Click here for search results
Search in Manual

ARCHIVED: Operational Manual

BP 13.20 - Additional Financing for Investment Lending


These policies were prepared for use by World Bank staff and are not necessarily a complete treatment of the subject.
BP 13.20
June, 2005
 
 

This Bank Procedures statement was revised March 2012 to take into account the provisions of OP/BP 9.00, issued in February 2012. It was previously updated in January 2012 to extend its applicability to all recipient executed trust funds (RETF), in November 2009 to reflect clarifications discussed in a progress report, Additional Financing: Responding to New Needs, (February 2009) and in March 2007 to reflect issuance of OP/BP 8.00, Rapid Response to Crises and Emergencies, dated March 2007.

Note:  OP and BP 13.20, Additional Financing for Investment Lending, apply to additional loans considered by the Executive Directors on or after June 1, 2005, and to additional RETF project papers submitted for approval on or after January 27, 2012.  For technical guidelines to staff on processing additional financing, including an outline for the Project Paper for Additional Loans, staff may refer to "Guidance to Staff on Processing Additional Financing," available on the OPCS website.  Questions on the additional financing policy should be addressed to opmanual@worldbank.org. 

 

Revised March 2012

 

 

1.  The need for additional financing1 for investment projects is normally identified during project supervision.2  When a borrower requests additional financing, Bank staff appraise the activities.

 

2. The task team leader (TTL) submits a brief Concept Memorandum to the country director, explaining the need for additional financing and summarizing the project’s implementation record and results to date.  If the country director decides to pursue additional financing, the TTL prepares and sends to the InfoShop an updated appraisal-stage Project Information Document and Integrated Safeguards Data Sheet.

 

3. The TTL prepares a concise Project Paper that

(a)  summarizes the project’s implementation record and results to date (measured against expected project outputs and outcomes);

 

(b)  identifies the reasons for additional financing—a financing gap or cost overrun, scale-up, and/or project restructuring; 

 

(c)  describes all modified, additional, or expanded activities, summarizes the results of their appraisal, and confirms their consistency with the project development objectives and the current Country Assistance or Partnership Strategy; 

 

(d)  sets out changes in any aspects of the project (e.g., the expected outcomes and outcome indicators, costs and benefits, the financing plan, implementation and institutional arrangements, fiduciary, safeguards or other requirements, the closing date etc.); and

 

(e)  specifies the financial terms for the additional loan.

4. The lawyer prepares the legal documentation for an additional loan. 

 

5.  Requests for additional financing are normally processed before the current closing date for the original loan.  When justified under exceptional country or project circumstances and authorized by the Vice President, Operations Policy and Country Services, requests for additional financing may be processed after the original loan’s closing date has passed and the loan account is closed.  In such cases, a closing date is set for the additional loan of up to three years from its expected date of effectiveness. 

 

6. When the source of financing is IBRD or IDA, the documentation for an additional loan is normally presented to the Board under streamlined procedures.  It is made available to the public in the same way as a Project Appraisal Document.  The legal documents for an additional loan are signed and become effective according to the provisions of OP/BP 13.00, Signing of Legal Documents and Effectiveness of Loans and Credits.   When the source of financing is a trust fund, additional financing also constitutes a new commitment and is approved according to the provisions of OP 14.40, Trust Funds.3  

 



  1. Bank” includes IBRD and IDA; “borrower” includes credit and grant recipient; "loan" includes IBRD loans, IDA credits or grants, and recipient executed trust fund grants (or loans); “additional financing” includes IBRD loans, IDA credits, IDA grants, and recipient executed trust fund grants (or loans); and “project” means the original investment project processed under OP/BP 10.00, Investment Lending: Identification to Board Presentation, OP/BP 8.00, Rapid Response to Crises and Emergencies, or OP/BP 14.40, Trust Funds.  Upon approval of an additional loan processed under OP/BP 13.20, Additional Financing, “project” means the original project expanded to include activities financed under the additional loan.  The policy and procedures on additional financing do not apply to development policy lending, for which the policy and procedures are set out in OP/BP 8.60, Development Policy Lending, or to Program-for-Resutls financing, for which the policy and procedures are set out in OP/BP 9.00, Program-for-Resutls Financing.
  2. See OP/BP 13.05, Project Supervision. 
  3. See footnote 9 of OP 14.40, Trust Funds.

 




Permanent URL for this page: http://go.worldbank.org/BXEVKB3CK0