An Introduction to World Bank Organization and Operations Jean-Charles Crochet Senior Transport Economist World Bank

What does the World Bank finance? Goods (equipment and materials, machines, computers and software, spare parts, etc) Civil works (road rehabilitation and maintenance, rail track rehabilitation, port facilities, buildings, border crossing facilities, etc) Consultants ’ services (for institutional development, strategy studies, feasibility studies, drafting of laws and regulations, etc) Training (tailor-made courses, courses abroad, creation of training institutes, etc)

World Bank funding is generally provided for projects A project is a package of complementary items selected to fulfill some clear objectives Objectives should be well specified in terms of final results and, for each project, their number should be limited The fulfillment of objectives is monitored by quantitative indicators

How are projects selected? There must be an agreement between the borrowing country and the Bank that the project ’ s objectives are important for the country The project ’ s objectives must be consistent with those of the Bank assistance strategy for the country The project must contribute significantly to the country ’ s strategy for improving the efficiency of the sector The project must eventually be proven as technically sound, having good economic benefits, and complying with environmental and social criteria

Examples of project (1) Rural Roads Project Rehabilitation of (for example) 1,000 Km of rural roads in two or three regions Provision of equipment and software for the road administration for improving monitoring of road network and planning of expenditures Consultants ’ services for improving organization of road administration, helping development of road contractors, improving road transport regulations Training of road administration staff

Examples of Project (2) Urban Public Transport Rehabilitation and/or construction of fixed infrastructure Rehabilitation of rolling stock or purchase of new one Provision of equipment, for example for traffic control Consultants ’ services for preparation of transport plans, strengthening city transport departments, improving regulations, helping introduce private operators, etc

Examples of project (3) Trade and Transport Facilitation Extension and modernization of facilities at border crossing Information systems, hardware, software for improving performance of customs Consultants ’ services for improving inspection procedures, international transport regulations, monitoring systems, etc Training of staff of customs, freight forwarders, transport operators, etc

How are projects prepared and approved? Project identification Project preparation Project appraisal and negotiations Project approval and loan signature

Project identification Joint responsibility of the Borrower and the Bank Discussion and agreement on preliminary project objectives, project concept, and a preliminary list of items that may be included in the project Agreement on a program of (technical, economic, environmental, social, etc) studies for detailed preparation of the project, including funding and schedule for carrying out the studies

Project preparation Responsibility of the Borrower Execution of all studies agreed during identification Analysis of the feasibility of alternative ways to fulfill objectives Analysis of implementation process and formulation of implementation arrangements

Project appraisal and negotiations Appraisal is the responsibility of the Bank Justification of all project components is reviewed Agreement on project description, cost estimate, loan amount, and implementation schedule Review of Borrower ’ s procurement capability for procurement and financial management Agreement of procurement and financial management procedures Any complementary measures necessary for project success are agreed Loan agreement is negotiated and agreed

Project implementation Responsibility of the Borrower Bank monitors implementation Purchase and installation of goods Bidding and execution of civil works Execution of consultants ’ services Execution of training At the end of the project, a completion report is prepared

Time line From identification to negotiations: 9-24 months From approval to completion: 3-6 years

Bank activities other than projects Economic and sector analysis – strategy notes Activities financed by trust funds (Japanese PHRD, PPIAF, GEF)