Acronyms Program-for-Results An Implementation Update October 10, 2013

Acronyms PforR objective Help clients improve the efficiency of their programs of expenditures and achieve lasting results by strengthening institutions and building capacity PforR key features Finances and supports clients’ programs of expenditures, using program systems Disburses upon achievement of program results, not inputs Focuses on strengthening the institutional capacity needed for programs to achieve their desired results Provides assurance that Bank financing is used appropriately and that the environmental and social impacts of the program are adequately addressed 2 Program-for-Results (PforR): Key features

Acronyms Where can PforR be used? 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-type) – Investments requiring high value and/or complex procurement packages Bank decisions on the feasibility and scope of PforR take into account three primary considerations: 3 Risks Developmental Constraints Program Results and Definition

Acronyms Implementation Mechanism A complementary financing instrument Funds for specific expenditures Funds for non- earmarked general budget support Funds for specific expenditure program Bank IPF rules and procedures Country policy processes Investment Project Financing (IPF) Policy Lending (DPL) Program Lending (PforR) Program systems 4

Acronyms What does Program-for-Results involve? Identification of government program(s) of expenditures (or part thereof) to be supported Identification of key program results and definition of DLIs Assessment of the program, from technical, systems and risks aspects Identification of actions to enhance capacity and systems performance, as needed Implementation Support, i.e. Bank support to client in implementing its program in accordance with agreements reached with the Bank during preparation of the PforR operation 5

Acronyms What are the assessments about? The Bank works in close partnership with Clients to conduct three assessments of the government program to be supported The technical assessment reviews the program’s rationale, technical soundness, appropriateness of implementation arrangements, the program’s expenditure framework, economic analysis, results framework and M&E system The fiduciary systems assessment and the environmental and social systems assessment (ESSA) aim to answer the following questions: – Do systems embody the principles of the PforR Bank policy? – Do systems and/or institutional capacity provide reasonable assurance to achieve program results? – What are the system and/or capacity improvements that the Client can realistically implement under its program? – The ESSA consultation process provides an excellent opportunity to inform stakeholders about PforR instrument and the scope and breadth of the programs supported by PforR. Agreed improvements are carried out by Clients as part of implementing their programs 6

Acronyms Disbursement Linked Indicators (DLIs) DLIs are driven by outputs, outcomes, intermediate outputs, process/performance indicators and are the basis for disbursement Operations approved to date rely on 53 DLIs, of 22 were output related, 21 were intermediate outcome related, 6 were actions related, 2 were process related and 2 were performance related DLIs indicators should be: tangible, transparent, verifiable, and under government’s influence If DLIs are partially met, then there can be partial disbursements Verifications arrangements have to be put in place, typically handled by government independent entities (usually in charge of conducting audits) or by private firms 7

Acronyms From Design to Implementation 8 Eight operations approved by the Board totaling $1.4 billion of Bank financing supporting a total of $3.9 billion of government programs. About 10% of Bank financing has been disbursed to date Another sixteen operations under preparation, for $2.3 billion of Bank financing. Operations approved to date are in five different regions in a range of country typologies (from fragile states to MICs) 74% were in IDA countries 55% in Africa, 22% in MNA, 14% in EAP, 5% in LAC and 4% in SA The sectoral breakdown is also diverse with operations in transport, human /social development, urban and so forth 29% in Urban, 22% in Social Development, 18% in Social Protection, 15% in Water and Sanitation, 9% in Transport and 7% in Health * percentages are based on financing amounts

Acronyms Approved Operations OperationSectorProgram descriptionProgram CostBank financing Ethiopia – Health Millennium Development Goals HealthSupport implementation of the Health Sector Development Plan to reach MDG targets $ million$100 million Kenya – National Integrated Safety Net Program Social Protection Support poor and vulnerable households by supporting the government to (i) scale-up existing cash transfers,(ii) increase harmonization of existing programs through the establishment of core operational systems,and (iii) develop a strong governance and accountability framework. $ million$250 million Morocco – National Initiative for Human Development ( II) Social Development Improve access to and/or use of enhanced participatory local governance mechanisms, basic infrastructure, social services and economic opportunities. $1,115 million$300 million Nepal – Results-Based Bridges Improvement and Maintenance TransportProvide safe, reliable and cost effective bridges on Nepal's Strategic Roads Network. $147.9 million$60 million Tanzania – Urban Local Government Strengthening UrbanImprove institutional performance for urban service delivery in participating urban local governments $255 million Vietnam – Results-Based Rural Water and Sanitation Water and Sanitation Support eight provinces in the Red River Delta region in providing sustainable water supply, sanitation and hygiene services. $260 million$200 million Uruguay – Road Infrastructure Program for Results TransportImprove transport efficiency, through rehabilitation and maintenance of the national road infrastructure and enhanced public sector capacity. $510 million$66 million Uganda – Support to Municipal Infrastructure Development UrbanEnhance the institutional capacity of selected municipalities to address urban service delivery gaps. $160 million$150 million

Acronyms Examples of DLIs from current operations 8 Nepal Results-Based Bridges Improvement and Maintenance System improvements: % of bridge works completed on planned schedule Ethiopia – Health Millennium Development Goals Program outcomes: % of deliveries attended by skilled birth providers Morocco National Initiative for Human Development (Phase II) Program Access to services: % population provided with access to improved water supply in INDH rural communes

Acronyms Examples of Actions to Enhance System Performance 8 Morocco - National Initiative for Human Development (INDH) Phase II Program upgrade of INDH Grievance Redress Mechanism Uruguay - Road Rehabilitation and Maintenance Program development of environmental audit system for works Tanzania - Urban Local Government Strengthening Program establishment of a Records Keeping Management System

Acronyms PforR Pipeline Operations (as of October 2013) 12 Morocco (2) Nepal Tanzania Uganda Ethiopia Indonesia (2) Mozambique Uruguay VietnamKenya India Bangladesh Mexico Pakistan (2) Croatia (2) Moldova Brazil Bolivia

Acronyms Informal, Initial feedback 13 Feedback (through Task teams) positive about reception with appreciation for reduced Bank transaction processes Client countries welcome the use of their own systems Like the results focus Results are major focus during design and discussion of operations ‘More intellectual engagement’ in implementation support Increased choice in Bank financing instruments allow for better matching of needs on the ground Welcome the use of program systems that helps with better coordination of other activities However, some concerns have also been raised: The weighty process associated to the assessments Some exclusions force artificial definition of programs, more so from the procurement side ACGs are intrusive and transactional in nature As a result, at times the definition of the programs becomes artificial

Acronyms The Bank’s Board asked that an initial review of experience with PforR be conducted after about 2 years of implementation The review is being designed and will aim to: – assess the early experience with the design and implementation of PforR operations; – identify emerging early lessons and recommend proposed changes to the PforR framework, as needed. The review will draw on feedback from Clients, development partners, civil society, private sector and Bank staff – Feedback will be collected through surveys, consultations and in-depth interviews. – Consolidated feedback will be made available internally and externally. Timeline: review to start in November, and expected to be completed within 6-8 months 14 The upcoming Initial PforR Review

Acronyms Information on PforR Operations All approved operations and related documents and assessments are on the website The pipeline of operations is also on the website as well as the project information documents The two year review information will be posted as it becomes available Please visit the website:

Acronyms 16 THANK YOU!