental Assessment Report (EA)- analyzes the likely environmental impact of a project and the steps required to mitigate possible harm.
• Indigenous Peoples Plan- identifies potentially adverse effects on the health, productive resources, economies and cultures of indigenous peoples.
• Environmental Action Plan- describes the major environmental concerns of a country; identifies the principal causes of problems; and formulates policies and concrete actions to deal with them.

Tips for Companies:

Visit bank representatives, the borrower, and executing government agencies. Enter the project pipeline process early; establish interest in the project; and focus on building relationships.

Examine the Project Information Document in order to best tailor your company's bid to the priorities and specifications of the project on which you plan to bid. This document can be found by searching the Projects Database, which provides information on contracts that have been previously awarded, as well as contracts currently available. The database allows for searches by region, country/area, theme and sector. All contracts subject to World Bank staff review since July 1, 2000 are included in this database. Information about these large value contracts (about 10,000 each year) can be accessed by using the Contract Awards Search function.

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THE PREPARATION, APPRAISAL AND BOARD APPROVAL PHASES

Bank staff members analyze a proposed project, after its specifications have been developed by the borrower country. Discussions with the borrower determine its final shape. The Project Appraisal Document or the Program Document and the loan documents, along with the President's Memorandum and Recommendation, are submitted to the bank's Board of Executive Directors for approval. If the loan or credit is approved, it is signed by the bank and the borrower. The project then enters the "active" stage.

Key Documents and Resources:

• Project Appraisal Document (PAD)- contains extensive information about the project, including its development objectives and a description. It also contains contact information for World Bank team leaders. Distribution of this document can be restricted. However, many relatively recent project appraisal documents can be found on the bank's website.
• Program Document (PGD)- contains an analysis of the country's conditions; a description of loan purposes, amount, type, terms, rationale, risks and benefits; legally binding actions; programs affected; and projected outcomes of the project and its operations. Distribution of this document can be restricted. However, many are available on the bank's website soon after they have been prepared.
• Monthly Operational Summary (MOS)- provides a brief project description and reports on the status of all projects in the bank's lending pipeline. Projects appear in the MOS from the point they are identified up to the signing of the loan or credit agreement, after which they are dropped from the summary. Information includes the project title; sector; Project Information Document (PID) number; funding amount; objectives; and a point of contact at the executing agency in the country responsible for the project, including telephone and fax numbers.
  
  

Tips for Companies:

Become involved in the country to make sure the bidding documents are drawn up fairly and contain full information about the options offered by your company. Focus your efforts on identifying market opportunities, and use local representation in the countries where you want to work. Last but not least, focus on building relationships with key players.

Monitor the Monthly Operational Summary (MOS). Close attention should be paid to the "New Projects Added in This Issue" and the "Projects Dropped from This Issue" sections. The latter category includes projects that have been approved by the World Bank Board of Executive Directors, as well as those projects no longer under consideration.

Search the Projects Database to research contracts that have been previously awarded, as well as contracts currently available. The database allows for searches by region, country/area, theme and sector. All contracts subject to World Bank staff review since July 1, 2000 are included in this database.

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THE IMPLEMENTATION PHASE

After the bank approves a loan or credit agreement, it is submitted to the borrower government for final clearance. Legal agreements may have to be ratified by a country's legislature, for example. Once the agreement is approved by the borrower government, the bank loan or credit is declared effective or ready for disbursement, and the agreement is made available to the public.

Implementation and Supervision:

• With technical assistance from the bank, the borrower prepares the specifications for the project.
• Companies bid through the international competitive bidding process, and the government lets its contracts.
• The bank regularly reviews the borrower's procurement process to ensure that the bank's procurement guidelines are followed. If they have, funds are disbursed.
• At the end of the disbursement period (anywhere from 1-10 years), a completion report identifying results, problems and lessons learned is submitted by operations staff to the bank's Board of Executive Directors for information purposes.

Key Documents and Resources:

• Project Information Document (PID)- still important at the implementation stage, it describes the project, sector, borrower, implementing agencies, objectives, cost, financing, implementation, and benefits, among other items. Every project in the pipeline has a PID, which is usually three to five pages long and includes the name of the World Bank Task Manager or Team Lead who is supervising the project, a key bank contact for bidders. The PID is an essential resource for tailoring bidding documents to the project concerned.
• United Nations Development Business- provides information on business opportunities generated through the World Bank, regional development banks and other development agencies.
• Development Gateway Market- a comprehensive website aimed at companies seeking to identify projects on which to bid, the DgMarket publishes more than 30,000 tender notices. The tender notices cover projects funded by the African Development Bank, the Asian Development Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the European Union's Phare/Tacis and the World Bank.

Tips for Companies:

Monitor the Project Information Document for key contacts involved in the bidding process. Also monitor the Development Gateway Market, which publishes more than 30,000 tender notices for projects funded by a range of development institutions. And use United Nations Development Business online for procurement notices about projects financed by a wide-range of development institutions.

When bidding, follow the specifications in the tender documents to the letter.

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THE EVALUATION PHASE

After a borrower's project is completed, the bank's Independent Evaluation Group (IEG) conducts an audit to measure the project's outcome against its original objectives. This is in addition to a completion report identifying results, problems and lessons learned prepared by operations staff.

Key Documents:

• Implementation Completion and Results Reports- identify development results, problems and lessons learned with regard to bank-financed projects. These reports are prepared at the end of every World Bank loan disbursement period (anywhere from one to ten years). Prepared by bank operations staff, the reports are submitted to the bank's Board of Executive Directors for information purposes.
• Project Performance Assessment Reports- rate projects in terms of development results, taking into account relevance, effectiveness and efficiency; the sustainability of those results; and institutional development impact. One in four completed projects (or about 70 a year) is chosen for a Project Performance Assessment Report, which takes the Independent Evaluation Group about six staff weeks to produce and normally includes a field mission.
• Impact Evaluation Reports- assess the economic worth of projects and the long-term affects on people and the environment. These "second looks" at projects are performed five to eight years after the close of loan disbursements and are also prepared by the Independent Evaluation Group.
• Inspection Panel Reports- are issued by a three member, board-appointed Inspection Panel that reviews claims by affected parties that the bank failed to follow its operations policies and procedures with respect to the design, appraisal and/or implementation of a bank-financed operation.
  
  

Tips for Companies:

These reports provide contractors and consultants with useful information on lessons learned from previous development projects financed and/or otherwise supported by the World Bank. The bank's policy is to continuously strive to improve the effectiveness of its products and services by learning from what has worked and what has not worked in previous projects.

Updated: December 2006