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OP 13.05 - Project Supervision

These policies were prepared for use by World Bank staff and are not necessarily a complete treatment of the subject.
OP 13.05
July, 2001


This Operational Policy statement should be read together with the Operational Memorandum, Project Restructuring: New Procedures (Revised), dated November 8, 2009. This OP was revised in March 2012 to take into account the provisions of OP/BP 9.00, issued in February 2012; and previously revised August 2004 to ensure consistency with the requirements of OP/BP 8.60, issued in August 2004.
Note: OP and BP 13.05 apply to loans, credits, Project Preparation Facility advances, guarantees, grants from IBRD net income and IDA resources, activities financed under trust funds that cofinance projects, and Global Environmental Facility (GEF) grants larger than US$ 1 million. They do not apply to GEF 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); for such operations and for GEF grants of US$ 1 million or less, see the forthcoming OP/BP 10.20, Global Environment Facility Operations, or contact ENV. For supervision of grants, see OP/BP 8.45, Grants, or contact TFC. For trust fund grants, see OP/BP 14.40, Trust Funds, or contact TFC. Project closing dates are covered in OP/BP 13.30, Closing Dates; and issues of additional financing and use of project cost savings, which may arise during supervision, are covered in OP/BP 13.20, Additional Financing for Investment Lending, and OP/BP 13.25, Use of Project Cost Savings, respectively.
OP and BP 13.05 replace OD 13.05, Project Supervision and the Operational MemorandumProcedure for Submission of Amendments to Legal Agreements, 1/31/96; they also draw on the Operational Memoranda Responsibilities of MDs and RVPs, 3/11/96, Board Documents: Reduced Frequency of Issuance, 5/31/94, and Use for Imported Goods, 12/12/90. For guidance on, and answers to specific questions about, supervision, staff should contact
Revised March 2012

1. The Bank is required by its Articles of Agreement1  to ensure that the proceeds of any loan are used only for the purposes for which the loan was granted, with due regard to economy and efficiency. As a development agency, the Bank2also has an interest in assisting member countries to achieve their development objectives on a sustainable basis. To these ends, recognizing that project implementation is the borrower's responsibility, the Bank supervises the borrower's implementation of Bank-financed projects.


2. Project supervision covers monitoring, evaluative review, reporting, and technical assistance activities to

(a) ascertain whether the borrower is carrying out the project with due diligence to achieve its development objectives in conformity with the legal agreements;

(b) identify problems promptly as they arise during implementation and recommend to the borrower ways to resolve them;

(c) recommend changes in project concept or design, as appropriate, as the project evolves or circumstances change;

(d) identify the key risks to project sustainability and recommend appropriate risk management strategies and actions to the borrower; and

(e) prepare the Bank's Implementation Completion Report to account for the use of Bank resources, and to draw lessons to improve the design of future projects, sector and country strategies, and policies.3

  1. IBRD Articles of Agreement, Article III, Section 5 (b).
  2. "Bank" includes IBRD and IDA; "loans" includes IDA credits and IDA grants, and, as the context may require, Project Preparation Facility advances, guarantees, and GEF grants of more than US$ 1 million; "project" includes investment lending and guarantee operations, grants from IBRD net income and IDA resources, activities financed under trust funds that cofinance projects, and GEF operations of more than US$ 1 million and does not include operations supported by development policy lending (for information on development policy lending, see OP/BP 8.60, Development Policy Lending), and operations supported by Program-for-Results financing (see OP/BP 9.00, Program-for-Results Financing); "legal agreement" includes, as applicable, Loan Agreement, Development Credit Agreement, Guarantee Agreement, Project Agreement, PPF Agreement, the Grant Agreement for grants from IBRD net income and IDA resources, and the GEF Grant Agreement for grants of more than US$ 1 million; and "borrower" includes, as the context may require, an entity responsible for implementation of all or part of a project or a recipient of a GEF grant of more than US$ 1 million.
  3. See OP/BP 13.55, Implementation Completion Reporting.

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