BP 10.00, Annex D - Outline for a Staff Appraisal Report

This document has a restricted distribution and may be used by recipients only in the performance of their official duties.  Its contents may not otherwise be disclosed without World Bank authorization.

When the SAR is prepared for Board presentation following negotiations, if it has been cleared for release to the public, it is printed in buff cover with no restriction notices.  If the SAR's distribution is restricted (per para. 6 of BP 17.50, Disclosure of Operational Information), the restrictions remain on the buff cover copy.

The Main Report

3.  The SAR consists of concise, substantially self-contained chapters on the project's principal aspects, justification, and implementation.

4.  Sector.  The sector's salient features, including such significant sociocultural aspects as the role of women; institutional arrangements, governance, and policy problems; priorities for investment and required policy changes; the Bank's past activities and experience in the sector, with specific reference to sector reports, Project or Implementation Completion Reports and Project Performance Audits, and relevant lessons learned from previous Bank operations; and the status of the sector policy dialogue and, where appropriate, details of the Letter of Sector Policy and status of agreement on a medium-term investment program.

5.  Subsector/Project Area.  Analysis of the subsector, providing a clear explanation of the need for the proposed project and its special design features and/or a discussion of the project area: its physical and social environment, population and resources, socioeconomic and cultural features, and development problems and potential.

6.  Project Concept and Composition.  The project's genesis and evolution; its general purpose and objectives, including intended beneficiaries; commitment of government, implementing agencies, beneficiaries, affected groups, and nongovernmental organizations (NGOs), and their participation in project design; summary description of project components; rationale for the selected project design, including its relation to project objectives and possible approaches considered; the project's relation to any larger program of which it is a part; alternative technologies considered and reasons for the choice of project technology; special features of and possible problems with the selected technology; input and labor requirements; employment aspects; availability of necessary inputs and skills; ration- ale for and details of any technical assistance or training included in the project; and details of any private sector development objectives.

7.  Project Context.  Rationale for Bank involvement; how the project fits into the Bank's Country Assistance Strategy; how it fits into the overall poverty reduction strategy for the country, including how it targets the poor; how it relates to the Bank's Program Objective Categories.

8.  Environment.  The findings of the environmental assessment or analysis, including a description of any resettlement or indigenous peoples plan.

9.  Project Cost and Financing.  Summary cost table with comments on, inter alia, the following: foreign exchange content, physical and price contingencies, the treatment of taxes; the project financing plan and its adequacy, including any local cost financing, retroactive financing, Bank financing and lending terms (including the justification for any proposed single currency loan), government contribution, cofinancing; onlending terms to intermediaries and beneficiaries; flow of funds from financing sources to implementing agencies.

10.  Financial Analysis.  Financial analysis for the project (including future cash flows, net present value or financial rate-of-return calculations), and for the implementing agencies (including historical data, present financial position, financial forecasts and the assumptions on which they are based, financial covenants); issues of incentives, cost recovery, and pricing.

11.  Economic and Social Analysis.  The nature of the analysis made and the assumptions on which the analysis was based; economic costs and benefits and expected net present value; risk and sensitivity analyses; the distribution of project benefits and their impact on target groups.

12.  Institutional Arrangements.  Assessment of the borrower and the entities responsible for carrying out the project, and analysis of their past performance and strengths and weaknesses; alterations in project scope or design to take such factors into account; recommendations for any needed improvement, and description of any technical assistance and training being provided to strengthen these entities.  Description of the contractual arrangements for carrying out the project.

13.  Implementation.  Project management and responsibility for each component.  Most important elements of the Project Implementation Plan (see BP 10.00, Annex B).

14.  Operation.  A description of the borrower's technical, financial, commercial, and institutional arrangements to ensure effective project operation.  Confirms that the borrower has an operational plan, which the Bank has appraised, and discusses areas of the plan that may need to be modified in the future.

15.  Project Risks and Benefits.  Macroeconomic, project-related (including environmental), and institutional and governance-related risks identified during project preparation; how these risks have been dealt with; critical benchmarks of success and the sensitivity of the project to them.

16.  Summary of Recommendations and Loan Conditions.  Summary of agreements reached or to be reached with the borrower or government, with reference to paragraphs in the SAR that explain the reason for the condition.

Loan and Project Summary

17.  The SAR includes a Loan and Project Summary (see BP 10.00, Annex D1).

Annexes

18.  The SAR includes annexes and supporting tables only when they are necessary for review and approval within the Bank.  Supplementary material needed for project implementation is not included in the SAR but is made available in separate form and added to the project file maintained by the Regional Information Services Center.

19.  Annexes are appropriate when the main text of the SAR is not sufficient to explain assumptions, analysis, or other background information that is essential for understanding and approving the project.  For projects assigned to Category A for environmental assessment, an annex to the SAR summarizes the Environmental Assessment (see OD 4.01, Annex D, EA Procedures: Internal, para. 12).  A map may be provided if locational information is needed.²Â Â Any necessary supporting tables or charts that are not an integral part of the annexes are grouped together in the penultimate annex, Supporting Tables and Charts.  The last annex is always Selected Documents and Data Available in the Project File.

1. "Bank" includes IBRD and IDA, and "loans" includes IDA credits and IDA grants.
2. The Cartography Section of the Printing and Graphics Division advises on the appropriate map(s) to be included and turnaround times required for production.  All maps, whether or not they are prepared in the Cartography Section, must be cleared by the section before any printing request is made and at least two weeks before the maps are to be bound into the reports.  (For more details, refer to Administrative Manual Statement 7.10, Annex B, Time Standards--Cartographic Services, or the reverse side of Form 1548, Request for Cartographic Services.) All maps include an appropriate disclaimer.