This Operational Policy statement was revised in March 2012 to take into account the provisions of OP/BP 9.00, issued in February 2012. It was previously updated in April 2007 consequent to the issuance of OP/BP 12.00, Disbursement. Previously revised in August 2004 to reflect the term "development policy lending" (formerly adjustment lending), in accordance with OP/BP 8.60, issued in August 2004.
Note: OP and BP 13.30 apply to loans, credits, and the following grants: (a) grants of more than US$1 million under the Global Environment Facility (GEF) (except for GEF grants for projects executed by organizations identified by the GEF Council as eligible to work with the GEF through expanded opportunities for project preparation and implementation (such organizations include, inter alia, regional development banks and UN agencies such as FAO and UNIDO); (b) other grants under trust funds administered by the Bank ("trust fund grants") that are executed by the recipient and subject to agreements between the Bank and the recipient that provide for a closing date, unless otherwise provided in the agreement between the Bank and the donor; and (c) IDA grants, IBRD net income grants, and grants under DGF, including IDF grants ("World Bank grants"), which are executed by the recipient and subject to agreements between the Bank and the recipient that provide for a closing date. For the closing date of (a) GEF grants not covered by OP 13.30, staff should see the GEF operations website or consult the GEF Executive Coordinator, ENVGM; (b) trust fund grants not covered by this policy, consult the Head, Trust Funds Oversight Team, TFO; and (c) World Bank grants not covered by this policy, consult the Manager, Development Grant Facility, TFO. For termination of withdrawals under a Project Preparation Facility advance, see OP/BP 8.10, Project Preparation Facility. OP and BP 13.30 replace the versions dated June 1993; and the Operational Memorandum Retroactive Extensions of Closing Dates, April 27, 2001; and para. 2(c) of the Operational Memorandum Responsibilities of the Managing Directors, Operations, and Regional Vice Presidents, March 11, 1996. The two documents are complemented by OPCS Guidelines and OPCS Templates, available online to staff. Questions may be addressed to firstname.lastname@example.org.
Revised March 2012
1. The closing date is the date after which the Bank1 may stop accepting withdrawal applications under a loan made by the Bank and may cancel any undisbursed balance in the loan account.
2. The closing date is specified in the legal agreement. Before the closing date the Bank takes action to close the loan account or to extend the closing date. Retroactive extensions of closing dates are not permitted except under special circumstances for projects under suspension of disbursements, as set out in para. 8 of BP 13.302
Extension of the Closing Date
3. To ensure successful completion of a project, the Bank may extend the closing date if
(a) the project objectives continue to be achievable;
(b) the performance of the borrower and other project implementing agencies is satisfactory; and
(c) the borrower has prepared a specific action plan acceptable to the Bank to complete the project.
4. An extension may be approved for selected disbursements covering only part of a project to permit (a) implementation of high-priority contracts; or (b) provision for retention payments, when the conditions for release3 are met after the closing date.
5. Normally, an extension is granted for a maximum of one year.4 A longer extension is allowed only when the borrower, suppliers, contractors, or consultants require a firm commitment for continued Bank financing. All extensions of more than one year are subject to an annual review of compliance with the action plan, the results of which are recorded in writing.
6. The closing date is not extended
(a) to allow the use of savings or to permit disbursements for expenditures that require a change in the project description, unless such use or change has been specifically approved;5
(b) for a loan under which disbursements are suspended, except for items exempted from suspension.6
(c) on any loan to a borrower with any outstanding audit reports or with reports that are not satisfactory to the Bank, unless the borrower and the Bank have agreed, in writing, on a time-bound action plan for the preparation and delivery to the Bank of satisfactory audit reports;7
(d) in a country under suspension of disbursements for longer than six months (e.g., because of security or overdue payment problems).
Exceptions to para. 6(d) and exceptions additional to those permitted under paras. 6(a)-6(c) require the approval of the Regional vice president.8
"Bank" includes IBRD and IDA; "loan" includes IDA credit and IDA grant to which OP 13.30 applies; "legal agreement" includes agreements for the loans, credits, and grants to which OP 13.30 applies; "project" includes activities supported by investment loans, programs supported by development policy loans, programs supported by Program-for-Results financing, and activities supported by grants to which OP 13.30 applies; and "borrower" includes recipients of grants to which OP 13.30 applies.
Other exceptions to the policy against retroactive extensions of closing dates may be justified on exceptional project and/or country circumstances, and require the approval of the Managing Director, Operations (MDO).
For example, completion of performance tests, expiration of a warranty period, or provision by the contractor of a security, such as an on-demand bank guarantee, to replace retention money after provisional acceptance of the works, if and as provided for in the contract.
Grants to which OP 13.30 applies may be subject to specific limitations on the maximum extension of their respective closing dates. For example, the closing date for PHRD grants to which OP 13.30 applies is not extended beyond four years from the date of Japan's approval of the grant (see OP 14.40, Trust Funds). For IDF grants, the closing date is not extended beyond three years from the date of the recipient's signature of the Grant Agreement (for additional information on IDF grants, staff may consult IDF Guidelines). Exceptional requests for extension beyond three years are reviewed by the Regional IDF Committee and, if approved, are forwarded by the IDF Secretariat for approval by the MDO. For information on applicable limitations on extension of closing dates for (a) Trust Fund Grants, consult Head, Trust Funds Oversight Team, TFO, and (b) World Bank Grants, see OP/BP 8.45 or consult Manager, Development Grant Facility, TFO. The Bank's policy on the use of savings is described in OP/BP 13.25, Use of Project Cost Savings. The procedures for changes in the legal agreements are set out in BP 13.05, Project Supervision. BP 10.02, Annex A, Actions that the Bank Takes in Respect to Noncompliance with Financial Management Requirements. For grants, before seeking RVP approval for any exception to para. 6(d) or any additional exception to those permitted under paras. 6(a)-6(c), clearance for the proposed exception has to be obtained as follows: (a) for GEF grants to which OP 13.00 applies, from the GEF Regional coordinator and the Trust Funds Division of Accounting Department (ACTTF); (b) for trust fund grants to which OP 13.00 applies, from the responsible grant program administrator in TFO and ACTTF; (c) for IDF grants, from the IDF Regional coordinator and ACTTF; and (d) for all other DGF grants, from the Manager, Development Grant Facility and ACTTF.