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BP 10.21, Annex D - Outline for Memorandum and Recommendation of the Director


These policies were prepared for use by World Bank staff and are not necessarily a complete treatment of the subject.
BP 10.21 - Annex D
January, 1993
 
Introduction

1.  The Memorandum and Recommendation of the Director (MOD) of the country department is the basis for making decisions on the investment operation proposed for financing by the Ozone Projects Trust Fund (OTF).  The MOD comprises a text, three schedules,1and, when locational information is needed, a map; a Project Document for each subproject is annexed to the MOD (see BP 10.21, para. 10).  Since a Staff Appraisal Report (SAR) is not required, annexes provide details on special technical policy or other features of the operation's design and describe special resources or global environmental improvements that are the focus of the operation.

Cover

2.  The cover format of the MOD is as follows:

 Document of

 

 The World Bank

 

 FOR OFFICIAL USE ONLY

 

Report No. ______ [country abbreviation]

 

 Multilateral Fund for the Implementation of the Montreal Protocol

 

 MEMORANDUM AND RECOMMENDATION

 

OF THE

 

 DIRECTOR FOR [COUNTRY DEPARTMENT]

 

OF THE

 

 INTERNATIONAL BANK FOR

 

 RECONSTRUCTION AND DEVELOPMENT

 

 TO THE

 

 REGIONAL VICE PRESIDENT, [NAME OF REGION]

 

 ON A

 

 PROPOSED OZONE PROJECTS TRUST FUND GRANT

 

 IN THE AMOUNT EQUIVALENT TO US$_____ MILLION

 

TO

 

 [BENEFICIARY/COUNTRY]

 

FOR A

 

 [NAME] PROJECT

 

[DATE]2

 

 [Name] Division


 

Country Department [Number]


 

[Name ] Region

 

3.  The inside front cover page of the MOD summarizes currency equivalents, weights and measures, abbreviations and acronyms, and the fiscal year of the borrower and project entities.  It uses presentational conventions detailed in the Bank's Communications and Style Guide.  A Loan and Project Summary (see BP 10.00, Annex D1, Outline for Preparing the "Loan and Project Summary") precedes the MOD text.

Text

Heading

4.  The text of the MOD begins on a new page following the grant and project summary.  It starts with the following standard heading:

 MEMORANDUM AND RECOMMENDATION OF THE DIRECTOR,

 

 [NAME OF COUNTRY] DEPARTMENT [NUMBER]

 

 TO THE REGIONAL VICE PRESIDENT

 

 [NAME OF REGION]

 

Introductory Paragraph

5.  The introductory paragraph has a standard form:

I submit for your approval the following memorandum and recommendation on a proposed OZONE PROJECTS TRUST FUND grant to [beneficiary/country ] for US$_____ million to help finance an operation for [ purpose ].

When the OTF finances a project in association with one or more major cofinanciers, the cofinanciers are named, and the amounts and terms of their financing are indicated.

Main Text

6.  The main text provides sufficient information to give an adequate understanding of and justification for the operation.  The discussion is self-contained.  The general format and subjects discussed in the main text are similar to the format and sections in the Project Information Document (PID), from which the MOD evolves (see BP 10.21, Annex B).  Each section normally has one or two paragraphs covering the subjects listed below.  Depending on the individual project, some subjects require little or no discussion; others may warrant longer treatment.  The main text for projects under $500,000 is considerably abbreviated; it normally runs no more than three pages.

7.  Country/Sector Background.  The MOD succinctly puts the operation into the country/sectoral context, noting when possible how it is consistent with the country program.  It indicates the importance of the subsector, or of the particular aspect of the sector that the operation addresses, in the implementation of the Montreal Protocol (MP).  It discusses key long-term country goals for implementing the MP, priority policy reforms to achieve such goals, and major constraints that impede progress.  The MOD highlights the specific measures undertaken by the government and notes the progress in resolving these issues.  It indicates what remains to be done.  For financial sector operations, the MOD assesses distortions in the structure of interest rates and the exchange rate, the health of the banking system, and market imperfections in the credit delivery system.

