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PROGRAM-for-RESULTS FINANCING:
10 THINGS TO KNOW ABOUT THE PROPOSED FINANCING INSTRUMENT 
 

10 THINGS TO KNOW ABOUT THE PROPOSED PROGRAM-for-RESULTS FINANCING INSTRUMENT
 

In today’s world, development is about results. Every one—including government officials, parliamentarians, civil society, poor people, private sector—is demanding programs that help deliver lasting, tangible results. Read more on Program-for-Results Financing.


10. Innovative new financing instrument for scaled-up results.
 

PforR is the first major development financing instrument to formally link disbursements to the achievement of tangible results. PforR will help countries achieve lasting results by investing in capacity building and strengthening country institutions. Under a PforR operation, the Bank will provide a fraction of the overall funding for a larger, developing country program but will be able to provide its technical expertise and capacity building support to a larger range of government spending. Along with its financing, the Bank will also apply fiduciary, environmental & social and anti-corruption oversight, greatly enhancing its ability to raise standards in a broader range of developing country programs.


9. PforR will help build country institutions and capacity.
 

By aligning more of its support directly with government programs, focusing directly on systems improvement and capacity building, and working in partnership with governments and other stakeholders to reorient programs to be more results-based, the Bank will help country efforts to build stronger and more effective institutions.


8. Disbursement will be linked to tangible, verifiable results.
 

PforR will support the program’s results. In each operation, a specific set of results will be selected as disbursement-linked indicators (DLIs) and provide the basis of release of funds. The Bank and government will agree on the verification protocol for each DLI, which will be publicly available. In addition, as part of the overall assessment process, the Bank will assess the Monitoring & Evaluation capacity of participating institutions to identify gaps and capacity building activities.

 
7. PforR helps the Bank maintain its commitment to the highest fiduciary standards.
 

PforR allows the Bank to enhance its impact and ability to raise fiduciary standards in a broader range of developing country programs. The Bank will apply fiduciary assessments to the entire government program and not just the portion it finances. Contracts above specific monetary thresholds will be excluded.


6. Managing environmental and social impacts – all Category A activities will be excluded.
 

All Category A activities (activities that pose a risk of potentially significant and irreversible adverse impacts on the environment and/or affected people) will be excluded from PforR. The environmental and social systems will be assessed thoroughly, and the assessment will be publicly disclosed. There will also be consultation on the systems assessment, while it is still in draft form, with key stakeholders. The final assessment will also be made publicly available. Agreed actions to mitigate identified risks will be monitored throughout implementation. In some cases, they will be used to trigger disbursements.


5. PforR expands the Bank’s leading role in fighting fraud and corruption in development.
 

The Bank, through its Integrity Vice Presidency (INT), will have the right to investigate allegations of fraud and corruption in the entire program supported by PforR and not only those related to the portion financed by the Bank. The Bank’s sanctions regime and its debarment list will also apply to the program. The Anti-Corruption Guidelines for the instrument will be binding for all operations. Up-front fiduciary assessment will also include the risks of fraud and corruption. Results of these assessments will be publicly available.


4. PforR will be subject to the same oversight functions as Investment lending.
 

The independent corporate oversight units—Inspection Panel (IPN), Integrity Vice Presidency (INT), the Internal Audit Department (IAD), and the Independent Evaluation Group (IEG)—will oversee PforR operations.



3. PforR builds on more than a decade of experience
 

Many of the features of PforR have already been piloted through program-based operations under Investment Lending over the last 10 years. PforR takes these lessons, and those from the experience of other agencies that have tried similar approaches, into account. The Bank will also put in place enhanced corporate oversight in the early years as well as a limit on lending for PforR. An early review of implementation will be shared with the Board and publicly disclosed. An evaluation by the Independent Evaluation Group is also planned. There will be enhanced corporate oversight.


2. PforR supports the Bank’s commitments on aid effectiveness.

PforR will help strengthen partnerships with government, development partners and other stakeholders by providing a platform to collaborate in larger country programs. PforR will further enhance development effectiveness by putting country-led development results at its core; supporting country efforts for institutional development; and improving transparency, governance and accountability of country programs.

1. The Bank will use the instrument cautiously.

In the first few years, lending will be limited. Additionally, Category A activities and high value contracts will be excluded from PforR. The Bank’s commitment to openness and transparency will be applied to the entire program that we support - our Access to Information policy will apply to PforR. We will prepare a progress report after two years of implementation which will be discussed with the Bank’s Board of Executive Directors & disclosed publicly. An early evaluation of implementation by the Independent Evaluation Group is also planned



Last updated: 2011-11-17