AcronymsProgram-for-ResultsMay 2013

Acronyms

Policy Support Lending (DPL)

Supports policy and institutional actions

Disburses against policy and institutional actions

Country Policy Processes

Non-earmarked funds for general budget support

Program Support Lending (Program-for-Results)

Supports government programs or subprograms

Disburses upon achievement of results and performance

indicators

Program systems

Funds for specific expenditure program

Project Support Lending (IL)

Supports specific investment operations

Disburses against specific expenditures that support the

operation

Bank IL rules and procedures

Funds for specific expenditures

Disbursementmechanism

Implementationmechanisms

Purpose

Complementary Lending Instruments

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Acronyms

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An Instrument for Better Partnership

PforR provides an opportunity to improve coordination among development partners in government programs

• Will allow the World Bank to effectively support larger programs

• Facilitates leveraging by financing a small part of a large government program

• Facilitates co-financing in pooled funding arrangements

• Complements grant-funded Technical Assistance programs

Acronyms4

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It finances and supports borrowers’ programs –sectoral or subsectoral, national or subnational

It disburses upon achievement of program results, not inputs

It focuses on strengthening the institutional capacity needed for programs to achieve their desired results

It provides assurance that Bank financing is used appropriately and that the environmental and social impacts of the program are adequately addressed

What are the key features of Program-for-Results?

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Acronyms

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An Instrument for Strengthening Institutions

By using program institutions and systems, PforR will strengthen institutions and the capacity of the whole program

• Results are sustainably produced by country institutions

• Instrument is designed to help build institutions, capacities and country systems

• Supports incentives within government programs to enhance focus on and delivery of results

Acronyms

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An Instrument for Incentives Towards Results

PforR places attention on results through more direct linkage of funding to the achievement of verifiable results and performance actions

• Disbursements linked to results or performance indicators

• These can be outputs, outcomes, or other actions/results

• Definition of tangible, transparent, and verifiable disbursement-linked indicators

• Monitoring and evaluation

Acronyms

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Use of the Program-for-Results Instrument

• PforR can be used by any country in support of a program(s) or sub-program(s)

• PforR will not support investments (within programs) with:

– Potentially significant, irreversible impact on the environment and affected people (typically Category A)

– Investments requiring high value and/or complex procurement packages

• Bank decisions on the feasibility and scope of PforR take into account three primary considerations:

RisksDevelopmental Constraints

Program Results and Definition

Acronyms

The Bank conducts four types of assessments:

Assessments

Technical

Fiduciary Environmental & Social

IntegratedRisk

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Acronyms

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What are the assessments about?

• The Bank works in close partnership with the Client to assess the technical aspects of the program and the systems supporting the program.

These are the key questions that guide the work on the assessments:– Do systems embody the principles of the policy (OP 9.00)?– Do systems and/or institutional capacity provide reasonable

assurance to achieve Program results?– What are the system and/or capacity improvements that the

government can realistically implement under the Program?

Acronyms

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What are Disbursement Linked Indicators?

• PforR operations would include a set of “disbursement-linked indicators” (DLIs) - the basis for disbursements

• Indicators are driven by outputs, outcomes, intermediate outputs, process/performance indicators

• DLIs should be indicators that are: tangible, transparent, verifiable, and under government’s influence

• If DLIs are partially met, then there will be partial disbursements

Acronyms

Examples of DLIs

Implementation of an improved system for managing procurement (Public Sector Mgmt)

Time to start a business (Private Sector Development)

Percent of women receiving antenatal care; immunization coverage (Health)

Percent of municipalities with paved access (Transport)

Strengthening of school-based management system (Education/Governance)

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Acronyms

Examples of DLIs from current operations - Morocco

System improvements: % of key staff (in specific units) trained in environmental and social safeguards and

management guide.

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Participatory governance: % of women and youth in local governance bodies

Access to services: % population provided with access to improved water supply in INDH rural communes

Acronyms

Examples of DLIs from current operations - Ethiopia

System improvements: Health Centers reporting Health Management Information System (HMIS) data in time

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Program outcomes: % of deliveries attended by skilled birth providers

Program outcomes: % of children aged 12-23 months immunized with Pentavalent 3 vaccine

Acronyms

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• The Bank provides implementation support by:

—Reviewing implementation progress and achievement of results and DLIs

—Providing support on resolving emerging issues and building institutional capacity

—Monitoring the adequacy of systems performance—Supporting the borrower in monitoring changes in risks

• When a DLI has been achieved, the borrower informs the Bank and provides any evidence agreed in the DLI verification protocol

• The DLIs may be modified following normal Bank project restructuring procedures

Implementation Support

Acronyms

Where are we?

• The seven first operations were approved by the Board totaling $1.131 billion of Bank financing supporting a total of $3.13 billion of government programs

• An additional 4 operations are in the pipeline for approval by July 2013 and 4 operations by December 2013

• Operations approved to date are from five different regions and represent a range of country typologies (from fragile states to MICs)

• The sectoral breakdown is also diverse with operations in transport, health, social development, water and sanitation, and urban development

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Acronyms

PforR Pipeline Operations(as of April 2013)

MoroccoNepal

TanzaniaUganda

Ethiopia

IndonesiaMozambiqueUruguay

VietnamKenya

IndiaBangladesh

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Brazil

PakistanCroatia

Moldova

Acronyms

Examples of approved Operations

Operation Sector Examples of selected DLIs

Morocco – National Initiative for Human Development (Phase II)

Social Development

• % girls who reside in the educational dormitories graduating to the next grade• % population provided with access to improved water supply in targeted rural communes by the Program

Nepal – Results-Based Bridges Improvement and Maintenance

Transport Completion of major maintenance of bridges and of building/improvements to new bridges on national network

Tanzania – Urban Local Government Strengthening Program

Urban Local govts. with strengthened institutional performance achieving: (i) Program minimum conditions; and (ii) performance score (annual assessment)

Vietnam – Results-Based Rural Water and Sanitation

Water and Sanitation

Number of people (i) having working water supply connections from systems that are sustainable: and (ii) benefiting from commune-wide sanitation in new communes

Uruguay – Road Infrastructure Program for Results

Transport Number of km of the National Road Network: (i) rehabilitated with minimum quality level; and (ii) maintained through performance-based contracts

Acronyms

For more information, please visithttp://www.worldbank.org/ProgramforResults