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BP 10.00 - Investment Lending: Identification to Board Presentation


These policies were prepared for use by World Bank staff and are not necessarily a complete treatment of the subject.
BP 10.00
June, 1994
 
This Bank Procedures statement was updated in March 2007 to reflect issuance of OP/BP 8.00, Rapid Response to Crises and Emergencies, dated March 2007.  Previously revised to reflect title change to "finance officer" (formerly disbursement officer) that took effect on July 1, 2002.

Note:  BP 10.00 applies to specific investment loans, sector investment and maintenance loans, and financial intermediary loans.  It also applies (with some differences) to technical assistance loans; see OP/BP 8.40, Technical Assistance.  For a list of the existing documents replaced by this statement, see OP 10.00. Questions about OP and BP 10.00 may be addressed to opmanual@worldbank.org.

I. Identification

Activity
Timing
Objective/Content
Responsibility
Clearance
Additional Distribution1
1. Conduct discussions with borrower/ stakeholders.2

Draft initial PID,3select peer reviewers. 
Ongoing.

When project enters 5-year lending program.
PID presents project rationale (consistent with the CAS), composition, potential benefits/ risks, etc. Includes proposed environmental assessment category and any requirements for resettlement or indigenous peoples plans. PID: TM prepares, country lawyer reviews.4

Peer reviewer selection: per Regional procedures.
Sponsoring division chief. Dialogue with borrower/ stakeholders continues throughout project processing.

See
 Annex A for PID outline. PID cover memo deals with sensitive issues or issues likely to jeopardize Bank/borrower relations.

Peer reviewers selected for technical/sectoral/ country expertise; at least one reviewer from outside department/ Region. Reviewers' comments circulated with draft PID.
 
2. PID review. Revise PID, send to PIC. Per Regional procedures.To consider main issues and recommend whether to proceed with project, introduce modifications, or discontinue. TMCD director decides, approves revised PID. If review meeting required, CD director or designate chairs.

Remove cover memo and peer reviewers' comments before sending PID to PIC.
 
 
Abbreviations
CASCountry Assistance Strategy PICPublic Information Center 
CDCountry Department PIDProject Information Document 
NGONongovernmental Organization TMTask Manager 
 
 
 
II. Preparation and Preappraisal
 
Activity
Timing
Objective/ Content
Responsibility
Clearance
Additional Distribution1

A. Borrower's/Stakeholders' Role

3. Discuss PID with borrower/ stakeholders.

Per Regional procedures.To reach understanding on project objectives, composition, institutional arrangements, etc; and agree on timetable, responsibility, and approach of PIP. TM, borrower/ stakeholders- Discuss environmental classification and associated res- ponsibilities, also disclosure policy for environmental reports.

Explain, inter alia, borrower's eligibility for SCL.
 

4. Draft preliminary PIP.

Draft preliminary operational plan

As agreed between borrower and TM.

PIP presents main project components, implementation plan, and arrangements for monitoring and evaluation.

Operational plan presents arrangements for effective project operation, including performance indicators for monitoring and evaluation.

Borrower (in consultation with stakeholders), assisted by Bank staff/consultants.Borrower PIP guides implementation phase (for elements of a PIP, see (Annex B); operational plan guides borrower's operation of completed project (for operational plan description, see Annex C).

Distribution: borrower/stake- holders send to sponsoring division chief.
 

B. Bank's Role    

5. Prepare preappraisal package (per Regional procedures), submit to RVP/RLC. Per Regional procedures.Cover memo from CD director highlights issues/ recommendations requiring approval. TM prepares, sponsoring division chief clears for submission to CD director.CD director, and others as required by Regional procedures. Cover memo from CD director notes dissenting peer reviewers and LEG comments.

RVP decides whether to convene RLC meeting.

Package submitted to Bankwide Loan Committee if project proposal has unusual features.

Additional package distribution: CFSVP, LEGVP.
 
6. RVP authorizes appraisal mission.
Update PID.
 
Per Regional procedures.RVP memorandum notes any conditions/ modifications. SOARVP
CD director approves updated PID.
 
Updated PID sent to PIC. 

Abbreviations
CDCountry DepartmentPIPProject Implementation Plan 
CFSVPVice President, Cofinancing and Financial Advisory Services RLCRegional Loan Committee 
LEGLegal Vice Presidency RVPRegional vice president 
LEGVPVice President and General Counsel SCLsingle currency loan 
PICPublic Information Center SOAsenior operations adviser 
PIDProject Information Document TMtask manager 
 

 
III. Appraisal
 
 Activity Timing Objective/ Content Responsibility Clearance Additional Distribution1
7. Finalize appraisal arrangements with government/ borrower, cofinanciers; prepare mission TORs. Per Regional procedures.To agree on issues and on composition and timing of appraisal mission. TM Sponsoring division chief Before appraisal mission departure, Bank must officially receive any required environmental assessment or analysis, including any resettlement or indigenous peoples plan.

Inform ED concerned of purpose, composition, and timing of mission well before departure.
 
