Acronyms Program-for-Results May 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 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 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 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 Disbursement mechanism Implementation mechanisms Purpose Complementary Lending Instruments 5

Acronyms 3 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

Acronyms 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? 4

Acronyms 2 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 1 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 6 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: Risks Developmental Constraints Program Results and Definition

Acronyms The Bank conducts four types of assessments: Assessments Technical Fiduciary Environmental & Social Environmental & Social Integrated Risk Integrated Risk 7

Acronyms 8 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 9 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) 10

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. 11 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 12 Program outcomes: % of deliveries attended by skilled birth providers Program outcomes: % of children aged months immunized with Pentavalent 3 vaccine

Acronyms 13 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 14

Acronyms PforR Pipeline Operations (as of April 2013) Morocco Nepal Tanzania Uganda Ethiopia Indonesia Mozambique Uruguay VietnamKenya India Bangladesh 15 Brazil Pakistan Croatia Moldova

Acronyms Examples of approved Operations OperationSectorExamples 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 TransportCompletion of major maintenance of bridges and of building/improvements to new bridges on national network Tanzania – Urban Local Government Strengthening Program UrbanLocal 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 TransportNumber of km of the National Road Network: (i) rehabilitated with minimum quality level; and (ii) maintained through performance-based contracts

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