8.  The MOD briefly describes the main institutions specifically relevant to the operation, outlining their strengths and weaknesses (management, staffing, finance, planning, coordination, efficiency of service delivery).  It summarizes government strategies for developing these institutions and for addressing problems.  For projects with a decentralized implementation focus, the MOD outlines the regulatory framework in which the institutions operate.  Example: for financial intermediary operations, the MOD assesses how effectively the banking supervision system enforces prudential regulations.

9.  Project-Specific Discussion.  The MOD also discusses the following subjects (each of these subjects is described more fully in BP 10.21, Annex B): project objectives, project description, project implementation, project sustainability, lessons from previous Bank or IDA involvement, rationale for funding from the Multilateral Fund for the Implementation of the Montreal Protocol, project benefits, and project risks.

10.  Environmental Aspects.  The MOD briefly discusses the project's environmental impact and indicates how environmental and natural resource management issues associated with the operation have been resolved.  If an environmental assessment has been prepared, the MOD briefly describes (a) the main findings of the environmental assessment, (b) the consultation process with affected groups and local nongovernmental organizations (NGOs), and (c) feedback on the findings of the assessment to these groups and NGOs.  If an environmental analysis was required, the MOD briefly summarizes the main issues and findings of the analysis.

11.  Agreed Actions.  The MOD summarizes agreements reached with the government and the borrower on specific actions and relates them to key issues identified earlier.  It indicates timing.  It lists only those agreements that are reflected in covenants and conditionality in the legal documents.  The MOD uses language consistent with the language in the legal agreements.  It does not discuss conditionality on such routine matters as reporting requirements, unless they are unique or require special consideration.  It discusses procurement agreements only when arrangements are proposed to accommodate particular needs for MP implementation, such as possible contributions in kind from Russia.

12.  Recommendation.  The MOD uses the following standard form:

I am satisfied that the proposed grant would comply with the relevant provisions of the Ozone Projects Trust Fund in Resolution 9-15 of the Executive Directors, and I recommend that the Regional Vice President approve it.
 
[SIGNATURE]
[Name]
 
Director
[Name]
 
Country Department [Number]
 
Washington, D.C.
[Same date as on the cover page]
 
Attachments
 
 Annexes

13.  Schedule A.  This presentation summarizes in tabular form the estimated project costs and financing plan.  It is identical in form and content with the tables on the project costs and financing plan in the Loan and Project Summary of a Bank Staff Appraisal Report (SAR).

14.  Schedule B.  This schedule provides tables on procurement methods and disbursements.  The table on procurement methods is prepared in line with the presentational conventions discussed in OP/BP 11.00, Procurement (Procurement Arrangements for Investment Operations).  It is identical to the procurement table presented in the text of an SAR.  A disbursements table details the disbursement categories, the grant amount allocated to each category, and the percentage of expenditures to be financed from the grant under each category.  It is identical with Schedule 1 in the Grant Agreement.  A second section presents estimated loan disbursements by the Bank's fiscal year and cumulatively.  It is identical in form and content to the table on estimated disbursements in an SAR's Loan and Project Summary.

15.  Schedule C.  This schedule presents a timetable of the project's key processing events.  It indicates (a) time taken to prepare the project, showing the calendar period from start to completion of project preparation; (b) names of staff who prepared the project; (c) date of the first Bank or IDA mission; (d) appraisal mission departure date; (e) date of negotiations; (f) planned date of effectiveness; and (g) dates of relevant Project Completion Reports/Implementation Completion Reports and Project Performance Audit Reports.

Map

16.  The MOD includes a map when needed.  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 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.

 
____________
  1. These schedules are (a) estimated project costs and financing plan, (b) procurement and disbursement methods, and (c) a timetable of key project processing events.
  2. Date approved by the country department director.
 
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BP 10.21 - Investment Operations Financed by the Multilateral Fund for the Implementation of the Montreal Protocol



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