8. Carry out appraisal mission; submit aide-mémoire. On completing appraisal mission.Aide-mémoire summarizes (a) main findings/ understandings reached by mission, and (b) actions to be completed by borrower/Bank, schedule, etc.TM signs.  Mission reaches agreement with government and borrower on all aspects of the project, including PIP and operational plan.

Aide-mémoire records understandings with borrower, but does not commit Bank.

Distribution: government/ borrower/implementing agency(ies) and stakeholders; copy to ED concerned.
 
9. Prepare BTO, attach aide-mémoire; Regional management sends letter/telex confirming aide-mémoire's findings/recommendations and listing additional actions required of government/ borrower.

Update PID (if major changes), send PID to PIC.
 
Per Regional procedures.BTO: Recommends any changes, continued project processing. BTO: TM

Letter/telex: CD director or designate
If minor changes: CD director approves further processing.

If major changes: CD director recommends action, RVP approves.

Letter/telex cleared by lawyer and finance officer.

CD director approves PID.
Major changes: RVP may call RLC meeting.

Distribution: letter/telex sent to government/borrower/ implementing agencies, and copied to ED concerned; letter/ telex and aide-mémoire sent to cofinanciers.
 

10. Prepare and review SAR and MOP.

Prepare legal documents.

Per Regional procedures.

Within 10 working days after SAR review.

SAR describes project's principal aspects, justification, and implementation; includes most important elements of PIP.

SAR and MOP: TM

Legal documents: country lawyer

 For SAR and MOP outlines, see Annexes D  and E.  If maps required, consult Cartography Section, Printing and Graphics Division, on turnaround times.

Legal documents incorporate elements of PIP (see
 Annex B).
11. Submit pre-negotiation package to Assistant General Counsel Operations, for clearance, and to RVP (or designate) for approval of negotiations, per Regional procedures. Cover memo highlights any substantive changes from RVP/ RLC preappraisal package and explains how issues raised by RVP/RLC and LEGVP were resolved; seeks approval for negotiations.TM arranges.Drafts: RPA, environmental adviser, lawyer, dis- bursement officer, spon- soring division chief.

Package: CD director.

Loan documents: Assistant General Counsel, Operations (within 3 working days).

Notice of Invitation to Negotiate: RVP or CD director (if RVP delegates authority) initials.
Package consists of green cover SAR, draft PIP, draft MOP, draft Notice of Invitation to Negotiate (see Annex F), draft legal documents, summary of reviewers' comments, and transmittal memo to RVP.

TM prepares and obtains clearances for maps and charts. IDU assigns report number.

Distribution: initialed copy and clean copy of Notice of Invitation to Negotiate sent to SEC for distribution to EDs.
 

Abbreviations
BTOback-to-office report PIPProject Implementation Plan 
CDcountry department RLCRegional Loan Committee 
IDUInternal Documents Unit (Information Operations, Information, Technology, and Facilities Department) RPARegional procurement adviser 
LEGVPVice President and General Counsel RVPRegional vice president 
MOPMemorandum and Recommendation of the President SARStaff Appraisal Report 
PICPublic Information Center TMtask manager 
PIDProject Information Document TORsterms of reference 
 
 
 
IV. Negotiations
 
Activity
Timing
Objective/ Content
Responsibility
Clearance
Additional Distribution1

12. Send Invitation to Negotiate to government/ borrower.

     TM arranges.CD director or designate signs. Invitation to Negotiate reminds borrower that SAR will be made public and requests borrower to identify confidential passages in SAR (see Annex G).

Distribution: copies to ED concerned; country's embassy in Washington, DC; cofinanciers; project stakeholders.
 
13. Negotiations    To reach agreement on project conditionalities, PIP; identify and discuss confidential material in SAR. TM, lawyer, finance officer.If changes to project and legal documents --
(a) minor: CD director approves;
(b) major: Chief Counsel clears, RVP approves.
 
Agreed/expected date of loan signing important if retroactive financing involved.

Distribution: Draft legal documents and green cover SAR sent to borrower's delegates, copied to ED concerned and (at Region's discretion) to cofinanciers.
 
14. Prepare Minutes of Negotiations; revise legal documents. After negotiations.Minutes record amendments to draft legal documents, material changes agreed during negotiations.

Legal document revisions reflect outcome of negotiations.
 
Minutes: TM






Legal documents: lawyer
 
Minutes: Key members of negotiating teams sign.



Legal documents: TM, finance officer.
 
If SAR modified, deleted information (if important for EDs) incorporated into MOP (see BP 17.50). 
15. Prepare Notice of Status of Negotiations for SEC. At least 20 days before Board presentation.     TMCD director initials. See Annex H for sample.

Distribution: Initialed copy and clean copy of Notice of Status of Negotiations sent to SEC for distribution to EDs.
 

