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

Note: These procedures apply to specific investment loans, sector investment and maintenance loans, and financial intermediary loans. They also apply (with some differences) to technical assistance loans and emergency recovery operations; see OP/ BP 8.40, Technical Assistance, and OP/ BP 8.50, Emergency Recovery 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 the operations advisers, Operations Policy Group, OPR.

I. Identification

Activity	Timing	Objective/Content	Responsibility	Clearance	Additional Distribution¹
1. Conduct discussions with borrower/ stakeholders.² Draft initial PID,³ select 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.	TM	CD 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

CAS	Country Assistance Strategy	PIC	Public Information Center
CD	country department	PID	Project Information Document
NGO	nongovernmental organization	TM	task manager

II. Preparation and Preappraisal

A. Borrower's/Stakeholders' Role

Activity	Timing	Objective/Content	Responsibility	Clearance	Additional Distribution¹
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 arrange- ments 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.	SOA	RVP CD director approves updated PID.	Updated PID sent to PIC.

Abbreviations

CD	country department	PIP	Project Implementation Plan
CFSVP	Vice President, Cofinancing and Financial Advisory Services	RLC	Regional Loan Committee
LEG	Legal Vice Presidency	RVP	Regional vice president
LEGVP	Vice President and General Counsel	SCL	single currency loan
PIC	Public Information Center	SOA	senior operations adviser
PID	Project Information Document	TM	task 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 disbursement 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 Dand 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

BTO	back-to-office report	PIP	Project Implementation Plan
CD	country department	RLC	Regional Loan Committee
IDU	Internal Documents Unit (Information Operations, Information, Technology, and Facilities Department)	RPA	Regional procurement adviser
LEGVP	Vice President and General Counsel	RVP	Regional vice president
MOP	Memorandum and Recommendation of the President	SAR	Staff Appraisal Report
PIC	Public Information Center	TM	task manager
PID	Project Information Document	TORs	terms 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, disbursement 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, disbursement 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.		TM	CD 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

CD	country department	RVP	Regional vice president
ED	Executive Director	SAR	Staff Appraisal Report
MOP	Memorandum and Recommendation of the President	SEC	Secretary's Department
PIP	Project Implementation Plan	TM	task 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, disbursement 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 (per BP 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.	SEC	If 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

CAS	Country Assistance Strategy	OPR	Operational Policy Department
CD	country department	SAR	Staff Appraisal Report
ED	Executive Director	SEC	Secretary's Department
IDU	Internal Documents Unit (Information Operations, Organization and Business Practices Department)	SECBO	Board Operations Unit in the Office of the Vice President and Secretary
LEGVP	Vice President and General Counsel	TM	task manager
MOP	Memorandum 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.	TM	Sponsoring 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.	TM	Note: 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: EXTIP	Press release: TM.	IDU sends SAR to PIC.
25. Notify government/borrower/ cofinanciers of Board approval.	Upon Board approval.		TM, sponsoring division chief

Abbreviations

ED	Executive Director	RVP	Regional vice president
EXTIP	Information and Public Affairs Division, External Affairs Department	SAR	Staff Appraisal Report
IDU	Internal Documents Unit (Information Operations, Organization and Business Practices Department)	SEC	Secretary's Department
MD	Managing Director, Operations, concerned	TM	task manager
PIC	Public Information Center

____________

1. Except where noted, distribution is as follows: Outside Region, according to BP 17.10, Annexes Dand 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.

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