Acronyms Early PforR experience – Exchanging views and emerging lessons CGD, Washington DC, November 27, 2012
Mar 30, 2015
AcronymsEarly PforR experience – Exchanging views and emerging lessons
CGD, Washington DC, November 27, 2012
Acronyms
• Development Effectiveness and Client Demand – PforR responds to client demand that could not be fully met through existing instruments; it enhances development effectiveness of client programs and of development assistance
• Focus on Results – PforR places attention on results through more direct linkage of funding to the achievement of verifiable results and performance actions
• Institutional and Capacity Building – By using program institutions and systems, PforR will strengthen institutions/capacity of the whole program
• Enhanced Partnerships – PforR provides an opportunity to improve coordination among development partners in government programs
Why did the Bank develop the PforR?
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Implementation Mechanism
How does PforR complement the Bank’s menu of instruments?
Funds for specific expenditures
Funds for non-earmarked general
budget support
Funds for specific expenditure
program
Bank IL rules and procedures
Country policy processes
Project Lending (IL)
Policy Lending (DPL)
Program Lending (PforR) Program systems
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Where are we?
• The five first operations were approved by the Board totaling $881 million of Bank financing supporting a total of $2,28 billion of government programs
• An additional 15 operations are in the pipeline for approval by July, 2013
• Operations approved to date are in five different regions in a range of country typologies (from fragile states to MICs)
• The sectoral breakdown is also diverse with operations in transport, human /social development, urban and so forth.
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PforR Pipeline Operations
MoroccoNepal
TanzaniaUganda
Ethiopia
IndonesiaMozambiqueUruguay
VietnamKenya
MauritaniaIndia
Bangladesh
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Brazil
Pakistan
Acronyms
The five 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
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…but, risk of falling short of potential?• Concerns about the exclusions• Clients voice concerns about intrusive nature of some aspects especially
on right to investigate
Early feedback
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‘PforR proves to be useful in different
countries and sectors’
‘we appreciate the reduced transaction processes’
‘deeper focus on results’
‘shift in the dialogue with government
counterparts ’ ‘game
changer’
‘extremely welcome’
‘more interagency dialogue between
government agencies ’
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• DLIs range from outcomes to outputs, processes, and actions depending on the specific nature of the program
e.g. Morocco Communities: percentage of girls who reside in the educational dormitories graduating to the next gradeUruguay Transport: cumulative number of kilometers of the Uruguay National Road Network rehabilitated at a minimum quality levelVietnam Water and Sanitation: disclosed provincial annual plan and progress report for each province
• Verification arrangements haven been agreed that are acceptable to the Bank and ensure credible verificatione.g. Nepal Bridges: reputable firm financed by third party (AusAID)
Tanzania Local Govt.: government-contracted reputable firm with TORs satisfactory to the Bank
Early findings
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• In general, the assessments have allowed to open good dialogue about systems, their performance and how best to improve thate.g. Tanzania Local Govt.: in the expenditures area, the technical assessment
identified partial budget transfers from central to local governments as a cause for under-performance, and made full transfer a condition of DLI disbursementUruguay Transport: in the fiduciary area, quantitative indicators were defined to measure the performance of the Uruguay's Road Administration procurement system, and a study to be undertaken to identify the key obstacles to shorter bids evaluation periods, and propose related measures
• Grievance/complaint mechanisms have been identified or developed, taking into account the specific nature of the programe.g. Tanzania Local Govt.: mechanism to be put in place by local governments as
a Minimum Access Condition to access infrastructure financingMorocco Communities: existing government program mechanisms with specific improvement
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Early findings (cont’d)
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• Environmental and social impacts are limited• Category A type activities are not part of the Program scopee.g. Nepal Bridges: 2% of the bridges were excluded given their potential
effects on environmentally sensitive areas• PforR Programs are also expected to have positive effectse.g. reduce risk of flooding and soil erosion (e.g. Tanzania Local Govt.),
reduced transportation cost (e.g. Uruguay Transport)increased percentage of the population provided with access to improved water supply in targeted rural communes (e.g. Morocco Communities)
• Priority Capacity building measures have been included in Programs, linked to specific DLIs and/or included in the PforR operation’s Program Action Plan
e.g. Nepal Bridges: DLI #4 Strengthened performance management in bridge sector (percent works complete on schedule)Morocco INDH2: DLI #7 Percentage of provinces and prefectorates in the Program Area which have put in place a plan of action to address audit recommendations
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Early findings (cont’d)
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• The PforR instrument has been adapted to varying country and sector contexts
• Each operation reflects the nature of the individual Programs in which they operate
• Program systems have been assessed as respecting policy requirements, and as being supportive of Program results with improvements as necessary
• Overall, risks to results have been assessed to be manageable
• Overall engagement and discussions on results and DLIs have fundamentally changed the dialogue between Clients and the Bank
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Summing up
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Exchange of views and lessons - what’s next?
• Want to continue the conversations• Keep the spirit of a learning approach to
the instrument• Events include
• Internal/external peer learning events (e.g. on results)
• 2013 Spring/Annual Meetings events
• Exchange of views and lessons by email to [email protected]
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For more information, please visithttp://www.worldbank.org/ProgramforResults