Abbreviations
CDcountry department RVPRegional vice president 
EDExecutive Director SARStaff Appraisal Report 
MOPMemorandum and Recommendation of the President SECSecretary's Department 
PIPProject Implementation Plan TMtask manager 
 
 
 
V. Preparation of Final Documents
 
Activity
Timing
Objective/ Content
Responsibility
Clearance
Additional Distribution1
16. Submit to RVP (or designate) final loan package (revised MOP, SAR, and legal documents; Minutes of Negotiations; and cover sheet to SECBO). Once government formally accepts legal documents.Seeks RVP (or designate) approval to submit package to Board. TM arranges.Package cleared by lawyer,  finance officer.  CD director approves, signs transmittal memo. RVP (or designate) approves Board presentation, initials cover sheet. Cover sheet (Form 2337) shown in Annex I. 
17. Send final loan package and cover sheet to SECBO (MC 11-330, Attn: Dirk Mattheisen), package to Print Shop. After RVP (or designate) approval, at least 18 working days before Board presentation (20 days if CAS discussion involved).SECBO memo sets out Board schedule. Package to SECBO and Print Shop: TM    TM prepares printing request (Form 14). If SAR distribution restricted (perBP 17.50, para. 6): TM prepares memo to IDU from CD director, cleared by OPR and copied to RVP. IDU approves report, checks report numbers of MOP and SAR, and ensures proper cover (see Annex D, para.2). TM sends copy of printing request to SEC. 
18. Prepare Statutory Committee Report. Before distribution of loan package to EDs.Report signed by
(a) expert appointed by country governor,
(b) LEGVP, and
(c) RVP.
 
Lawyer prepares; with TM, obtains signatures.  Internal signatures required before package is distributed. Signature of expert required before item placed on Board agenda. 
19. Submit Form 1767 (Release of MOP) to SEC. After conditions of Board presentation met. TM   For conditions of Board presentation, see Annex J. 
20. Issue MOP to EDs.   SEC transmittal memo lists other relevant reports and distribution dates, names and extensions of staff to answer questions. SECIf Board date postponed, CD director advises EXC. Documents not distributed to EDs if overdue payments not received (13 days before Board date for investment packages and 15 working days if CAS discussion involved). 

Abbreviations
CASCountry Assistance Strategy OPROperational Policy Department 
CDcountry department SARStaff Appraisal Report 
EDExecutive Director SECSecretary's Department 
IDUInternal Documents Unit (Information Operations, Organization and Business Practices Department) SECBOBoard Operations Unit in the Office of the Vice President and Secretary 
LEGVPVice President and General Counsel TMtask manager 
MOPMemorandum and Recommendation of the President     
 
 
 
VI. Board Presentation
 
Activity
Timing
Objective/ Content
Responsibility
Clearance
Additional Distribution1
21. Under regular procedures: Issue attendance memorandum to SEC. At least 4 working days before Board presentation.Informs SEC of names and titles of presenter and other attendees. TMSponsoring division chief For criteria for presentation under regular procedures, see Annex K. 
22. Prepare note for pre-Board meeting (or brief OPR per Regional procedures). C.o.b. day before Board presentation.To review EDs' questions and answers provided; consider anticipated questions, answers. TMNote: RVP Pre-Board meeting attendees: per Regional procedures, including lawyer.

Distribution (for a note): MD concerned; copies to pre-Board meeting attendees. 
23. Under streamlined procedures: Answer EDs' questions. Prior to Board meeting.  TM  For streamlined procedures, see Annex K. 
24. Issue press release; send SAR to PIC. Upon Board approval.  Press release: EXTIPPress release: TM. IDU sends SAR to PIC. 
25. Notify government/borrower/ cofinanciers of Board approval. Upon Board approval.  TM, sponsoring division chief    

Abbreviations
EDExecutive Director RVPRegional vice president 
EXTIPInformation and Public Affairs Division, External Affairs Department SARStaff Appraisal Report 
IDUInternal Documents Unit (Information Operations, Organization and Business Practices Department) SECSecretary's Department 
MDManaging Director, Operations, concerned TMtask manager 
PICPublic Information Center     

____________

  1. Except where noted, distribution is as follows: Outside Region, according to BP 17.10, Annexes D and E; inside Region, according to Regional procedures.
  2. Stakeholders may include implementing agencies, beneficiaries, NGOs.
  3. The PID is the Bank's core requirement. The Region or the country department may, at its discretion, continue to prepare and review Executive Project Summaries.
  4. Any legal services required by the Bank in connection with the project are provided by or through the Legal Department. 

 

--------------------
Annex A - Outline for an Investment Project Information Document
Annex B - Elements of a Project Implementation Plan
Annex C - Operational Plan Contents
Annex D - Outline for a Staff Appraisal Report
Annex D1 - Outline for Preparing the "Loan and Project Summary"
Annex D2 - Standard Disbursement Profiles
Annex E - Outline for a Memorandum and Recommendation of the President
Annex F - Sample Notice of Invitation to Negotiate
Annex G - Telex of Invitation to Negotiate
Annex H - Notice of Status of Negotiations
Annex I - Loan/Credit/GEF Grant Cover Sheet
Annex J - Conditions of Board Presentation
Annex K - Streamlined Procedures for Board Presentation



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